The figure could be verified because there will be a reduction of bureaucratic services, as well as the creation of facilities in the process of cross-border transactions between countries, acting in this way in a more coordinated and effective way.
Azevêdo made the announcement on Friday shortly after a meeting with Mozambican President Filipe Nyusi.
“Our expectation is that the WTO agreement on trade facilitation, if it is actually implemented by the countries, can reduce transaction costs by up to a global average of 14 percent,” he said adding that that this figure could mean that all applicable global customs tariffs have been eliminated.
The Director-General of the WTO assured Mozambican officials that facilitation of
international trade could be achieved without, however, having large financial expenditures.
“It is an area where we all win and without much cost” said Azavêdo, who also attended the just ended African Union Summit, last Sunday in Addis Ababa, Ethiopia’s capital.
On Mozambique, Azevêdo highlighted the progress that has been made, especially in political and economic stability, despite the limitations that have occurred in recent times, especially in relation to foreign direct investment.
The reform package adopted on means the WTO will introduce new standards for customs checks and border procedures.
Proponents say streamlining the flow of trade will add as much as $1 trillion and 21
million jobs to the world economy.
Mozambique ratified the AFC in 2017, becoming the 105th member of the WTO, to join and reducing to four the number of states still needed for the agreement to enter into force.
Launched in July 2014, the AFC should enter into force when two-thirds of WTO members accept it formally.
Essentially, the agreement aims to reduce the costs of doing international trade, which can fall from 12.5 percent to 17.5 percent.