| Date: |
28-10-2015 |
| Subject: |
WTO says trade facilitation can push global merchandise exports by $1 tn per annum |
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NEW DELHI: Implementation of the Trade Facilitation Agreement (TFA) has the potential to increase global merchandise exports by up to $1 trillion per annum, with developing countries expected to capture more than half of these gains, World Trade Organization said.
"Global merchandise exports estimated to increase by between $750 billion and $1 trillion per annum...developing countries' exports estimated to increase by between $170 billion and $730 billion per annum," the WTO said in its flagship World Trade Report, which has been released ahead of the crucial talks in December.
"You could say that it is global trade's equivalent of the shift from dial-up internet access to broadband," World Trade Organization director general Roberto Azevedo said at the launch of the report on Tuesday.
The report pegs the overall boost to global GDP growth at 0.5% per annum as the agreement aims to standardise, streamline and speed up customs processes around the world, helping to expedite the movement, release and clearance of goods.
Interestingly, based on a previously used separate economic modelling approach, the organisation said the TFA would boost global merchandise exports by $1.8-3.6 trillion and help exports from least developed countries 13-36%, much more than either developed or developing economies.
Fifty of the WTO's 161 members have ratified the Trade Facilitation Agreement, which was concluded at the WTO's ninth ministerial Conference in Bali in December 2013. India is yet to ratify the agreement.
"This is very positive - we are almost halfway to the target number, at which the agreement comes into force," Azevedo said and urged for pace of ratifications to increase even as he cited strong political will at the highest levels as a key factor for the success of the agreement. The report noted that full implementation of the TFA could reduce trade costs of members by 14.5% on average and help developing countries enter 30% more foreign markets.
The WTO expects 20 million jobs to be created by TFA implementation, with an increase to 30 million, depending on the sectors involved and how labour-intensive they are.
As per the report, besides reducing costs of trade, trade facilitation can help countries attract foreign direct investment.
Source : economictimes.indiatimes.com
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