Singapore issues: Trade Facilitation

At Doha, it was agreed that a decision on how to proceed with the four Singapore issues of investment, competition policy, transparency in government procurement and trade facilitation, would be made at the time of the fifth Ministerial Conference, subsequently held in Cancún, Mexico in September 2003. Following the breakdown of the trade talks in Cancún, mainly over some Members' resistance to the Singapore issues, it was decided (at the July 2004 General Council Meeting) that negotiations would proceed only on trade facilitation, with the remaining issues being referred to the WTO's working groups, but outside the Doha Round of negotiations.

Trade facilitation

Trade facilitation refers to the simplification and harmonisation of international trade procedures to assist the movement of goods. For example, customs, licensing and transit formalities are all areas which involve complicated administrative processes and burdensome documentation requirements.  Businesses currently suffer significant losses as the result of these complicated, and sometimes unnecessary, procedures. In recognition of the costs imposed on business because of 'red tape', trade facilitation was added to the WTO agenda in December 1996. Actual negotiations on trade faciltiation were finally launched in 2004.

Annex D of the General Council Decision of 31 July 2004 (the Framework Package) provides the modalities for the negotiations on trade facilitation, aimed at improving the efficiency of the global movement of goods, for example through improved and streamlined customs and border control procedures. This will be achieved by "clarifying and improving" relevant aspects of Articles V (goods in transit), VIII (fees and formalities) and X (publication and administration of trade regulations) of the GATT 1994.

Annex D also recognises the particular difficulties faced by developing countries in having the financial and technical capacity to undertake such improvements and includes commitment by developed country members to provide technical assistance and support for capacity building. This includes support for developing and least-developed countries to participate effectively in the negotiations themselves. The extent and timing of commitments by developing and least-developed countries is to be linked to their implementation capacity.

The negotiations have made good progress, and WTO Members have so far submitted some 50 proposals covering all aspects of the mandate. The Ministerial Declaration from the 6th WTO Ministerial Conference held in Hong Kong in December 2005 lays down clear markers for the path ahead in the trade facilitation negotiations. WTO Members endorsed moving to text-based negotiations with a view to concluding binding commitments on trade facilitation as part of the Doha Round outcome. Special and differential treatment and provision of technical assistance and capacity building for developing and least-developed countries were highlighted as key elements of the negotiations.

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