28 March 2023 Tuesday
Trade Facilitation Agreement Statement from the World Trade Organization
Trade Facilitation Agreement has increased trade by over US$ 230 billion, a new study explains.
The WTO Trade Facilitation Agreement (TFA) led to a US$ 231 billion increase in trade, particularly in agriculture, according to estimates for the first couple of years of its implementation presented to the Committee on Trade Facilitation on 22 March. Developing members and least-developed country (LDC) members are the most gained countries according to estimates.
Based on estimates for the years 2017-2019, WTO economists attribute to the TFA an average 5% increase in global agricultural trade, 1.5% in manufacturing trade, and 1.17% in total trade. These increases are largely driven by the trade growth in LDCs, where agricultural exports rose by 17%, manufacturing exports by 3.1%, and total exports by 2.4% under the TFA. The estimates further point to a 16-22% increase in agricultural trade between developing members that have made TFA commitments.
The TFA, which entered into force on 22 February 2017, contains provisions for expediting the movement, release, and clearance of goods, including goods in transit. It further contains provisions for technical assistance and capacity building in this area. The TFA is the first WTO agreement in which developing members and LDC members can determine their own implementation schedules and seek to acquire implementation capacity through the provision of related assistance and support. Developed members were required to implement all provisions of the TFA from its entry into force. As of 22 March 2023, notifications submitted by WTO members indicate that they have committed to implementing 76.1% of TFA obligations.
The next TFA review is scheduled for 2025.
