CRS Highlights Express Industry as Likely Winner From WTO TFA
The express delivery industry is likely to be one of the biggest beneficiaries of implementation of the World Trade Organization Trade Facilitation Agreement (TFA), as automation and risk management requirements will allow companies to submit advance information to expedite clearance, the Congressional Research Service said in a recently released report (here). “For express delivery firms, in particular, a shipment’s smooth and rapid border crossing is crucial for providing good customer service to their customers,” the CRS said. The agreement entered into force on Feb. 22, after securing more than 110 necessary ratifications (see 1702220007). The number of ratifications now stands at 114, according to the WTO (here).
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The TFA doesn’t require congressional approval because U.S. compliance doesn’t require changes to domestic law, the report says. However, Congress may decide to assert itself on TFA issues due to the effects on "businesses, the U.S. economy, and international capacity building efforts," the CRS said. Lawmakers may look to "conduct oversight of effective and efficient country implementation, as well as the U.S. single window, by CBP" and to "examine the benefits of a future expansion of the TFA to raise the level of commitments, for example by adopting clearer de [minimis] levels for expedited customs processing," it said. The House Ways and Means and Senate Finance committees didn’t comment.
The report cautioned, though, that improved trade flows will require effective implementation by all WTO members, noting that the agreement contains language to provide developing and least-developed countries more implementation time and capacity building assistance. Mandatory provisions are subject to WTO dispute resolution for enforcement.