Refining the WTO Trade Facilitation Agreement in the Face of an Uncertain Trade Environment: Challenges and Opportunities

Abstract

In the current protectionist trading environment that undermines the multilateral trading system, the Trade Facilitation Agreement (TFA) is the first and only global trade agreement that has been successfully negotiated since the creation of the World Trade Organization (WTO). The TFA consists of provisions to achieve the objectives of transparency, non-discrimination and expedition of movement of goods by harmonising customs formalities and procedures. The Special and Differential Treatment provision is an innovative and flexible step that grants developing countries and least developed countries (LDCs) the right to self-determine their transition periods for full implementation. However, the implementation of the TFA could face tangible roadblocks with the rise of uncertainty in the multilateral trading environment that could weaken the confidence in WTO institutions like the Trade Facilitation Agreement Facility. The overhaul required to implement the TFA could face potential conflicts with domestic public interests like national security, public health and environmental concerns. The TFA Committee could act as an important conduit to encourage full implementation; along with efforts to strengthen communication lines between custom offices and domestic public authorities. Moreover, given the important role of developing country Members to global trade in the coming decade, the WTO should be more responsive to persuade Members to seriously consider the set agenda for negotiations to develop the proposed TF agreement for trade in services.