Preferential trade agreements and their implications for customs services

Over the past decade, debate concerning the advantages of regional or preferential trade agreements (PTAs) has continued apace. The debate has taken various twists and turns but one emerging theme is the relationship between PTAs and the more contemporary issue of trade facilitation. The aim of this article is to examine the implications that flow from PTAs on customs services, the key administrative body charged with managing trade facilitation. The article identifies the major factors impacting most heavily on any customs service, which include: an increase in trade volumes which require additional resources and personnel to cope with associated trade flow increases; significant institutional, regulatory and procedural changes required to meet substantive commitments as part of PTA obligations (depending on type of PTA); significant procedural and technological adjustments required to meet PTA obligations in relation to streamlining trade; significant internal capacity building requirements to meet conventional trade facilitation adjustments; and important internal and external adjustments and reorganization required to meet secure trade requirements.