Proposal for ratifying trade facilitation agreement of WTO approved by Cabinet

NEW DELHI: India has sought five years to make legislative changes required to implement the trade facilitation agreement of the World Trade Organization. The Union cabinet on Wednesday approved a proposal for notification of India’s commitments under the agreement.

“We have asked for time for provisions that need technology or investment or legislative changes...Customs Act will have to be amended. We have asked for five years,” commerce and industry minister Nirmala Sitharaman said while briefing reporters after the decision.

The trade facilitation agreement ( TFA), which is part of the WTO's Bali ministerial package of 2013, contains provisions for expediting movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

“These objectives are in consonance with India’s ‘Ease of Doing Business’ initiative,” an official release said.

TFA will come into force after it is formally accepted by two-thirds of WTO members. Till now, 69 countries of the 162 WTO members have ratified this pact.

“We will deposit out ratification to the WTO. This is a significant step and it sends a strong message in our commitments,” Sitharaman said.

Provisions are classified into three classes. Category A provisions are those that a country already has in place. Category B provisions have to be implemented after a transition period. Category C commitments require the assistance of other countries to become applicable. Sitharaman said that most of India's commitments are in category B, few in A and none in C.

The minister said TFA has provisions that India had suggested in the first place. These include customs cooperation to tackle money laundering, return of rejected goods, and informing traders when their goods are detained.

The Union cabinet has also approved the ratification and acceptance of the instrument of acceptance of protocol of TFA to the WTO Secretariat and constitution of the National Committee on Trade Facilitation ( NCTF).