Working session 7: Reducing trade costs: why speedy legislative action on the Trade Facilitation Agreement is of paramount importance.

Organiser: Inter-Parliamentary Union (IPU) and European Parliament
ROOM S3

The WTO Trade Facilitation Agreement (TFA), commonly perceived as the most important outcome of the Ninth WTO Ministerial Conference in Bali, is aimed at boosting global trade by expediting the movement, release and clearance of goods. Its entry into force requires domestic ratification by two-thirds of WTO Members. Parliaments play a key role in this regard. Their swift action to ratify the TFA is primordial for allowing all countries - particularly the least developed ones - to see the promised gains from growing trade and increasing foreign direct investment. The session is intended primarily for parliamentarians, but is open to all other participants at the WTO Forum, subject to the availability of seats in the room.

• Joanmariae Louise Fubbs, MP, South Africa
• Joseph Hyacinthe Owona Kono, MP, Cameroon
• Emma McClarkin, Member of the European Parliament
• Paul Rübig, Member of the European Parliament
• Siti Hediati, MP, Indonesia

Moderator: Bernd Lange, Chairman of the Committee on International Trade of the European Parliament

Summary

The panel focused the discussion on the Agreement on Trade Facilitation (TFA). The TFA is the first multilateral agreement to be concluded since the foundation of the WTO, and it requires that two-thirds of WTO members complete domestic ratification for it to come into force.

Joanmariae Louise Fubbs, member of the South African Parliament, said that there must be a collective response from WTO members. The South African commitment to multilateralism is expressed through the coordination of agencies, economic cooperation and innovative infrastructure systems. Donor support and technical assistance is required for a structural transformation, which is more difficult than just ensuring market access. Ms Fubbs underscored that a new generation of trade agreements must respect national policy contexts and sustainable development goals.

Joseph Hyacinthe Owona Kono, member of the Cameroonian Parliament, estimated that the role of parliaments in international trade is to ensure that the interests of all stakeholders – the state, consumers and producers – must be heard and engaged. He noted that TFA ratification unleashes broader regulatory change with potential to boost the socio-economic development of adhering members. Finally, Mr Kono asserted that Cameroon is committed to conclude TFA ratification.

Emma McClarkin, member of the European Parliament, noted that the TFA equally benefits developing and developed members. Fourteen-and-a-half per cent GDP growth is expected to result from the TFA. In her estimation, the TFA is concrete evidence that trade does not only favour developed members. The TFA will accelerate the liberalization of trade in low-income countries. Forty-four members are currently working on concluding ratification of the TFA.

Paul Rubig, member of the European Parliament, advanced his opinion that consumers should be protected from trade issues such as tariff escalation. In his estimation, the TFA is a mechanism that benefits consumers, and will reduce overly protective measures.

Siti Hediati, member of the Indonesian Parliament, said that Parliament's role is to hold governments accountable for pursuing the goal of multilateral trade. She announced that Indonesia is committed to the TFA as well as to the promotion of broader trade reforms. The Indonesian government has undertaken to review and enhance 534 economic regulations, including the streamlining of export licensing and customs-related procedures. It has also committed itself to enhancing infrastructure, including the renovation of 200 KM of roads, 10 airports and 10 seaports, and facilitating more capital investment to support technical and human capacity.

During the discussion, a representation of the United Parcel Services (UPS) asked about strategies to ensure the same level of efficiency of TFA provisions worldwide. A UK Member of Parliament said that the European Union can serve as role model for newly open economies in this instance.

A Member of Parliament from Botswana queried about the modalities of TFA ratification and the delivery of relevant technical assistance. Responses highlighted the value of regional trading partners taking stock of each other's potential capacity needs, and the provision of best practice examples at all levels.

The Chair of the Economic Investment Chamber of Jordan asked about the implementation of the TFA in conflict zones. Similarly, Mr Owona Kono raised a related concern, that of refugees and their impact on the economy. Discussion concluded that efforts should focus on adapting national regulatory systems to meet the challenges of globalisation. 

Another query focused on the support of the business community for the TFA. Mr Kono cited the TFA as a powerful tool to fight goods smuggling, black markets and unfair competition. Discussion concluded that the private sector is ready to support the TFA to reap those benefits as well as smoother customs transactions and trade-related procedures. 

Sursa: https://www.wto.org/english/forums_e/public_forum15_e/public_forum15_e.htm