Trade Facilitation Agreement
| Type | Trade agreements |
|---|---|
| Context | Doha Development Round of the World Trade Organization |
| Signed | 7 December 2013 |
| Location | Nusa Dua, Bali, Indonesia |
The Bali Package is a trade agreement resulting from the Ninth Ministerial Conference of the World Trade Organization in Bali, Indonesia on 3–7 December 2013. It is aimed at lowering global trade barriers and is the first agreement reached through the WTO that is approved by all its members. The package forms part of the Doha Development Round, which started in 2001.
The accord includes provisions for lowering import tariffs and agricultural subsidies, with the intention of making it easier for developing countries to trade with the developed world in global markets. Developed countries would abolish hard import quotas on agricultural products from the developing world and instead would only be allowed to charge tariffs on amounts of agricultural imports exceeding specific limits. Another important target is reforming customs bureaucracies and formalities to facilitate trade.
The Bali Package consists of ten separate decisions by the Ministerial Conference, covering four areas as follow.
The Trade Facilitation Agreement (TFA) entered into force on 22 February 2017 when Rwanda, Oman, Chad and Jordan submitted their instruments of acceptance, achieving the requirement that two-thirds of the 164 WTO members formally accept the Agreement.
The TFA aims to reduce red-tape and streamline customs. It will be legally binding, require some expense and a certain level of technology. The agreement reaffirms that the non-discrimination principle of Article V of GATT 1994 remains valid.Least developed countries (LDCs) will be supported in building capacities to implement the changes using funding from the Trade Facilitation Agreement Facility (TFAF), which was established on 22 July 2014 under the terms of an amendment to the TFA. However, some critics worry that governments may have to prioritize funds for trade facilitation over other important areas, such as public health or education.
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