Trade Facilitation Agreement Analysis

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4.3.3 Trade Facilitation Agreement (TFA) The TFA was the first agreement attained in the Bali Ministerial meeting since the past 20 years in the last Uruguay Round. it has been declared as a ‘win-win’ situation for both the developing and developed nations . The TFA was proposed to be added in the DDA in 2004 meeting with the aim to reduce bureaucracy while trading in goods. Former United States Trade Representative Robert Zoellick was once quoted as describing trade facilitation measures as 'basically an extension of market access procedures that lower transaction costs and increase timeliness of transit.' It was the International Chamber of Commerce (ICC) which saw the importance of Trade Facilitation in 2003 for the 8000 businesses that…show more content…
The agreement comprised primarily of three sections: Section I : aiming at the reduction in trade costs and improving the understandability of the GATT articles (V,VIII and X) and sets out provisions for custom cooperation. Section II: comprised of the special and differential treatment provided to countries requiring technical support to implement the agreement and to identify those provisions needed. Section III :states that each member should have a national committee to supervise and ease the adoption and progress of this Agreement. Implementation Issues : Although a win-win situation, some developing countries or least developed countries will require technical assistance to implement it. Thus three categories were developed to support these countries (Appendix 1).Some countries could implement these framework after being offered technical assistance or a transitional period. Moreover, the highlight in this Agreement was that India could have single handedly block its negotiation since it was against this proposal. India raised the issue of Food Security and was bent on continue to buy food grains at high prices from farmers and sell it at lower on the market. It was considered as a form of subsidy but eventually it was distorting the world food market by leading to an increase in prices and also stockpiling of these grains as supply had a high…show more content…
Pharmaceuticals were granted patents for a period of 20 years to produce the medicine or in the process to produce a medicine for instance its ingredients. The agreement also brought forward the Compulsory Licensing and parallel importing. Compulsory licensing pertains to the government allowing the production of the patented product even without the consent of the patent owner. Parallel importing pertains to the production and marketing of the product by the patent holder but is imported by another nation. The target date for its application by developing nations has been extended to January 2006. Geographical Indications: it consists of the name of places form which these products come from in order to identify their particular characteristics. This was foremost related to wine and spirit. The Trips drew attention on a more stronger geographical Indication so as to diminish the risk of consumers being misled and from unfair
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