The Executive Yuan Council today endorsed a joint proposal by the ministries of economic affairs, finance and foreign affairs to ratify the World Trade Organization's (WTO) new Agreement on Trade Facilitation. The move brings Taiwan one step closer to officially ratifying the pact, which requires the Legislature's consent as well.
The agreement is the WTO's first multilateral trade pact concluded since the organization's establishment, Premier Mao Chi-kuo said. Once in effect, the agreement is expected to lower the cost of doing international trade while improving customs clearance efficiency—all of which will bring a boost to Taiwan's economy and trade. The premier asked the Ministry of Economic Affairs to communicate and work with legislators to fast-track the ratification process.
According to the Organization for Economic Cooperation and Development, global trade costs could be reduced by 11 to 15 percent after the agreement is implemented. The Chung-hua Institute for Economic Research also estimates that the pact could respectively increase Taiwan's GDP and production value by US$3.86 billion and US$5.56 billion, while expanding exports and imports by US$3.23 billion and US$2.79 billion.
The Trade Facilitation Agreement has three sections:
• Section I (Articles 1 through 12): contains provisions for enhancing transparency; improving measures concerning trade procedures and charges; expediting the movement, release and clearance of goods, including goods in transit; and enhancing customs cooperation.
• Section II (Articles 13 through 22): contains special and differential treatment provisions for developing and least-developed countries.
• Section III (Articles 23 and 24): contains provisions that require WTO members to establish mechanisms to facilitate domestic coordination and implementation of the agreement, as well as final provisions.