Consider the following statements:

1. India has ratified the Trade Facilitation Agreement (TFA) of WTO

2. TFA is a part of WTO's Bali Ministerial Package of 2013

3. TFA came into force in January 2016

Which of the statements given above is/are correct?

The correct answer is option 1 i.e. 1 and 2 only

Trade Facilitation Agreement (TFA)

• The Trade Facilitation Agreement (TFA) was one among the 10 agreements of the deal the WTO members (including India) had agreed upon in December 2013 Bali Ministerial meeting. Hence statement 2 is correct.
• The TFA seeks to speed up global trade by reforming customs procedures and cutting red tape.
• India had agreed to sign the TFA by July 31st 2014, which aims at easing customs procedures to boost commerce. Hence statement 1 is correct.
• The agreement includes provisions for
  • Lowering import tariffs and agricultural subsidies: It will make it easier for developing countries to trade with the developed world in global markets.
  • Abolish hard import quotas: Developed countries would abolish hard import quotas on agricultural products from the developing world and instead would only be allowed to charge tariffs on amount of agricultural imports exceeding specific limits.
  • Reduction in red tape at international borders: It aims to reduce red-tapism to facilitate trade by reforming customs bureaucracies and formalities.
• The ratification will supplement India’s ongoing reforms to bring in simplification and enhanced transparency in cross border trade in goods.
• It will further help India to boost economic growth by reducing trade costs and supporting its integration into the global economy.
• The implementation of the TFA has the potential to create US 1 trillion dollars’ worth of global economic activity which may add 21 million new jobs and lower the cost of doing international trade by 10 to 15 per cent.
• TFA came into force in February 2017 after the ratification of the 2/3rd members of the WTO. Hence statement 3 is incorrect.