“We did it!” Those were the words of Chairman Gita Wirjawan, Indonesia’s trade minister, after hours of negotiations to reach a final deal between 160 countries. On December 7, 2013, for the first time in nearly two decades, agreements have been reached on a global trade pact approved by the World Trade Organization (WTO). It’s the first global trade deal to be agreed upon since the WTO formed in 1995.
The deal, now dubbed the “Bali Package,” could cut the costs of trade by 10-15%. The WTO states, “The objectives are: to speed up customs procedures; make trade easier, faster and cheaper; provide clarity, efficiency and transparency; reduce bureaucracy and corruption, and use technological advances.”
Estimates conclude that the agreement could boost the global economy by as much as $1 trillion. According to CNN, the agreement will also allow developing countries to continue to stockpile food to sell at subsidized rates to the poor.
The agreement is expected to be adopted by July of 2014. Full details of the agreement can be found here.