WTO‘s Trade Facilitation Agreement enters into force
On 22 February, the Trade Facilitation Agreement (TFA) came into force after the implementation of necessary ratification procedures. The negotiations of the Agreement in the World Trade Organization (WTO) were finished in December 2013 under the Lithunian presidency of the Council of the European Union.
The Minister of Foreign Affairs of Lithuania, Linas Linkevičius emphasized that the end of the negotiations of the Trade Facilitation Agreement was a significant achievement during the Lithuanian presidency of the Council of the EU.
“This Agreement is being implemented timely, while looking for new ways to encourage and invigorate international trade, which has been adversely affected by the consequences of the global financial crisis. The implementation of the Agreement will also facilitate export conditions for Lithuanian entrepreneurs who are looking for alternative markets in third countries,” the Minister said.
The entry into the force of the Agreement might facilitate border and customs procedures, contribute to global trade facilitation reforms, invigorate the flow of international trade. It has been measured that full entry into force of this Agreement might reduce the costs of the international trade of approximately 14 percent. It is supposed that the time needed for the import of goods might decrease by approximately one and a half days, meanwhile for the export of goods – by two days. The Agreement also obliges the parties to ensure available information on the applicable border and customs procedures as well as practices, provide clearer rights for business operators in case of appealing for the decisions of these institutions, lower the taxes and formalities regarding export and import of goods, accelerate clearance procedures, define clearer conditions for free transit of goods.
The Director-General of the WTO, Roberto Azevedo, welcoming the entry into force of the Agreement, emphasized that this Agreement might boost global trade to 1 trillion USD annually – such an effect could not be achieved even in the case of annulment of all currently applicable customs.
