WTO’s Trade Facilitation Agreement(TFA) works to simplify customs rules, increasing transparency and reducing transaction costs for traders. As part of the agreement, India will take more steps to ease customs procedures to increase trade.
WTO’s Trade Facilitation Agreement – Progress in India
TFA is largely seen as an effort by developed countries to access vast markets of new growing economy of the developing country.There is immense pressure upon India from the developed countries to sign the pact. But India has its concern about food subsidy and stockpile of food grains and wants it to be addressed first before signing the TFA. The current WTO norms limit the value of food subsidies at 10 percent of the total value of food grain production.India need to consider its farmers opinion too before signing TFA.
The Commerce Ministry will soon seek the Cabinet’s approval for the WTO’s trade facilitation agreement (TFA). So far over 55 WTO members have verified this pact, which was concluded at the WTO’s 2013 Bali Ministerial Conference. According to certain estimates, the TFA could add $1 trillion in new trade globally and create 20 million new jobs worldwide.