Argentina ratified the Trade Facilitation Agreement
On January 22, 2018 the Argentine Republic ratified the Trade Facilitation Treaty ("TFA"). The TFA was adopted by the member countries of the World Trade Organization ("WTO") at the Bali Ministerial Meeting in 2013 and entered into force on February 22, 2017.
The purpose of the TFA is to reduce the costs of cross-border trade. The TFA contains provisions to expedite the movement, release and dispatch of merchandise; establishes procedures for the requested country to issue advance rulings on the treatment it will give to the merchandise prior to its importation; foresees measures to improve impartiality, transparency and non-discriminatory treatment; measures for effective cooperation between customs authorities and other competent authorities in the area of trade facilitation; and establishes recommendations to standardize formalities and applicable standards.
Likewise, the TFA sets the GATT 1994 dispute settlement mechanism –elaborated and applied in accordance with the Understanding on Rules and Procedures Governing the Settlement of Disputes- however, it provides a grace period for its application depending on the specificities of each case.
It is estimated that the implementation of the TFA will reduce the costs of cross-border trade by 14.3%. African countries and least developed countries will have a significant reduction in transaction costs. Likewise, it is expected that the TFA will increase world export growth by 2.7% per year and increase by more than 0.5% per year to world GDP in relation to the 2015-30 horizon forecast.
For further information on this topic please contact Juan Martín Allende