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Senegal and Uruguay ratify Trade Facilitation Agreement
Senegal deposited its instrument of ratification on 24 August, becoming the 11th least developed country (LDC) to do so.
Uruguay’s WTO Ambassador Gustavo Miguel Vanerio Balbela presented his country’s instrument of ratification to WTO Director-General Roberto Azevêdo on 30 August.
The TFA will enter into force once two-thirds of Members have domestically ratified a Protocol of Amendment and notified the WTO of their acceptance of this Protocol. With the acceptance by Senegal and Uruguay, the number of TFA ratifications now stands at 92.
The TFA has a huge potential to reduce trade costs thereby boosting trade between countries and raising world income. OECD studies find that the implementation of the TFA could reduce worldwide trade costs between 12.5% and 17.5%. Developing country exports are expected to grow between 14% and 22% while becoming more diversified. Companies are more likely to become more profitable which should encourage domestic investment. In addition, foreign direct investment is likely to be attracted to countries that fully implement the TFA. Finally, increased trade means better employment prospects for workers and greater revenue collection by the government.