Nearly ten years after the adoption of the TFA (Trade Facilitation Agreement), data show progress in reducing costs and modernizing processes, although significant gaps in its implementation remain. Based on international surveys and recent analyses, this note examines its impact and the remaining challenges in a context of increasing digitalization of trade.
In this context, the World Trade Organization (WTO) is moving forward with the second formal review stipulated in Article 23.1 of the Trade Facilitation Agreement (TFA), which mandates periodic evaluations of its operation after its entry into force. This process includes three technical meetings: one held in February, another scheduled for June, and a third planned for October. The process is once again raising questions about the TFA's concrete impact on trade flows and the reduction of trade costs, particularly in Latin America and the Caribbean, where our countries have diverse economies and significant opportunities to deepen regional trade integration.
The WTO defines trade facilitation as "the simplification, modernization and harmonization of export and import procedures," a central objective aimed at reducing costs and times in international trade operations.
The TFA, the first multilateral agreement reached since the creation of the WTO in 1995, entered into force in 2017 after nearly a decade of negotiations and the acceptance of the majority of its members. This is according to Nora Neufeld's study on the history of the negotiations. (1)Trade facilitation was incorporated into the agenda of the Council for Trade in Goods in the mid-90s. The Agreement was designed to address the interests of all members according to their level of development, through differentiated commitments and a direct link between implementation and capacity building, a central element for its operation. In that historical context—marked by the initial expansion of the Internet and the increasing digitization of trade—the technological foundations that would later influence the objectives and mechanisms of the Agreement began to take shape.
Membership in the WTO entails both benefits and commitments: countries gain access to a system based on predictable rules in exchange for applying those same rules in their trade policies. To support these processes, various international organizations provide technical assistance, including the United Nations, the World Customs Organization, the Inter-American Development Bank, the World Bank, and the United Nations Conference on Trade and Development. The concern for trade facilitation is not new: a relevant precedent is the creation in 1953 of the current World Customs Organization, reflecting an early interest in cooperation and the simplification of customs procedures. Understanding the degree of implementation of Trade Facilitation Agreements (TFAs) is essential for guiding public policies and maximizing their benefits for communities. According to the WTO, if all countries were to reduce barriers to supply chains to the midpoint of global best practices, global GDP could increase by 4,7%—equivalent to US$2,6 trillion—and exports by 14,5%, or US$1,6 trillion. (2)
In that regard, one of the main tools for assessing progress is the rate of implementation of the Agreement's provisions, calculated by the WTO Secretariat based on notifications from members, within the framework of its role in administering the rules of trade on a global scale.
To date, 162 of the 166 members have ratified the TFA (98%). The overall implementation commitment rate is 87,4%, while developing countries and least developed countries have a rate of 83,7%. Additionally, 364 requests for extensions have been submitted by LDCs, primarily related to Category C measures, which require transition periods and technical assistance for their implementation. (3)
It should be noted that these data reflect implementation commitments assumed by members before the World Trade Organization, which are mandatory, and whose application in practice may differ from the operational reality in customs.
Global implementation and situation in Latin America
In this context, there are complementary metrics for evaluating the trade facilitation agenda. Since 2015, the United Nations regional commissions have conducted the Global Survey on Digital and Sustainable Trade Facilitation every two years, which monitors both the implementation of trade facilitation agreements and progress in the digitization of trade procedures.. (4)
According to the sixth edition (2025), global implementation of the Agreement averages 71%, while Latin America and the Caribbean registers 70%, showing significant progress, although with differences between regions and levels of development. As Sebastián Herreros of ECLAC explained during the presentation of the survey (5) and at events organized by the TCI (6)These data reflect both the progress and the remaining challenges for trade integration in our countries.
The survey analyzes 62 measures grouped into four areas: general trade facilitation, digital facilitation, sustainable facilitation and other measures linked to e-commerce, green trade and finance for trade facilitation.
In the region, most countries match or exceed the global average in overall trade facilitation. Argentina registers an implementation level of 73%, placing it at the regional average along with Panama and Jamaica. It ranks below economies such as Chile and Mexico (80%), Brazil and El Salvador (82%), Uruguay and Paraguay (83%), Costa Rica (86%), and Peru, which leads the regional ranking with 87% implementation.
In more detail, the WTO Trade Facilitation Agreement establishes general measures that seek to simplify and expedite international trade, grouped into four areas: transparency, formalities, institutional cooperation, and transit.
The survey shows in transparency, This includes online publication of regulations, stakeholder consultations, and advance decisions on tariffs and origin of goods. The global average implementation rate is 81%, while Latin America and the Caribbean reaches 70%. The most widely adopted measures are the digital publication of regulations (98%) and stakeholder consultation (97%), which improves predictability and reduces costs.
Respecto a formalities, which encompass the release and dispatch of goods through post-dispatch audits, risk management, and advance processing, the global average is 78%, with Latin America and the Caribbean at 82%. The most widely adopted measures include post-dispatch audits (96%) and risk management (95%), while the publication of average release times shows less complete implementation (35%).
En institutional cooperationIn the area of inter-institutional and cross-border coordination, the global average is 73%, but Latin America and the Caribbean register only 60%, reflecting practical challenges. Successful examples include the customs and migration integration at the borders of El Salvador and Guatemala (Central America), which optimizes time and costs.
Finally, in facilitation of transitEssential for landlocked countries, global implementation is at 76%, with Latin America and the Caribbean at 66%. Measures such as limiting physical inspections through risk assessment reach 78%, while advance transit processing has 39% full implementation. The survey highlights that regional transit corridors and agreements are key to improving connectivity.
