WTO Problems Won’t Stop Trade Facilitation

This article first appeared in Law360 and has been reprinted here with permission.923716_34344390

World Trade Organization Director-General Roberto Azevedo has offered little hope for overcoming the obstacle presented by India in blocking the protocol necessary to finalize the WTO trade facilitation agreement reached in Bali Dec. 7, 2013.[1] Meanwhile, there is a great deal of discussion about what this means for the WTO, but what does it mean for trade facilitation? I would suggest that while this development means a lot to the WTO it means little to trade facilitation. The train has left the station as far as trade facilitation goes because countries and business appreciate the merits of its implementation.

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What Trade Facilitation Is and Why It Matters

file0001748937726The majority of people have heard the old saying: “the early bird gets the worm.” Well, the same holds true for trade facilitation – and there are a few good reasons why.

Trade facilitation creates a more efficient supply chain connectivity for improved international trading, builds economic and port infrastructure as well as interconnecting region suppliers in a more fluid and cost-friendly way.

But first, let’s back up a bit and give some history. . .

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Addressing Public Corruption is Fundamental to Trade Facilitation

Financial crisis flowchart on a chalkboardWith the finalization of a Trade Facilitation Agreement (“TFA”) at the conclusion of the 9th Ministerial Conference in Bali, Indonesia, on December 7, 2013 (see: https://mc9.wto.org/system/files/documents/w8_0.pdf), the World Trade Organization (“WTO”) proved that it is not dead. Significantly, the TFA is the first WTO trade agreement concluded since 1998 and the first fully multilateral trade agreement negotiated under the auspices of the WTO. The Organization for Economic Cooperation and Development estimates that these customs reforms would lower the total trade cost of shipping goods by 10 to 15 percent depending upon the country. Some expect implementation of TFA’s measures to boost global trade by an estimated $1 trillion and global GDP by nearly 5 percent. As stated by the Office of the United States Trade Representative, “it makes it easier for businesses big and small to participate in trade around the world – and to support jobs through that trade.” In other words, improved customs procedures and trade facilitation should help all companies, large and small, gain access to new export opportunities by providing predictability, simplicity and uniformity in customs and other border procedures.

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Trade Facilitation: A Critical Element for Africa’s Place in the Global Value Chain

17863428_HiResThe case for regional integration in Africa has been made, by Donald Kaberuka, President of the African Development Bank, as well as by other well-known African authorities. So the question that now arises is how can regional integration be accomplished? Large amounts of money – both public and private – are being expended for transportation infrastructure. Yet, there is an institutional deficiency that substantially impedes regional integration. It is the customs red tape and paper work at the border. These non-tariff barriers that cause customs delays and uncertainty obstruct regional integration just as much as inadequate infrastructure, thereby preventing Africa from finding its place in the 21st Century global value chain.

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After the Broken Broker: Protecting the Honest Broker Presented by the Customs Brokers & International Freight Forwarders Association of Virginia, Inc.

The Customs Brokers & International Freight Forwarders Association of Virginia, Inc. invites you to attend its monthly meeting and luncheon.

Evelyn Suarez will give a presentation entitled, “After the Broken Broker: Protecting the Honest Broker Presented by the Customs Brokers & International Freight Forwarders Association of Virginia, Inc.”

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