Indo-US joint paper to WTO for better exchange of information

India and the United States have for the first time submitted a joint paper on trade facilitation to the World Trade Organisation proposing the establishment of a multilateral mechanism for the exchange and handling of information between members.

The paper was submitted to the Negotiating Group on Trade Facilitation last week.

India and the US have in the past differed on trade facilitation. While New Delhi had opposed the inclusion of trade facilitation under the Doha round, the US had been pressing for it.

Commerce Ministry officials said the two sides would try to build up further on this initial proposal. "We are expecting officials from the US to visit India next month to discuss how to build up the issue further," an official said.

The paper deals with trade transaction information consisting of documentation or data elements that relate to the movement of goods across the border such as the name of the exporting or importing party, origin of goods, description of goods and declared value.

"Members should establish a mechanism that is practical and effective, involving a commitment pertaining to (1) a defined universe of information, (2) a practical basis for exchange that is efficient and not burdensome, and (3) a structure for information exchange that is forward-looking - both with regard to promoting continuous improvement in cooperation and commonality of information requirements," the paper said.

The paper pointed out that the need for a multilateral mechanism for exchange of information had arisen on account of the unprecedented growth in global trade.

"The unprecedented growth in global trade provides new challenges to authorities responsible for administering a border regime," it said.

It highlighted the fact that the advancements in information technology and logistics techniques presented the potential for establishing new tools for authorities to meet such challenges.

India and the United States will now submit either jointly or individually, a proposal for a mechanism for exchange of trade transaction information, establishing an efficient process to explore the potential for use of the World Customs Organisation Customs Data model and address confidentiality matters.

TRADING IN CONFIDENCE

• Proposing a multilateral mechanism for the exchange and handling of information between members
• US officials to arrive in India for further discussion
• Paper was submitted to the Negotiating Group on Trade Facilitation last week
• Paper deals with trade transaction information that relate to the movement of goods across the border