(Yicai Global) Feb. 24 -- The World Trade Organization's Trade Facilitation Agreement has entered into force, and has significant positive implications for China, the world's largest trader of goods, the Chinese Ministry of Commerce (MOFCOM) said on its website today.
The protocol will help modernize the country's integrated port management system, enhance Chinese products' competitiveness, and improve the environment in China for foreign investors, MOFCOM said. Chinese exporters will benefit from simplified customs processes and easier access to trade partners.
The TFA will make international trade procedures less complicated and strengthen coordination, MOFCOM said. Goods will be able to move, be released and clear customs more quickly, which will enhance global trade and economic growth.
The agreement's enactment will lead to a 14.3 percent cut in the average cost of global trade and an increase in global exports of USD1 trillion, the WTO Secretariat estimated.
The TFA represents the first multilateral goods trade agreement concluded by the WTO since its inauguration 20 years ago and the most important achievement of the WTO members' most recent round of talks, the Doha Round. Its successful execution will boost participants' confidence in the organization's negotiation mechanism.
The Trade Facilitation Agreement entered into force after two-thirds of members completed their domestic ratification process. Rwanda, Oman, Chad and Jordan submitted their endorsements to the WTO on Feb. 22, bringing the total number of ratifications to 112. The TFA has come into force for all member states that have approved it.