Regulatory harmonisation: an essential ingredient of international trade facilitation

At its Ninth Ministerial Conference, members of the World Trade Organization (WTO) reached consensus on a text for a new Agreement on Trade Facilitation. Once ratified, it will become binding on all WTO members. The Agreement represents a significant step towards a globally consistent approach to the regulation of cross-border trade with the potential to achieve the high level of trade facilitation being sought by both governments and industry alike. This paper examines the need for such an initiative and contends that, in order to attain the outcomes being sought by the international community, two further requirements must firstly be met, that is, a consistent interpretation of the Agreement and a consistent application of the Agreement. It argues that, in many but not all cases, signatories to such instruments achieve a reasonably high level of consistency in their interpretation of international regulation, as reflected in their national legislation. Consistency of application, on the other hand, is heavily dependent upon the capacity of an administration and individuals within the administration to effectively apply the particular regulatory provisions.