ICCP hails start of WTO trade facilitation deal

The International Chamber of Com­merce, Philippines (ICCP) has wel­comed the entry into force of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA)—a landmark global trade agreement which could provide a boost to global trade flows of over US$1trillion.

Two-thirds of WTO member states have now ratified the TFA, with Rwanda, Oman, Chad and Jordan becoming the latest of 112 countries to ratify the agreement. Reaching this threshold means the TFA now be­comes an official part of the multilat­eral trading system that covers more than 96 percent of global gross do­mestic product (GDP).

The TFA—the first multilateral trade agreement to enter into force in over two decades—aims to make trade easier and simpler by cutting red-tape at borders. ICC has esti­mated that the deal could support the creation of some 20 million jobs worldwide— the vast majority in de­veloping countries.

“ICC Philippines lauds the Philip­pine government for actively support­ing this landmark global trade agree­ment. “Our strong support to this TFA plus the presence of Undersecretary Manuel A.J. Teehankee as one of the active proponents in the Philippine government in pushing for this deal, there was no iota of doubt the Philip­pines would be a proactive supporter of this TFA”, ICCP Founding Chair­man Francis Chua said

The Department of Trade and In­dustry (DTI) also plays a critical role in the implementation of the TFA. ICCP welcomes and conveys its gratitude for the support of Trade Secretary Ra­mon Lopez, the Champion of SMEs, in ensuring that the agreement is car­ried through.

ICCP will sit down with the De­partments of Agriculture, Health and Bureau of Customs to ensure that the TFA greatly benefits SMEs as it does other member nations.

The Philippines stand to positive­ly benefit from this landmark agree­ment and will provide major boost to our Micro Smalll and Medium En­terprises (MSMEs), considered the backbone of the Philippine economy, comprising about 99.6% of the reg­istered establishments in the Philip­pines.

“The entry into force of the TFA is a watershed moment for global trade. The reality today is that many small businesses find themselves unable to trade internationally due to complex customs requirements. By cutting unnecessary red-tape at borders, the TFA will have a trans­formational effect on the ability of entrepreneurs in developing coun­tries to access global markets,” ICC Chairman Sunil Bharti Mittal said.

“The TFA can help ensure that, for the first time, all companies— regardless of size or location—can benefit from global trade. The entry into force of the agreement could not come at a more important mo­ment given the imperative to make global growth more inclusive,” Mit­tal added.