Obama Happy With the New WTO AgreementAssociation of Business Training
December 11, 2013 — 856 views
President Obama is all praises for the new multinational trade agreement by the World Trade Organization. This agreement stands as the representation of multilateral trading system rejuvenation which supports the jobs of millions of Americans and also offers them a platform for America’s trade right enforcement.
Obama mentioned in his recent statement that he is pleased with this announcement of the first ever fully multilateral trade agreement from Bali (Indonesia) in the twenty year history of the organization. The agreement is said to benefit small businesses the most. The Trade Facilitation Agreement by the WTO agreed on reducing costs, speeding up the import and export movement of goods and cutting red tape.
Small Businesses to Benefit the Most
US Trade Representatives announced that this agreement will help in increasing effective collection of revenue as well as customs efficiently. It will also help small business in exploring new opportunities as there will be measures like transparent customs practices, reduced documentary requirement, and pre-processing of documents before the arrival of the goods.
Official statement by the White House announced that small businesses will definitely be one of the major winners as they are encountering some of the greatest difficulties in the present system. Global economic value of this new deal can be estimated to be worth hundreds of billions of dollars.
A recent Census data revealed that 98 percent of exporters in the nation are small to medium businesses which have less than 500 employees. Ray Keating, chief economist of Small Business & Entrepreneurship Council, feels that it is a good thing when such trade barriers are removed or at least lowered. According to him, red tape and other related complexities hit smaller firms much badly than the bigger, established firms. Also, big players have legal experts to deal with such problems but the smaller ones don’t have them nor do they have enough monetary resources to look into the matter.
Depends on How Countries Implement it…
However, some experts are still not sure if this new agreement will help overall in changing the situation for small businesses. Gary Hufbauer, senior member of Peterson Institute for International Economics, explained that the way this agreement will turn out--more or less depends on how faithfully the countries implement it. The language used in the agreement is not prescriptive, which means that countries have not been demanded to follow orders in a certain manner strictly. So now it will depend on the way these countries interpret the agreement.