{{The New Trade Facilitation Agreement will cut red tape and reduce barriers to trade as well as transaction costs, boost competitiveness of Rwandan SMEs, contribute to the existing favorable investment climate and help in creating jobs.}}
On 7 December 2013, Hon. Minister of Trade and Industry François Kanimba, concluded his participation at the 9th Ministerial Conference of the World Trade Organization (MC9) held in Bali, Indonesia, from 3 to 7, by warmly welcoming the “Bali package”, in particular the adoption of the Trade Facilitation Agreement aimed at improving the movement of goods across regional and international borders.
The TFA is a binding Agreement for all countries to speed up customs procedures; make trade easier, faster and cheaper; provide information on all trade laws and regulations in a transparent manner; reduce bureaucracy and corruption, and use technological advances to improve port and border efficiencies.
This agreement will help landlocked countries like Rwanda to improve cross-border trade. It is worth mentioning that developed countries agreed to provide technical and financial assistance to help developing countries implement the Agreement.
For Rwanda, the importance of the new Agreement on Trade Facilitation is twofold. First, the TFA will reduce border transaction costs for Rwandans doing business abroad hence directly benefiting small and medium-sized businesses (SMEs), for whom NTBs, red tape and delays can be particularly burdensome during the transit journey. Secondly, the TFA will contribute to improving the existing favorable national investment climate.
The 2014 global Doing Business report shows that Rwanda is ranked 32nd worldwide in terms of overall ease of doing business. This is a testimony of Rwanda’s commitment for continuous reforms for a viable and sustainable investment climate. Evidence shows, however, that the Trading across borders indicator has been lagging behind in terms of ranking despite continuous efforts. The TFA will help address this gap and will at the same time stimulate investment for trading locally, regionally and internationally.
As Rwanda and Regional Countries embark on strengthening the Common Market at EAC level as well as the implementation of the EAC-COMESA-SADEC tripartite Free Trade Area, the TFA certainly creates an opportunity for investors, both national and foreign, to reap benefits arising from this wider regional market, free of barriers (Tariffs and NTBs). In this context, the TFA is a vehicle for driving trade and investment as twin engines for growth and job creation.
For the local and foreign business community, investing in Rwanda, trading regionally and internationally becomes a viable business option given the premium investment service facilities offered by Rwanda and the expedited movement of goods across borders that will follow the implementation of the new Agreement.
The Ministry of Trade and Industry will in due course be engaging the private sector and all trade support institutions for awareness raising on the new WTO Agreement and opportunities it creates.
{{Press Release}}
Leave a Reply