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Once considered little more than the plumbing of the international trading system, trade facilitation (TF) is now widely seen as the backbone of global supply chains. Following a sharp jump after the emergence of the WTO Trade Facilitation Agreement (TFA), TF reforms in regional trade agreements (RTAs) continued to increase.
Despite an overall tendency towards greater reach and sophistication, progress remains uneven. This chapter looks at how the new generation of RTAs approach the persisting need to facilitate international trade, analysing common traits and recent developments. It compares the envisaged measures with the reforms mandated by the Trade Facilitation Agreement and discusses novel trends, such as an emphasis on deeper, behind-the-border obstacles, an increased focus on digitalisation and a move towards greater depth.
While seeing a renewed appreciation of facilitation endeavours – especially in strengthening supply chain resilience and combating illicit trade – unfinished business remains. The final segment of the chapter discusses TF reforms with particular potential and suggests possible focus areas in future RTAs, identifying key factors for taking facilitation to a new level.
This chapter seeks to analyze the level of commitment assumed by the TPP signatory countries in the area of Trade Facilitation (TF), taking the WTO Trade Facilitation Agreement (TFA) as a benchmark, whilst analyzing the implications of both instruments for governments and traders.
The author provides a background to the concept of TF and its evolution. Then he identifies key areas where the TPP upgraded the TFA, including express shipments; prohibition of consular transactions; streamlining of border procedures, including time for release, and single window, in line with international standards; automation; government-to-government electronic sharing of data; availability of practical information for users; advance rulings; and a more feasible framework for customs cooperation.
To assess the level of "upgrade," the author provides an in-depth analysis of the key aspects of both instruments, based on three main areas: (1) support for development; (2) overall approach: "customs-only implementation" versus "coordinated border management" (CBM); and (3) key TF measures and practical implications. The last section provides some conclusions that suggest future work on TF that could be explored in the context of the TPP and future RTAs.
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