Trade Facilitation Essay -- International Trade, WTO

International trade plays crucial role in the development of any country. And Trade facilitation can be define as a procedure to make international trade possible in a best and efficient way. In which transaction cost of trade is minimum and goods transfer from one country to other in shortest time. According to WTO, â€Å"Trade facilitation is defined as a procedure and controls for the movement of the good from one country to another can be reduce cost and burden. And also find the efficient flow of goods†. According to Kommerskollegium (2008), Trade Facilitation can be define as â€Å"a reduction in trade complexities and cost of trade transaction process and insuring that all these activities take place in an efficient, transparent and predictable manner†. According to Kommerskollegium (2008), International Trade is a key driver of economic growth. Trade facilitation reduces compliance cost, enhance government controls and capabilities and it is not achievable witho ut Political determination and international efforts. The author also explains Trade Facilitation as â€Å"a mixture of Harmonisation of applicable rules and regulation, standardization of information and requirements, simplification of administrative and commercial formalities, procedure and documents and transparency of the whole process†. It can be done by government regulation and controls, business efficiency, improved transportation, advancement of the information and communication technologies, and efficient and easy payment procedure. Custom play a central role but all border agencies should also involve in this procedure in an effective manners. It’s also an argument in support of trade facilitation that why developed nation are focusing on trade facilitation. If we go ... .... According to OECD (2005), World Bank estimated average time required for custom clearance through sea cargo in Africa is 10.1 days and only 2.1 days in OECD which shows the difference between trade efficiency of Africa and trade efficiency of OECD. According to OECD (2005), custom clearance time can be reduced by increasing the cooperation among the international border agencies and custom authorities of trading countries. ADB (2003) refers to indicate that Bangladesh could earn 30 percent more in results of its exports if port inefficiencies are removed OECD (2005). According to World Bank (2004a), if Procedure of Custom clearance improves in Ethiopia then average productivity level of the firms in Ethiopia will increase by 18 percent (OECD 2005). Furthermore, In Nigeria cost of import is as high as 45 percent due to inefficient custom clearance procedure.