Traders from both developing and developed countries are dealing with complex and costly procedures when moving goods across borders.
After two-thirds of the World Trade Organization (WTO) memberships fulfilled their local ratification processes, the Trade Facilitation Agreement (TFA) finally entered into force. It was a landmark arrangement aiming to simplify required paperwork, modernize procedures, and harmonize customs requirements during export, import, and transit activities.
But why does it matter for CHAMP?
Air connectivity facilitates cross-border trade. It helps countries to contribute to the global economy by enabling access to international markets and easing the distribution of production and supply chains (global value chain). Nearly 61 million tons of freight were carried by air in 2019*. The total value of goods transported by air is $6.5 trillion, representing 35%* of all international trade.
By understanding the importance of Air cargo for global trade, CHAMP can engage with its customers, Airlines, GSAs, Ground Handlers, and freight forwarders to deliver more values thanks to our product portfolio.
The role of the Global Alliance for Trade Facilitation
In 2019, CHAMP joined the Global Alliance for Trade Facilitation. It brings together governments and businesses as equal partners to address delays and challenges at borders. Aviation plays a critical role in global trade as it is the fastest mode of transport and generates enormous economic growth. It is also essential for modern societies and the COVID experience has just demonstrated how vital it is for our living.
In 2021, CHAMP aims to champion a program in Uganda by getting the local Entebbe airport public and private actors focusing on the improvement of the horticulture industry. Sustainability is one of the pillars of CHAMP` strategic plan for growth and development, therefore a project such as Uganda Horticulture exports, can improve the local export processes and minimize the waste which this sector is experiencing.
We are very happy that the Uganda project qualified for funding and excited to continue engaging in this project, helping to build bridges between the public and private sector in support of these objectives.
Participating in the Global Alliance is valuable as CHAMP can ease collaboration and contribute to cross-border process improvements, particularly in least developed and developing countries. Doing so, it is an opportunity to grow the air cargo pie, and a direct benefit to our customers and local countries’ economies - to accelerate our industry’s digital transformation and to support sustainability programs which are an important factor in global value chains.
Find below the Global Alliance for Trade Facilitation annual report 2020:
(*) source IATA Economics