Trade facilitation plays a crucial role in reducing international trade costs and improving efficiency. The World Trade Organization's (WTO) trade facilitation negotiations aim to promote global trade by simplifying, harmonizing, and standardizing trade procedures. This article provides an in-depth analysis of the minutes from the WTO Trade Facilitation Negotiating Group meeting (TN/TF/M/27) held in Geneva from December 1-3, 2008, examining key proposals, contentious issues, and progress in the negotiations.
I. Meeting Overview and Agenda
The meeting was chaired by Eduardo Ernesto Sperisen-Yurt of Guatemala. The agenda focused on:
- Adoption of the meeting agenda (WTO/AIR/3285)
- Advancing trade facilitation negotiations by refining member proposals
- Discussion on the provisional participation of Annex D organizations (IMF, OECD, UNCTAD, WCO, and World Bank)
II. Negotiation Structure and Work Plan
The meeting followed the previous session's structure, prioritizing textual work on member proposals. Key arrangements included:
- Introduction of new proposals
- Detailed discussion of proposals in informal working sessions
- Review of previously submitted texts, starting with GATT Article V provisions
- Wednesday morning discussions on technical assistance (TA) and special and differential treatment (S&D)
- Wednesday afternoon handling of additional matters in plenary mode
III. New and Revised Proposals
Members actively submitted new and revised proposals, primarily focusing on:
Canada and Switzerland: Separation of Goods Release from Duty/Tax Determination (TN/TF/W/136/Rev.2)
This proposal sought to separate goods release from final duty/tax determination and payment. Canada emphasized its significant trade facilitation potential, potentially saving members substantial time and costs. The revised version addressed previous concerns about terminology and scope.
Canada and Norway: Border Agency Coordination (TN/TF/W/128/Rev.2)
This initiative aimed to enhance cooperation between border agencies. The revised text incorporated member feedback, strengthening language while maintaining flexibility for implementation.
Joint Proposal: Trade Facilitation Committee (TN/TF/W/157)
Norway presented a discussion paper on establishing a Trade Facilitation Committee (TFC), highlighting its potential role in notification, consultation, and review processes. The proposal drew from existing WTO committee structures while addressing trade facilitation-specific needs.
EU: Authorized Economic Operators (JOB(08)/120)
The EU's revised proposal on AEO programs specified mandatory criteria for obtaining AEO status and listed required facilitation measures. Changes responded to member concerns about definitional clarity and operational flexibility.
Least Developed Countries Group: Special and Differential Treatment (JOB(08)/123)
Tanzania, representing LDCs, emphasized that mandatory commitments shouldn't apply before acquiring necessary implementation capacity. The group advocated for flexible implementation plans and donor commitment transparency.
Landlocked Developing Countries: GATT Article V Statement
Paraguay highlighted LLDCs' unique challenges, noting that high transit costs reduce their trade volumes by 30-60% and annual growth by 1-1.5 percentage points. The group stressed the importance of clarifying GATT Article V on transit to overcome geographical disadvantages.
IV. Other Matters
The meeting agreed to invite Annex D organizations to participate provisionally in future sessions. Due to ongoing uncertainties, members deferred setting specific dates for the next meeting.
V. Analysis of Meeting Outcomes
The minutes reveal both consensus and divergence on key issues:
- Terminology and Scope: Debates persisted around definitions (e.g., "release," "clearance") in proposals like Canada/Switzerland's separation initiative.
- S&D Treatment: LDCs insisted on implementation flexibility tied to capacity building.
- Institutional Framework: While agreeing on establishing a TFC, members differed on its precise functions.
- Transit Rules: LLDCs prioritized GATT Article V revisions to address transit-related trade barriers.
VI. Conclusion
The December 2008 meeting advanced the trade facilitation agenda through refined proposals and constructive dialogue. However, resolving remaining differences—particularly on S&D treatment, institutional design, and transit rules—will require continued negotiation to achieve a balanced, implementable agreement that benefits global trade.