The Trade Facilitation Agreement at the World Trade Organization's (WTO) 9th ministerial conference is a big boost for emerging economies, Jean-Guy Carrier, secretary-general of the Paris-based International Chamber of Commerce, tells Nayanima Basu. Edited excerpts:
Is this truly India's moment, as what some trade experts are saying?
I think so; it is also WTO members' moment. India was firm in its stand and the minister (Commerce and Industry Minister Anand Sharma) was very eloquent. It is also true that this time every country wanted to reinforce multilateralism. Certainly, this deal benefits developing countries more.
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WTO estimates the agreement will induce $1 trillion into the global economy but is it not tilted more towards developed countries?
Beside the $1-trillion boost to the global economy, it will generate 20 million jobs, of which 18 million will happen in the emerging economies. 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. Now, with this Bali package, they will be able to see tangible results. Their costs will come down by 10-15 per cent.
Will it have an impact on improving the investment sentiment in India and developing countries as a whole?
Yes, of course. It will help in acquisitions and expansion because a deal like this has never happened before. An agreement in WTO means a collective decision by governments around the world. The atmospherics are very important and that's what businesses around the globe want.
According to the Organisation for Economic Cooperation and Development, this will finally put 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. It will take four-five years but in the end, it will have tremendous potential in fighting non-tariff barriers.
A last-minute surprise by the ALBA (a Latin America-led bloc) countries in Bali had shocked many. Was it expected?
They feel they get ignored within this vast membership of 159 countries. Their position is understandable. They do not (usually) get such a unique opportunity; a deal in WTO has never happened before. They exist and have points to make.
