India approves WTO pact to boost commerce
The Dollar Business Bureau
On Friday India officially confirmed the World Trade Organisation’s (WTO) new Trade Facilitation Agreement (TFA) aimed at increasing the activity of buying and selling of goods and services.
“The move would supplement India's ongoing reforms to bring in simplification and enhanced transparency in cross border trade in goods,” Nirmala Sitharaman, Commerce and Industry Minister said.
With the signing of this agreement, India becomes the 76th member of the WTO to accept the TFA. The TFA will enter into force once two-thirds of the WTO membership accepts the agreement.
Various other members of the WTO such as China, Singapore, US, Japan, Kenya, Myanmar, Brazil, Mali and Australia have also accepted the TFA.
Anjali Prasad, India’s WTO ambassador gave India’s instrument of confirmation to Roberto Azevêdo, Director General of WTO.
“I’m very pleased to receive India’s instrument of ratification from ambassador Prasad,” Azevêdo said.
“India is one of the most dynamic economies in the world today and has become a top recipient of foreign investment. Ratifying the WTO’s Trade Facilitation Agreement will help India further boost economic growth by reducing trade costs and supporting its integration into the global economy,” he added in a statement.
According to the WTO’s report released in 2015, implementation of the World Trade Organisation’s Trade Facilitation Agreement has the potential to increase global merchandise exports by up to $1 trillion per annum.
“The developing countries will benefit significantly from the TFA, capturing more than half of the available gains,” the report said.
“In March India submitted its Category A notification to the WTO, indicating which provisions of the TFA it intends to implement upon entry into force of the Agreement,” WTO said in its official statement.