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WTO agrees global trade deal worth $1tn- letting world come together


Analysis:

Bureaucratic barriers to commerce can be a big problem.

Africa, for example, has the longest customs delays in the world. The African Development Bank says it can take 36 hours to get goods through the customs post at the Victoria Falls crossing from Zambia into Zimbabwe.

And there are often more barriers to negotiate once goods are over the border. The highway between Lagos and Abuja in Nigeria has 69 official checkpoints.

It takes time and costs money dealing with these delays. It can be disastrous for a cargo of perishable goods. These are exactly the kind of barriers that the WTO deal is intended to tackle.

Dealing with them would certainly make it cheaper for business to move goods across borders. And if it's cheaper, they will do more of it.


The World Trade Organization's first comprehensive agreement involves an effort to simplify the procedures for doing business across borders.
There will also be improved duty-free access for goods sold by the world's poorest countries.
The deal, which could add about $1tn to world trade, gives developing nations more scope to increase farm subsidies.

UK Prime Minister David Cameron said the "historic" agreement could be a "lifeline" for the world's poorest people, as well as benefiting British businesses to the tune of more than $1bn (£600m).
However, the "Bali package", as the WTO calls the agreement, was criticised by some development campaigners who said it was not going far enough.
Rich and poor
It is worth spelling out what is not covered by this - tariffs or taxes on imported goods.
Dealing with them has been the bread butter of past trade rounds - but not for this deal.
The core of this agreement is what is called trade facilitation. This is about reducing the costs and delays involved in international trade. It is often described as "cutting red tape".
Some analysts suggest the benefits could be large. An influential Washington think tank has put the potential gains to the world economy at close to $1tn and 20m million jobs.

http://www.bbc.co.uk/news/business-25274889

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