The implementation of the Trade Facilitation Agreement (TFA) under the World Trade Organisation (WTO) could reduce trade costs in countries by an average of around 14.3 percent, estimates reveal.
A recent WTO study suggests that implementing TFA reforms could create around 20 million jobs - the vast majority in developing countries.
The Agreement helps developing countries diversify their exports and tap into global value chains.
However, Sri Lanka which is party to the TFA does not benefit as border red-tapes, import-export controls, delays in clearance of goods and the number of agencies to obtain approval for import and export adds up to the trade cost which makes the country’s exports uncompetitive in the global market.
Panelists at the forum on ‘Global Alliance for Trade Facilitation, Making Cross-border Trade Easier for Sri Lanka Businesses’ organized by the Global Alliance for Trade Facilitation last week, said time consuming, non-competitive archaic system for trade in the country does no serve any purpose and are not conducive to facilitate trade. Verite Research, Researcher Director Subhashini Abeysinghe said Sri Lanka has failed to implement the electronic payment gateway even though the legislation for it was passed in 2006.
“We have been dilly-dallying for over two decades without implementing the legislation for an electronic signature which is vital for paperless trade. The country is always being put on a pedestal for its uniqueness in the region and each year measure are proposed to improve its doing business index.
However, we lag behind many countries in the region which have swi8tched on to electronic payments, Abeysinghe said.
Trade and logistics experts said there are around 40 agencies from whom approval has to be sought for trade.
“All these adds up to the delay and cost of trade making the country’s export uncompetitive in the global market,” a panelist said.
Trade experts noted that a wide stakeholder meeting with the prime minister and other line ministers should be held to take up the issues which hinder the pace of trade.
All those who are responsible for to boost trade should be held accountable.
“There is no one to hold accountable to the barriers of trade. The custodians of the law should be questioned as to why they had deviated from timelines and be held accountable,” Abeysinghe said.
Ceylon Chamber of Commerce Import Section Chairman and Member of the National Trade Facilitation Committee Dinesh De Silva said forums of this nature should be represented by relevant minister with whom there has to be a frank discussion on taking forward trade in the country.
Participants said the finance minister under whose ministry the Customs come should be present in forums of this nature to straighten matters.
Panelists who comprised trade and logistics experts from other countries said appeals for urgent implementation of TFA reforms have fallen on deaf ears in other countries as well.
Global Alliance for Trade Facilitation Vice President Donia Hammami said the private sector has a major role to play in the implementation of the TFA through trade facilitation committees. However, experts noted that if countries are to develop trade addressing red tapes in trade such as non tariff barriers is essential and added that there has to be policies in place to make cross-border trade easier, quicker and less costly.
The WTO trade facilitation agreement provides a unique opportunity to promote inclusive growth by making cross border trade easier and less costly. In ratifying the TFA, countries commit to a series of reforms to reduce red tape at borders- from measures on the release and clearance of goods, through to enhanced cooperation between border agencies. - LF