WTO, WCO Forge Strategic Partnership to Enhance Global Trade

WTO, WCO Forge Strategic Partnership to Enhance Global Trade

The World Trade Organization (WTO) and the World Customs Organization (WCO) signed a Memorandum of Understanding (MoU) on January 21, aiming to strengthen cooperation and collaboration on customs-related issues. The signing took place on the sidelines of the World Economic Forum in Davos, with WTO Director-General Ngozi Okonjo-Iweala and WCO Secretary General Ian Saunders formalizing the agreement.

This MoU focuses on fostering collaboration in areas of mutual interest, particularly customs-related topics and participation in international fora. Both organizations will work together to provide technical assistance and capacity-building initiatives, especially under the Trade Facilitation Agreement Facility. These efforts aim to support member nations in implementing the WTO’s Trade Facilitation Agreement, which promotes smoother and more efficient trade practices.

A significant element of the partnership involves the development and refinement of the Harmonized System (HS) tracker and tariff classification. The WTO and WCO will share data analytics and align their work on the transposition of the HS, with the WCO’s HS Committee promptly sharing amendments. Furthermore, the MoU emphasizes joint initiatives to combat illicit trade, including enforcement of intellectual property rights and measures to enhance trade security and compliance.

“The increasing complexity and volume of international trade makes this MoU particularly timely,” stated WTO Director-General Ngozi Okonjo-Iweala. “Both organizations share an interest in effective implementation of customs-related rules, including commodity classification, trade facilitation, and combating illicit trade. This agreement deepens our collaboration, ensuring trade contributes more effectively to economic cooperation and security.”

WCO Secretary General Ian Saunders highlighted the practical benefits of the agreement, saying, “This MoU advances the WCO’s commitment to efficiency, security, and prosperity. By uniting policymakers and implementers, we can develop strategies that foster efficient trade, strengthen security, and promote shared prosperity. I look forward to this enhanced partnership between our organizations.”

As the sole global body managing international trade rules, the WTO’s agreements underpin smooth, predictable, and free trade, contributing to sustainable development and improved living standards. Meanwhile, the WCO, representing 186 customs administrations responsible for 98% of global trade, provides leadership in developing international customs standards, fostering cooperation, and protecting societal interests.

This partnership signals a robust step towards addressing the complexities of modern trade, ensuring it remains a cornerstone of global economic growth and development.