OECD predict the (TF) will reduce the world trade costs by 15%
The Kingdom of Saudi Arabia submitted its instrument of acceptance to the World Trade Organization, and by that, it is considered the second Arab country is joining the Trade Facilitation Agreement by fulfilling all the requirements needed to but this agreement enter into force.
Saudi Arabia’s Deputy Minister for Foreign Trade, Ahmed Al-Hakbani, presented the Kingdom’s TFA instrument of acceptance to DG Azevêdo on 28 July in Geneva. The meeting held deliberation about many updates and suggestions. Mr. Al-Hakbani express the Kingdom’s intention to support the multilateral trade system in WTO concluded at 2013 Bali Ministerial Conference. By the prediction of both The Organization for Economic Co-operation and Development and The World Trade Organization, this agreement will reduce the world trade costs by 15%.
By the agreement entry into force, the world trade costs will be reduced, and that will affect the trade positively for developing and integrating between small and medium enterprises (SMEs) in the global value (GVCs). Mr. Al-Hakbani said this is the first agreement added to the multilateral trade system after 18 years of The Whorls Trade Organization establishment and considered a strong tool to break through Doha deliberations since 2001, for it delivers the system from a long-term dilemma.
The agreement intended to facilitate and reduce the requirements and terms that the export-import related entities and governmental organization ask for, adequate to the international regulations and procedures. 88 of 164 countries ratify the (TFA). And the agreement will enter into force when two third of the countries in the organization (110) join the ratification.
Saudi Arabia is one of the member countries that support firmly entering this agreement in the multilateral trade system and has a significant contribution that led to the current results.