World Trade Organization chief Roberto Azevedo said Tuesday that nearly two-thirds of traded goods have components made in at least two countries and that is why the WTO's Trade Facilitation Agreement (TFA) is so important.

The WTO director-general was speaking during the launch of a report by the OECD (Organisation for Economic Co-operation and Development) on Trade Facilitation Indicators to assess the implementation of the TFA.

Azevedo said many people know the potential the TFA has to cut trade costs and the new report takes a closer look at why this matters.

It highlights the difference this will make for MSMEs, (Micro, Small and Medium Enterprises).

These often face prohibitively high costs of trading, said the WTO head, noting that the report focuses on how inefficient border procedures multiply the costs when goods and components cross borders many times during their production.

"This is the economic reality today. Nearly two-thirds of traded goods have components that were made in at least two different countries," said Azevedo.

"Improving facilitation and lowering costs will help to remove obstacles to joining global value chains," he said.

The TFA entered into force on Feb. 23, 2017, after the number of ratifications for the agreement crossed the threshold of 110 of the WTO's members.

Groups such as the United Nations Conference on Trade and Development (UNCTAD) and the International Trade Center (ITC), have long advocated the advantages of the TFA, especially for developing countries.

Azevedo said the report introduces the OECD's new Trade Facilitation indicators which will support the monitoring and benchmarking of countries' engagement on trade facilitation.

"And, in this way, they will be of huge help to policymakers. They will allow them to assess the state of their trade facilitation reforms, highlight challenges and identify room for improvement," which he said will be of huge interest to governments, traders and other stakeholders.