TRADE FACILITATION
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Trade facilitation measures are focused on simplifying processes for cross-border trade,
increasing transparency and accountability, sharing information, and facilitating
harmonization in policy and regulatory reforms
Trade facilitation has played a critical role during the COVID-19 pandemic, since countries
have had the difficult task of maintaining a balance between free flow of essential goods
and minimizing transmission of the virus, which has often involved “red tape” in the form of
logistics and supply chain specifications, border controls, and documentation requirements
relating to COVID-19
There is a significant need for cooperation between border agencies and other relevant
regional and national agencies to help streamline processes relating to flow of vaccines and
other essential goods such as pharmaceutical and medical goods across borders
options for trade facilitation provisions that are particularly important in times of crisis have
been identified based on the following categories: (i) paperless trade; (ii) expedited
shipments and release of essential goods; (iii) other measures related to expedited release
of essential goods; and (iv) facilitation of border cooperation, including cooperation
between national authorities such as border agencies and trade facilitation committees.
Paperless Trade
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As goods cross borders during emergencies, information also needs to flow between
relevant parties, such as private companies (including SMEs), border agencies, public
bodies, customs officials, and consumers. Incorporating paperless trading mechanisms in
cross-border procedures can enable faster exchange of information.
Paperless trading will improve the efficiency of cross border trade during a crisis situation,
but it can also raise implementation challenges for many poor countries. The assessment
found that the main challenges for these LDCs were lack of domestic legal rules concerning
electronic transactions, lack of electronic systems, poor coordination between border
agencies, and insufficient human resources.
a. Pre-arrival Processing Through Electronic Means
Pre-arrival processing allows countries to maintain procedures to process import
documentation prior to the arrival of goods at the border, with the objective of releasing
these goods immediately upon arrival. Such procedures are vital during an emergency
situation, as they allow for immediate release of essential goods and assist stakeholders in
maintaining business continuity by making it easier to anticipate issues that might arise with
respect to import documentation
b. Electronic Copies
Digital solutions can be extended to procedures such as pre-arrival processing, inspections,
testing procedures, health checks, and identification requirements, among others. During
emergencies like COVID-19, acceptance of electronic copies may be preferred.
c. Electronic Payments
Expediting Release and Clearance of Goods
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The WTO TFA requires that Members provide priority to perishable goods and adopt
mechanisms that would allow for the release of these goods in the shortest time possible
Establishing fast track lanes could also help expedite cross-border trade in essential goods
Other Measures Related to Expedited Release and Clearance of Essential Goods
a. Risk Management
Countries maintain risk management strategies for a number of reasons related to the importation
of goods into their territories, and these measures have been especially important during COVID-19.
b. Designating Authorized Economic Operators
c. Self-Filing Customs Documents
d. Single Window Systems
Cooperation Between Border Agencies and Trade Facilitation Committees
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Provisions relating to border agency cooperation and coordination between NTFCs have
been key to maintaining trade during the pandemic.
During the pandemic, NTFCs have been at the heart of countries’ responses, but NTFCs have
faced a number of challenges during the pandemic, including lack of connectivity, absence
of national databases, lack of involvement in COVID Task Forces, and political interference.
CHAPTER IV - SANITARY AND PHYTOSANITARY MEASURES AND TECHNICAL
BARRIERS TO TRADE
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Sanitary and Phyto Sanitary (SPS) measures and Technical Barriers to Trade (TBT), are
examples of technical non-tariff measures (NTMs) that are adopted by governments to
further specific public policy objectives.
Given the sheer volume of imports affected by SPS and TBT measures, and due to the
resulting trade costs and burden on traders, their significance, especially during times of
emergency when supply chains are stressed, cannot be overstated.
