This is a blog created specially for the readers of the book Indian Economy Key Concepts. This is mostly to provide Indian Economy related news that is published in various newspapers under one umbrella. My own write ups will be posted very rarely.
India has also pitched for a similar TFA on services
The Cabinet has approved a proposal for ratification of the Trade Facilitation Agreement (TFA) of World Trade Organization (WTO), aimed at easing customs rules for expediting global trade flow of goods.
To facilitate domestic coordination and implementation of the TFA, the Cabinet meeting -- chaired by Prime Minister Narendra Modi -- also cleared the proposal to set up a National Committee on Trade Facilitation (NCTF) to be jointly chaired by the commerce and revenue secretaries. These objectives are also in consonance with India’s “Ease of Doing Business” initiative, according to an an official statement.The WTO member-countries in November 2014 adopted a “protocol of amendment” to incorporate the TFA on goods in the overall WTO Agreement.
For the TFA to be operational, two-thirds (or 108) of the 162 WTO members will have to ratify it. However, only 69 countries have ratified it so far.
The TFA also contains measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.
Trade experts had said ratifying the agreement so early could lead to India losing a bargaining chip to secure its interests.
That includes finding a permanent solution to the issue of public stockholding for food security purposes and a mechanism to safeguard poor farmers from sudden import surge of farm products.
However, Commerce Minister Nirmala Sitharaman dismissed the criticism. She said India has been in favour of the facilitation agreement as it will benefit the country.