'TFA will create 18 million jobs in developing countries: Carrier

Q&A with Jean-Guy Carrier, secretary general International Chamber of Commerce

Developing countries will benefit more from Trade Facilitation Agreement (TFA) that got approved during the World Trade Organization’s (WTO) 9th ministerial conference, said Jean-Guy Carrier, secretary general of Paris-based International Chamber of Commerce (ICC). In an interview with Nayanima Basu, he said the deal has potential to create 18 million jobs in the emerging economies. Excerpts:

Is this truly ‘India’s moment’ as what some trade experts are saying?

I think it is. But it is also WTO members’ moment. India was firm in its stand and the minister (Commerce and Industry Minister Anand Sharma) was very eloquent. But it is also true that this time every country wanted to reinforce multilateralism. But yes, certainly this deal is more for the benefit of developing countries because of the trade facilitation agreement.

While WTO estimates do state that the agreement on trade facilitation will induce $1 trillion into the global economy but is it not tilted towards developed countries more?

Besides the $1 trillion boost to global economy it will also generate 20 million jobs, out of which 18 million jobs will happen in emerging economies alone. And companies, especially from the developed world will benefit the most in terms of reduced transaction cost.

Businesses earlier thought of the Doha round which is very large and complex. But now with this Bali package they will be able to actual tangible results. They understand that with this agreement their costs will come down by 10-15%.

Will it have an impact on improving the investment sentiments in India and developing countries as a whole?

Yes of course it will. I don’t have the estimates but it give out positive sentiments into the global economy. It will now help in acquisitions and expansion because a deal like this has never happened before. An agreement in WTO means governments around the world taking a collective decision. So the atmospherics are very important and that’s what businesses around the global want.

According to Organization for Economic Cooperation and Development (OECD) this will finally put the developing countries in the global value chain

A lot of countries, especially, India, Brazil and China will have the necessary capacity now to improve their global partnerships. Well it will take time and it will take 4-5 years but in the end, it will there will have tremendous potential in fighting non-tariff barriers.

A last minute surprise by the ALBA countries at World Trade Organization’s (WTO) 9th ministerial conference in Bali had shocked many. Was it expected?

Well they have a feeling that they get ignored within this vast membership of 159 countries which is going to be 160. So their position is understandable. They do not get such a unique opportunity because a deal in WTO has never happened before. So you get a lot of concentration of attention. So it is completely understandable. They also exist and they also have points to make.