Business
WTO Receives New Ratifications For Trade Pact
The World Trade Organization (WTO) said a major milestone for the global trading system had been reached as it received four more ratification for the Trade Facilitation Agreement (TFA) on February 22.
On its website, WTO said it had obtained the two-thirds acceptance of the agreement from its 164 members needed to bring the TFA into force.
It stated that Rwanda, Oman, Chad and Jordan submitted their instruments of acceptance to WTO Director-General, Roberto Azevêdo, bringing the total number of ratification over the required threshold of 110.
“The agreement seeks to expedite the movement, release and clearance of goods across borders.
“It also launches a new phase for trade facilitation reforms all over the world and creates a significant boost for commerce and the multilateral trading system as a whole.’’
According to a 2015 study, carried out by WTO economists, full implementation of the TFA is forecast to slash members’ trade costs by an average of 14.3 per cent.
“The TFA is likely to reduce the time needed to import goods by over a day and a half and to export goods by almost two days.
“So this will represent a reduction of 47 per cent and 91 per cent respectively over the current average,’’ it stated.
It stated that implementing the TFA was also expected to help new firms export for the first time.
Thev study also added that once the TFA was fully implemented, developing countries were predicted to increase the number of new products exported by as much as 20 per cent.
Least developed countries would see an increase of up to 35 per cent, according to the WTO study.
It stated that Azevêdo welcomed the TFA’s entry into force, noting that the agreement represented a landmark for trade reform.
“This is fantastic news for at least two reasons. First, it shows members’ commitment to the multilateral trading system and that they are following through on the promises made in Bali.
“Second, it means we can now start implementing the Agreement, helping to cut trade costs around the world.
“It also means we can kick start technical assistance work to help poorer countries with implementation.
“This would boost global trade by up to 1 trillion dollars each year, with the biggest gains being felt in the poorest countries.
“The impact will be bigger than the elimination of all existing tariffs around the world.
“But this is not the end of the road. The real work is just beginning. This is the biggest reform of global trade in a generation.
“It can make a big difference for growth and development around the world. Now, working together, we have the responsibility to implement the agreement to make those benefits a reality,’’ it quoted Azevêdo.
Nigeria ratified the TFA on Jan. 20, when it deposited the instrument of acceptance with Azevedo in Davos, on the sidelines of the World Economic Forum (WEF).
Mr Okechukwu Enelamah, Minister of Industry, Trade and Investment, said it was a major milestone in the multilateral trading system and “ties into our Ease of Doing Business agenda”.
Enelamah said Nigeria would like to see a WTO that was more supportive of domestic policy reforms in developing countries.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.