RTA Sanitary and Phytosanitary Measures and Technical Barriers to Trade
Options for Responding to Crises
Ensuring Proportionality of Sanitary and Phytosanitary Measures and Technical Barriers to
Trade
During the course of the COVID-19 pandemic, some of the SPS and TBT measures adopted
or applied were aimed at protecting human life and health. This is particularly the case for
SPS measures and technical regulations applicable to medical goods such as surgical masks,
PPE, and respirators
a. Risk Assessment
SPS measures enacted to protect plant or animal life or health aim to reduce the risk posed
by threats like pests, toxins, and pathogens. Before such measures are adopted and applied,
if international standards do not exist, an adequate risk assessment must first be carried out
to ensure that the measure is well designed and the need for protection is balanced against
any negative trade effects.
b. Proportional Response
The SPS Agreement, while allowing WTO Members to take the necessary SPS measures to
protect human life and health, among other policy justifications, is also based on a
“proportionality principle” that calls for measures to be proportional to the risk or threat
Ensuring Compatibility of Sanitary and Phytosanitary Measures and Technical Barriers to Trade
Therefore, to improve the resilience of international trade flows during times of crisis or
emergency, special attention should be given to incorporating and implementing RTA provisions on
harmonization, equivalence, and mutual recognition of SPS and TBT measures
a. Harmonization
Harmonization is a core concept in both the SPS and TBT Agreements, as noted above. Accordingly,
harmonization provisions are included below as the Baseline Options for both SPS and TBT
measures, respectively.
b. Equivalence
Recognizing the equivalence of measures that appear different at face value but achieve the same
level of protection or address the same policy concern is another way in which compatibility
between the SPS and TBT measures of different jurisdictions may be improved.
c. Mutual Recognition
Mutual recognition of SPS and TBT regulations is another important way of facilitating trade.
Mutual recognition allows countries to accept differing rules, standards, and procedures as valid
and also implies that imports lawfully produced in the exporting country will be accepted in the
importing country.
CHAPTER V - INTELLECTUAL PROPERTY RIGHTS
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Recent RTAs tend to contain comprehensive IP chapters and provisions specifically relevant
during times of crises. Aspects of IPR protection that are important to resilience during times
of crisis and efforts to build forward better are: (i) TRIPS plus provisions related to
pharmaceuticals; (ii) compulsory licensing; and (iii) alternative incentive models.
IPR protection for pharmaceuticals raises critical questions during times of pandemic or crisis.
TRIPS plus IPR provisions are common in RTAs, and those most relevant to pharmaceuticals
include patent linkage, patent term extension, exhaustion, expanded definitions of
patentability, and protection for undisclosed test data and biologics
CHAPTER VI - DIGITAL TRADE
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Several priority areas for digital trade rules in the context of the pandemic and future crises:
data privacy, cross-border data flows, and data localization; consumer protection; electronic
signatures and electronic authentication; electronic payments; and bridging the digital divide,
including through improved access to digital infrastructure.
A number of RTAs contain data privacy and protection provisions that require that each party
adopt or maintain a legal framework for the protection of data privacy. RTAs that contain a
binding commitment on data privacy and protection also tend to include provisions on crossborder data flows.
The newer mega-RTAs, such as the CPTPP, RCEP, CETA, and USMCA, contain language
requiring parties to “adopt or maintain a legal framework that provides for the protection of
the personal information of the users of digital trade or electronic commerce, where
applicable”.
CHAPTER VII – TRANSPARENCY
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Transparency has been particularly important since the start of the COVID-19 pandemic
because many countries have acted unilaterally, and often on an ad hoc basis, to enact
measures aimed at curbing the spread of COVID-19.
Transparency provisions most relevant to trade in times of crisis include (1) notification of
new rules or changes to existing rules, (2) provisions designed to increase participation in the
rulemaking process, (3) disciplines on accountability, and (4) mechanisms for cooperation and
information pooling.
The RTA options address four critical areas with respect to transparency: (1) notification of
new rules or changes to existing rules, (2) provisions designed to increase participation in the
rulemaking process, (3) disciplines on accountability, and (4) mechanisms for cooperation and
information pooling.