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Last updateThu, 24 Apr 2014 8am

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WTO deal to boost world trade by trillion dollars

The World Trade Organization (WTO) ministerial meeting deal signed  in Bali, today (December 7,2013) is said will boost the world economy between $ 400 billion and $1 trillion by reducing costs of trade by between 10% and 15% and creating 20million new jobs.

It also increases trade flows and revenue collection, creating a stable business environment and attracting foreign investment.The text adopted in Bali is not final, although the substance will not change.

It will be checked and corrected to ensure the language is legally correct, aiming for the General Council to adopt it by 31 July 2014.

The trade facilitation decision is a multilateral deal to simplify customs procedures by reducing costs and improving their speed and efficiency.

It will be a legally binding agreement and is one of the biggest reforms of the WTO since its establishment in 1995 — other agreements struck since then are on financial services and telecommunications, and among a subset of WTO members, and agreement on free trade in information technology products.

For more Please check this video: WTO reaches first ever trade deal at landmark Bali meeting

The objectives are: to speed up customs procedures; make trade easier, faster and cheaper; provide clarity, efficiency and transparency; reduce bureaucracy and corruption, and use technological advances. It also has provisions on goods in transit, an issue particularly of interest to landlocked countries seeking to trade through ports in neighbouring countries.

Part of the deal involves assistance for developing and least developed countries to update their infrastructure, train customs officials, or for any other cost associated with implementing the agreement.