Trade Facilitation Agreement: Eight years of cutting trade costs and boosting growth for all members

The WTO Trade Facilitation Agreement (TFA) has been a game-changer for international trade. As the first major multilateral trade agreement added to the WTO rulebook since the Uruguay Round in 1995, it has already boosted trade by more US$ 230 billion across the globe. Since taking effect in 2017, the TFA has simplified customs procedures, cut through red tape and increased regulatory transparency — making cross-border trade faster, cheaper and more predictable for businesses of all sizes.

The benefits of trade facilitation are broadly enjoyed across the full WTO membership, creating more opportunities for resilient, secure and efficient trade and supply chains for developed and developing members alike.

Streamlining trade

Trade inefficiencies are not just an inconvenience: they impose substantial economic costs. Delays in transit can account for up to 44 per cent of transport costs, resulting from storage charges, bottlenecks at weighbridges, police checks and border crossings. Every hold-up chips away at competitiveness and increases costs. This can cost businesses valuable contracts and revenue. 

A single trade transaction on average involves as many as 36 original documents and 240 copies. This administrative burden not only increases costs but also discourages micro, small and medium-sized enterprises (MSMEs) from participating in global trade.

• Since its entry into force, the TFA has expedited the movement, release and clearance of goods and enhanced the transparency of trade regulations and procedures. It has also reduced excessive paperwork, unnecessary delays and inefficiencies at borders, and has fostered cooperation between customs authorities and other stakeholders.
• TFA implementation has cut trade costs worldwide by an average of 1 to 4 per cent, leading to an increase in trade of over US$ 230 billion, with the most significant gains observed in agriculture. Developing and least-developed country (LDC) members have gained the most, demonstrating the Agreement’s capacity to foster efficient trade systems worldwide and creating opportunities for more people to benefit. 

Many WTO members have reported that TFA-driven targeted reforms have led to notable reductions in the time and costs involved in border crossings, demonstrating the tangible impact of trade facilitation measures.

For example, Montenegro has increased express shipments released within one hour of arrival from 25 to 53 per cent, while Indonesia has reduced import licence processing time by an average of four days. Ecuador has cut processing times by 67 per cent annually, while Brazil has cut export costs by an ad valorem equivalent of 9 per cent and import costs by 7 per cent. Jordan has slashed processing time by as much as 75 per cent, saving US$ 15 per unit.

Infrastructure improvements stimulated by the TFA have also played a crucial role in enhancing efficiency. One-stop border posts have significantly reduced waiting times at borders, cutting customs processing time and queuing delays by 62 per cent at the Kenya-Uganda border and by 87 per cent at the Kenya-Tanzania border, creating more incentives for intra-African trade as well as African trade with the rest of the world. These examples illustrate how targeted reforms, digitalization and improved border coordination are helping WTO members streamline trade processes and unlock economic benefits.

TFA implementation is well underway but technical assistance is needed to ensure its full benefits

When implementing the TFA, developing and LDC members can categorize their commitments, giving them flexibility in putting the Agreement's provisions into practice. Category A commitments must be implemented immediately, whereas commitments under categories B and C can be implemented later. Category C allows members capacity-building support to undertake the commitment. To clarify their commitments, members underwent a notification process, which has concluded. The focus now is on-the-ground implementation.

Figure 1: Number of Category B measures due to be implemented yearly

Source: TFA Database

Most Category B commitments have now been implemented, with only four still to be implemented by 2030 (see Figure 1). Meanwhile, 196 Category C measures are scheduled for implementation this year (see Figure 2). While Category C measures due for implementation will gradually decline from 2026 onwards, the timeline continues well into the 2040s. The magnitude of these commitments underscores the scale of technical assistance and capacity-building support required by many developing and LDC members to fully unlock the benefits of the TFA.

Figure 2: Number of Category C measures due to be implemented yearly

Source: TFA Database

Figure 3 highlights the provisions registering the greatest number of Category C commitments over the next two years. These measures are often some of the most complex to implement as they require not only regulatory changes but also significant investment in infrastructure, technology and inter-agency coordination.

Figure 3: Top five Category C measures due for implementation in 2025-26

Source: TFA Database

For instance, single window systems — a single platform to collect and process import, export, or transit information in an efficient and cost-effective manner — demand extensive digitalization efforts, requiring the integration of various agencies and the streamlining of data-sharing processes. Border agency cooperation to align procedures across multiple institutions can be challenging due to differences in mandates, resources and regulatory frameworks. In addition, risk management necessitates advanced data analytics and compliance verification mechanisms. These may be difficult to establish without sustained technical assistance and capacity-building support.

As implementation progresses, sustained support will be essential to ensure that all members can fully reap the benefits of the TFA. Full implementation of the Agreement promises to deliver significant gains in trade efficiency and cost reduction, but only if there is ongoing investment in developing expertise, infrastructure and regulatory reforms. The 2025 peak in Category C commitments demonstrates the urgent need for targeted interventions to address persistent structural and financial barriers.

The WTO's Trade Facilitation Agreement Facility (TFAF) plays a key role in helping developing and LDC members mobilize the technical assistance and capacity-building support they need to implement the TFA. Since its establishment, the TFAF has been instrumental in supporting developing and LDC members through their ratification of the Agreement and their submission of more than 130 notifications within agreed deadlines.

It has also assisted 46 developing members, including 18 LDCs, in securing assistance from development partners — either by sharing information or by providing project preparation grants. Thanks to TFAF support, ten developing members, including two LDCs, have successfully partnered with donors to meet their TFA capacity-building needs.

With more than 500 commitments still due for implementation over the next five years, the TFAF remains a critical mechanism for channelling resources and ensuring that technical assistance aligns with members’ evolving needs.

How improvements in trade facilitation efforts can be leveraged

Digitalization offers ways to further enhance efficiency, transparency and coordination at borders. While approaches to using digital trade facilitation differ, members are discussing its role in shaping the future of trade procedures.

In 2024, members decided to use the WTO Committee on Trade Facilitation to share experiences on the impact of digitalization on TFA implementation. Discussions have highlighted both successes and challenges, with some members showcasing innovative digital solutions, and others emphasizing the need for capacity-building to bridge the digital divide across economies with different levels of development. Digitalization will continue to be on the Committee's agenda throughout 2025.

At the domestic level, national trade facilitation committees (NTFCs) provide a critical institutional framework to drive effective implementation of the TFA. These committees coordinate efforts among government agencies, often in collaboration with private sector stakeholders, to ensure a holistic approach to trade facilitation reforms. NTFCs are key to identifying implementation bottlenecks, streamlining regulatory processes and aligning technical assistance with national priorities. As members navigate the complex reforms required for full TFA implementation, NTFCs will be instrumental in ensuring that trade facilitation improvements translate into tangible economic benefits.

Value of full TFA implementation for all members

Eight years after its entry into force, the TFA continues to reduce trade costs, improve customs efficiency and expand market opportunities for all members. As full implementation progresses, the benefits for businesses and economies will accelerate.

While the benefits of trade facilitation are often highlighted in the context of developing and LDC members, the advantages extend across the entire WTO membership, including developed members. As more WTO members implement the TFA, businesses in developed members also benefit from smoother, more predictable trade flows, less red tape and fewer costly delays at borders.

Lower trade costs and greater efficiency enhance global supply chain resilience, minimizing disruptions and ensuring more secure and reliable access to products. Ultimately, continued implementation of the TFA strengthens global trade networks, making trade more inclusive, efficient and resilient to external shocks.

With sustained engagement from WTO members and development partners, trade facilitation will be a key driver of global trade efficiency and economic growth for years to come.