Concept: Trade Facilitation Agreement
Topic: International Relations (GS Paper II), Governance (GS Paper II), Indian Economy (GS Paper III)
Category: Government policies and interventions for development in various sectors (GS Paper II)
Related News: Hindu, Feb 19
CNA mentions: 1(Feb 19)
Trade Facilitation Agreement
The Trade Facilitation Agreement (TFA) is the first multilateral agreement of the World Trade Organisation (WTO) to enter into force. It came into force on 22 February 2017 when the number of member countries that ratified the agreement rose to 112, giving the deal acceptance by more than the required 2/3rd of the members. It is basically an agreement that seeks to bring down trade barriers and simplify border management procedures. It aims to boost global growth through reducing the transaction costs of exports and imports, and also expedite the easy and transparent movement of goods across national boundaries. It is part of the Bali Package of decisions taken in 2013. The TFA intends to create a less discriminatory business environment by speeding up clearance procedures and formalities.