MANILA, Philippines - The Philippines has ratified the World Trade Organization’s Trade Facilitation Agreement (TFA) which seeks to make trading of goods easier through lower costs and streamlined procedures.
In a statement, the Department of Trade and Industry (DTI) said the government has completed the ratification of the TFA as it deposited yesterday the instrument of acceptance through the Philippine Permanent Mission to the WTO in Geneva, Switzerland.
By submitting the instrument of acceptance, the Philippines is expressing its intention and consent to implement the TFA.
Adopted in 2013 in Bali, Indonesia, the TFA is the first multilateral trade agreement to be concluded since WTO was established in 1995.
The TFA contains provisions for expediting the movement, release and clearance of goods, as well as measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.
The Philippines is the 95th WTO member to accept the TFA.
The TFA will enter into force after two-thirds or 110 out of the 164 WTO members accept the agreement.
Once the TFA enters into force, it is expected to reduce total trade costs by more than 14 percent for low-income countries, more than 15 percent for lower-middle countries, and more than 13 percent for upper middle-income countries by streamlining the flow of trade across borders.
It is also seen to help increase global merchandise exports by up to $1 trillion yearly.
Trade Secretary Ramon Lopez said the TFA is expected to boost the country’s economic growth by supporting its integration into the global economy.
Trade Undersecretary Ceferino Rodolfo said the agreement is also seen to benefit all businesses, whether big or small.
“The Philippines finds great value on the implementation of the TFA – not just for the big businesses – but also for local micro, small and medium enterprises with the prospects of lowering trade costs and streamlining border procedures, which will enable them to participate more actively in international trade,” he said.