WTO Head Says TFA 'Back On Track

The members of the World Trade Organization (WTO) adopted the Trade Facilitation Agreement (TFA) at a meeting of the General Council on November 27, 2014.

Director-General Roberto Azevêdo congratulated the WTO members for adopting decisions related to the TFA, public stockholding for food security purposes, and the post-Bali work. "By agreeing these three decisions we have put ourselves back in the game," he said. "We have put our negotiating work back on track."

Azevêdo urged the WTO members to begin the process of ratifying the TFA. "Two-thirds of members must deposit their instruments of acceptance for the agreement to come into force," he said.

The Director-General also said that the TFA Facility, which is intended to ensure that least developed countries (LDCs) and developing countries get the help they need to reap the full benefits of the TFA, is now fully operational.

Christine Lagarde, Managing Director of the International Monetary Fund (IMF), welcomed the decisions in an official statement on November 29, saying they "reaffirm the commitment of the international community to an open trade system." She added that "they also provide an important opportunity for advancing multilateral trade negotiations in other areas, which is essential to bolster global growth, create jobs, and reduce poverty."

The TFA will create binding commitments across all WTO members to expedite the movement, release, and clearance of goods, improve cooperation among WTO members in customs matters, and help developing countries fully implement the Agreement's terms. It is estimated that the agreement can cut trade costs by almost 14.5 percent for low-income countries, and by 10 percent for high-income countries, adding to reforms – and in particular the proposed Doha Round – to cut tax barriers to trade on a global basis.

Source: Tax News