Once ratified, new trade deal easing cross-border flow of goods could reduce world hunger

As the World Trade Organisation nations approach today's deadline to ratify the Bali Trade Facilitation Agreement, dozens of trucks wait to cross the border from Kenya to Uganda. Hauling tomatoes along East Africa's northern border, these truckers have lost up to four hours in reduced speed because of poor road conditions. But when they approach the border, the delays get longer. It takes on average a full day for them to complete the paperwork required to cross from Kenya into Uganda.

The delay would cause financial losses with any freight, but it is especially troublesome with agricultural goods, where delays could leave much of a truckload unfit for sale.

In a world where 12.5 per cent of the population suffers chronic undernourishment, the fact that 30 per cent of food produced for human consumption is lost or wasted between farm and fork is difficult to comprehend. Along the agricultural supply chain, spoilage, spillage and other contributors to food loss remain a serious problem.

The Trade Facilitation Agreement, which was drawn up last December at the WTO's ministerial conference in Bali, sets the stage for faster and more efficient customs procedures that could encourage dramatic changes, not only in the reduction of world hunger but also in fostering environmental sustainability and economic development.

It is evident that this agreement poses a clear opportunity for governments to create enormous value for their countries' economies. The sooner it is ratified, the sooner economies and societies will enjoy the benefits.

Research conducted for the World Economic Forum by the World Bank and the management consulting firm Bain & Company found that reducing even a restricted set of supply chain barriers halfway to global best practice would yield a nearly 5 per cent increase in gross domestic product.