Boost for trade as global deal struck

LONDON (CNNMoney)

 

The first major global trade deal in nearly 20 years was struck Saturday as 160 countries agreed on measures that could boost the world economy by as much as $1 trillion.

The deal was struck at a summit on the Indonesian island of Bali. At the heart of the 'Bali Package' is an agreement to simplify customs procedures and speed up the flow of goods. It's the most significant multilateral trade pact since the World Trade Organization was formed in 1995. 

The package could cut the costs of trade by 10-15%, according to the OECD, by slashing paperwork and easing border delays and transit bottlenecks. 

Developing nations could save as much as $445 billion a year, and over time the deal could generate bigger benefits for the global economy by increasing trade flows, revenue collection, and boosting investment. 

The Bali agreement also allows developing countries to continue to stockpile food to sell at subsidized rates to the poor.Read the rest here