Deputy Director-General (DDG) of the World Trade Organization (WTO), Yonov Frederick Agah stated that the current crisis presents an opportunity to reform, renew and strengthen the trading system so that it can better contribute to a strong and inclusive recovery.
According to DDG Agah, a recovery from the current downturn will need trade more than ever. He pointed out that closing markets to trade would provoke new supply shocks, and pass up on the productivity gains that come with increased competition and specialization.
DDG Agah stated this whilst speakingto the Asia Pacific Economic Cooperation (APEC) trade ministers’ meeting on 16th November 2020.
Deputy Director-General Yonov Frederick Agah emphasized the importance of trade in helping the world economy recover from the COVID-19 pandemic, and called on them to renew their engagement at the WTO.
“…even before the pandemic, trade was slowing down, and global trade policymaking was faltering.
“The current crisis presents an opportunity to reform, renew and strengthen the trading system so that it can better contribute to a strong and inclusive recovery
“The months between now and our Twelfth Ministerial Conference next year will demonstrate whether we are seizing this opportunity – or whether we are falling short,” he said.
DDG Agah noted stated that the APEC has always played an important role in fostering economic cooperation across the Pacific Rim. And it has always recognized the role of trade as a major contributor to the region’s growth and development.
“APEC’s emphasis on trade cooperation could not be more important today, as we seek to cope with the health, economic, and social crises provoked by the COVID-19 pandemic”.
The pandemic has caused unprecedented disruption to the global economy and world trade. Global economic output is set to shrink by 4.4% in 2020 – the worst drop since 1945. And while the outlook for trade has improved over the past few months, our economists estimate that the volume of global merchandise trade will still shrink by 9% – the same as in 2009 at the depths of the financial crisis. As of the second quarter, the global services trade was down 30% year-on-year.
He further stated that the WTO continues to monitor pandemic-related trade policies, allowing governments and other actors to make informed decisions. In parallel, members have intensified negotiations work in many areas.
“In the multilateral negotiations, the first order of business is to agree on addressing harmful fisheries subsidies by the year-end target date”.
According to DDG Agah, members have accelerated their discussions based on a single consolidated draft, with a revised text circulated earlier this month. But much remains to be done. Members will need to be pragmatic and focused, with greater engagement and compromise at the political level.
Other ongoing multilateral issues include agriculture and development. Although some members see an outcome on trade-distorting agricultural support as a key priority for MC12, others consider transparency to be more achievable.
In e-commerce, members are working to achieve a consolidated text by the end of the year. Participants in the investment facilitation talks are negotiating based on an informal consolidated text. A group of members is also making steady progress in the domestic regulation of services.
Members participating in the joint initiative on MSMEs have endorsed a package of six recommendations and declarations to help MSMEs participate in international trade.
“Most APEC members are actively engaged in some way in these initiatives. And the energy and momentum we are seeing in this work is very positive.
“Political will, cooperation, and pragmatism will be more important than ever to deliver results at this critical moment for the multilateral trading system”.
