The World Trade Organization (WTO) and the World Customs Organization (WCO) formalized their commitment to closer collaboration on customs related matters by signing a Memorandum of Understanding (MoU) on 21 January. WTO Director-General Ngozi Okonjo-Iweala and WCO Secretary General Ian Saunders signed the agreement on the sidelines of the World Economic Forum’s annual meeting in Davos.
The MoU establishes a framework for both organizations to explore joint initiatives on customs related issues and coordinate their engagement in external forums. It also facilitates cooperation in delivering technical assistance and capacity building programs, particularly in implementing grants from the Trade Facilitation Agreement Facility to support members in carrying out the WTO’s Trade Facilitation Agreement.
Furthermore, the WTO and WCO will exchange information on shared areas of interest and collaborate on addressing challenges related to data analytics and the development of the Harmonized System (HS) tracker and tariff classification. Their efforts will also focus on streamlining the transposition of the HS, including through the timely sharing of HS amendments by the WCO’s HS Committee. Additionally, they will work together on initiatives aimed at combating illicit trade, particularly in enforcing intellectual property rights.
“The increasing complexity and volume of international trade make this MoU especially timely,” said WTO Director General Ngozi Okonjo-Iweala. “Both organizations have a common interest in ensuring that members effectively implement customs related rules, covering areas such as commodity classification, trade facilitation, and the fight against illicit trade. This agreement will deepen and expand our already strong cooperation with the WCO, helping trade contribute more effectively to economic cooperation and security.”
WCO Secretary General Ian Saunders emphasized the significance of the agreement, stating, “This MoU brings us closer to achieving the WCO’s theme for the year—Customs delivering on its commitment to efficiency, security, and prosperity. By working together, policymakers and policy implementers can develop strategies that enhance trade efficiency, strengthen security, and foster shared prosperity. I look forward to taking our partnership to new heights under this agreement.”
The WTO is the sole global organization responsible for setting and overseeing international trade rules. Its agreements, negotiated and ratified by the majority of the world’s trading nations, aim to ensure that trade flows as smoothly, predictably, and freely as possible, in line with sustainable development objectives.
As the leading authority on customs matters, the WCO develops international standards, promotes cooperation, and provides capacity building support to facilitate legitimate trade, secure revenue collection, and protect society. Representing 186 customs administrations worldwide, the WCO oversees processes handling approximately 98% of global trade.
