Trade Facilitation Agreement Would Add Billions to Global Economy

The OECD Trade Facilitation Indicators have revealed that comprehensive implementation of the conditions currently being negotiated at the WTO Doha Development Round would reduce trade costs by approximately 10% in developed countries and 14% in developing nations. This process would ultimately generate an increase in global income of more than US$40billion, with the majority of benefits accruing in developing nations.

The specific findings of the OECD indicators suggest that in some African economies, revenue losses from inefficient border procedures are estimated to exceed 5% of GDP. Regulatory reform aimed at the simplification and standardization of trade documentation is also predicted to reduce trade costs by 3% for low income countries. 

Originally Published: 
03/05/2013