Understanding The World Trade Organization

Trade Facilitation Agreement

Purpose and Content of the Trade facilitation

Agreement

Olumuyiwa B. Alaba
The Focus and Principles
of the TFA
Purpose of the TFA

“set measures for effective

“….to expedite the cooperation between
movement, release and customs and other
clearance of goods including appropriate authorities on
the ones in transit”. trade facilitation and
customs compliance issues”.
The Objectives of the TFA

To speed up customs procedures

To make trade easier, faster and cheaper

To provide clarity and transparency, and address red-

tapes in goods clearing processes
Principles of
the TFA
Content of the TFA
 Section 1:
Technical Provisions
Section 2:
Standard and
Differential Treatment
 Standard and Differential Treatment (SD&T)

• Nature and Purpose of the SD&T

• First introduced during the Doha Round under the Doha Development Agenda
(DDA);
• SD&T “allows for differentiated treatment for developing countries with the WTO
system by justifying and deviation from the most-favoured-nation (MFN)
obligation”;
• “it is the privileged treatment offered to developing nations at the WTO based on
the understanding that the needs of these countries are substantially different
from those of developed nations’;
• “the special provisions include: longer time period for implementing agreements
and commitments”.
Standard and Differential
Treatment (SD&T)
• Origin of the SD&T
• History international trade – Theoretical
Perspective.
• Mercantilism – Pure Mercantilists and
Bullionists
• Complete Trade Liberalization
• Traditional Theories of Trade – Smithian
Theory, Ricardian Theory etc.
• New Theory of Trade
• Theory of fairness: makes provisions for
trade negotiations
Application of SD&T in the TFA

• Classification of nations based on the three categories recognized by the WTO –

developed, developing and least developed countries;
• Categorization of commitments into three categories
• Category A: commitments that must be implemented immediately upon
entering into force
• Category B: commitments that countries have capacity to implement but
require adjustment period
• Category C: commitments countries have no capacity to implement unless it
access voluntary technical assistance from developed countries and other
categories of donors
Section 3:
Institutional
Arrangement
Establishment of the National Trade Facilitation
Committee (NTFC)
• Chaired by the FMITI
• Co-Chaired by the NCS
• Membership:
• Key Trade Regulators
• The Private Sector
Thank You
obalaba@gmail.com