SMEs to benefit from WTO deal

The International Chamber of Commerce, Philippines (ICCP) has welcomed the entry into force of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA)—a landmark global deal that is expected to boost global trade flows by more than $1 trillion.

Two-thirds of WTO member states have now ratified the agreement, with Rwanda, Oman, Chad and Jordan becoming the latest of 112 countries to ratify the agreement. Reaching this threshold means the TFA now becomes an official part of the multilateral trading system, which covers more than 96 percent of the global economy.

The TFA—the first multilateral trade agreement to enter into force in more than two decades—aims to make trade easier and simpler by cutting red-tape at borders. ICC has estimated that the deal could support the creation of some 20 million jobs worldwide— the vast majority in developing countries.

“ICC Philippines lauds the Philippine government for actively supporting this landmark global trade agreement,” ICCP founding chair Francis Chua said in a statement. “[With] our strong support for this TFA, plus the presence of [Foreign Affairs] Undersecretary Manuel A.J. Teehankee as one of the active proponents in the Philippine government in pushing for this deal, there was no iota of doubt the Philippines would be a proactive supporter of this TFA”

“The Department of Trade and Industry also plays a critical role in the implementation of the TFA,” Chua said. “ICCP welcomes and conveys its gratitude for the support of Trade Secretary Ramon Lopez, the champion of SMEs, in ensuring that the agreement is carried through.”

He said ICCP would sit down with the departments of Agriculture and of Health as well the Bureau of Customs to ensure that the TFA would benefit Philippine companies as it did other member nations.

“The Philippines will surely stand to positively benefit from this landmark agreement and will provide a major boost to our micro, small and medium enterprises (MSMEs), considered the backbone of the Philippine economy comprising about 99.6 percent of the registered establishments in the Philippines,” Chua added.

For his part, ICC chair Sunil Bharti Mittal described the TFA as “a watershed moment for global trade.”

“The reality today is that many small businesses find themselves unable to trade internationally due to complex customs requirements,” Mittal said in the statement. “By cutting unnecessary red-tape at borders, the TFA will have a transformational effect on the ability of entrepreneurs in developing countries to access global markets.”