Argentina Ratifies the Trade Facilitation Agreement
Argentina's Ambassador to the WTO, Amb. Hector Marcelo Cima, submitted his country's instrument of acceptance to WTO Director-General Roberto Azevêdo on 22 January. This makes Argentina the 128th WTO member to have ratified the agreement.
"Argentina's ratification of the Trade Facilitation Agreement reflects our commitment to reforms for a reliable, productive and sustainable environment for growth, employment and development," Ambassador Cima said. "It is also a firm gesture of support for multilateralism and the shared objective of pursuing fair trade based on clear rules," he said.
Argentina previously submitted its Category ABC notifications, outlining the provisions of the Agreement it intends to implement shortly after ratification.
One immediate impact from entry into force of the TFA is that all developed country Members of the WTO will start applying all of the substantive provisions of the Agreement from the date it takes effect. Developing countries and least developed countries (LDCs) will also begin applying those substantive provisions of the TFA they have indicated they are in a position to do so from the date of entry into force; these commitments are set out in the Category A notifications which 106 members have submitted to date.
The TFA has a huge potential to reduce trade costs thereby boosting trade between countries and raising world income. OECD studies find that the implementation of the TFA could reduce worldwide trade costs between 12.5% and 17.5%. Developing country exports are expected to grow between 14% and 22% while becoming more diversified. Companies are more likely to become more profitable which should encourage domestic investment. In addition, foreign direct investment is likely to be attracted to countries that fully implement the TFA. Finally, increased trade means better employment prospects for workers and greater revenue collection by the government.