Thus, the general measures (aimed at transparency, simplification of procedures and institutional strengthening) show a solid implementation, with an increase of 5 points compared to 2023. However, digital facilitation, especially paperless cross-border trade, is progressing more slowly, with a global average of 51%. reflecting challenges of interoperability and digital infrastructure.
Empirical evidence
However, one might ask: has the Trade Facilitation Agreement really succeeded in reducing costs and boosting trade flows globally for almost a decade?
The available evidence allows us to answer: definitely, yes. A recent study provides empirical evidence showing positive impacts associated with the implementation of the Trade Facilitation Agreement, particularly in reducing trade costs and expanding trade flows. In this regard, the paper Benefits of Participation in the WTO Trade Facilitation Agreement: Trade Gains and Trade Cost Reductions a Decade after Adoption, by Yann Duval and Chorthip Utoktham (7), performs a ex post analysis of the impact of AFC Through empirical models, the results estimate an average reduction in trade costs of between 1,5% and 4% globally. The study's gravity model estimates that, without the AFC, global trade in agricultural products and manufactures would be more than 9% lower. Furthermore, real wages would be approximately 1,4% lower and prices for producers nearly 2% higher.
In Latin America and the Caribbean, the impact simulated by the study is significant, with projected contractions in exports and variations in wages and prices. A summary of the results for each selected country is shown below:
| Country | Export variation % | Loss in millions of USD | Real wages (%) |
| Mexico | -9,19 | 41.270 | -1,2 |
| Brazil | -12,24 | 23.241 | -1,5 |
| Argentina | -10,27 | 7.310 | -0,68 |
| Chile | -10,24 | N / A | -0,75 |
| Colombia | -14,84 | N / A | -1,9 |
| Peru | -13,52 | N / A | -1,1 |
Source: Prepared by the author based on Duval and Utoktham (2026).
What the Agreement leaves behind
We can say, then, that almost ten years after its adoption, the evidence suggests that the WTO Trade Facilitation Agreement has become a key instrument for reducing trade costs, streamlining procedures, and modernizing border processes globally. In Latin America and the Caribbean, progress is evident, although significant gaps remain in institutional cooperation, transit, and the digitization of paperless trade to achieve broader and more uniform improvements.
Empirical analyses also indicate that, without the full implementation of the TFA, trade flows, wages, and regional competitiveness would be severely compromised. This situation, observed in Argentina and other countries in the region, demonstrates the need for a strong political commitment and genuine cooperation among countries. Trade facilitation, digital interoperability, and regional transit corridors only work if countries collaborate.
In this context, cooperation—"working together with others for a common goal"—is key to achieving effective integration in Latin America, with tangible benefits for businesses and citizens. This principle is even more relevant considering that the Trade Facilitation Agreement (TFA) negotiations began in the late 1990s, during the height of the internet boom, and culminated in its adoption in 2017. Today, in the face of global technological acceleration, the trade facilitation agenda is entering a new phase.
In that vein, during the 14th WTO Ministerial Conference, held from March 26 to 29, 2026 in Yaoundé, Cameroon, a group of 66 members—representing about 70% of world trade—made progress in their commitment to promote the incorporation of the Agreement on Electronic Commerce into the WTO legal framework, through an interim application among the Parties until the consensus required for its formal integration into the Organization's normative body is reached.(8)In this context, Latin America participated with Argentina, Peru and Costa Rica, while Europe was represented by the European Union and several of its member states, and Asia brought together a broad group of economies active in the digital agenda.
This step anticipates that the challenge is no longer just to facilitate physical commerce, but also to move towards a more digital and sustainable commerce.
This article was written by María Elsa Coronel for Aduana News. The author thanks Dr. Eduardo Leite, Latin America rapporteur for the Trade and Compliance Institute, for his time and contributions.
Fonts
- Neufeld, Nora (2014). The Long and Winding Road: How WTO Members Finally Reached a Trade Facilitation Agreement. World Trade Organization, Economic Research and Statistics Division. Manuscript, April 7, 2014. Available at: https://www.wto.org/english/res_e/reser_e/ersd201406_e.pdf
- WTO. Trade Facilitation Agreement: Benefits. https://www.wto.org/english/tratop_e/tradfa_e/tradfa_e.htm#:~:text=Benefits%20of%20the%20TFA,full%20benefits%20of%20the%20TFA
- WTO. Trade Facilitation. https://www.wto.org/spanish/news_s/news26_s/fac_25feb26_296_s.htm
- UNTF Survey. Regional Survey ECLAC. https://www.untfsurvey.org/region?id=ECLAC
- Customs News. (2025) Facilitating Digital and Sustainable Trade: The UN Revealed the 2025 Survey and Latin America's Performance. https://aduananews.com/facilitacion-del-comercio-digital-y-sostenible-la-onu-revelo-la-encuesta-2025-y-el-desempeno-de-america-latina/
- Customs News. (2025) Synergies for Trade Facilitation in Latin America: The UN Global Survey and the UNCTAD Reform Tracker. https://aduananews.com/sinergias-para-la-facilitacion-del-comercio-en-america-latina-la-un-global-survey-y-el-unctad-reform-tracker/
- Duval, Yann, and Utoktham, Chorthip (2026). Benefits of Participation in the WTO Trade Facilitation Agreement: Trade Gains and Trade Cost Reductions a Decade after Adoption.
- WTO (2026). Members adopted a pathway to bring E-Commerce Agreement into force via interim arrangementsAvailable at: https://www.wto.org/english/news_e/news26_e/mc14_28mar26_341_e.htm
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