WTO: political stability key to economic growth

Wold Trade Organization (WTO) Director-General Roberto Azevêdo said Tuesday (Mar. 29), after meeting with Brazilian President Dilma Rousseff, that political stability is important for the recovery of growth in the country. He took part in the ceremony in which the head of state signed the ratification letter for the WTO Facilitation Trade Agrement.

Brazil's signature brings the number of nations that have ratified the deal to 72. In order for the agreement to come into effect, however, two thirds of WTO's 162 members countries—108 countries—must also sign the agreement.

Azevêdo commended Brazil's signature, and said that the deal is of utmost importance, not just for trade, but also for the global economy. “[The new arrangement] will bring about in Brazil a major cut in foreign trade costs, for both imports and exports. The goal is to reduce the costs and the time a product stays on the border—a dead period that burdens commercial transactions,” he argued.

Azevêdo went on to maintain that the Trade Facilitation Agreement is expected to reduce the cost of commercial transactions by 14.5% in the world average. “In global terms, we estimate that the deal expands global commerce by $1 trillion, most of which will be directed towards developing countries, whose exports should increase some $730 billion,” he said.

When asked whether the impeachment proceedings against Rousseff would cause an impact on the Brazilian economy, Azevêdo said, “of course political stability is a key component for economic growth. The sooner Brazil finds a way out of the turbulence, the better for the economy and the country overall.”

Translated by Fabrício Ferreira

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