Workshop enhances understanding of potential benefits of TFA |22 August 2016

A two-day national trade facilitation workshop was held recently at the Eden Bleu Hotel on Eden Island with the aim of assisting businesses to understand the terms, potential benefits and practical use of the technical measures of the new World Trade Organisation (WTO) Agreement on Trade Facilitation and to equip them to successfully contribute to the design, implementation and monitoring of the Trade Facilitation Agreement (TFA).

The general objectives of the workshop was to provide businesses with a sound understanding of the potential benefits and practical objective of each of the technical measures of the TFA and requirements to complement their business priorities.

The workshop also looked at transparency in cross border processing and how the TFA promotes fairness and non-discrimination. It further elaborated on how companies can improve on working with cross border agencies, influence efforts to improve business efficiency and develop a set of actions to participate in the drive towards improved trade facilitation.

The workshop was attended by representatives from government ministries, divisions and agencies as well as representatives from a broad spectrum of the private sector which included the Seychelles Chamber of Commerce and Industry (SCCI), freight forwarders, shipping agents, cargo handlers, clearing agents, insurance companies and the fish processing companies.

“The TFA is designed to ease the movement of goods across borders with the aim of reducing the cost, time and process of doing business which will in turn increase FDI, the general competitiveness of our economy and may reduce the cost of living.

“While implementation is mainly the responsibility of the governments, businesses are expected to play an important role in the consultative process to advise authorities as to how the agreement is best applied at national level,” said a spokesman from the Department of Finance. 

Replying on how best to apply it in the national environment so businesses and the country can benefit, the spokesman saidthe most reasonable approach would be first and foremost for the responsible government ministries, agencies and the private sector to have a sound understanding of the provisions contained in the agreement. The agreement is written in general terms which provides government with some flexibility in implementation. Furthermore, a number of provisions of the agreement are not mandatory and therefore only requires that government uses its best efforts to implement the measures in their domestic legislation and practice.

“It is therefore important for businesses to understand these implementation options through consultation, opportunity to comment within or outside the scope of national trade facilitation committee, to ensure that their preferences are heard and taken into account,” he said.

It is to be noted that the National Trade Facilitation Committee was established in September 2015 and has been meeting regularly since then. The committee has a chairperson whose role is to alternate between the principal secretary of finance and a representative of the private sector. The committee is composed of 27 members from the public and private sector.

Regarding small and medium enterprises (SMEs), under the TFA there are no specific provisions for them. However, it is up to the government to take into account the specificities of SMEs and develop appropriate policies to increase their participation in cross border trade.

In a bid to clarify to the SMEs the benefits if they manage to integrate and to have a good understanding of how the agreement will benefit them, the Department of Finance said the majority of businesses in Seychelles could be classified as SMEs and therefore participation in this workshop has provided them with a good understanding of the agreement.

As for cross border inefficiencies, they could be categorised as procedural such as cumbersome documentary requirements and inspections at the border or as non-predictability and transparency of the system. In order to tackle cross border inefficiencies, the workshop was presented with the following suggested measures for suggested implementation at the border or behind the border: transparent, accessible and predictable rules and procedures; standardised forms, assembled into a ‘single bunch of documents’; a single access point to all border regulatory agencies and public services; simple, efficient and uniform formalities and procedures; a system based upon justice and reward for compliance; more efficient inspection.

Suggested measures that could be taken behind the border are: adequate infrastructure to support trade and transport goods; service providers who can connect buyer and seller efficiently; means to allow goods to proceed promptly to their final destination; review of fees and formalities; what measures strategies for Seychelles?

As soon as the TFA comes into force Seychelles will implement it, according to its capacity.

What next?

Government will continue maintaining its effort to ensure that there is collaboration between public and private sectors so that the requirements of the TFA is fully understood and applied. In addition, the government will continue to engage its cooperating partners for technical assistance and capacity building where deemed necessary to ensure that the agreement remains relevant.

The majority of businesses in Seychelles could be classified as SMEs. The workshop provided them with a good understanding of the TFA