India Approves Trade Facilitation Agreement of WTO [ Current News (Concise) ]
India has officially approved the WTO’s (World Trade Organisation) Trade Facilitation Agreement which aims at easing customs procedures to increase business. To approve the agreement regarding trade facilitation, India’s WTO ambassador Anjali Prasad handed over agreement of acceptance to WTO Director-General Roberto Azevedo.
- India is the 76th WTO member to approve the TFA.
- WTO stands for World Trade Organization.
- It is an intergovernmental Organization which regulates the international trade.
- It’s headquarter is Centre William Rappard located at Geneva of Switzerland.
- The WTO officially started on 1st January 1995 under the Marrakesh Agreement which was signed by 123 nations on 15th April 1994 by replacing the General Agreement on Tariffs and Trade (GATT) which was initiated in 1948.
- Its current director general is Roberto Azevedo.
What is TFA?
- TFA stands for Trade Facilitation Agreement.
- The TFA is the WTO’s first-ever mutual agreement that aims to shorten payments rules for the cross-border movement of goods.
- It was result of WTO’s 9th Bali (Indonesia) ministerial package of 2013.
- The agreement includes provisions for dropping import tariffs and agricultural grants.
- It will make it easier for developing countries to do business with the developed world in worldwide markets.
- The implementation of the TFA has the ability to create US 1 trillion dollars’ worth of global economic activity which may add 21 million new jobs and lower the cost of doing international trade by 10 to 15%.
- Elimination of hard import quotas:
- Developed countries would eliminate hard import quotas on agricultural products from the developing world.
- It would be only allowed to charge tariffs on quantity of agricultural imports above specific limits.
- Published on: April 25, 2016