IN THE wee hours of December 7th 2013, after weeks of haggling, exhausted trade representatives stood to applaud. Agreement had been reached on the first trade deal in the history of the World Trade Organisation (WTO). No longer could it be accused of being a talking shop, crimped by consensus. “For the first time in our history, the WTO has truly delivered,” said Roberto Azevêdo, the body’s chief. The deal is tantalisingly close to coming into force, needing just two more national ratifications. Chad, Jordan, Kuwait and Rwanda are competing to take it over the line.
In theory, the Trade Facilitation Agreement (TFA) is a beacon of hope on the trade landscape. It was unanimously agreed to by rich and poor countries. If fully implemented, it could have an even bigger impact than slashing all tariffs. It is an example of a win-win deal, in which peer pressure pokes governments into making life easier and more prosperous.
The agreement shies away from slashing subsidies or toppling tariffs, and instead hacks at the thicket of regulatory trade barriers. The red tape is stickiest in poorer countries; in sub-Saharan Africa…
The Economist: Finance and economics
