WTO trade agreement could boost world GDP by $1 trillion

The WTO Bali trade facilitation agreement has 159 countries agreeing to a set of common customs procedures around everything from publishing their customs regulations and forms to issues around pre-clearance. It’s one reason why estimates state this will contribute upwards of $1 trillion to global GDP

The potential payoffs from seven trade agreements that could be concluded in 2013 and ratified in 2014 is estimated at $2 trillion. The full seven agreements have not been agreed yet.

The WTO reached agreement in Bali for more reductions in trade barriers which should add $1 trillion in economic benefit to the world economy.

The deal reached in Bali lets India and other developing nations continue to subsidize their crops to bolster food security without having to worry about legal challenges, so long as the practice doesn’t distort international trade, according to a draft text. The U.S. and other members of the Geneva-based WTO would retain the right to file a complaint if subsidized goods are sold in global markets and depress prices or harm competitors.

Full seven trade agreements

■ the trade Facilitation agreement (agreed in Bali)
■ the International Services Agreement
■ the International digital Economy Agreement (IdEA)
■ duty-free quota-free (dFQF) market access for least developed Countries (ldCs)
■ Phase-out agricultural export subsidies
■ Renounce food export controls
■ Freer trade in environmental goods and services

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