General Review :- 

It is one of the new subjects added to the WTO work programme at the 1996 Singapore Ministerial Conference. Trade facilitation has no agreed definition; the term is used in different organizations to cover different ranges of activities. According to the WTO the definition at the broadest level is applied to include the work done by UNCTAD to encourage countries to establish national Trade Points which group together, either physically or electronically, the various agencies participating in foreign trade transactions so that they can provide the services required to complete such transaction efficiently and promptly. In the narrower sense, however, the term is applied to work on improving the documentary requirement and procedures imposed by countries to secure compliance with the rules applicable to traded goods at the time of importation, exportation, and during transit. Such measures include:

•           Customs control measures to obtain compliance with customs laws and regulations.

•           Technical regulations to ensure that goods meet the mandatory standards specified in national laws and regulations

•           Veterinary inspections of animals and animal products to protect animal and human life from the pests and diseases that they may carry.

•           Phytosanitary inspections of plants and plant products to prevent the introduction and the spread of pests

•           Quality control inspections to ensure that the goods correspond to the minimum international or national standards specified in relevant laws and regulations

             In some of the areas covered by the narrower definition, the WTO agreements carry provisions, which facilitate trade, as, can be seen below:

    1.     In the area of customs control measures

• Agreement on Customs Valuation

• Agreement on Rules of origin

• Agreement on Preshipment Inspection

•   Agreement on Import Licensing Procedures

         2- Compliance with technical, sanitary and phytosanitary   

                      Regulations:

• The Agreement on Technical Barriers to Trade and on the Application of Sanitary and phytosanitary Measures

• In addition GATT 1994

• Article V: Freedom of transit

• Article VIII: Fees and formalities connected with importation and exportation

• Article X: Publication and administration of trade regulation 

 

The benefits of the trade facilitation:

The benefits of the trade facilitation come from more efficient implementation of customs and related regulation and that by the reduction in paperwork and in the number of customs officials in ports of entry. -          Lowering trade transactions costs , it increased trade in goods and services and also increasing international investment, economic growth and living standards. -          Enhancing government controls and security -          Enhances competitiveness -          Supports global supply chains -          Integrated to e- business -          Builds transparency So proportionately, those with small trade volume typically poorer economies and Small and Medium sized Enterprises stand to win most from the trade facilitation. Also governments can gain by increased revenue and lower cost. Though local implementation of trade facilitation measures can benefit a country’s trade at national, regional and international level.

At the end I emphasize that Trade facilitation is a diverse and challenging issue with huge potential benefits.