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Leveraging Trade Facilitation (TF) Measures to Maximize the Benefits of Regional Trade Agreements (RTAs) in West Africa

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Negotiating South-South Regional Trade Agreements

Abstract

As a key component of the World Trade Organization (WTO) Doha Development Agenda (DDA) and Regional Trade Agreements (RTAs), trade facilitation is essential to reducing trade transaction costs and it remains an effective instrument for fostering regional trade. Trade Facilitation (TF) exists on the agenda of all West African based RTAs. However, the implementation of World Trade Organization (WTO) provisions on trade facilitation has always been a cause for concern for West African countries, dating back to 1996 when trade facilitation was introduced in the WTO agenda at the Singapore Ministerial Conference, as one of the ‘Singapore Issues’—in the context of simplifying trade procedures. One of the core costs associated with trade facilitation in West Africa is that improved trade facilitation within the context of Regional Trade Agreements (RTAs) will require increased technical and financial assistance to narrow the technology and human resources gaps that exist between developed and developing countries.’ Based on this background, this paper attempts to provide an overview of the RTAs in West Africa. Further, it examines and discusses the trade facilitation provisions and issues within the context of West African RTAs. This discussion uses information from the WTO’s RTA database to provide a comprehensive description of the trade facilitation content of existing RTAs in West Africa. In conclusion the paper proposes policy suggestions to leverage TF to maximise the benefits of RTAs in West Africa.

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Notes

  1. 1.

    There is no standard definition of trade facilitation in the sense that WTO defines it as the simplification and harmonization of procedures involved in managing the data and information flows required for the movement of goods in international trade; while RTAs have a broader understanding that TF extends also to behind-the-border issues, including non-tariff measures such as sanitary and phytosanitary (SPS) measures, standards, technical regulators and conformity assessment procedures.

  2. 2.

    Trade Facilitation involves simplifying and harmonizing international trade processes and procedures. These procedures in essence include a wide range of activities, practices and formalities involved in collecting, presenting and processing data and other information required for the movement of goods in international trade. Some of the important trade activities that are part of the trade procedures are import, export, transit, custom clearance and other government agencies regulations. These are part of what form the nucleus of trade facilitation measures. Also, one of the essential ways to compliment efforts in trade facilitation by any nation is the frequent update of its customs procedures to align with modern technological standards.

  3. 3.

    The 12 Articles which are provided with the ATF include:

    Article 1: Publication and availability of information.

    Article 2: Prior publication and consultation.

    Article 3: Advance rulings.

    Article 4: Appeal or review procedures.

    Article 5: Other measures to enhance impartiality, non-discrimination and transparency.

    Article 6: Disciplines on fees and charges imposed on or in connection with importation and exportation.

    Article 7: Release and clearance of goods.

    Article 8: Border agency coordination.

    Article 9: Movement of goods under customs control intended for import.

    Article 10: Formalities connected with importation and exportation and transit.

    Article 11: Freedom of transit.

    Article 12: Customs cooperation.

  4. 4.

    WTO World Trade Report 2015. Accessed in 2015: https://www.wto.org/english/res_e/booksp_e/wtr15-2b_e.pdf

  5. 5.

    According to the United Nations Conference for Trade and Development (UNCTAD), RTAs are used as a generic term for bilateral or plurilateral free trade agreements, customs unions, and common markets. Non-reciprocal preferential trade agreements such as Generalized System of Preferences (GSPs) are excluded.

  6. 6.

    For more information on the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP), visit the: http://www.unctadxi.org/Secured/GSTP/LegalInstruments/gstp_en.pdf

  7. 7.

    docsonline.wto.org/imrd/gen_redirectsearchdirect.asp?RN=0&searchtype=browse&query=@meta_Symbol%22WT/COMTD/N/21%22&language=1&ct=DDFEnglish

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Correspondence to Gbadebo Odularu .

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Odularu, G., Odularu, A. (2017). Leveraging Trade Facilitation (TF) Measures to Maximize the Benefits of Regional Trade Agreements (RTAs) in West Africa. In: Odularu, G., Adekunle, B. (eds) Negotiating South-South Regional Trade Agreements. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-319-45569-3_9

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