Global Alliance for Trade Facilitation launched

A business-led coalition has started the Global Alliance for Trade Facilitation to help developing countries meet their obligations under the World Trade Organization’s Trade Facilitation Agreement.    A business-led coalition has started the Global Alliance for Trade Facilitation to help developing countries meet their obligations under the World Trade Organization’s Trade Facilitation Agreement.
   The coalition includes the International Chamber of Commerce, World Economic Forum and Center of International Private Enterprise, along with the governments of Canada, Germany, the United Kingdom and the United States.
   Once implemented, the TFA is expected to add more than $1 trillion to global trade flows, with significant gains for developing markets.
   The Global Alliance for Trade Facilitation will specifically provide a platform to leverage business expertise and resources in the implementation of customs and border reforms. The alliance is considered the first initiative of its type to provide a global platform to bring businesses closer to the process of enacting reforms under the WTO agreement.
   Richard Samans, head of the Center for the Global Agenda at the World Economic Forum, said the alliance will “support developing country governments that wish to drive both top-down and bottom-up reforms aimed at positioning their economies to capitalize more widely on international trade and investment opportunities. The private sector can play a vital role in helping to shape policy and other improvements in an enabling environment so that they have the greatest real-world impact.”
   The alliance said it will start out by supporting TFA-related projects in 12-15 developing countries on an annual rolling basis—identifying trade “bottlenecks” and working with governments to implement reforms to enable trade for local enterprises. It will also work to enhance “private-sector awareness” of the TFA in some sectors and markets. 
   “At the country level, the alliance will focus on empowering the local business community to become a leading stakeholder in trade facilitation efforts. This will ensure that reforms get implemented and have commercially meaningful outcomes,” said Andrew Wilson, deputy director of the Center for International Private Enterprise, in a statement.
   The alliance has received startup contributions from the Canadian government, the German Federal Ministry for Economic Cooperation and Development, the U.K. Department for International Development, and the U.S. Agency for International Development. Australia is expected to make a contribution shortly. 
   “The United States firmly believes that private sector-led trade and investment are fundamental for sustainable economic development and growth. The private sector’s expertise in moving goods across borders is crucial for helping countries successfully implement their commitments to facilitate trade,” the U.S. State Department said.
   Companies such as A.P. Møller-Mærsk, DHL, Wal-Mart, eBay and Huawei, have committed to the alliance and more expected to join in the coming weeks, the alliance said.