On 23 October 2024, the World Customs Organization (WCO) Deputy Director-General (DDG) highlighted the robust collaboration between the World Trade Organization (WTO) and the WCO during the latest Session of the WCO’s Permanent Technical Committee in Brussels, Belgium. The DDG emphasised various joint initiatives, including efforts in the WTO’s Committee on Market Access and the Informal Working Group on Small, Medium, and Micro-sized Enterprises (SMMEs), and outlined plans to further enhance cooperation on issues of mutual interest between the two organisations.
The full text of her speech follows:
I would like to begin by expressing my sincere thanks to the WTO Secretary General (SG) and the WCO for inviting me to speak with you today. It is an honour to address such a distinguished group of delegates whose work is vital in the global trading system. Your expertise, innovation and commitment drive the efficient movement of goods and shape the frameworks that govern international trade.
The WTO and the WCO have a long history of collaboration. First, the Technical Committee on Customs Valuation and the Technical Committee on Rules of Origin at the WCO were created by the WTO Agreements on Customs Valuation and Rules of Origin in 1995. We are approaching the milestone of 30 years of collaboration on both topics. Second, the Harmonized System (HS) Nomenclature serves as the lingua franca for all WTO members, providing standardised reference in negotiations, trade monitoring, and dispute settlement.
The dynamic partnership between the WTO and the WCO has always been essential for the success of the global trading system. At the WTO, our members create the legal frameworks that facilitate trade and promote transparency and fairness. These frameworks could not exist without the technical expertise of the WCO and its members to ensure they are operationally effective and sustainable in the real world of trade.
Equally, the work of the WCO delegates frequently informs policy discussions at the WTO. The standards and tools developed here—whether through the Harmonized System, the SAFE Framework of Standards [1], or other initiatives — provide a solid technical foundation for our trade agreements. They ensure that WTO rules reflect the practical and everyday dynamics of cross-border operations and customs procedures.
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Note 1. The SAFE Framework of Standards to Secure and Facilitate Global Trade is an initiative developed by the WCO aimed at enhancing the security of international supply chains while facilitating legitimate trade. Introduced in 2005, it focuses on establishing common standards for customs administrations worldwide to ensure that trade is both secure and efficient. |
In other words, our organisations share a deeply symbiotic relationship that not only aligns our efforts but also strengthens them. Together, we create a dynamic and mutually reinforcing system that makes trade efficient, secure, predictable, adaptable, and ready for the future.
Today's meeting
I was particularly pleased to see several topics in today’s program that align closely with the WTO’s ongoing work. These discussions highlight the continued importance of our collaboration as we both address the evolving landscape of international trade.
One of the most pressing topics is digital customs. As the world moves deeper into the digital age, e-commerce is expanding rapidly, driving the need for modernised customs procedures. At the WTO, we actively engage in discussions on digital trade policies, and the WCO’s technical insights have been invaluable. For instance, during a workshop held under the multilateral Work Programme on E-commerce, the WCO shared key updates on its tools and initiatives related to cross-border e-commerce as a contribution to discussions on the legal and regulatory frameworks for e-commerce. In addition, the stabilised text of the Joint Statement Initiative on E-commerce specifically references the WCO Data Model in the context of the single window provision, emphasising how WCO standards support the digitalisation of customs processes. Your experiences in developing digital customs practices will play a crucial role in how WTO members shape policies to support the proliferation of this sector.
The agenda item on green customs demonstrates our collective commitment to addressing sustainability challenges through customs procedures that protect the environment and promote responsible trade. The WCO has been actively collaborating with the WTO, particularly through the Committee on Market Access thematic session on ‘Greening the Harmonized System.’ I was particularly interested to see that the WCO presented findings on aligning the HS with environmental policy needs, highlighting its efforts to refine classification criteria to better address environmental policy objectives. This collaboration reinforces how trade policy and customs practices must evolve together to achieve sustainability goals.
