Wto Tariff Agreement
The World Trade Organization (WTO) has been working on a tariff agreement that aims to reduce trade barriers between member nations. The agreement, known as the WTO Trade Facilitation Agreement (TFA), was finalized in December 2013 and entered into force in February 2017. This article will explore what the WTO tariff agreement entails and its implications for global trade.
What is the WTO Trade Facilitation Agreement?
The WTO Trade Facilitation Agreement is a global agreement aimed at simplifying and streamlining customs procedures and reducing trade barriers. The agreement covers areas such as border procedures, documentation requirements, clearance times, and fees and charges.
The agreement obligates member countries to:
– Publish information on trade regulations and procedures
– Provide advance rulings on import requirements
– Establish a single window for submitting information and documents
– Ensure that border procedures are transparent, efficient, and predictable
– Improve cooperation between customs and other authorities
– Introduce measures to prevent corruption and fraud
The WTO tariff agreement also includes provisions for technical assistance and capacity building, especially for developing countries. Developed countries are expected to provide assistance to developing countries to help them implement the agreement.
Implications for Global Trade
The WTO tariff agreement is expected to have a significant impact on global trade. According to the WTO, the TFA could reduce trade costs by up to 14.3% for developed countries and up to 16.5% for developing countries. This could result in an increase in global trade of up to $1 trillion.
The agreement is also expected to benefit small and medium-sized enterprises (SMEs) by simplifying customs procedures and reducing trade costs. SMEs often face challenges in accessing international markets due to the complexity and costs of customs procedures, and the WTO tariff agreement could help to alleviate these obstacles.
The TFA is also expected to promote greater transparency and predictability in international trade. By establishing clear and consistent customs procedures, the agreement could reduce the risk of arbitrary and discriminatory practices by customs officials, which can hinder trade.
The WTO Trade Facilitation Agreement is an important milestone in the WTO`s efforts to promote global trade. The agreement aims to simplify and streamline customs procedures, reduce trade costs, and promote transparency and predictability in international trade. The agreement is expected to have a significant impact on global trade, particularly for SMEs and developing countries. The successful implementation of the WTO tariff agreement will require cooperation and commitment from all member nations and technical assistance for developing countries.