Step 5. Read about the technical assistance obligations and the mechanism set up to monitor assistance and match it to needs and compliance commitments of developing and least developed countries.
Technical Assistance
WTO Members have recognized that developing and least developed countries will need assistance and capacity building to implement the Agreement since the launch of the negotiations. The Agreement therefore stipulates, that “Assistance and support for capacity building should be provided to help developing and least-developed country Members implement the provisions of this Agreement, in accordance with their nature and scope.“ (Article 13.2). The assistance is targeted to addressing implementation gaps and needs, in particular the needs linked to category C commitments of developing and least developed countries.
The technical assistance provisions of the Trade Facilitation Agreement (TFA) are unique. They allow for a better monitoring of actual assistance provisions, and a simplified matching of needs to available funds. As such they support the objective of the Special and Differential Treatment (S&DT) chapter to build implementation capacity prior to taking up a legal commitment to implement. On the other hand, developing and least developed country members are required to assess implementation capacity needs, and plan and monitor progress in building this capacity.
Technical Assistance Transparency
The Agreement creates to different types of transparency obligations related to assistance and capacity building.
- Donor country Members have to submit annually information on the assistance provided, and also have to notify contact points for the assistance programs (Article 22). The format for this notification is annexed to the Agreement –Annex 1: Format for Notification under paragraph 1 of Article 22.
- Developing and least developed country Members have to notify their requirements for assistance and support for capacity building in order to implement the provisions of the category C – Article 16.2d) for LDC Members and 16.1.c) for developing country Members.
Monitoring of provision of technical assistance
The negotiations and implementation of the actual assistance and capacity building support projects does not fall under scope of the Agreement. When a bilateral or a regional arrangement for assistance and capacity building has been made, both side of the arrangement, the donor Member(s) and the developing country Member have to inform the Committee on Trade Facilitation of such an arrangement and implementation progres thereof. At least once a year, will the WTO Committee on Trade Facilitation hold a dedicated session to review the Article 22 notifications of donor Members, to discuss progress and difficulties with the provision of assistance and implementation.
The transparency provisions for technical assistance serve a twofold purposes. Matching assistance needs to available funds, and oversight over implementation including possible implementation challenges.
Access to trade facilitation related technical assistance
Trade facilitation related aid has increased significantly in the past 10 years with a peak period in 2012 and 2013. According to the OECD –DAC aid for trade activities database, disbursed funds have reached 480 million USD in 2014. Six times more than in 2006.
Many international and regional organizations have set up dedicated trade facilitation programs or funds, and donor countries have created special contact points.
WTO Members have also created the Trade Facilitation Agreement Facility to support developing and least developed countries with the implementation of the Agreement. The Facility became operational on 27 November 2014. It will have the functions of delivering capacity building to increase the understanding of the Agreement, provide technical assistance for WTO Members to prepare the notifications under Section II, support access to funding, and in exceptional cases, can become a funding mechanism for TFA related technical assistance.
Information on trade facilitation related programs and activities of other organisations and donors can be obtained on the TFAD website.