Today's meeting serves as another example of our close cooperation. At the end of the week, the WTO Trade Facilitation Committee chairperson will provide an update on the key advancements from the Committee’s most recent meeting, focusing on the implementation of the Trade Facilitation Agreement (TFA). We are also looking forward to discussions on the important role of National Trade Facilitation Committees in supporting cooperation between customs and other stakeholders at the national level. We all realise that such coordination is a critical ingredient of success in trade facilitation reform, but it is also a challenging task to undertake.
I look forward to hearing the insights of WCO members in this regard.
Other collaboration
But our collaboration goes beyond today's agenda. Let me share some examples.
First, the WCO and the WTO have a long-standing partnership through the WTO Committee on Market Access (CMA), where the WCO Secretariat is regularly invited to speak about HS amendments or other topics of common interest, such as the most recent thematic session on supply chain resilience. During this session, the WCO showcased the critical role of customs administrations in maintaining the flow of goods during crises and introduced its newly endorsed definition of ‘Customs-Industry Resilience.’ This work demonstrated how strategic interventions can restore critical supply chains swiftly and mitigate disruptions, showing the vital role of customs expertise in shaping WTO policies on trade resilience.
Another example of successful collaboration is with the WTO Informal Working Group on MSMEs. This Working Group developed a compendium of Authorized Economic Operator (AEO) measures focusing on micro, small, and medium-sized enterprises (MSMEs), presented at the WCO SAFE Working Group Meeting in November 2023. The final version, issued earlier this year, incorporates feedback from WCO members. I would like to thank the WCO and its members for their support of this initiative. The WTO MSME Group and the WCO are working on a joint document to build on the recently published AEO compendium and incorporate new insights from the recent WCO survey on AEOs. This collaboration represents another significant step in integrating MSMEs into AEO programmes and facilitating MSME participation in global trade.
I take this opportunity to thank the WCO and WTO SG once again for organising an insightful and well-attended session on digitalisation, MSMEs, Single Window, and AEOs at our Public Forum. Back in September I was delighted to participate. I learned much from the panel, including the Thai Customs Service's impressive work and the private sector's concrete role through the ICC.
As these examples highlight, the work done here at the WCO directly informs policy discussions at the WTO. By sharing best practices and developing technical standards, you ensure that global trade frameworks remain practical and responsive to real-world challenges.
Looking ahead, we recognise the challenges that lie before us. The digitalisation of trade, the need for more resilient supply chains, and the push for sustainable trade practices will all require close cooperation between the WTO and WCO. Therefore, we are seeking to deepen the WTO-WCO cooperation through a formal Memorandum of Understanding (MOU). The MOU aims to formalise our existing ties and foster even closer cooperation and consultation on issues of mutual interest, particularly in customs operations and trade policy.
The MOU acknowledges the complexity of modern international trade and the critical role that customs administrations play in facilitating trade flows while addressing challenges, such as IP rights enforcement, supply chain security, and compliance management. It also emphasizes the importance of transparency, consistency, and integrity in customs procedures, ensuring that trade policy is aligned with practical implementation.
Through the MOU, we will engage in specific projects in areas like commodity classification, valuation, origin determination, trade facilitation, and e-commerce. We will also explore emerging topics like green customs and the prevention of illicit trade. These initiatives will strengthen the connection between customs and trade policy while enhancing the capabilities of our members. Separate project agreements will guide the implementation of these initiatives.
We will continue to seek the WCO’s insights and expertise as we develop policies that address emerging trends in areas such as e-commerce, digital trade, and security. Our partnership is essential in ensuring that trade policies remain relevant, adaptable, and effective.
In conclusion, I would like to once again thank the WCO Secretary General and all of the delegates here today for your ongoing commitment to advancing global trade. At the WTO, we appreciate that your work ensures that trade moves efficiently and securely while shaping the existing and evolving policies that govern our trading system.
I am confident that today’s discussions will further build upon the collaboration between the WCO and the WTO, allowing us to better address the challenges ahead and seize the opportunities that will shape the future of global trade.