11 December 2014
Trade Barriers Become Development Barriers, Says UNCTAD Secretary General
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UN Conference on Trade and Development (UNCTAD) Secretary General Mukhisa Kituyi has welcomed the World Trade Organization (WTO) Trade Facilitation Agreement, describing it as a “landmark deal on trade” in an Op-ed.

He writes that the Agreement aims to remove "bottlenecks" and reduce "red tape" for international trade, facilitating faster and lower-cost movement of goods across borders.

He observes, however, trade facilitation reforms are more difficult to implement in developing countries and least developed countries (LDCs) than in advanced economies.

UNCTAD Secretary General Mukhisa Kituyi 2 December 2014: UN Conference on Trade and Development (UNCTAD) Secretary General Mukhisa Kituyi has welcomed the World Trade Organization (WTO) Trade Facilitation Agreement, describing it as a “landmark deal on trade” in an Op-ed. The WTO General Council adopted the Trade Facilitation Protocol of Amendment on 27 November 2014, a step that allows implementation to begin and makes the Facility operational.

Kituyi writes that the Agreement aims to remove “bottlenecks” and reduce “red tape” for international trade, facilitating faster and lower-cost movement of goods across borders. He observes, however, trade facilitation reforms are more difficult to implement in developing countries and least developed countries (LDCs) than in advanced economies.

In developing countries and LDCs, inefficient import and export procedures, including red tape, delays and corruption, can make the price of goods 15% higher, according to Kituyi. With the resulting decreased competitiveness for these countries, he adds, “barriers to trade become barriers to development.” Kituyi said trade facilitation can: lower barriers for small and medium-sized traders to help them integrate into the formal economy; reduce corruption, good governance and transparency; strengthen institutions and institutional cooperation; encourage private sector investment and better equality employment; and promote investment in transport infrastructure.

Through the WTO Trade Facilitation Agreement reached in the past year, countries commit to help developing countries and LDCs implement the agreement through financial and technical assistance, which Kituyi said represents a “novel development perspective.” He called on WTO members to translate their intentions into actions and commitments to ensure the Trade Facilitation Agreement boosts global trade.

Kituyi published the piece, ‘Cutting Red Tape in Trade Supports Development,’ in the Huffington Post. [Publication: Cutting Red Tape in Trade Supports Development] [WTO Press Release 27 November] [WTO Press Release 3 December] [WTO Website on Trade Facilitation]

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