Imagine cross-border trade as a complex, precision machine where every component is crucial. Without effective coordination and unified command, this machine cannot operate efficiently. To address this challenge, Sri Lanka has established the National Trade Facilitation Committee (CNFC), designed to dismantle trade barriers and ensure the engine of commerce drives national economic growth more smoothly.
The Sri Lankan government recently formalized the CNFC's terms of reference, marking a significant step in implementing the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA). This committee aims to coordinate domestic agencies in cross-border trade operations and facilitate trade measures that spur economic development.
CNFC: The Central Hub for Trade Facilitation
As outlined in its mandate, the CNFC will serve as Sri Lanka's central coordinating body for trade facilitation, overseeing cross-sector activities related to TFA implementation and advancing other trade facilitation initiatives. The committee will bring together public and private sector stakeholders to collaborate on cross-border trade matters.
Key responsibilities include:
- Policy Advisory: Providing consultation on trade facilitation issues, including measures in regional/bilateral trade agreements, infrastructure development for trade corridors, and elimination of non-tariff barriers.
- Monitoring & Evaluation: Tracking implementation of trade facilitation laws, regulations, and international agreements.
- Strategic Coordination: Aligning trade facilitation initiatives and monitoring progress.
- Interagency Collaboration: Ensuring consistency across government entities and private sector partners.
- Problem Resolution: Identifying obstacles to trade efficiency and developing corrective measures.
- Knowledge Management: Serving as a national clearinghouse for international best practices.
The committee will also assume international representation functions for specialized bodies dealing with sanitary/phytosanitary measures, technical barriers to trade, and non-tariff barriers.
Operational Framework
The CNFC's operational mechanisms include:
- Formulating national trade facilitation policies
- Approving priority action plans aligned with WTO TFA requirements
- Mobilizing implementation resources
- Establishing specialized working groups
- Supporting international trade negotiations
Governance Structure
Comprising representatives from government agencies and private sector organizations involved in cross-border trade, the CNFC follows UN/CEFACT recommendations for balanced public-private participation. The committee is co-chaired by the Director General of Customs and the Director of Commerce.
A dedicated secretariat based at Sri Lanka Customs headquarters provides administrative support, handling meeting coordination, implementation tracking, and documentation. The committee meets quarterly (or more frequently as needed) with decisions requiring quorum participation from one-third of members.
Budgetary oversight will be managed through a subcommittee coordinating domestic and international funding sources for operational expenses, capacity building, and public awareness initiatives.
This institutional framework represents both Sri Lanka's commitment to WTO obligations and a strategic effort to enhance trade efficiency as a driver of economic expansion. By optimizing trade processes through coordinated governance, Sri Lanka positions itself for greater participation in global commerce.