By streamlining and harmonizing customs procedures, members of the World Trade Organization (WTO) are expected to save over $1 trillion yearly under the Bali Agreement reached on Thursday. Also called the Trade Facilitation Agreement (TFA), the deal is expected to create 21 million jobs resulting from cuts in transaction costs and easing of customs rules.

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The deal, crafted in the Indonesian paradise-island, would modernize global trade infrastructure and rules. It was stalled by an unrelated problem regarding India's food-stockpiling program, but after India and the U.S. agreed with the Indian proposal, it paved the way for the more encompassing WTO deal.

The deadline to ratify the Bali Agreement actually lapsed in July because India initially sought a parallel deal that would permit developing nations more leeway to subsidize and store food. Those opposed to stockpiling pointed to the practice encouraging overproduction since the buyer purchases the food at market rates.

India hailed the approval of the agreement without any concession or compromise. It allows the Asian giant to continue providing minimum support price to farmers and assures there is a mechanism for developing countries to go on with their public stockholding program without being challenged by other WTO member-nations, said Indian Commerce and Industry Minister Nirmala Sitharaman on Friday, reports Zee News.

WTO Director-General Roberto Azevedo said the process resulted in renewed commitment to the multilateral system. Azevedo said, quoted by Business Insider, "WTO is back on track. We have delivered today on a promised we made in Bali. Now let's make it count.

But he added that WTO members must speed up future negotiations because "We cannot wait another 17 or 18 years to deliver again."

Although the TFA is only a fraction of the Doha Round started in 2001, U.S. Trade Representative Michael Froman described the agreement as an important victory for small- and medium-sized businesses in all nations.

TagsWorld Trade Organization, bali agreement, trade mordernization, food stockpiling