PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed the entry into force of the World Trade Organisation’s (WTO's) trade facilitation agreement (TFA) as a significant milestone for the multilateral trading system.
The WTO this week announced that more than 110 countries had ratified the TFA, which will expedite the movement, release and clearance of goods across borders.
The full implementation of the FTA is expected to reduce member trade costs by an average of 14.3%, with developing countries to have the most to gain. The TFA is also likely to reduce the time needed to import goods by over a day and a half, and to export goods by nearly two days, representing a 47% and 91% respective reduction over the current averages.
MCA CEO Brendan Pearson on Thursday said the entry into force of the TFA will be a shot in the arm for global trade growth.
“It comes at a time when it is critical to maintain support for a rules-based international trading system and for continued trade liberalisation to drive economic growth and development.
“Economic analysis has estimated that full implementation of the TFA would cut trade costs in WTO member countries by an average of 14.3% through simplifying, modernising and harmonising export and import processes,” Pearson said.
A WTO study estimates these reductions in trade costs would boost global trade by up to $1-trillion a year, with the biggest gains flowing to developing economies.
“The entry into force of this new global trade deal is a positive development at a time when the multilateral trading system has been under pressure and protectionist elements have sought to block trade liberalisation,” Pearson added.