Trade Facilitation to Proceed as WTO Council Adopts Implementation Deal

The World Trade Organization General Council voted on Nov. 27 to adopt a deal to resolve Indian concerns and allow the Trade Facilitation Agreement to proceed. The agreement will now go to WTO member countries for ratification, and will come into force after adoption by two thirds of WTO members. Adoption of TFA by the General Council also allows the Trade Facilitation Agreement Facility to come online and provide support for developing countries to implement TFA (see 14072202). As part of the deal, agreed by the U.S. and India on Nov. 13 (see 1411130027), the General Council also agreed to exempt “food security” programs from WTO challenge until a permanent deal on hoarding can be reached.

The vote resolves what WTO Director-General Robert Azevêdo had called an “existential crisis” for the trade body (see 1410160024). “This is a very important moment for the WTO,” said Azevêdo in a statement following the vote (here). “We have put our negotiating work back on track -- that means all the Bali decisions: trade facilitation, public stockholding, the LDC issues, the decisions on agriculture, development, and all of the other elements,” he said. “But, crucially, during this process we have seen a renewed commitment to the multilateral system.”

With the impasse resolved, work now “immediately” moves to implementation, said Azevêdo. As part of the deal, WTO members set a July 2015 for resolving other Doha Development Agenda issues. Members also agreed to reach a permanent deal on hoarding by December 2015. On TFA, Azevêdo urged WTO members to “push forward the ratification process” as the deal heads to national capitals.

The National Association of Manufacturers praised the WTO’s adoption of the deal. “By setting global standards for customs processes that facilitate trade flows, this landmark agreement will help manufacturers grow and hire here at home by improving their ability to engage and sell to customers and suppliers around the world,” said NAM Vice President of International Economic Affairs Linda Dempsey in a Nov. 27 statement. “The TFA will unlock resources and spur international cooperation to ensure that countries can boost their economic well-being and better integrate into the global supply chain by cutting red tape, streamlining border processing and adding transparency to customs operations worldwide,” she said.