The World Trade Organization agreed on its first ever trade reform deal on Saturday, December 7, to the delight of the ministers who attended the meeting held in Bali, Indonesia. According to a Reuters report, the 159 ministers gave their roar of approval when an agreement, which has the potential to add about USD 1 trillion to the worldwide economy, was finalized.
The talks nearly came undone when Cuba suddenly said it would not agree on a deal that would not help open the embargo that the US has placed on the country. This prompted negotiations to continue until Saturday until Cuba and the US agreed on a compromise, Reuters reported.
WTO Chief Roberto Azevedo told ministers after the deal was agreed on, "For the first time in our history, the WTO has truly delivered. This time the entire membership came together. We have put the 'world' back in World Trade Organization. We're back in business...Bali is just the beginning."
Reuters reported that the accord was a milestone for the WTO as it was the first global agreement that member nations had reached since the organization was created in 1995. The agreement seeks to lower trade barriers and enable goods to pass through customs more speedily. The report also said that the deal would give better terms of trade to poor countries. For developing who are trying to feed the poor, the deal enables them to "skirt the normal rules on farm subsidies," the report said.
Citing analysts' estimates, the report said the accord could bolster the global economy over time to the tune of hundreds of billions of dollars. It could also facilitate the creation of over 20 million jobs primarily in developing countries. However, the agreement in Bali will still need the approval of each member government.
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