Political, Industry Leaders Laud WTO Bali Package Success
After Ministers of World Trade Organization (WTO) member states sealed a multilateral trade package on Dec. 7, a day later than the Bali summit was slated to conclude, U.S. political and industry leaders voiced widespread support. The package expedites customs procedure and reduces costs, shields food hoarding programs from legal dispute and institutes duty-free, quota-free access for least developed country export to wealthier markets, among other provisions, the WTO said (here). The package also delivers assistance to developing and least developed countries to update infrastructure and train customs officials, according to the WTO, adding that the package will increase trade flow and revenue through decreasing global trade costs by 10 percent to 15 percent. The world economic benefit may reach $1 trillion, said the WTO.
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The trade facilitation agreement "will increase customs efficiency and effective collection of revenue, and help small businesses access new export opportunities through measures like transparency in customs practices, reduction of documentary requirements, and processing of documents before goods arrive," said the office of the U.S. Trade Representative in a fact sheet (here). "American manufacturers, producers of perishable goods, freight forwarders, logistics providers, express carriers and entrepreneurs seeking to enter the export market particularly stand to benefit from this agreement," it said (see 13120922 for more on the trade facilitation agreement.) CBP didn't comment.
President Barack Obama celebrated the package. “This new deal, and particularly the new trade facilitation agreement, will eliminate red tape and bureaucratic delay for goods shipped around the globe,” President Barack Obama said in a statement (here). “Small businesses will be among the biggest winners, since they encounter the greatest difficulties in navigating the current system. By some estimates, the global economic value of the new WTO deal could be worth hundreds of billions of dollars.” The Bali package restores WTO credibility as a trade forum capable of delivering worldwide advantage, said Finance Committee Chairman Senator Max Baucus, D-Mont. (here). Baucus said he looks "forward to further achievements at the WTO, including expansion of the Information Technology Agreement." The U.S. effort to conclude Information Technology Agreement expansion failed in recent weeks, due to alleged Chinese intransigence (see 13112217).
The trade facilitation agreement marks "a very significant step forward that will accelerate the flow of goods through global supply chains and reduce transaction costs for businesses large and small," said Michael Mullen, executive director of the Express Association of America (EAA). Provisions that are especially important to EAA members include the requirements for each country to set a de minimis value, providing advance rulings on customs measures to be applied to a shipment, use of trusted trader programs and the creation of a single window to submit information to relevant government agencies, the group said. The National Customs Brokers and Forwarders Association of America didn't comment.
Other trade groups agreed that the agreement is good news for industry. “We in the private sector are united in our support for this agreement, and for additional action to spur jobs and growth through international trade,” said United States Council for International Business (USCIB) Senior Vice President Rob Mulligan (here). The U.S. should also continue to push for Trade Promotion Authority (TPA) and negotiations conclusion for the Trans-Pacific Partnership (TPP), said the USCIB. The Emergency Committee for American Trade (ECAT) was also supportive of the deal, which it said will "inform our renewal of the U.S. Generalized System of Preferences, which lapsed as of August 2013 and should be reauthorized as soon as possible."
Email ITTNews@warren-news.com for a copy of the EAA and ECAT releases.