TWN Info Service on WTO and Trade Issues (Mar15/07)
30 March 2015
Third World Network
 
TFA entry into force unlikely before Nairobi meet
Published in SUNS #7990 dated 26 March 2015
 
Geneva, 25 Mar (Kanaga Raja) -- At the current pace of the process of ratifications of the Trade Facilitation Agreement (TFA), it seems unlikely that the Agreement will secure the two-thirds ratification needed in time to enter into force by the end of the year.
 
At the meeting early this year of trade ministers of key countries on the sidelines of the Davos meeting, Kenya as the host country for the WTO Ministerial Conference this year in Nairobi had expressed the hope that this can be achieved by then.
 
But a meeting of the WTO Preparatory Committee on Trade Facilitation on Tuesday showed that so far only four countries have ratified, while a dozen others spoke of processes under way in their countries.
 
The Agreement needs ratification by at least two-thirds of the WTO members accepting the Protocol before the TFA can be inserted as among the agreements in Annex 1A of the Marrakesh Treaty to make it binding on those ratifying it.
 
The Protocol of Amendment inserting the TFA into Annex 1A of the WTO Agreement was adopted by members at a General Council meeting on 27 November 2014 (see SUNS #7927 dated 1 December 2014).
 
The Protocol will enter into force in accordance with paragraph 3 of Article X of the WTO Agreement, when it is ratified by two-thirds of the WTO's membership of 160 and the acceptance instruments are lodged in the WTO before it can enter into force (with its rights and obligations kicking in for the ratifying members).
 
However, no deadline has been set for when this will be achieved.
 
According to trade officials, at the PrepCom meeting, many members expressed their hope of seeing the agreement enter into force by the tenth Ministerial Conference, to be held in Nairobi, Kenya from 15-18 December 2015.
 
Trade officials noted that Kenya's foreign minister, Ms Amina Mohamed, had said that she would like WTO members to achieve entry into force of the TFA by the Nairobi Ministerial meeting.
 
So far, only four WTO members - Hong Kong-China, Singapore, the United States and Mauritius - have secured domestic acceptance of the TFA, said trade officials.
 
Some 12 members reported that their domestic ratification process for the TFA was underway, with the European Union, Switzerland, Chile, Norway, Korea and Nicaragua highlighting target dates for gaining the required approval.
 
According to trade officials, several developing countries highlighted some domestic legislative hurdles that they will need to overcome before they can secure acceptance of the TFA.
 
Several African countries indicated that they were not in a position to ensure the ratification of the TFA by the Nairobi ministerial conference.
 
The Chair of the PrepCom, Ambassador Esteban Conejos of the Philippines, said that he understood that a considerable number of additional WTO members have started the ratification process.
 
The challenge, he said, is that the process is domestic in nature and differs from country to country.
 
According to trade officials, Georgia, Mexico, El Salvador, Morocco, Saudi Arabia and Colombia said that their efforts at domestic ratification had begun.
 
The EU said that it hoped the European Parliament would give its approval to the TFA during its session in September.
 
Japan said that the government's cabinet had decided on 10 March to submit the TFA to parliament for approval.
 
China said that the domestic consultation process with relevant agencies was completed and that the matter was now before the State Council for approval.
 
According to trade officials, Switzerland reported that its two houses of parliament had approved the TFA on 20 March and that the only remaining barrier was a possible referendum.
 
It however said that it hoped to deposit its instrument of acceptance in the summer.
 
Chinese Taipei said that its cabinet had approved the TFA on 12 February and that it was now before its legislature for approval.
 
Norway said that it expected to secure acceptance of the TFA before August.
 
Chile said that its goal was to secure acceptance in June, when the country will undergo its trade policy review at the WTO.
 
Korea said that it was still deciding whether the TFA requires adoption by its parliament or whether it just needs to be approved by the government.
 
According to trade officials, South Africa underlined that it was not possible to indicate with any degree of certainty how long its acceptance process would take.
 
The parliamentary roster is determined by the speaker of the house in consultation with the opposition, and does not take into account extraterritorial timetables, it said.
 
While many have expressed their wish to see the TFA enter into force by the Nairobi conference, South Africa said that it is simply not in a position to share that endeavour because of these constraints.
 
Nigeria also said that the ratification process will be very challenging as it will require domestic legislative changes. It however appreciated the aspirations of securing entry into force of the TFA by Nairobi.
 
Guinea informed the PrepCom that a workshop on the TFA in Conakry was cancelled due to the Ebola outbreak.
 
It expressed hope that the workshop could be rescheduled soon in order to speed up the acceptance process.
 
Colombia said that the TFA would require two readings before its two houses of parliament as well as review by the constitutional court.
 
With the latter step taking up to 3-4 months, it would be a "photo finish" to secure acceptance by the Nairobi meeting, it said.
 
According to trade officials, the PrepCom Chair also informed members that 55 notifications have now been received from developing country members outlining their "Category A" commitments.
 
(Category A contains provisions that a developing country Member or a least developed country Member designates for implementation upon entry into force of the Agreement, or in the case of a least developed country Member within one year after entry into force.)
 
Ambassador Conejos said that he was especially heartened to see the first notification from a least developed country (Senegal).
 
"I understand that more notifications are currently being prepared, which is a very welcome development," the Chair said.
 
According to trade officials, the PrepCom took note of the receipt of 10 new Category A notifications since its last meeting.
 
In addition to Senegal, the new notifications are from Montenegro, Botswana, Nigeria, Macao-China, Gabon, Egypt, Macedonia, Jamaica and Pakistan.
 
Meanwhile, the Secretariat gave a presentation on its new notification database as well as a new web-page for the Trade Facilitation Agreement Facility (TFAF), both which will be up and running shortly.
 
According to trade officials, South Africa asked about the available funding for the TFAF.
 
Trade officials said that 1.3 million Swiss francs is currently in the TFAF from previously-committed funding for needs assessment programmes, but that substantial new funding pledges are expected and will be posted on the WTO website when they are finalised.
 
The Chair informed members that the next meeting of the PCTF will take place on 10 June. +