WTO TFA Enters Into Force
Rwanda, Chad, Oman and Jordan ratified the World Trade Organization Trade Facilitation Agreement, bringing the total number of ratifications over the necessary 110 WTO members and entering the agreement into force, the WTO announced Feb. 22 (here). It is the first multilateral deal concluded in the 21-year history of the WTO, the organization said. "This would boost global trade by up to 1 trillion dollars each year, with the biggest gains being felt in the poorest countries," WTO Director-General Roberto Azevedo said in a statement. "The impact will be bigger than the elimination of all existing tariffs around the world."
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Full TFA implementation is expected to cut members' trade costs by 14.3 percent on average, with developing countries having the most to gain, and is likely to slash the time needed to import goods by 47 percent and to export goods by 91 percent, the WTO said. Additionally, developed countries are expected to increase the number of new products exported by up to 20 percent, and least developed countries could see a 35 percent increase, the WTO said.
Provisions include transparency of information on cross-border procedures, enhanced trader appeal rights, and reduced "fees and formalities" associated with the import and export of goods. U.S. Chamber of Commerce CEO Tom Donohue in a statement praised activation of the TFA, saying it will help U.S. small and medium-sized businesses whose exports "often get tied up in the maze" of bureaucratic and border procedures (here). “This groundbreaking agreement will unleash new trade flows and spur growth around the world by cutting red tape and easing the movement of goods across borders," Donohue said. "It’s a welcome shot in the arm for the U.S. and world economies." He said that TFA benefits can be unlocked only if every nation is committed to implementation.
The European Union (here) and the U.S. Council for International Business (USCIB) (here) also touted activation of the deal. "Better border procedures and faster, smoother trade flows will revitalise global trade to the benefit of citizens and businesses in all parts of the world," EU Trade Commissioner Cecilia Malmstrom said in a statement. "Small companies, that have a hard time navigating daily bureaucracy and complicated rules, will be major winners." The USCIB noted that it worked to garner ratifications of the agreement through bilateral meetings with several governments. "The TFA demonstrates the continued importance of the WTO and of multilateral efforts to liberalize cross-border trade and investment,” USCIB CEO Peter Robinson said. The National Foreign Trade Council also commended the entry into force of the agreement (here).