New draft trade agreement discussed at WTO

New draft trade agreement discussed at WTO    A “first draft of a package” of framework agreements for a new international trade pact between countries of the World Trade Organization specifically mentions work on the simplification and facilitation of international trade.
   The Geneva-based trade body, which is trying to revive a new round of trade talks, admitted that certain countries had reservations about the draft. However, the chairman of the WTO’s general council, Shotaro Oshima, warned that agreement would have to be reached by July 30 at the latest. The general council is a governing body of the organization below its top-level decision-making body, the ministerial conference.
   Supachai Panitchpakdi, director general of the WTO, also urged delegations “not to make too many changes at this stage, but to leave other concerns for the next phase of negotiations,” the WTO said.
   The draft text says the general council of the WTO must commence negotiations on trade facilitation — a relatively new area for the trade body. Trade facilitation is one of the fields of the so-called “Singapore issues” — issues that were regarded as the cause of the failure of the Cancun trade talks last year.
   The WTO describes trade facilitation as the simplification of trade procedures, including importing and exporting regulations and customs procedures.
   In an annex to the draft document, the WTO said negotiations on trade facilitation would aim “at the establishment of an agreement to further expedite the movement, release and clearance of goods, including goods in transit.” Negotiations would also aim at enhancing technical assistance and support for capacity building in this area.
   The annex cites the need to heed the capacity of developing and least-developed country members to implement agreements. “Those members should not be obliged to undertake investments in major infrastructure projects beyond their means,” the draft said. The annex also stresses that WTO members will “discuss and consider relevant costs related to any proposed measures.”
   Under the terms of the annex, WTO members recognize the provision of technical assistance and support for capacity building “is vital for developing and least-developed countries to enable them to fully participate in and benefit from the negotiations.”
   Collaboration in this area would be undertaken with other international organizations, including the International Monetary Fund, the Organization for Economic Cooperation and Development, the United Nations Conference on Trade And Development, the World Customs Organization and the World Bank, the annex says.
   The annex to the draft package envisages that the WTO’s Trade Negotiations Committee will establish a “Negotiating Group on Trade Facilitation.”