As Trade Facilitation Agreement (TFA) signed by the Federal Goverment enters into full force on Wednesday,Okechukwu Enelemah,the Minister of Industry Trade and Investment said that the agreement is expected to improve Nigeria’s muliti-lateral Trading systems and improve ease of doing agenda of the Federal government.
Nigeria it would be recalled ratified the TFA on January 20th in in Davos Switzerland, on the sidelines of the recently held World Economic Forum,(WEF)when it deposited the instrument of acceptance with Robertto Azevedo,the World Trade Organisation director general.
“This is indeed,a major milestone in the Multi lateral trading system and ties into our Ease of doing business Agenda. As countries proceed to implement the Trade Facilitation Agreement,Nigeria would like to see a World Trade Organisation that is more suportive of domestic policy reforms in developing countries like Nigeria and particularl suportive of the private sector and business to drive growth”The Minister said in a statement signed by Constance Ikokwu,his strategic Media Adviser.
Meanwhile,Roberto Azevedo,the director general of WTO in a separate statement also described entering into full force of the TFA as a major milestone for the global trading system.
“A major milestone for the global trading system was reached on 22 February 2017 when the first multilateral deal concluded in 21 year history of the World Trade Organisation entered into full force.
The director general said that in receiving four more ratifications for the Trade Facilitation Agreement,the WTO has obtained the two-thirds acceptance of the agreement from its 164 members needed to bring the TFA into force.
While giving further insight into the benefits of the TFA,the director general said that full implementation of the TFA is a forecast to slash member’s trade costs by an average of 14.3 per cent,with developing countries having the most to gain,according to 2015 study carried out by WTO Economists.
He said,”This would boost global trade by up to 1 trillion dollars each year,with the biggest gains being felt in the poorest countries. The impact will be bigger than the elimination of all existing tarrif around the World”
Implementing the TFA, further findings show is also expected to help new firms export for the first time,especially in developing countries like Nigeria.
It would be noted further that once the TFA is fully implemented,developing countries are predicted to increase the number of new products exported by as much as 20 percent,with least developed countries likely to se an increase of up to 35 percent,according to the World Trade Organisation Study.
