WTO: Turkey signs the Trade Facilitation Agreement

By

Matthieu Guinebault

Published
Mar 31, 2016

Turkey has decided to join the Trade Facilitation Agreement implemented by the World Trade Organisation. The step was expected, given the importance of the country's economy in the Mediterranean basin. The agreement has now been signed by 71 countries, including those of the EU. 

A WTO report estimated that the adoption of the Trade Facilitation Agreement (TFA) by all of its members would generate an increase in world exports, across all industries, of $1 trillion. The TFA's objective is to accelerate the movements, deliveries and customs clearances of goods, both in the case of international trade and of simple transits. The other notable objective is to support the growth of developing countries.

However, the agreement's effects will not be truly felt until it will be ratified by two thirds of the WTO's 160 member countries. Then the TFA will allow a 2.7% annual increase in world exports, and a 0.5% one in world GDP.

It is a sizeable issue for national exporters, since the agreement's ratification by their country will generate a 14.5% average reduction in trade costs.