India ratified the Trade Facilitation Agreement (TFA) of the WTO on April 23, 2016, becoming the 76th member to do so. The TFA aims to simplify customs procedures and reduce red tape at international borders to boost global trade. It was approved by India's Union Cabinet to further economic growth and trade integration. A National Committee on Trade Facilitation will also be established to facilitate domestic coordination and implementation of the TFA.

1. Trade Facilitation Agreement
Background
Earlier Indian Union Government had refused to ratify TFA till its concerns about public
stockholding for food security are resolved. But in order to address India’s concerns WTO had
agreed to amend the Bali agreement, providing India an indefinite reprieve on food stockholding.
Finally India ratified Trade Facilitation Agreement of WTO April 23, 2016 Agreement, which
aims at easing customs procedures to boost commerce. In this regard, India’s WTO ambassador
Anjali Prasad handed over the instrument of acceptance to WTO Director-General Roberto
Azevêdo. India is the 76th WTO member to ratify the TFA.
Decision in this regard was taken by Union Cabinet meeting chaired by Prime Minister
Narendra Modi in New Delhi as per India’s consonance of ‘ease of doing business’ initiative.
The proposal regarding ratification and acceptance of the instrument of acceptance of protocol of
TFA to WTO Secretariat was also approved by the Union Cabinet.
What is Trade Facilitation Agreement (TFA)?
 The TFA is the WTO’s first-ever multilateral accord that aims to simplify customs
regulations for the cross-border movement of goods.
 It was outcome of WTO’s 9th Bali (Indonesia) ministerial package of 2013. The
agreement includes provisions for
o Lowering import tariffs and agricultural subsidies: It will make it easier for
developing countries to trade with the developed world in global markets.
o Abolish hard import quotas: Developed countries would abolish hard import
quotas on agricultural products from the developing world and instead would only
be allowed to charge tariffs on amount of agricultural imports exceeding specific
limits.
o Reduction in red tape at international borders: It aims to reduce red-tapism to
facilitate trade by reforming customs bureaucracies and formalities.
Comment
 The ratification will supplement India’s ongoing reforms to bring in simplification
and enhanced transparency in cross border trade in goods.
 It will further help India to boost economic growth by reducing trade costs and
supporting its integration into the global economy.
 The implementation of the TFA has the potential to create US 1 trillion dollars’
worth of global economic activity which may add 21 million new jobs and lower
the cost of doing international trade by 10 to 15 per cent.
 The Union Cabinet has approved a proposal to notify the Trade Facilitation
Agreement (TFA) of the World Trade Organization (WTO).
National Committee on Trade Facilitation
The Union Cabinet also has decided to constitute National Committee on Trade
Facilitation (NCTF) to facilitate both domestic coordination and implementation of the
provisions of the Agreement. NCTF will be set up under the Joint Chair of Secretary under the
aegis of Union Ministry of Commerce and Industry’s Department of Revenue and Secretary,
Department of Commerce.