On 26 October 2015 the World Trade Organization (WTO) published its World Trade Report for 2015. This report looks at the benefits of full implementation of the Trade Facilitation Agreement. The report finds that developing countries will significantly benefit from full implementation of the agreement and these countries will receive more than half the gains from the agreement.

The Trade Facilitation Agreement was concluded by WTO members at Bali in December 2013. The agreement includes measures to speed up the clearance of imports through customs, streamline procedures and keep compliance costs down. Currently world trade is hindered by outdated customs procedures and lack of coordination in processes which slows down the movement of goods and increases costs. Standardization of customs processes would eliminate many of the bottlenecks and delays. If fully implemented the Trade Facilitation Agreement would integrate developing and least developed countries into the global system of production and bring them benefits in terms of investment and economic diversification.

The agreement permits each developing or least developed country to decide when it implements the relevant provisions and to determine the amount of capacity building support required. The agreement ensures that practical support will be provided to implement its provisions through the Trade Facilitation Agreement Facility established in 2014.

The total package of measures on trade facilitation is expected to boost global merchandise exports by up to USD 1 trillion each year by reducing costs, increasing trade flows and increasing the efficiency of revenue collection. The World Trade Report 2015 concludes that the benefits from trade facilitation will be greatest if the agreement is implemented fully and at a fast pace. The agreement could help developing countries diversify their exports; increase their participation in global value chains; attract more direct foreign investment; increase government revenue and decrease corruption.

Full implementation of the agreement will expand the involvement of small and medium enterprises (SMEs) in international trade by reducing their administrative burden. Goods exported by SMEs are more sensitive to delays at the border than exports by larger firms. By reducing delays at the border the agreement will open the way for SMEs to become more integrated into international trade.

Implementation of the Trade Facilitation Agreement can increase the amounts collected through customs duties and other taxes at the border. Simplification of trade procedures and reduction of the time taken for goods to cross borders can therefore increase the amount of goods passing through customs and increase revenue collected from customs duties and other taxes at the borders.

Monitoring of the agreement after it comes into force should include evaluating implementation costs and economic impact. Access to extensive data and improved analytical tools will be required to evaluate the continuous economic impact of the agreement. This can be done with the help of the WTO and other international and organizations and regional development banks.