Express operators and their representatives are optimistic that a global trade facilitationagreement could be achieved by the end of this year, potentially providing a dramatic boost to the
sector.Carlos Grau Tanner, director general of the Global Express Association, told CEP-Research thateven if it proves impractical to achieve a trade facilitation pact within the World TradeOrganization’s Doha Development Agenda (DDA) at the WTO Ministerial Conference in December, thereis a growing belief that a separate WTO trade facilitation agreement could be achieved by the endof the year.
“It would require a lot of hard work, but a number of people involved in the negotiations havetold me that it could be possible,” said Grau Tanner.
He said the GEA welcomed “the considerable progress made to date in the context of the WTO DohaDevelopment Agenda, and in particular the negotiations on trade facilitation”, but acknowledgedthat there was a question of whether any kind of DDA package would be signed off at the conference,or whether trade facilitation would be included in that. But if there was a package, then tradefacilitation should be part of it.
A recent call by the director general of the WTO to include trade facilitation the new packageof multilateral trade negotiations also received the backing earlier this month of TheInternational Air Cargo Association (TIACA), which said the move would not only benefit the aircargo industry but also the world economy.
Grau Tanner added: “But if they are not able to agree a package for the December MinisterialConference, WTO members should consider ways to move forward with trade facilitation, to take itout of the Doha chapters – where clearly there are obstacles – and fast-track it in a separate way,in order to bring it to a conclusion. It would have a significant boost to trade, reduce costs, andI think it would also be a great signal that the WTO can deliver multinational agreements. We wouldcertainly support this.”
He said there appeared to be no opposition to the general principles of a trade facilitationagreement, and that the number of proposed amendments to the draft text had been reduced bytwo-thirds.
“The text is now much clearer, so we are moving in the right direction, and I think that ifthere were the right political signals, and people did a lot of work, getting down to the details,then it is doable by December,” said Grau Tanner. “At least, that is what I am hearing from some ofthe negotiators.”
He said all major economists that had studied the subject agreed that simpler and moretransparent and predictable customs and border rules would bring huge benefits to all countries andto global trade, with some estimates indicating that it could cut the overall costs ofinternational trade by as much as 10%. Developing countries, which often suffered from the mostinefficient and least transparent customs systems, potentially had the most to gain, he added.
For express operators and their customers, the benefits of harmonised, faster, more efficientand more predictable border arrangements were myriad and obvious, which is why the GEA and itsmembers have been at the forefront of efforts to automate and streamline border clearanceprocesses.
“Express delivery is guaranteed delivery within a definite period of time, often by the nextday, and because express delivery operations are highly time-sensitive, inefficient and obsoletecustoms procedures present a serious obstacle for global express delivery companies and theiroperations,” said Grau Tanner.
“It is not just about delays, but also about inconsistencies. If we have a global manufacturerthat wants to know whether, if they locate a manufacturing plant in country A, will they be able toget urgent spare parts from country B, the worst thing we can say is that we don’t know. If we areable to say yes or no, then they can decide whether to set up their manufacturing plant there. Ifwe can have clarity, it brings huge benefits to all concerned.”
A spokeswoman for UPS told CEP-Research: “UPS is a member of the Global Express Association andfollows the GEA position that if there is a December package, trade facilitation should be in it.If there isn’t a December package, then we think WTO members should consider ways to move tradefacilitation forward on a separate, faster track than some of the other Doha Development Agendaelements, which continue to face obstacles.
“Since there’s already progress on trade facilitation, widespread support for it and cleareconomic benefits for developing and developed members, it would be a waste if it did not moveforward, especially as the global economy continues its recovery and needs a boost that tradefacilitation could provide. Moving trade facilitation ahead would send a strong signal that the WTOcan still move multilateral agreements to a conclusion.”
