India Ratifies Trade Facilitation Agreement of WTO: A Key Step Towards Easy Trade Across Borders
India has recently ratified the Trade Facilitation Agreement (TFA) of the World Trade Organisation (WTO), making it the 76th member to do so. The TFA aims to simplify, streamline and standardise customs procedures for better trade facilitation, making it easier for businesses to export and import goods across borders. India`s ratification of this agreement signals a key step towards increasing transparency and efficiency within its trade procedures, and promoting economic growth and development.
The TFA was adopted by the WTO in December 2013 and went into force in February 2017, after two-thirds of the WTO`s 164 members ratified it. The agreement provides a framework for reducing trade barriers, including simplifying customs procedures, increasing transparency, and reducing costs for importers and exporters. This is particularly beneficial for small and medium-sized enterprises (SMEs) that often face high costs and bureaucratic red tape when trying to export or import goods.
India`s ratification of the TFA is a significant development for the country, as it has the potential to boost its economic growth and competitiveness. India is currently the world`s fastest-growing major economy and has been making significant strides to improve its business environment and attract foreign investments. However, its trade barriers and opaque regulatory environment have often hindered its efforts to become a global trading powerhouse.
By ratifying the TFA, India has committed to implementing several measures that will help it improve its trade facilitation processes. These include simplifying customs procedures, enhancing transparency and predictability, and ensuring the availability of relevant information for trade. The measures will also help India to reduce its trade costs, which will make it more attractive for foreign investors and businesses.
Moreover, India`s ratification of the TFA is also a positive development for the WTO, which has been facing challenges in recent years due to rising protectionism and trade tensions. By promoting transparency and simplifying trade procedures, the TFA encourages more countries to engage in free and fair trade, which is beneficial for the global economy as a whole.
In conclusion, India`s ratification of the TFA is a significant step towards improving its trade facilitation processes and promoting economic growth and development. By simplifying customs procedures and reducing trade barriers, India is sending a positive signal to the global business community that it is committed to promoting transparent and predictable trade. This move will also help India to attract more foreign investments and businesses, which will further strengthen its position as a major player in the global economy.
