By Judith Ugwumadu | 9 December 2013
A ‘historic’ deal to boost global trade was struck at the World Trade Organisation talks in Bali on Saturday after more than a decade of negotiations between rich and developing countries.
It is the WTO’s first global deal, involving ministers from all 159 member nations, since it was founded in 1995.
The deal will bring in new procedures designed to streamline trade and allow developing countries more options for providing food security. Wealthy countries have agreed to help poorer WTO members with implementation.
Roberto Azevêdo, WTO director general, said it had delivered for the first time in its history.
‘We have put the “World” back into the “World Trade Organisation”. I am very proud of that — particularly because this approach did not prevent us from making progress. In fact it served to strengthen the progress we made.
‘Our developed and least-developed members played their full role in these negotiations — helping to shape a package which strongly serves their interests.’
The idea behind the deal is to speed up customs procedures; reduce bureaucracy and corruption; and use technological advances on trade facilitation, agriculture and development. The package also has provisions on goods in transit, an issue of particular interest to landlocked countries seeking to trade through ports in neighbouring countries.
‘People all around the world will benefit from the package... delivered here... the businesses community; the unemployed and the underemployed; the poor; those who rely on food security schemes; developing country farmers; developing country cotton growers; and the least-developed economies as a whole,’ Azevêdo said.
Indonesian Trade Minister Gita Wirjawan, who chaired the conference, said: ‘We achieved what many said could not be done. [Indonesia’] President Susilo Bambang Yudhoyono told us… that the mystique of Bali would have a positive effect on our negotiations. This is the place where deals get done. I am delighted that Bali has not let us down.’
UK Prime Minister David Cameron said the agreement could be a ‘lifeline’ for the world’s poorest people, as well as benefiting British businesses by more than $1bn.
The WTO estimates benefits to the world economy of between $400bn and $1 trillion.
