The Trade Facilitation Agreement (TFA), a key multilateral trade agreement, is now in effect after reaching a threshold of 110 World Trade Organization (WTO) members needed for it to take effect.
The agreement clarifies import and export procedures and customs-related concerns in an effort to boost the global economy, according to a release from the European Commission. The TFA was originally agreed upon during a conference in 2013.
The agreement also improves transparency and makes it easier for small- and medium-sized companies to take part in global trade while reducing the potential for corruption.
"Better border procedures and faster, smoother trade flows will revitalize global trade to the benefit of citizens and businesses in all parts of the world," Trade Commissioner Cecilia Malmstrom said. "Small companies that have a hard time navigating daily bureaucracy and complicated rules will be major winners."
Trade Facilitation Agreement reaches threshold, goes into effect