Trade as a Growth Driver Taskforce presented recommendations on the most challenging problems of the global trade agenda during the B20 Summit

The B20 Trade as a Growth Driver Taskforce presented a set of practical, results-oriented recommendations for the forthcoming G20 Summit in Septemebr 2013 and discussed them with with representatives of the global business community, Pascal Lamy, Secretary General of WTO and Angel Gurria, Secretary General of OECD during the B20 Summit in Saint-Petersburg.

Taskforce co-chairman Alexei Mordashov stressed that under given renewed economic pressures when the capacity for fiscal and monetary stimulus is becoming increasingly exhausted all over the world, the trade-related supply-side measures which are in most cases budget-neutral or almost budget neutral should be the most sought-after policy response on the global level.

B20 Trade Taskforce recommendations are built around finalizing the elements of Doha agenda that enjoy most universal consensus and have the highest potential to boost growth and jobs, such as the Trade Facilitation Agreement.

Taskforce co-chairman Harold McGraw III stressed that in today’s world of interconnected global supply chains, where goods cross multiple borders, reducing the physical, administrative, and other informal barriers to the movement of goods will provide a great stimulus to international trade, boost economic growth, and create new jobs. Thus far, B20 Trade Taskforce recommends that the G20 governments should commit to the WTO Trade Facilitation Agreement and make sure that it is signed at the forthcoming Bali WTO Ministerial in December.

Taskforce co-chairman Yu Ping presented key recommendations on stepping up G20 efforts in fighting protectionism. Four years after the outbreak of the global economic and financial crisis, the message the B20 Trade Taskforce would like to present to the G20 leadership is clear: The argument of the crisis cannot be used any longer to reintroduce trade restrictions—the negative effects of the accumulation of protectionist measures must be emphasized. Thus far, the G20 should extend the deadline for standstill and monitoring protectionism after 2014, further strengthening the monitoring system and ensuring full respect for existing multilateral trade commitments.

On behalf of B20 Trade Taskforce co-chairwoman Emma Marcegaglia noticed that looking at the mid-term policy agenda B20 Trade Taskforce recommendations are focused on new ways to strengthen the compatibility of PTAs with the WTO rules and multilateral goals and increasing transparency in their design.

Pascal Lamy supported the B20 Trade Taskforce recommendations and in particular its practical edge. He also stressed that the proposed steps in trade facilitation area are the low -hanging fruits of the global trade agenda and present a clear example of win-win policies. Their execution will depend on political leadership and will which should be demonstrated by G20 leaders. Their huge potential economic gains are incomparable with costs required to undertake these decisions. As global supply chains expand, the pot of value that will be created with signing of Trade Facilitation Agreement also expands.