India has ratified the Trade Facilitation Agreement (TFA) of WTO.
TFA is a part of WTO’s Bali Ministerial Package of 2013.
TFA came into force in January 2016.
Which of the statements given above is/are correct? a) 1 and 2 only b) 1 and 3 only c) 2 and 3 only d) 1, 2 and 3
The correct answer is 1 and 2 only.
Trade Facilitation Agreement (TFA)
The Trade Facilitation Agreement (TFA) was one of ten agreements reached by WTO members (including India) at the Bali Ministerial meeting in December 2013. Hence, statement 2 is correct.
The TFA aims to accelerate global trade by reforming customs procedures and eliminating red tape.
India agreed to sign the TFA by July 31, 2014, to ease customs procedures and boost commerce. Hence, statement 1 is correct.
The ratification will supplement India’s ongoing reforms to simplify and improve transparency in cross-border trade in goods, and it will also help India boost economic growth by lowering trade costs and supporting its integration into the global economy.
The TFA’s implementation has the potential to generate $1 trillion in global economic activity, creating 21 million new jobs and lowering the cost of doing international trade by 10 to 15%.
TFA entered into force in February 2017 following ratification by two-thirds of WTO members. Hence, statement 3 is incorrect.