The WTO and TRADEThe WTO and TRADE FACILITATION

Sheri RosenowWTO Trade Facilitation Section, TPR Division

Background:

Mandate for negotiation set out in Annex D of the J l k (2004)July package (2004)Member-driven: all proposals and final outcome from Member nationsfrom Member nations

Part of the DDA Single Undertaking

No specific definition of trade facilitation but Members mainly narrowed to 3 GATT ArticlesMembers mainly narrowed to 3 GATT Articles

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Existing WTO Legal FrameworkExisting WTO Legal FrameworkGATT Article X – Transparency• Publication• Administration of laws• Right to appeal GATT Article V – Freedom of

GATT Article VIII – Fees and Formalities

GATT Article V – Freedom of Transit

• Most convenient route• No discrimination

• Fees reflect cost of services rendered

• Reduce # and kind of fees

No discrimination• No unnecessary delays or

restrictions• No duties

• Simplify formalities and documents

• Minor penalty for minor errors

o dut es

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Mandate:Mandate:

Clarify and improve V VIII XWT/L/579WT/L/579-- Annex DAnnex D

Clarify and improve V, VIII, XSDT – go beyond traditional g ytransition periodsIdentify needs and prioritiesIdentify needs and prioritiesEnhance technical AssistanceNo obligation for infrastructureExtent timing of commitments

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Extent, timing of commitments related to capacity

WTO Trade Facilitation MandateWTO Trade Facilitation MandateObjectives: Scope:

• Expedite movement, release & clearance of goods

Transparency & Appeals

g

• Improve cooperation between

Import/Export Fees and Formalities

between customs/other authorities Freedom of Transit

• Enhance technical assistance and build capacity

Customs cooperation

SDT

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p y SDT

Technical Assistance

Negotiation ProgressionNegotiation ProgressionGeneral proposalsp p

Revised proposals in draft text formS C f ( / )Secretariat Compilation of Members’ proposals(W/43)

Consolidated Negotiating textConsolidated Negotiating text (TN/TF/W/165/Rev.1-6)

Streamlined Consolidated Negotiating text (TN/TF/W/165/Rev.7-?)

6WTO Trade Facilitation Agreement

WORLD TRADE

ORGANIZATION TN/TF/W/115/Rev.1 2 October 2007

( ) (07-4172)

Negotiating Group on Trade Facilitation Original: English

COMMUNICATION FROM HONG KONG CHINA JAPANCOMMUNICATION FROM HONG KONG, CHINA, JAPAN,KOREA, MONGOLIA AND SWITZERLAND

Revision

The following communication, dated 1 October 2007, is being circulated at the request of the The following communication, dated 1 October 2007, is being circulated at the request of the Delegations of Hong Kong, China, Japan, Korea, Mongolia and Switzerland.

_______________

PROPOSAL ON PRIOR PUBLICATION AND CONSULTATION 1. The following textual proposal is submitted by Hong Kong, China, Japan, Korea, Mongolia, and Switzerland for consideration by the Negotiating Group. It is closely based on the proposals on prior publication and consultation made in the joint communication TN/TF/W/102 of 10 May 2006 and takes account of the discussion and other submissions on this issue in the Negotiating Group. g g p

2. We acknowledge that some provisions require transitional implementation by developing-country Members because of their lack of capacity to meet the obligations. However, several core elements such as publication of trade-related law and regulations in accordance with Article X of GATT 1994 should be implemented by all the Members immediately upon the entry into force of the Trade Facilitation Agreement because of the basic nature of such provisions and the fact that the new agreement does not add any new

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obligations to the current system of GATT 1994. Similarly, we believe that national treatment, most-favoured-nation treatment, general and security exceptions provided for in Articles I, III, XX, and XXI of GATT 1994 should apply to all the Members immediately even if those concepts are not stipulated in the new agreement. The following is an example of text which explicitly incorporates Articles XX and XXI of GATT 1994 into the new agreement:

Before: Other Members Comments were recorded in margins Before: Other Members Comments were recorded in margins of negotiating textof negotiating text-- not in main text.not in main text.

