The World Trade Organization’s (WTO), Trade Facilitation Agreement (TFA) which came into force on February 22 will be a game changer for international trade and local businesses engaging in imports and exports will be the main beneficiary of improved efficiency of border administrative procedures, Sri Lanka Shippers’ Council said.
TFA came into force with the ratification of two- thirds of WTO members and some estimates suggest that implementing trade facilitation reforms can bring bigger benefits for global businesses than tariff liberalization. TFA 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.
Developing countries like Sri Lanka can divide implementation of the agreement into three categories.
Accordingly under the category A , the member will implement provisions by the time the agreement enters into force or in the case of a least developed country within one year after entry into force.
Under the category B, the member will implement provisions after a transitional period following the entry into force of the agreement, while under the category C, member will implement provisions on a date after a transitional period following the entry into force of the agreement and requiring the acquisition of assistance and support for capacity building.
Sri Lanka has already submitted its category A commitments.
“The Sri Lankan government has to implement these immediately without waiting for the full two year period allowed under the TFA, as it will boost the economy’s competitiveness.”
The country is expected to provide Category Band C commitments soon.
“When submitting what the country will do under category B, the government first has to give indicative dates of implementation and within one year has to provide definitive dates of implementation.”
Sri Lanka being country , where implementation of policies, promises by government remains weak , the council says the TFA provides a trading community with a good opportunity to lock in implementation dates.
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