The first ever multilateral trade deal realized by the World Trade Organization has received the unanimous support of all of its 160 member nations, according to a blog post at NPR. This historic trade deal has been in the works for quite a few years, and according to the WTO, it can add over $1 trillion to the global commerce each year.
The Trade Facilitation Agreement, approved by the WTO member nations, has the goal to facilitate movement, release and clearance of goods, including those in transit. Besides it sets out measures for effective cooperation between customs and other authorities on issues regarding trade facilitation and customs compliance. The set of measures is highly anticipated by the global trade community, as an instrument to help developing countries better integrate into the global economy, intensify regional integration and lift millions out of poverty, as European Union Trade Commissioner Cecilia Malmstrom put it (cited by the AFP). Roberto Azevêdo, director general of the WTO, considers this a very important moment for the Organization, one that puts it “back into the game” and its negotiation work back on track.
The Trade Facilitation Agreement was criticized by some, worried about its effect of developing countries having problems setting their own priorities on environmental and labor protection, food security and other trade issues. The WTO in turn has emphasized on the agreement’s potential to increase world trade by $23 trillion from its current estimate of $22 trillion by allowing the participants to agree on common fundamentals.
The goal of the World Trade Organization is to supervise and liberalize international trade. Founded in 1995, under the Marrakech Agreement, it deals with regulation of trade between participating countries by providing a framework of trade agreements along with a process of regulating disputes among its members. The organization has its headquarters in Geneva, Switzerland, with a staff of over 600 people.