EU Proposes to Help Least-Developed Countries Benefit from Trade Facilitation
The EU wants to help least-developed countries make the most from a global trade facilitation agreement that could be approved at the Dec. 3-6 WTO Ministerial Conference in Bali, the European Commission said March 8. Trade facilitation refers to measures aimed at simplifying, modernizing and harmonizing merchandise import, tax collection at the border, and export and transit procedures, particularly customs requirements, it said. Possible actions may include simplifying rules, cutting down the number of and standardizing custom forms and computerization, it said. EU support for the trade facilitation pact responds to demands from LDCs for help in deriving the most benefit from the deal.
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There's a “yawning gap” between developed and developing nations on border procedures, the EC said. Where Organization for Economic Co-operation and Development countries demand on average five documents at customs, and take 10 days to clear goods at a cost of around 735 euros ($953) per container, African countries require twice as many documents and take 44 days to clear imports, at a much higher cost, it said. The OECD estimates that reducing global trade costs by 1 percent would boost worldwide income by more than $40 billion, 65 percent of which would go to developing countries.
The cost of implementing trade facilitation reforms is relatively modest, the EC said. World Bank estimates placed country costs at $3-$11 million, the OECD $3.5-$19.7 million.