RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/114
26 May 1998
(98-2158)
Council for Trade in Goods Original:  English
TRADE FACILITATION
SWISS PROPOSAL FOR FUTURE WORK IN THE WTO
Introduction
1. The outcome of the WTO Symposium on Trade Facilitation (9-10 March 1998) has been
discussed in the March and April meetings of the Council for Trade in Goods.  The Secretariat has
drawn up a most useful "Checklist of Issues" (G/C/W/113 dated 17 April 1998).  This Checklist is the
starting point for the present proposal.
2. The purpose of this proposal is to highlight a number of areas where different WTO
Committees could be invited to examine various suggestions made at the Symposium.
3. This proposal is meant as a basis for discussion.  It addresses areas where trade facilitation by
the WTO is considered most appropriate, but it is not exhaustive.  For instance, it does not containfollow-up suggestions for issues falling squarely w ithin the competence of other organizations such as
UNCTAD or WCO, e.g. further multilateral harmonization of national tariffs or the establishment of
parameters for the concept of "authorized traders".  Neither does it address the possible use of the
WTO dispute settlement mechanism in cases where, for instance, border procedures "more
burdensome than necessary" impinge on trade.
4. Finally, a number of suggestions from the Symposium appear to lend themselves to future
market access negotiations rather than "trade facilitation" based on existing rules and/or scheduled
commitments.  One example which comes to mind is the improvement of market access conditions
for foreign transport enterprises - a subject clearly su itable for the next multilateral trade negotiations
on services, and therefore not further dealt with in this proposal.
5. The procedural approach proposed by this submission is as follows:  as a first step, the issues
raised in the Secretariat's Checklist could be listed under the respective WTO rules and bodies whichappear to be most relevant for each item.  Those bodies, with the assistance of the Secretariat, could
thus be asked to look into each subject within their competence, through a new item, "trade
facilitation", on their agenda and work programme.  Given its leading role in the matter, the Council
for Trade in Goods, both in formal and informal  mode, should supervise work undertaken by these
bodies and receive their reports in good time before the 1999 Ministerial Conference.  It could thenreport back to the General Council with a recommendation for action as appropriate.
6. The proposed approach is to introduce, under the overall supervision of the Council for Trade
in Goods, a new agenda item into the ongoing work in various WTO fora, in close cooperation with
other organizations and with specialists from the private sector, leaving open the question of using
possible results from this analytical phase in the fu ture.  In the Swiss view, trade facilitation should
permeate WTO working and thinking throughout the Organization and its Members, rather than being
dealt with in yet another, separate and secluded body.  It is thus only at a later stage that the question
of a new WTO body and of new WTO rules may arise.G/C/W/114
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Possible trade facilitation work in various WTO bodies
7. The tenor of most interventions at the Symposium addressed onerous and cumbersome
procedural requirements for the import and export of goods, be they set up and/or implemented at the
border or domestically, by customs authorities or other governmental bodies.  For many of the queries
made, the Agreement on Import Licensing Procedures would therefore seem to be a useful startingpoint for examining the link between traders' re quests and governmental commitments in the WTO.
But several other agreements may also offer scope fo r approaching some of the issues arising from the
Symposium.  The remainder of the Swiss proposal is  thus an attempt to list the Symposium results
under the various WTO Agreements and under the corresponding bodies in which trade facilitation
work could be undertaken.
8. At the highest level, the General Council could further refine the Singapore Ministerial
Mandate and commit the WTO to a "leading role in rationalizing the international regulatoryframework by putting trade facilitation in its work programme and committing itself to cutting
business and consumer costs and removing barriers in the trade process".  Furthermore, on the
assumption that the General Council will deal with the subject of electronic trade commerce, it might
be appropriate also to treat trade facilitation in that body.
9. Secondly, the Trade Policy Review Body could adopt a decision with regard to the suggestion
made that trade policy reviews "increase prominence of trade facilitation and include (adherence to)
CEFACT recommendations in the scope of its analysis" - in a similar way to the present practice of
examining adherence to TBT standards in all trade policy reviews.
