WTO trade facilitation agreement comes into force
Having received four more ratifications for the Trade Facilitation Agreement (TFA), the World Trade Organisation (WTO) has now obtained the two-thirds of acceptances needed from its 164 members to bring the TFA into force, which could boost global trade by up to $1-trillion each year, with the biggest gains expected to be felt in the poorest countries.
Rwanda, Oman, Chad and Jordan this week submitted their instruments of acceptance to WTO director-general Roberto Azevêdo, bringing the total number of ratifications over the required threshold of 110.
The entry into force of the TFA, which seeks to expedite the movement, release and clearance of goods across borders, launches a new phase for global trade facilitation reforms and creates a significant boost for commerce and the multilateral trading system.
With full implementation of the TFA, the estimate is that members' trade costs will be slashed by an average of 14.3%, with developing countries having the most to gain, a 2015 study carried out by WTO economists has shown.
The TFA is also likely to reduce the time to import goods by over a day-and-a-half, and for export goods, by almost two days, representing a reduction of 47% and 91% respectively over the current average.
Implementing the TFA is also expected to help new firms export their goods for the first time.
Moreover, once the TFA is fully implemented, developing countries are predicted to increase the number of new products exported by as much as 20%, with least developed countries likely to see an increase of up to 35%, the study pointed out.
“This [landmark reform] shows members' commitment to the multilateral trading system and that they are following through on the promises made in Bali. It means we can now start implementing the agreement, helping to cut trade costs around the world. It also means we can kick-start technical assistance work to help poorer countries with implementation,” said Azevêdo.
The TFA also allows developing and least developed countries to set their own timetables for implementing the TFA depending on their capacities to do so, while developed countries have committed to immediately implement the agreement.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation