Botswana Becomes Eighth WTO Member To Approve Trade Facilitation Agreement

Botswana has ratified the World Trade Organization’s Trade Facilitation Agreement, making it the first nation on the African continent to do so.

The TFA instructs WTO members to improve their customs procedures and expedite the movement, release and clearance of goods, among other commitments.

Once fully implemented, the TFA could reduce global trade costs between 12.5 percent and 17.5 percent, according to the Organization for Economic Cooperation and Development (OECD). Just a 1 percent drop in global trade costs could save as much as $40 billion dollars in trade costs, OECD officials said this month.

After two-thirds of the WTO’s 161 members submit their instruments of acceptance, the TFA will be ratified and enter into force.

Australia, Hong Kong, Japan, Malaysia, Mauritius, Singapore and the U.S. already have ratified the agreement.