Does reducing trade barriers truly enable smoother goods circulation and easier business operations? The World Trade Organization's (WTO) Trade Facilitation Agreement (TFA) was created precisely for this purpose. Uzbekistan, a landlocked country in Central Asia, is actively working to enhance its import-export efficiency through TFA implementation, with crucial support from the SECO-WCO Global Trade Facilitation Programme (GTFP).
The SECO-WCO Global Trade Facilitation Programme (GTFP)
The GTFP is a multilateral cooperation initiative designed to assist developing and least-developed countries in implementing the WTO TFA. Funded by Switzerland's State Secretariat for Economic Affairs (SECO) and executed by the World Customs Organization (WCO), the programme provides technical assistance, capacity building, and policy advice to help nations simplify, harmonize, and modernize customs procedures, thereby reducing trade costs and stimulating economic growth.
Key focus areas include:
- Customs procedure simplification: Promoting international standards to reduce documentation requirements and accelerate cargo release
- Trade facilitation measures: Supporting implementation of TFA provisions including advance rulings, risk management, and inter-agency border cooperation
- Capacity building: Training customs officials to enhance professional skills
- Policy recommendations: Advising governments on trade-friendly policy development
Uzbekistan's TFA Implementation Context
As an important Central Asian economy with relatively low trade efficiency, Uzbekistan views WTO accession and TFA implementation as strategic priorities for economic development. The agreement promises to:
- Reduce trade costs by streamlining customs procedures
- Enhance trade efficiency through faster cargo clearance
- Improve business climate to attract foreign investment
- Strengthen global economic integration
Tashkent Workshop Highlights Key Implementation Priorities
From May 30 to June 1, 2023, WCO experts conducted a TFA workshop in Tashkent for Uzbekistan's State Customs Committee (SCC), attended by customs officials and representatives from other government agencies. The session focused on priority areas identified during the March 2023 Mercator follow-up mission:
Advance Rulings
This mechanism allows importers to obtain binding customs decisions on product classification, tariff rates, and origin before shipment, enhancing trade predictability.
Risk Management
Implementing risk assessment techniques to identify high-risk shipments while expediting low-risk cargo processing.
Border Agency Cooperation
Strengthening coordination between customs and other border control agencies (health, phytosanitary, security) for more efficient and secure border management.
Time Release Study (TRS)
Analyzing cargo clearance timelines to identify bottlenecks and implement corrective measures.
The workshop emphasized inter-agency coordination, the role of National Trade Facilitation Committees (NTFCs), and various coordination mechanisms essential for effective TFA implementation.
Workshop Outcomes and Next Steps
Participants gained deeper understanding of TFA provisions and practical implementation measures. Key conclusions included:
- Enhancing origin-related capacity building for improved advance rulings
- Strengthening border agency collaboration through a Single Window rapid alert system
- Exploring integrated risk management approaches across border agencies
Ongoing Efforts with GTFP Support
Uzbekistan's SCC continues aligning procedures with TFA requirements while developing new processes where necessary. The GTFP supports these efforts to modernize and harmonize import-export processes as envisioned by the TFA, potentially transforming Uzbekistan's trade environment.
Core Elements of the WTO Trade Facilitation Agreement
The TFA's fundamental provisions include:
- Transparency through publication of trade regulations
- Advance rulings for trade predictability
- Simplified customs documentation
- Risk-based inspection systems
- Enhanced border agency cooperation
- Transit freedom guarantees
- Technical assistance for developing countries
The Critical Role of National Trade Facilitation Committees
NTFCs, typically comprising representatives from customs, trade, transport, agriculture, and health sectors, serve as national coordination bodies for TFA implementation. Their responsibilities include:
- Developing national trade facilitation strategies
- Coordinating cross-agency implementation
- Monitoring progress and reporting to government
- Engaging private sector stakeholders
- Providing policy recommendations
Effective NTFC operation is vital for successful TFA implementation, ensuring policy coherence and private sector engagement.
Single Window Rapid Alert Systems
Single Window environments allow traders to submit all import-export documentation through a unified electronic platform. Implementing rapid alert systems within this framework enables timely identification and response to risks like smuggling or counterfeit goods, protecting national security and consumer interests through:
- Automated risk assessment
- Inter-agency information sharing
- Real-time alert dissemination
- Coordinated response protocols
Integrated Risk Management for Border Control
This approach combines risk management systems across customs, health, phytosanitary, and security agencies through:
- Comprehensive risk identification
- Multi-dimensional risk assessment
- Coordinated control measures
- Continuous monitoring
- Stakeholder communication
Integrated systems significantly enhance border control effectiveness while safeguarding economic and security interests.
Conclusion
Uzbekistan has made notable progress in TFA implementation through domestic efforts and international support like the GTFP. Continued focus on capacity building, inter-agency cooperation, and adoption of international best practices will further improve the country's trade environment and economic prospects.