TRADE AND DEVELOPMENT
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Mongolia and Mauritius underlined how the TFA, which is currently being implemented by WTO members, will help to reduce trade costs. The Agreement entered into force on 22 February 2017 after having been ratified by two-thirds of the WTO membership. In particular, Mauritius stressed that major reforms to customs procedures have already greatly reduced processing time for the clearance of imported goods.
At the meeting, WTO members also highlighted external factors that they say are disproportionately affecting the ability of small economies to trade. These include the high costs of compliance with international and private standards, the increased intensity of natural disasters and stringent trade rules.
In a presentation, the United Nations Conference on Trade and Development (UNCTAD) noted that trade costs for small economies encompass much more than just tariffs. The high trade costs they encounter include transport, logistics, crossing borders, information sharing and the processing of transactions. To mitigate these trade costs, UNCTAD suggested focusing on transport connectivity analysis, digital connectivity and regional intercontinental shipping services among other areas.
The Enhanced Integrated Framework (EIF) – a multi-agency initiative working to increase the trading capacities of developing countries - stressed the importance of digital connectivity, especially to enhance the poorest countries' access to global markets through reduced trade costs. It cited the importance of establishing new business models and app development to lower barriers to the entry of goods and services. It encouraged further analysis of e-trade, implementation of the TFA and the expanded WTO Information Technology Agreement and compliance with notification requirements for greater transparency.
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