UN Conference on Trade and Development (UNCTAD) - Trade Facilitation Agreement
During the forthcoming Nairobi meet of the UN Conference on
Trade and Development (UNCTAD), India is planning to press
for endorsement by more nations for its proposal on a global pact to expedite
the services trade flow.
About the pact:
- It will officially be known as the ‘Trade Facilitation Agreement (TFA) for Services’ at the World Trade Organisation (WTO)-level.
- The proposed pact, among other things, is aimed at making it easier for services professionals and skilled workers to move across borders for ‘short-term’ projects.
- Its objectives include streamlining procedures for global services trade, besides ensuring recognition at the WTO-level for services as a tradable item by establishing a framework — for clarity on definitions and for settlement of disputes.
Background:
The idea of a ‘TFA for Services’ – similar to the WTO’s ‘TFA for
Goods’ — was mooted by India soon after the WTO’s tenth Ministerial Conference
in Nairobi in December 2015. India had on April 22 ratified the ‘TFA for
Goods’, which is aimed at easing customs norms and boosting global merchandise
trade.
- India had reiterated the proposal for a TFA in Services during the informal meeting of trade ministers from 25 WTO member countries on the sidelines of the Organisation for Economic Co-operation and Development (OECD) ministerial council meeting in Paris.
Trade facilitation:
The Trade Facilitation Agreement forms part of the Bali Package
agreed by members at the Ninth Ministerial Conference in Bali.
- The agreement contains provisions for faster and more efficient customs procedures through effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It also contains provisions for technical assistance and capacity building in this area.
- It is being believed, especially by the proponents of the agreement that deal could add $1 trillion to global GDP and also can generate 21 million jobs by slashing red tape and streamlining customs.
UNCTAD:
UNCTAD has 194 member States and is the UN subsidiary looking at
measures to boost trade and investment in developing countries.
- Upcoming Nairobi (Kenya) meet will be the UN Conference on Trade and Development’s (UNCTAD) 14th quadrennial ‘Ministerial Conference’.
- The ‘Ministerial Conference’ is the Geneva-headquartered UNCTAD’s highest decision-making body, and is held every four years ever since UNCTAD was set up in 1964.
