The G20 Trade Ministers must now turn words into action on the reform of the World Trade Organization (WTO). They pledged to work towards this goal in the run-up to the 12th WTO Ministerial Conference (30 November to 3 December) in the declaration that followed their meeting in Sorrento, Italy, on Tuesday 12 October. This means strengthening the WTO as a rule-maker and reviving the dispute settlement system.
The 12th WTO Ministerial Conference is expected to see agreements on fisheries subsidies, agriculture, trade, and health. However, WTO members are not yet close to such agreements.
Trade and health
In their statement of 12 October, the G20 ministers took a stand against trade barriers induced by exceptional measures to combat Covid-19. In their view, these measures must be “targeted, proportionate, transparent, temporary”, and, above all, compatible with WTO rules. They also recommended a comprehensive and coordinated response to the Covid-19 crisis.
Services and investments
With trade in services recovering more slowly than trade in goods in 2021 (see EUROPE 12804/10), the ministers reiterated the urgency of supporting this sector. “Predictable, transparent, and robust” regulatory frameworks are essential, they say.
They point out that e-commerce can contribute to an increase in the volume of services and open up new opportunities for citizens and entrepreneurs. Investment opportunities should be facilitated, especially for developing countries.
Unfair competition
The G20 Trade Ministers stressed the need to fight unfair competition. In particular, “structural problems in some sectors, such as excess capacities, can cause a negative impact”.
Going further, “many G20 members” affirmed the need to strengthen international rules on industrial subsidies and a number of members raised the issue of agricultural subsidies, according to the statement.
Small and medium-sized enterprises
The Italian Presidency of the G20 has proposed a toolkit for micro, small and medium-sized enterprises. This non-binding instrument aims to provide assistance to companies as well as governments. The G20 joint statement only “takes note” of the Italian proposal.
It does, however, affirm its support for better access to information for SMEs and the importance of “ strengthening the capacity and strategic resources of micro, small and medium-sized enterprises”.
Trade and environment
The ministers only make statements of principle in the section on trade and environmental sustainability. They argue that “trade and environmental policies should be mutually supportive and contribute to optimal use of the world’s resources”.
More concretely, they hope for a meaningful agreement on fisheries subsidies at the 12th WTO Ministerial Conference. “If we want to avoid the social and economic costs of climate change, the first step is to agree on fisheries subsidies to ensure the sustainability of maritime resources”, said Italian Foreign Minister Luigi di Maio.
See the statement: https://bit.ly/3oVeg0d (Original version in French by Léa Marchal)