TFA expected to boost global trade by $1trn as agreement comes into force

A global trade agreement introduced by the World Trade Organisation which comes into effect on Thursday is expected to boost the global economy by $1trn per year.

The Trade Facilitation Agreement will provide for a streamlining of global customs guidelines after previously being ratified by a group of 112 nations.

Director General of the WTO Roberto Azevedo said the reforms would be some of the biggest affecting global trade in a generation.

"It (the agreement) shows members' commitment to the multilateral trading system, and that they are following through on the promises made in Bali," Azevedo said.

"The agreement will bring a higher level of predictability and transparency to our customs procedures, making it easier for businesses, especially small enterprises," he added.

Azevedo claimed that the new measures equate to the same boost that the removal of all global trade tariffs would provide to trade around the world.

"The impact would be bigger than all the existing trade tariffs around the world. I urge all members who have not yet ratified to do so as soon as possible, so that they can also benefit."

The WTO is made up of 164 member nations, leaving 52 which have still not yet signed up to the deal.

Those in favour of free global trade have been on alert following a 2016 which saw a Brexit vote which is likely to see Britain leave the EU single market, as well as the rise to power of Donald Trump in the US with the promise of protectionist trade policies.