The American Institute for International Steel (AIIS) released a letter Tuesday applauding the trade facilitation deal reached December 7 by the 159 member countries of the World Trade Organization at the WTO's just-concluded Ninth Ministerial Conference meeting in Bali, Indonesia.
Richard Chriss, AIIS Executive Director, called the WTO's action "historic, and highly significant for our companies who depend on their ability to compete effectively in the global marketplace."
Chriss said that the "Bali Package", as it is known, is projected to add up to $1 trillion to the global economy by increasing trade flows, streamlining customs procedures, cutting red tape, and accomplishing other trade-related reforms that will help make global commerce quicker, easier, and less costly.
"This is also the first trade deal in the 18-year history of the WTO, so this successfully concluded trade facilitation agreement gives the WTO a much needed boost," Chriss added, noting the positive outcome in Bali may serve as a template for future trade agreements related to improving customs procedures, and possibly other issues.
The Bali Package will become a legally binding agreement once it is ratified by two-thirds of the WTO's 159 member states. This may not happen for perhaps two years, since working documents must go through a thorough "legal scrub" to make sure they reflect the exact nature of the obligations agreed to. WTO member countries must also draw up a formal document called a "protocol of amendment" which the WTO's governing body, the General Council, must approve.
"We intend to work as hard as necessary with the administration, Congress, and other private sector groups to see that this agreement is ratified and enters into force as soon as possible," Chriss stated.