10. Thirdly, the Committee on Sanitary and Phytosanitary Measures would appear to be the most
appropriate body to deal with the suggested harmonization of import, transport and transitrequirements regarding phytosanitary requirements and veterinary prescription.  As a matter of fact,
the SPS Agreement already contains provisions to that extent;  the ongoing work in that Committee
could thus be carried on with an additional trade facilitation focus, possibly through hearings with
concerned traders.
11. Fourthly, a number of suggestions have been made with regard to Customs Valuation, e.g. the
possibility for exporters to certify values on a periodic basis, or the introduction of post-importation
audits.  Such suggestions could possibly be built into a set of recommendations to be elaborated in the
Committee on Customs Valuation, possibly also in the Working Party on Preshipment Inspection.
12. Lastly, more or less all the other issues raised at the Symposium, inasmuch as they have a
direct or indirect WTO link, could be examined under the auspices of the Council for Trade in Goods
or in the Committee on Import Licensing, since the general theme of border procedures and their
improvement falls largely under the provisions of the Agreement on Import Licensing Procedures, ashas been pointed out above:
- The lack of (or the deviation from) international transport rules for all modes of transport, in
respect of documentation and technical regulations.
- Adherence to the UN Layout Key for Trade Documents and other UN Standards, including
UN/EDIFACT and relevant ISO Standards.
- Risk assessment (including through the use of improved communications systems and the
development of electronic data transmission between exporting and importing
administrations) and audit-based controls as a means to allow for more efficient enforcement
of regulations and duty collection by customs.G/C/W/114
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- Increased use of information technology in order to reduce border-crossing time, while at the
same time, improving control and revenue collection functions.
- A general concern of many speakers was the wide range of discretion on the part of officials
arising from a lack of precision and transparency in administrative regulations which is also a
major source of irregularities and corruption.  It appears that the various provisions in theAgreement on Import Licensing Procedures (as well  as in Article X of the GATT) with regard
to automatic and non-automatic licences, the publication and specification of all fees and
charges could be used to examine the various suggestions made and to look into ways and
means to improve the situation.
- In a similar vein, the better implementation of internationally agreed messaging protocols - a
trade facilitation instrument which often cannot be used because of governmental rules
prescribing specific payment methods which do not allow the use of these protocols - couldbe looked into by the Committee on Import Licensing.
Conclusion
13. It is obvious that the above possibilities for further work, while most appropriately dealt with
in different WTO bodies, should be further discussed and their implementation monitored in an
appropriate institutional process.  Switzerland proposes that (pending further guidance from the
General Council) the Council for Trade in Goods continues its role as a focal point for initiating and
supervising work to be carried out by other bodies .  The Chairman of the Council for Trade in Goods
should therefore be asked to proceed with further consultations with all parties interested in the
subject of trade facilitation, in order to report back to the Council in good time, but in any eventuality
before the summer recess.  A final report on this analytical phase should be submitted to the GeneralCouncil in view of the 1999 Ministerial Conference.
14. Analytical work in most of the issues outlined at the Symposium will require additional inputs
from trade specialists.  It is thus proposed that each WTO body entrusted with trade facilitation work
should look into the possibility of organizing hearings  or consultations with trade specialists.  At the
same time, cooperation with the international organizations present at the Symposium should beintensified in those areas where further work is carried out in the WTO.
15. In the Swiss view there is no need, at this point in time, to look into the possibility for
establishing new WTO rules in respect of trade facili tation.  The work at hand is already very vast,
and the existing rules are likely to yield a wealth of possibilities for application to trade facilitation
concerns.  In some cases and at an appropriate stage, further work could result in a number of
recommendations by the appropriate WTO bodies, for implementation or use either in the WTO or in
other organizations.  Another form in which trade facilitation results could materialize would be themonitoring of adherence to international standards, guidelines and recommendations by WTO
Members.
16. Last but not least, in view of the importance of this subject and of the difficulties to grasp its
conceptual and practical intricacies, as well as to implement possible results of this new WTO venture
it will be necessary, at each step, to look into the technical cooperation needs of WTO Memberswishing to associate themselves with the process in the WTO and to avail themselves of existing or
new trade facilitation instruments.  Of course, here as well, cooperation and coordination with
organizations already carrying out technical assistance programmes will be of paramount importance.
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