November 29, 2014
– GENEVA – After many years of talking, the World Trade Organisation (WTO) pulled off a major deal on November 27, 2014 that the body said could boost global commerce by US$1 trillion (RM3.38 trillion) annually.
Diplomats said the deal was the first multilateral trade agreement in the organisation’s 20-year history. Agreement has been difficult to reach because WTO deals require the unanimous backing of its 160 member countries.
“Once in force, it will help developing countries better integrate into the global economy, intensify regional integration and lift millions out of poverty,” said European Union Trade Commissioner Cecilia Malmstrom.
WTO director-general Roberto Azevedo said the deal was now operational but would come into force once two-thirds of the members had officially accepted it.
“This is a very important moment for the WTO,” said Azevedo. “We have put ourselves back in the game. We have put our negotiating work back on track.”
After months of stalemate and years of negotiation, a United States-India deal this month over food stockpiling by India cleared the way for the agreement.
India had insisted on subsidising grains under a national policy to support hundreds of millions of impoverished farmers and provide food security amid high inflation, a stand that had blocked the talks since July.
Critics worry that the agreement could make it harder for countries to set their own priorities on environmental and labour protections, food security and other trade-related issues.
The WTO has said, however, that the Trade Facilitation Agreement could increase total world trade to US$23 trillion from its current estimate of US$22 trillion.
“It has been a tough period for our negotiating work, but we have got the right result today,” said Azevedo.
US Trade Representative Michael Froman said the WTO “has taken a critical step forward”.
The deal “has the potential to fundamentally reform global customs practices and substantially reduce the costs and time associated with goods crossing borders,” he said.
(AP)