WTO's trade facilitation agreement comes into effect

The WTO's trade facilitation agreement, which seeks to ease customs norms, came into effect from yesterday with its two-thirds members ratifying the pact. 

The TFA, which has been ratified by India, will give a boost to the global trade, which has been impacted due to slowdown in the world economy. According to experts, the agreement comes at a time when India's efforts to improve exports are gaining momentum.

As the pact has come into force, the member countries who have ratified would now be required to ease customs barriers. Professor at the Jawaharlal Nehru University, Biswajit Dhar said, It



would help countries like India which are trying to push exports.

The 164-member World Trade Organisation (WTO) in a statement said that a major milestone for the global trading system was reached as the first multilateral deal concluded in the 21-year history of the multi-lateral trade body entered into force.It said full implementation of the pact is forecast to slash members' trade costs by an average of 14.3 per cent, with developing countries having the most to gain.

Meanwhile, increasing for the fifth month in a row, India's exports grew by 4.32 per cent to USD 22.11 billion in January.