A major milestone for the global trading system was reached today, 22 February 2017, when the Trade Facilitation Agreement (TFA), the first multilateral deal concluded in the 21 year history of the World Trade Organization, entered into force.
In receiving four more ratifications for the Trade Facilitation Agreement (TFA), the WTO has obtained the two-thirds acceptance of the agreement from WTO’s 164 members.
The last countries to sign – Rwanda, Oman, Chad and Jordan – brought the total number of countries to over the required threshold of 110. Canada’s legislation to implement the TFA received Royal Assent on December 12, 2016.
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 trade facilitation reforms all over the world and creates a significant boost for commerce and the multilateral trading system as a whole. Â The WTO estimates that the TFA could boost global merchandise exports by up to $1 trillion, with up to $730 billion of this increase benefiting developing countries. Â Trade costs are estimated to be reduced by an average of over 14 percent.