Trade ministers from the world's major economies have agreed to lower trade costs, enhance policy coordination, strengthen trade financing and promote e-commerce amid rising "protectionism."
"Global economic recovery remains sluggish, trade growth is lingering at a low level and investment flow has yet to recover to pre-crisis levels," Chinese Commerce Minister Gao Hucheng said yesterday.
"G20 countries should lead the way in tackling problems facing the world economy and reviving engines for global growth," he told a news conference at the conclusion of a two-day G20 trade ministers meeting in Shanghai.
Representatives from organizations such as the International Monetary Fund, Organization for Economic Cooperation and Development and the World Trade Organization also took part in the meeting.
The G20 nations, which account for 85 percent of global trade and 70 percent of global investment, approved a plan to spur trade growth and a set of non-binding principles to facilitate cross-border investment ahead of the September G20 summit in Hangzhou.
In an effort to cut trade costs, the ministers agreed to promote the implementation of the WTO Trade Facilitation Agreement, which has the potential to reduce global trade costs by up to 15 percent. They also pledged to provide developing countries with technical assistance to meet this objective.
They vowed to build more inclusive and coordinated global value chains and encourage greater participation by business in developing counties. The ministers also recognized the important role of e-commerce in boosting the participation of small and medium-sized enterprises in global trade and agreed to deepen discussions and cooperations in this regard.
"We agree that we need to do more to achieve our common objectives for global growth, stability, and shared prosperity," they said in a statement.
"Trade and investment should continue to be important engines of global economic growth and development, generating employment, encouraging innovation and contributing to welfare and inclusive growth," the statement said.
Growing protectionism since the financial crisis was among the global trade roadblocks, the meeting noted, and the number of new trade-restrictive measures imposed by G20 economies had reached the highest monthly average registered since the WTO began monitoring in 2009.
"We note with concern that despite the G20's repeated pledge, the stock of restrictive measure affecting trade in goods and services has continued to rise," the statement said.
They vowed to commit to their existing pledge for both standstill and rollback of protectionist measures, and to extend it until the end of 2018.
The ministers said they are considering setting up a cooperative platform for dialogue and information sharing on global capacity developments and on policies and support measures taken by governments.
