Panama on 17 November 2015 became the 52nd WTO member to ratify the new TFA.
The TFA, concluded at the WTO’s 2013 Bali Ministerial Conference, contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.
The TFA will enter into force once two thirds of the WTO membership has formally accepted the agreement. In addition to Panama, the other WTO members to have done so are: Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (its 28 member states), the former Yugoslav Republic of Macedonia, and Pakistan.
According to the WTO, the TFA has broken new ground for developing and least-developed countries in the way it will be implemented. For the first time in WTO history, the requirement to implement the TFA was directly linked to the capacity of the country to do so. In addition, the TFA states that assistance and support should be provided to help them achieve that capacity.
A Trade Facilitation Agreement Facility (TFAF) was also created at the request of developing and least-developed country members to help ensure that they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members.
Implementation of the WTO TFA has the potential to increase global merchandise exports by up to U$1 trillion per annum, according to the WTO’s World Trade Report released on 26 October 2015. The report also found that developing countries would benefit significantly from the TFA, capturing more than half of the available gains.
