The TFA is the WTO’s first-ever multilateral accord that
aims to simplify customs regulations for the cross-border movement of goods.
It was outcome of WTO’s 9th Bali (Indonesia) ministerial
package of 2013.
The agreement includes provisions for Lowering import
tariffs and agricultural subsidies.
It will make it easier for developing
countries to trade with the developed world in global markets.
Developed countries would
abolish hard import quotas on agricultural products from the developing world
and instead would only be allowed to charge tariffs on amount of agricultural
imports exceeding specific limits.
It aims to
reduce red-tapism to facilitate trade by reforming customs bureaucracies and
The ratification will supplement India’s ongoing
reforms to bring in simplification and enhanced transparency in cross border
trade in goods.
It will further help India to boost economic growth by
reducing trade costs and supporting its integration into the global economy.
The implementation of the TFA has the potential 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%.
It enter into force when two-thirds of WTO members ratify the TFA and deposit their instruments of acceptance with the WTO Secretariat.