G/TFA/W/36  
 
16 April 2021  
(21-3191) Page: 1/2 
Committee on Trade Facilitation  Original: English  
 
 
ROLE OF THE TRADE FACILITATION COMMITTEE IN THE TRADE FACILITATION 
AGREEMENT FACILITY  
COMMUNICATION FROM THE UNITED STATES  
The following communication, dated 16 April  2021, is being circulated at the request of the 
delegation of the United States.  
 
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1. Since the very first substantive Trade Facilitation (TF) Committee meeting in July 2017, the 
United States has been seeking a better understanding of the i nstitutional and administration division 
between the WTO Secretariat and the Trade Facilitation Agreement Facility (TFAF). We would refer 
Members to the minutes of that meeting, in G/TFA/M/2 paragraph 4.16. We have continuously 
sought to better our underst anding on a couple of key issues:  
• Under what circumstances can or should TFAF be able to exercise the prerogatives and 
privileges of the Secretariat?  
• Who directs the activities and functions of TFAF, to whom does TFAF report and answer 
to? 
2. We have repeated ly stated over the last four years, most recently during the October 2020 
Trade Facilitation Committee formal meeting, January 2021 TFC informal meeting, and March 2021 
formal meeting, that the United States is flexible as to whether TFAF represents the in terests of its 
donors, or represents the interests of the TF Committee. In either case, the choice clarifies the role 
and function of TFAF staff.  
3. In our efforts to seek out this clarity, the United States has met repeatedly with the Market 
Access Division of the Secretariat, and with TFAF donors. We have raised this issue continually at 
the Committee on Budget, Finance and Administration, where the role and growth of single -issue 
trust funds is being debated and rising institutionally across the WTO, and we  are concerned that 
the lack of clarity we have seen in TFAF will become a systemic issue.  
4. What we have heard from other Members, the Secretariat, and TFAF is that the answer lies 
within the TF Committee. It is up to the TF Committee to decide to whom TFAF  is accountable and 
to define TFAF's scope, role, and responsibilities: is it a fund at the direction of the TF Committee or 
a fund at the direction of its donors?  
5. It has become clear to us that we are not going to reach any definitive conclusions about the 
role of TFAF by continuing to pursue a flexible approach in seeking direction from the Secretariat, 
TFAF, and donors. Instead, we believe that in order to reach an answer that provides clarity to TFAF 
and Members, as well as addresses  our concerns, we need to choose an outcome and bring that 
position to the TF Committee to debate and decide TFAF's role, as we have been directed.  
6. We therefore propose that TFAF falls under the purview and direction of the WTO TF 
Committee. Any donor to T FAF will have the same rights to direct or object to TFAF activities as any 
other WTO TF Committee Member. We believe that TF Committee oversight, direction, and 
responsibility will ensure transparency as to the TFAF activities being undertaken, the fundin g of 
TFAF, and transparency as to a Member's assistance by TFAF.  G/TFA/W/36  
 
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  7. We believe that the TF Committee can be the place where TFAF provides transparency 
concerning proposed activities and grants, where Members can ask questions and debate the merits 
of any acti vity before coming to a recommendation for TFAF. This will ensure TFAF has TF Committee 
support for its participation in activities. We could envisage treating TFAF's grant function differently 
from "other activities".  
8. In the grant space, we could see TFAF  working with its grant committee to fund certain 
activities consistent with the terms provided to Members at its establishment. Those approved grants 
would then be brought to the TF Committee for transparency. We would like to ensure that every 
grant deta ils how it enables implementation of the TFA, including identifying metrics that will be 
used to measure the effectiveness of the grant. Having this kind of detailed discussion in the TF 
Committee will allow for a robust exchange and provide visibility int o the grant program.  
9. In the "other activities" category, such as workshops, national seminars, TFAF staff 
participation in panels at the WTO and at other international organizations, all such proposed 
activities and invitations should be shared in writing ahead of a regular TF Committee so Members 
can discuss, take a decision on TFAF staff's participation, and provide any necessary policy guidance.  
10. In addition to the robust discussions and increased transparency inherent in the TF 
Committee's decision -makin g process, this formulation of responsibility will also allow Members 
visibility into the discussion of Annex D organizations. TFAF would now seek TF Committee direction 
prior to participating in Annex D discussions, resulting in Members having a clearer u nderstanding 
of what is being planned for future Annex D activities.  
11. We also see this formulation as allowing for discussion of metrics and outcomes in real time. 
The TF Committee will have a view into the budget of TFAF, the proposed costs of programs, me trics, 
and outcomes, which will in turn allow more informed decision -making and activity planning.  
12. Finally, we see this formulation as addressing any conflicts of interest or misallocation of 
Secretariat or Committee resources. TFAF activities will be deba ted and decided based on objective 
criteria, for the sake of implementing the Agreement as a whole as well as for the benefit of Members. 
It is up to Members to ensure that TFAF activities are useful and provide meaningful outcomes.  
13. We believe that for all  of the reasons and benefits stated above, TFAF should operate, provide 
technical assistance, and conduct activities at the direction of the TF Committee. The TF Committee 
is where debate among Members and consensus decision -making takes place. Ultimately,  TFAF will 
implement the will of the TF Committee.  
14. We look forward to hearing other Members positions on this topic and revising the TFAF 
operational guidelines to reflect the outcome of this Committee's decision.  
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