Wto Trade Facilitation Agreement Facility
This report analyses how trade can contribute to economic diversification and enhanced economic promotion, with a focus on eradicating extreme poverty, including through the effective participation of women and young people. Chapter 6 focuses on the crucial role of trade facilitation in supporting economic diversification and structural reforms. This semi-annual report, published by the World Economic Forum and the Global Alliance for Trade Facilitation, is a benchmark for governments that want to stimulate growth and development through trade. It collects data on efficiency, transparency and costs related to the import and export of goods. The WTO, WTO members and other intergovernmental organizations, including the World Bank, the World Customs Organization and the United Nations Conference on Trade and Development (UNCTAD), provide technical assistance to trade facilitation. In July 2014, the WTO announced the creation of a trade facilitation mechanism that helps developing countries and LDCs implement the Trade Facilitation Agreement. The facility came into force on 27 November 2014 with the adoption of the Trade Facilitation Protocol. The Total Transport and Logistics Costs (TTLC) methodology measures the total cost of transport and logistics in cross-border trade. It is the only method of measuring supply chain performance that combines direct business costs with all indirect costs (e.g.B. inventory, storage, theft, dementia, etc.) that traders have to endure at borders due to delays and unpredictability.
Estimating the time and cost of completing the various stages of import and export chains allows the TTLC to be used as a basic tool to identify bottlenecks, to estimate the potential outcomes of trade facilitation reforms, and to assess the real impact of trade facilitation reforms on businesses. Full implementation of FTAs is estimated to reduce trade costs by an average of 14.3% and boost world trade by up to $1 trillion per year, with the highest growth in the poorest countries. For the first time in the history of the WTO, the implementation of the agreement is directly linked to the country`s ability to do so. A Trade Facilitation Mechanism (TFAF) has been set up to ensure that developing and least developed countries receive the assistance they need to take full advantage of the benefits of the TFA. In 2019, the Alliance has produced measurable results to make trade simpler, faster and cheaper, to show a new value for money in aid for trade, using private sector resources like never before and creating public-private partnerships that pave the way for sustainable reforms.