On 29 July 2014 the International Chamber of Commerce (ICC) called on World Trade Organisation (WTO) members to fully support the Trade Facilitation Agreement (TFA), which meets its first deadline for implementation on 31 July 2014.
In its correspondence to over 100 trade ministers worldwide the ICC essentially offered six reasons to save the FTA.
(i) Stimulate the global economy: The WTO’s Trade Facilitation Agreement has the potential to deliver a massive stimulus to the world economy – estimated at a possible US$1 trillion boost over time to global GDP. (ii) Generate jobs – especially in developing countries: The deal has the potential to generate as many as 21 million jobs, 18 million of which would be created in developing economies. (iii) Improve cross-border small medium enterprises (SME) sales: Trade facilitation reforms will enable many companies to trade internationally for the first time – with improved border and customs measures potentially triggering a 60-80% increase in cross-border SMEs sales in some countries. (iv) Reduce transaction costs – and prices of essential goods: Implementing the TFA will significantly reduce transaction costs in global supply chains, in turn reducing the price of many essential goods. (v) Prevent food wastage: The TFA contains smart provisions to ensure that perishable goods don’t get stuck at borders – an all too common problem which contributes to food wastage in some economies. These reforms are vital to support many of the world’s poorest. (vi) Pave the way for other landmark reforms: Implementation of the TFA is an essential first step towards concluding the WTO’s Doha round of trade talks. Other multilateral agreements on important issues such as agricultural reform will be in jeopardy if this landmark deal fails.
