India has agreed to expedite the transit of air freight sent by foreign courier companies under the trade facilitation (TF) deal reached at the World Trade Organisation (WTO) ministerial meeting in Bali, Indonesia.
The agreement came after developed nations put forth trade facilitation with the aim of streamlining global customs rules for easier transit of goods in the Bali agenda.
"Each member shall adopt or maintain procedures allowing for expedited release of at least those goods entered through air cargo facilities to persons that apply for such treatment, while maintaining customs control," the draft agreement reads.
While India was demanding that this section be put under the "best endeavour" commitment rather than a "binding" commitment, it finally agreed to the demand of rich nations. While use of the word "shall" give a binding commitment, "may" gives a best endeavour commitment under WTO rules, reports LiveMint Wall Street Journal.
A trade expert who declined to be named said India was initially opposed to giving any commitments in express courier services, arguing that the negotiations in trade facilitation should be limited to goods only, while couriers fell in the category of services.
"India has not given any commitment in courier services under the existing General Agreement on Trade in Services (GATS). Now developed countries have successfully made us accept part of it through the trade facilitation agreement," he added.
India will announce a timeline to implement its commitments under the TF agreement by July 2014 and will have to make legal amendments to implement the Bali ministerial agreement.
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