The Trade Facilitation Agreement will help lower transaction cost significantly and provide higher market access, the industry said today after decks were cleared for passage of the pact at WTO after the US agreed to support India's proposal on public stockpiling of food.
Exporters' body FIEO President M Rafeeque Ahmed said the TFA will definitely help in realising higher market access and reduce the transaction cost by 3 per cent, leading to savings of close to USD 20-25 billion.
"Implementation of the TFA will help exporters, especially engineering exporters who have large consignments which face hurdles at several international ports and customs. The TFA will bring in uniform standards at customs and port clearance and help us achieve fast turnaround time," engineering exporters' body EEPC Chairman Anupam Shah said.
India today achieved a major victory with the US agreeing to its proposal on food security issues at WTO, a development that will pave the way for a breakthrough to end the three-month long stalemate.
As per the agreement, the US will support India's proposal at WTO that 'peace clause', crucial for uninterrupted implementation of India's food security programme, should continue indefinitely till a permanent solution is found.
"The agreement between the two countries is an important step towards restoring the lost momentum. It would enable to restoration of confidence in the WTO negotiations going forward," PHD Chamber President Sharad Jaipuria said.
"With uniform standards at customs and port clearance, India will gain immensely on Ease of Doing Business Index. But the government needs to invest in modernising trade facilities while the red tape has to go. India has over USD 800 billion of merchandise trade and the TFA would help it a great deal," Assocham President Rana Kapoor said.
