IATA and the United Nations Economic Commission for Europe (UNECE) have signed a memorandum of understanding (MOU) to help developing countries comply with a trade facilitation agreement created by members of the World Trade Organization (WTO).
The WTO agreement sets out measures for cooperation between customs and other authorities to facilitate trade and customs compliance. In order for developing countries to implement the agreement, the MOU promises to reduce transport costs by up to 10 percent through more efficient processes. Specifically for air cargo, countries that get on board will need to facilitate automated and smart border solutions and secure supply chain processes.
“The air cargo industry ships around 35 percent of global trade by value. For up to 90 percent of the transport time, the goods may actually be on the ground waiting to be processed,” said Tony Tyler, IATA’s general director and CEO.
Specific areas of the agreement include the joint promotion of the use of international recommendations, standards and best practices in trade facilitation and electronic business, as well as joint outreach activities to support countries in implementation of such recommendations and standards.