India is likely to ratify the WTO Trade Facilitation Agreement (TFA), which aims to relax customs legislation to speed up trade flows. Network level: U.S. trade practices are contrary to WTO rules. The hope for a global trade agreement under the WTO has therefore collapsed. The TFA was proposed to come into force on July 31, 2015, but it was not completed. The Trade Facilitation Agreement was put in place to simplify customs procedures by reducing costs and improving the efficiency and speed of trade. The main objective of the agreement is to simplify border management programmes and remove barriers to trade. It is a legally managed agreement, considered one of the biggest reforms of the World Trade Organization (WTO) since its inception. The WTO, WTO members and other intergovernmental organizations, including the World Bank, the World Customs Organization and the United Nations Conference on Trade and Development (UNCTAD), provide technical assistance to trade facilitation. In July 2014, the WTO announced the creation of a trade facilitation mechanism that helps developing countries and LDCs implement the Trade Facilitation Agreement.
The facility came into force on 27 November 2014 with the adoption of the Trade Facilitation Protocol. Given that the WTO is based on consensus, it is extremely difficult to reach agreement on reforms among the 164 members. One possibility that could move forward could be a multi-lateral agreement with a group of like-minded countries on a new set of rules that would complement the broader WTO. Full implementation of FTAs is estimated to reduce trade costs by an average of 14.3% and boost world trade by up to $1 trillion per year, with the highest growth in the poorest countries. For the first time in the history of the WTO, the implementation of the agreement is directly linked to the country`s ability to do so. A Trade Facilitation Mechanism (TFAF) has been set up to ensure that developing and least developed countries receive the assistance they need to take full advantage of the benefits of the TFA. As was pointed out at the beginning, India is not against the TFA. Modi`s new government had another concern with another agreement. This was due to some “disagreements” over the next agreement that withdrew India.
Our problem was food security, that is, the ministerial decision on public storage for food security purposes. Developing countries have been saying for decades that the rules of international trade are deeply unfair. But similar complaints now come from developed countries that have established most of these rules. Today, the world is going through protectionism, trade wars (like the United States and China) and Brexit, which puts the global economy under pressure. The future role of the WTO is crucial to preserving the liberalized global economic system that has developed since the end of the Second World War. The proposals to be discussed by trade ministers will consider the 11th biennial WTO Ministerial Conference (in Buenos), thank you for submitting a very useful article and hope to learn more. Detailed information on trade facilitation agreements is really helpful. The TFA allows states to strengthen their trade links and better interact with the global trading network. The TFA will improve transparency, mobility and predictability in cross-border trade management.
Thank you for sharing this excellent contribution. The Bali package (2013) had 10 agreements that can come down to three heads: TFA, agriculture (food security) and least developed countries (LDCs). While the attention of industrialized countries was drawn to the TFA, India feared moving forward without finding a lasting solution to the issue of food security.