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Consolidated TextConsolidated Text

ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION

TN/TF/W/165/Rev.6

ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION5. Single Window/One-time Submission

5.1 Members [[in so far as possible][where practicable]] [[shall][may]] y[endeavour to] [maintain or] establish a "single window" where documentation and/or data requirements for exportation, importation and transit [procedures] are submitted [by a trader resident in the Member state in question] [[one time only][to a single entry point]] [to all stakeholders in international trade procedures]. [[The single window shall undertake onward distribution of the aforementioned documentation and/or data requirements to all the relevant authorities [[or agencies which require them][and participating agencies]].][A single window will be responsible for distribution of documents and information for all the bodies involved in international trade.]] [After the examination by the relevant authorities or agencies of the documentation and/or data, [[the single window shall notify the results to the applicants][the results shall b ifi d h li h h h i l i d ]] i i l

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be notified to the applicants through the single window]] in a timely manner.]

Reading the Consolidated TextReading the Consolidated Text

• All language in [square brackets] must be g gnegotiated to be included or deleted

• Can be Article, phrase or wordCan be Article, phrase or word• Unanimous

Can still add text or [ ]’s• Can still add text or [ ]’s• Alt = different alternatives of a paragraph

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Member –Led Intensive SessionsMember Led Intensive SessionsPhase I (includes SDT)

Goal: to streamline texts- reduce [brackets]F ilit t d i lifi d t t fFacilitators proposed simplified text for

discussionTransparency and inclusiveness Streamlined texts accepted in last NGTF p

meetingReflected in revised Consolidated Text – Rev.7

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Reflected in revised Consolidated Text Rev.7

(Streamlined) Consolidated Text(Streamlined) Consolidated TextARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND

EXPORTATION

5. Single Window/One-time Submission

5.1 Members shall, [where practicable], [endeavour to] establish or maintain a single window, enabling traders to submit documentation and/or data requirement for importation, exportation or transit to a single entry point. [The single window shall undertake onward distribution ofentry point. [The single window shall undertake onward distribution of the aforementioned documentation and/or data requirements to the participating authorities or agencies]. After the examination by the relevant authorities or agencies of the documentation and/or data, the results shall be notified to the applicants through the single window in a esu ts s a be ot ed to t e app ca ts t oug t e s g e do atimely manner.

/ / / /12

TN/TF/W/165/Rev.7

Next Steps?Next Steps?NGTF:

Phase II of intensive negotiationsAim for “clean” text by April (Rev. 8)

New facilitatorsBasis of work Consolidated text - Rev 7Bas s of work onsol dated text e 7

f il k i i h After April- work on remaining tough issuesDoha Round completed by end 2011

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p y

S i l d Diff i l TS i l d Diff i l TSpecial and Differential TreatmentSpecial and Differential TreatmentDeveloped countries can treat developing countries more favorably than other WTO Members

Example: longer time periods for implementing Agreements

Purpose: provide developing countries and LDCs with p p p gopportunities to benefit from the multilateral rules-based system, not exempt them from it.

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Section II of Consolidated Text –Special and Differential Treatment

SECTION II

SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS FOR DEVELOPING COUNTRY MEMBERS AND LEAST DEVELOPED COUNTRY MEMBERS

1. [[Guiding principles] [General provisions]]

1.1 [Every Member shall implement all provisions or subparts of provisions contained in the Trade Facilitation Agreement subject to the flexibilities contained in this Article.] [in accordance with [the principles] [the modalities] agreed in Annex D of the July [2004] framework Agreement.]

[The provisions of Articles 1 -11 above shall be implemented by developing country Members andLDC Members in accordance with the provisions of this section ]LDC Members in accordance with the provisions of this section.] 2. Definitions [of Concepts]

2.1 Category A commitments include provisions or subparts of provisions that a developingcountry Member and a least developed country Member, have to implement upon entry into force ofthe Agreement [including all provisions or subparts of provisions that a developing country and athe Agreement [including all provisions or subparts of provisions that a developing country and aLDC Member already implements].

2.2 Category B commitments include [[provisions or subparts of provisions that a developingcountry Member and a least developed country Member, will implement after the entry into force ofthe Agreement][provisions or subparts of provisions included in the Schedule by a developing countryMember or a least developed country Member, that require a transitional period of time to implement p y , q p pwhich shall be specified in the notification]].

