ISLAMABAD: The government announced a reform strategy on Wednesday for cross-border movement of goods under the Trade Facilitation Agreement (TFA).

Addressing a press conference, Commerce Minister Khurram Dastgir said the agreement would help facilitate, simplify and modernise international trade among World Trade Organisation (WTO) members.

The WTO launched the TFA in 2013 to ease border trade across the world. Pakistan ratified the agreement in October 2015 which came into effect on Feb 22 after ratification from two-thirds members (110) of the organisation.

The member countries committed to reforms in three categories, i.e. A, B and C. All the reforms that Pakistan committed in category A have already been implemented after the ratification of the agreement. The proposed commitment for reforms mostly related to customs under B and C categories.

On the other hand, all these reform commitments will have to be discussed in a national committee on trade facilitation, a multi-stakeholders body having representation from the private sector, as required under the TFA agreement. But the government has yet to set up the committee.

However, an official of the Ministry of Commerce said the National Trade and Transport Facilitation Committee, which was established in 1998, was tasked to do the same job and has held six meetings in the last couple of years.

“We have discussed the categories in the last two meetings,” he said, adding that the committee in January decided to have a briefing on reforms commitment in April. But the ministry announced the commitments ahead of the briefing to the committee over the proposed reform strategy.

In three areas of category B reforms, the government proposed only one year for implementation while for the rest of the reforms the Federal Board of Revenue (FBR) has sought three years.

Interestingly, the FBR has sought five years for sharing of their routine rules, procedures, forms and policy letters. All legislation in Pakistan is uploaded on the website of the National Assembly the day it is approved, while the FBR is seeking five years for doing the same job.

An official note of the commerce ministry said that the Organisation for Economic Cooperation and Development has suggested that implementation of the TFA would reduce trade costs by 14.5pc. Developing countries like Pakistan will also be able to diversify their exports and enter new markets.

The WTO’s trade facilitation agreement will also help develop countries attract more foreign direct investment, increase customs revenues and curb corruption through the availability of all information in a transparent manner. Beyond these quantifiable economic benefits, the agreement will also improve the systems and customs procedures.

Against this backdrop, the FBR sought five years for committing expedited shipment and establishment of a single window, which are basic requirements for attracting investments. The FBR is also reluctant to commit reforms in those areas which are already covered in the customs act.

The TFA contains provisions for expediting the movement, release and clearance of goods. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

Published in Dawn, March 16th, 2017