G20 Foundation Publications Australia 2014 - Page 26

26 TRADE & FINANCE TRADE & FINANCE The role of the G20 in promoting trade is more important than ever Roberto Azevedo, Director-General, WTO The G20 first met in 1999, on the eve of the millennium. Its creation anticipated a great shift in the global economy – a shift in which trade would play a major role Since then we have seen strong evidence of how trade, as a critical component of economic growth and development, can make a positive difference in people’s lives. Rapid economic growth in many developing economies has been combined with deeper integration in the global trading system, helping to boost per capita incomes and set the stage for future growth. It is essential that trade, through the multilateral system, should continue to play this role. However, the period since the millennium has also seen an evolution in the challenges of development and the emergence of new trading patterns and practices. If trade, and the multilateral trading system, is to continue playing this positive role it is important to consider how the interplay between trade and development has changed – and how the system needs to respond. There are a number of trends which have altered the way that trade affects development outcomes. First: the accelerated economic growth in developing countries since the start of the millennium. Average rates of economic growth have tripled compared to the 1990s, although there is marked variation from country to country. The growth trajectory seems to be in line with long-term historical experience, including that of Japan and the newly-industrialized economies in East Asia, suggesting that once a catch-up process commences, rapid development is possible and has the potential to push incomes toward developed country levels. In each of these cases, rapid growth has been accompanied by increasing trade flows, which in many instances were preceded by the lowering of tariff barriers. This gives rise to a number of developmen [[\X\š[]X]H] ]\\\[H[Y\[YZ[ ܂[\KۘHܛY[X[\]K]]\[\]B[\Z[XKX[^\Y[B\ۈ][Hܛ[XY[\ݙ[Y[[[X[][Y[[X]ܜ]\[\ۛY[[]Y\܈H[ܙB\]Z]XH\X][ۈو[YH]]X]X[H˂XۙH^[[ۈوؘ[[YBZ[ˈؘ[[YHZ[\HH]œ[Y[ۋ]^H]H^[Y[Y\[YYۚYX[H[X[YX\ٙ\[ܙX]\ܝ[]Y\܂][[[Y\[Yܘ]H[Bؘ[Xۛ^H]\ˈ\]\HۘH\ܛYY[H[HXܞB܈[H\H[ܙX\[H]YY\]Y[Y\[[Y\ZBY[YHوZ\Y\[[[Y[Y\ˈ\[[Y\™^ܝHX\\[\Z[XYX\›܈X[YX\[\Z[\ۙ[š[XYوH[\H[[X ݙ\H\XYH][[[Y\š]H[ܙX\YZ\[[Y[[ؘ[[YHZ[[] T]Z[]HXYH[ܙH[\ܝ[ ]\X\ؘ[[YHZ[š\]]X]X[[[Z\][Y[[X[[HH\Y\›و[[\܈][[[Y\˂H[H[[[Yܘ]H[\HX[ۈZ[YY[XYBH]H\وX[]ؘ[H\]]]H][و]X[]H[YXY[K[XXH\\YX[]YH\HXH\X\]BYX[[ٝ[H[ؘ[[YHZ[]X[HX\ Y][Y[Y\Z[›YZ[ [H[]X[[Yܘ][ۈ[H\[و[YHZ[\X[BY\X]]H[\ݙ[Y[\]][ۈ\H]\HB[Y\\ٝ[[[K\ܘY[Y\[YKXYY\[[XB][[[Y\\\H[ܙB[Y]][HYX[[BXY]K[Y][ۋ[\][™܈H[\Y[]X[H[Y\œ\]Z\H[ܙ\\X\]K][[˜[Y\[\Z[]ۈ[HXBHHۈY[]ܞH[\˂\H\H[YܚX[\[[]\[\\HX\ݙ\H\XYK[Hܛ[[\ܝ[Hو[[]B^ܝˈ\Y\\YYۚYX[Z[ۈH][[[Y\]\H[H][ۈ^ܝ[[]Y\˂[YH\وH]\[[B[Y] H]Hوؘ[[X[8%[\XX[HHۙ[X[B[Y\[XۛZY\8%Y\]X\وYܚX[\[[]\[\\\[[XZ[؝\[Bܙ\YXXH]\K\YX[]HYܚX[\[X܋X[\\[ܙH[[وBX\ܘH[][[[Y\[۝[YH^HHܚ]X[H[Y[œ[H]وݙ\K\H[H[[YY[XZ[[؜X\YܚX[\[^ܝ\HYXY [Y[\[\Y\Y\[\ܝ]HXYY\ؘ[K\H[ܙX\[Hؘ[]\BوXXܛXۛZXˈ[HBܚ\\و  L HY][H[[X[X\]وH\ق][Y[Y\H[\X\B[ؘ[KH\YX[ۈ[YB[[\Y[^X\]YHB[[YܙY]H[X[[HZ[\وYH[[K[Y[Z]HXۛZXX\˜[Y\[][[XۛZY\˂]\HX]HYYB[]XZوX[ۚ\HۈB[H^\Y[Y[][\ܚ\\›YX[]HYۚYX[HܜH[[[\][ۘ[YH\]\Y YHYH\X[ۜ\H][XB\[Hܚ\\]Z]\][[›܈][Y[Y\\[X]X[BZ\YYH\Y\ˈH&\[\B\Y\[H[][ۚ]ܚ[قY[X\&HYHXY\^YYHܝXX[H[Y\[X[ۚ\\ۜ\[\۝ [[X][KHܙ[]Y\ۜHX[[XXܛXۛZXœ[][\]H[Z]Y[š[XHX[ۚ\YX\\\\˜ܚ]X[[[[H^HXܛ[[YYX\[H][Y[Z[]\HXYH[H\[YܙHHܚ\\] [ۜY\[H\[H[\ۙ\H[]\\Y[HYH[Hš]HY[۝X][XۛZX™][Y[\[\\[ ܙ[[ HݚY\HY[[\ۛY[]X\HY[Y[\ˈ]H[YB[YK][][[[Y\ZHY[YHو^X[]Y\[[\[Y[[Z\[Z]Y[ˈ\B\[ ]\\ܝYY\[Yܘ][ۂ[ؘ[[YHZ[[Y][[[Y\ZHY[YHق\[[[]HX\[[Y\\HY[ۈوX[ۚ\YX\\\™\[Hؘ[ܚ\\ˈH[\B]HY[\[\\[[\[BHX][[YXXKۋB\ܚ[Z[]ܞK[\X\Y][[]\[Y[\[H[HHX\\HXZHYHܚ[ܙHYX][H܂][Y[[H]\K]\[HYH][[™XۛZY\]HXYHYۚYX[ܙ\[X[YX\]X[YYHۙHHH\܂X[H܈XۛZY\ˈ[\[HB&\ܚ\][[ܙHܝXX[ [X[X\ LY[X\˜H\Y\وX\[ۜ[[H][[܈[Y\X[^HZ\^ܝ[X[[\Z[H][Y[[Y[[HܙX]Y[H\XYK\\[[\ܝ[[ ]ق\HHYY\H[\[Y[H\[[ۘYH\YX][[X]\YܙH\ˈ[YY H[HوH[\[H[][ۜ\]Y[YH[][Y[[BHZ[[][H[\[\H[\ܝ[Bو\\\][H&\[\\\[\[^X[]Y\ˈ][B\[X[]HYH\H[\B][[Y\\HXH\X\]B[H[Hؘ[Xۛ^H[HYX\˜YK[][H[ݙ\Hܛ\HXHY[H[Y]وYH[[\ݚ[Z\]\[HXقZ\[Z[Y\[[][]Y\˂[\۝^HHوȞ[[[YH[[[[H][[]\[Y[\[H\[ܙB[ \ܝ[[]\8