U.S. formally accepts WTO Trade Facilitation Agreement

Delivery of the letter is the final step that the United States must take toward the entry into force of this agreement.    The United States has delivered its acceptance letter for the World Trade Organization’s Trade Facilitation Agreement to WTO Director General Roberto Azevêdo on Friday in Davos, Switzerland.  
   The delivery of the letter is the final step the U.S. must take toward the entry into force of this agreement, which promotes improved trade efficiency and is expected to generate hundreds of billions of dollars in economic activity.
   The United States is the third WTO member to submit its acceptance letter; Singapore and Hong Kong have also submitted letters.
   “The agreement will unlock immense commercial opportunities for all developing and developed countries alike,” said U.S. Trade Representative Michael Froman in a statement. “These benefits can only be fully realized with implementation of this agreement. We all want to start enjoying the benefits and we hope other members will take this crucial next step as soon as possible.”
   The WTO Trade Facilitation Agreement, which was agreed to at the WTO Ministerial Conference in Bali, Indonesia, in December 2013, is the first multilateral agreement to be concluded since the WTO’s inception 20 years ago.
   The agreement contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also supports significant reductions in costs and administrative burdens related to moving goods across borders. “This is especially the case for developing countries, which, by some estimates, may see reductions in trade costs of up to 15 percent,” the office of the U.S. Trade Representative noted.
   “We are working with developing countries to help support effective implementation of this agreement,” Froman said. “In fact, we are already considering how to best support countries who are committed to implementation – teaming up with other governments and the private sector.”
   The Trade Facilitation Agreement will enter into force once two-thirds of the WTO’s 160 members have completed their domestic legal procedures and submitted instruments of acceptance to the WTO.
   “We hope that other countries recognize the importance of this agreement as a way to modernize trade rules, and we call on them to follow suit and ratify TFA without delay,” said Jake Colvin, vice president for global trade issues at the Washington-based National Foreign Trade Council, in a statement.