Last Saturday, the World Trade Organization reached a historic agreement on its very first global “trade facilitation” deal, disproving the notion that small and large countries can never agree on new trade rules.
The 159-member organization committed to expedite shipments, streamline clearance processes and increase transparency at the conclusion of the Doha round of international trade talks. But the deal has hit several roadblocks in its long history since Doha began in 2001. Each time that discussions nearly collapsed, trade officials further stripped down the agenda, and Cuba almost derailed the entire project when they threatened to reject any agreement that failed to end the US’s embargo on their country. Roberto Azevedo took over as Director-General in September, and succeeded in keeping all parties at the table until they could reach a conclusion.
Even in its final form, the agreement has drawn heat. Some critics say it doesn’t do enough to help with food security issues in poor countries. “The LDC specific decisions are unlikely to make an economic difference for poor countries,” noted Romain Benicchio, Oxfam International Senior Policy Officer. “It is all best endeavor language, which is the trade negotiators equivalent of crossing fingers behind your back.”
However, the deal received praise from many world leaders, including Barack Obama and industry executives. Michael L. Ducker, FedEx Express President and COO, called it “the kind of practical, commercially meaningful trade agreement that business needs more of from the WTO.” Scott Davis, UPS Chairman and CEO, noted that the Bali agreement could further support the Trans-Pacific Partnership (TPP) Agreement and Transatlantic Trade and Investment Partnership (TTIP) negotiations.
AAEI, which represents American exporters and importers, expressed support and relief that the WTO approved the agreement, celebrating the significant cost savings it would offer for their members involved in cross-border trade.
