A major World Trade Organisation deal on streamlining global customs rules could cut international trade costs by between 12.5 percent and 17.5 percent, a study by the Organisation for Economic Co-Operation and Development showed on Thursday.
A deal between India and the United States on the Trade Facilitation Agreement last year, which needs to be backed by all 160 WTO members, had resurrected hopes that the trade body could push through such reforms to cut red tape.
"There are very practical measures that we've identified that offer significant benefits," Ken Ash, the OECD director for Trade and Agriculture, told reporters.
"Things like simplifying the required trade documentation. Automating border procedures, or streamlining border controls."
Economists say the Trade Facilitation Agreement could save $1 trillion. Ash declined to endorse this figure, only saying the Paris-based body expected each 1 percent reduction in worldwide trade costs to bring $40 billion in savings.
Australia was to formally accept the agreement later on Thursday, Steven Ciobo, parliamentary secretary to the minister of foreign affairs, said at the news briefing in Paris, making Australia the seventh WTO member to adopt the agreement.
At least two-thirds of WTO members, or more than 100 countries, must ratify the deal before it can take effect. The United States has already formally embraced the pact. (Reuters)
Source: www.businessworld.ie
