Comparing EU free trade agreements: trade facilitation

Comparing EU free trade agreements: trade facilitation

Economic culture of the partner country determines the extent of trade facilitation

The aim of this short paper is to provide an overview of trade facilitation provisions, as laid down in the various trade agreements (FTAs) recently concluded by the European Union with developing countries. This includes integration of the multitude of customs systems and procedures, as well as the huge number of regulations and documentation requirements.

Generally the paper observes that:

  • the trade facilitation provisions in the Euro-Mediterranean Association Agreements (MED) agreements are rather shallow
  • the provisions of the trade facilitation section of the Trade, Development and Cooperation Agreement (TDCA), concluded with South Africa are not very detailed, and are similar in some respects to the agreements between the EU and its Mediterranean partners
  • the Global Agreement with Mexico contains deeper trade facilitation provisions than the MED or the TDCA
  • the Association Agreement with Chile is also undoubtedly deep and wide-ranging on trade facilitation.

As the paper argues, the economic culture of the partner country will determine the extent of trade facilitating provisions contained in the agreement.