2.3 Category C commitments include [[provisions or sub-parts of provisions included in theSchedule by a developing country and a LDC that require technical assistance and capacity buildingto be implemented in a transitional period of time which shall be specified in the notification] [, in order to ensure that sustainable measures are in place for that Member to implement provisions of the

Categories of Commitments A B CCategories of Commitments A, B, C

Developing and LDC countries notify measures:Developing and LDC countries notify measures:

• Category A: measures can implement at timeCategory A: measures can implement at time Agreement enters into force

• Category B: can implement after additional time

• Category C: implement after TACB

16Articles 2-5

Schedule of Commitments for BBarua

A- Implement right B – time needed C – time and TA d daway needed

A.1 PublicationB.1 Interval btwn

A.2 Internet Publication

C.1 Advance RulingsG.1 Pre-Arrival

Publication/Entry into ForceB.2 Prior Publication

A.3 Enquiry PointA.4 NotificationG.3 Risk Management

ProcessingG.4 Post-Clearance Audit

D.1 Right of AppealE. 1 Import/Rapid AlertF 1 Disciplines on Fees

G.3 Risk ManagementG.6 Authorized TradersG 7 Expedited Shipmt

J.2 Reduction of FormalitiesJ.5 Single WindowF.1 Disciplines on Fees

G.2 Separation of Release

G.7 Expedited ShipmtJ.1 Periodic review of FormalitiesL 6 Bonded Transport

J.5 Single WindowJ.6 Eliminate PSIL.7 Regional Transit Agreements

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L.6 Bonded Transport Agreements

Notify time period-i l t ti l f B/C

Article 5 bis

implementation plan for B/CProvision/Sub- Time Period Assistance part of Provision

Required and Other Information

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Other SDT ProvisionsOther SDT Provisions

Article 6 earl arning s stem notification ifArticle 6: early warning system – notification if won’t implement by notified date. Article 6 bis: Shifting categories B to C C to BArticle 6 bis: Shifting categories B to C-C to B Article 7: Grace period – countries refrain from use of WTO dispute settlement for [X] perioduse of WTO dispute settlement for [X] periodArticle 8: implementation- (automatic at expiration or notify?)expiration or notify?)Articles 9,10: Provision of TA

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A.3 ESTABLISHMENT OF ENQUIRY POINTSBasic Standard: A Member shall establish a national or regional enquiry point which is responsible for providing,or facilitating access to, trade-related information and documents to interested parties.

COMPLY: Yes: No: Partially: X Not applicable: National Priority: High: Medium: Low: None:

Current situation relative to the Basic Standard. Describe in detail.

Reasons for Non-compliance/barriers to meeting Basic Standard

Actions needed to meet basic standard (Consider needs in legal framework, administrative policy, human resources, training, equipment, organization, change management. If possible include estimated costs and/or implementation times.)

Local Action TA

COMPLY: Yes: No: Partially: X Not applicable: National Priority: High: Medium: Low: None:

1. The MFA is the National Enquiry Point. 2. WTO was notifiedBasic communication equipment is available but not solely dedicated for this function.3. The EP is free of charge. 4. Open to both local and foreign entities.g5. Majority Internal Stakeholders are not aware of this designation. 6. Some inquiries may be forwarded to other relevant

5. Lack of formal mechanisms for communication with Internal Stakeholders. 8. There may not be

5. The EP should establish and implement a formal mechanism to communicate the availability of this resource to all relevant internal t k h ld d th l

5. YES. Resources for dissemination of information:-Framework development and training-Public Relations Adviser

agencies. 7. Some documents are readily available for general information. 8. Documents/information for

regular trade with those countries. Some support agencies may be Unaware of required documentation from other member states

stakeholders and the general public.8. Establish and implement a mechanism to facilitate collecting, managing and disseminating information to

-Develop tools for public relationsPublic relations material (brochures, booklets, etc.), -Funding public relations

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export to some trade partners not available

member states. disseminating information to the support agencies, stakeholders and general public.

Funding, public relations activities 8. NO

Priority for Technical Assistance: High: Medium: Low: None: . Comments:

Thank you!