Trade Facilitation Agreement Multilateral

In the two years since it came into force, 141 out of 164 countries have ratified the agreement, representing 86% of WTO membership (the TFA being applied on the basis of the most favoured nations). 12 of the other 22 countries are LDCs. Nine countries have not ratified the TFA and have not communicated the commitments of Categories A, B and C. This means that the level of development can have a direct impact on the complexity of legal systems and on countries` ability to assess what they have to do, prompting donors and development partners to assist in legal processes. The agreement will also help to make the critical practical barriers to international trade redundant. The most prosperous countries in the agreement have pledged to reform the technical and financial processes of developing countries to improve their effectiveness. This, in turn, hopes to reduce corruption as bribes in these national regions. New technologies and more efficient procedures, which reduce the “bureaucracy” associated with international trade, should limit corruption by limiting their need. [6] According to a 2015 study by WTO economists, full implementation of ADTs will reduce members` trade costs by an average of 14.3%, with developing countries being the most affected, according to a 2015 study by WTO economists. In addition, the TFA is expected to reduce the time required to import goods by more than one and a half days and by almost two days for the export of goods, a reduction of 47% and 91% from the current average.

Based on transnational data from the World Bank`s Global Enterprise Survey (WBES), this paper, together with the OECD Trade by Enterprise Characteristics (TEC), examines the relationship between the trade facilitation environment – measured by OECD trade facilitation indicators (IFT) – and various measures of international SME engagement. Ratify – the sooner the better: the developing countries that will ratify the agreement in the coming months (and hopefully not years) have already missed some critical deadlines that will prevent them from using as much as possible the specific and differentiated provisions for the treatment of ADTs. In addition, it is essential to facilitate trade for perishable agricultural products and high-tech manufacturing components, both of which are highly sensitive to delays. Trade facilitation is increasingly important in the digital age, not less so.