Establishing Well Functioning National Trade Facilitation Bodies (NTFBs)
In the OIC Member States
24
coordination and channels of communication have a negative effect on NTFBs’ ability to
appropriately identify issues of concern, the absence of public-private communication inhibits
NTFBs’ ability to inter alia develop appropriate proposals/recommendations for measures and
provide effective assistance.
UNCTAD recently undertook an in-depth analysis of 50 NTFBs (based on information in UNCTAD’s
online repository) and, on that basis, produced a set of recommendations based on those countries’
experiences of participating stakeholders. 35 These recommendations are intended to assist in the
creation and/or strengthening of NTFBs worldwide. While UNCTAD noted that the principal
challenge for NTFBs is ensuring their sustainability – something that is determined by a variety of
factors which vary in importance depending on the circumstances and culture of the country at issue
– UNCTAD also found that the level of development of a country is the most important factor to
ensure sustainability. 36 Moreover UNCTAD found a positive correlation between (i) level of
development (a factor proven to influence sustainability of NTFBs) and (ii) the degree of private
sector participation and the number of members in NTFBs.37 One of the resulting recommendations
was to “always involve the private sector”: in this regard, UNCTAD noted that “[t]he public sector
and/or lead agency of the trade facilitation body should actively and genuinely involve the private
sector in the body, as this is the most important success factor for the body. The public sector should
ensure that the involvement of the private sector is inclusive and representative.”38
1.4.2. WTO law mandates the establishment of NTFBs
1.4.2.1. TF negotiations on NTFBs (e.g. TN/TF/W/158)
The important role of NTFBs is evidenced by the fact that WTO Members agreed to the inclusion of
Article 23.2 requiring the establishment/designation of an NTFB in each Member (discussed in a
previous section). The inclusion of this provision appears to be the result of a long-established
recognition on the part of Members with respect to the useful role of NTFBs, including for domestic
coordination purposes. For example, in the context of the Negotiating Group on Trade Facilitation, a
number of Members (namely, Honduras, Norway and Switzerland) suggested the inclusion of the
following obligation in WTO law:
“In order to facilitate the process of domestic coordination of trade facilitation needs,
priorities and implementation, Members shall establish a national committee or a similar
mechanism on trade facilitation with the objective of assisting in the implementation of
the Agreement on Trade Facilitation.” 39
This proposal of 2009 was made further to a self-assessment activity that was undertaken by
Members, which indicated that Members placed great importance on the national committees that
were formed to undertake the self-assessment activity. It appears that many Members expressed a
desire for these national committees to continue work after the conclusion of WTO negotiations. This
proposal also sought to recognise the role that these entities could play in coordinating the tasks
required for compliance with the commitments that would eventually be accepted at the WTO and in
35 See UNCTAD, National Trade Facilitation Bodies in the World (New York and Geneva, 2015).
36 Ibid, p. 10.
37 Ibid, p. 12 noting that the resources available to developed country NTFBs may provide a reason for this.
38 Ibid, p. 16. See also, ibid. p. 13.
39 Negotiating Group on Trade Facilitation, Communication from Honduras, Norway and Switzerland, TN/TF/W/158, 23 February
2009, para. 9.