2 weeks ago the X2 Elite Network Blog presented news about the collapse of the WTO TFA that is commonly referred to as the Bali Package.

Michael Mulle, the Executive Director of the EAA said, “At Bali last year the WTO took a huge step forward in the effort to accelerate the flow of goods through the global supply chains and reduce transaction costs for businesses large and small.” He then continued, “To now have this significant agreement delayed due to the reservations of a small number of WTO members means the major gains in world trade, increased GDP and more jobs will not be realized.”

Analysts have placed the value of the Bali Package at levels of around $1 trillion in global benefits through the cutting of red tape.

The EAA was a signatory to a letter that was distributed to Trade Ministers of the G20 and it was also active in preparing the US Government for the changes that would be needed following a successful WTO TFA.

For a brief background on the events of two weeks ago, the two paragraphs that follow provide a sufficient summary of the action, or inaction, and the result.

India chose to not ratify the agreement because they preferred to have had another agreement set in place before the global customs deal. This agreement envisioned by the Indian government that would allow for developing states to subsidize and stockpile foods.

In response to the failed ratification, some individuals involved in global supply chain and are leaders of their sectors have claimed that the failure of the agreement to be ratified is more damaging to those WTO members who are developing states than those who are considered to already be developed.

Ultimately, it appears many of the world’s trade ministers, the big carriers, and smaller to medium size freight forwarders are all pushing the WTO to do something and reverse the course the Bali package has taken since its failure to be ratified. Some groups propose creating an agreement and leaving India out of it. Others expect to see regional agreements be made so they do not see the costs involved in adjusting to the Bali Package requirements as wasted funds, time, and effort. What will happen? No one is 100% sure of what course international trade will take in relation to this, but it is certainly likely to cause some waves in the weeks and months to come.