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G20 Chair's Summary: Trade, Investment and Industry Ministers Meeting
Bali, September 22-23, 2022
[pdf, which includes the "Bali Compendium"]
We, the Trade and Investment Ministers of the G20, chaired by the Minister of Trade, Minister of Investment, and Minister of Industry of Indonesia, met on 22-23 September 2022 in Bali, Indonesia, under the G20 Indonesian Presidency. Noting the spirit of Recover Together, Recover Stronger, we recognise the importance of policy coherence between trade, investment and industry to support the implementation of the United Nations (UN) 2030 Agenda and the achievement of the Sustainable Development Goals (SDGs), as a strong foundation for a resilient, strong, sustainable and inclusive global economic recovery.
We underscore that more resilient, sustainable and inclusive growth can be achieved by ensuring that all people benefit from more sustainable trade and investment, including but not limited to industry, agriculture, services and other sectors. In this context, we support promoting a coordinated and inclusive global effort to contribute to addressing global challenges.
Ministers have stated their continued support to the G20 Indonesia Presidency and its actions to achieve the deliverables. While consensus has been reached in substantive issues, varying views have been stated with regards to the geopolitical tensions, as follows
Members agreed that global economic recovery has slowed and is facing major setbacks as a result of the COVID-19 pandemic, supply-demand mismatches, supply chain disruptions, increased food and energy prices and other crises in many parts of the world especially in vulnerable and least developed countries, and as an adverse impact of the geopolitical security tension in Ukraine. Many members expressed condemnations of Russia's war against Ukraine. Meanwhile, a few members expressed that the Trade, Investment, and Industry Working Group (TIIWG) is not the proper forum to discuss geopolitical issues. Members called for immediate actions to end the war and restore peace and stability
The Ministers agreed on the following points:
Recalling our commitment to realize a free, fair, inclusive, non-discriminatory, transparent, predictable and stable trade and investment environment, we support the following 6 (six) priority agendas to maintain and accelerate global economic recovery and to promote the achievement of SDGs.
We reaffirm that the rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable and transparent multilateral trading system, with the WTO at its core, is indispensable to advancing our shared objectives of inclusive growth, innovation, job creation and sustainable development. We agree that reforming the WTO is key to strengthening trust in the multilateral trading system. We will continue to work to strengthen foundational principles of the WTO, to ensure a level playing field to foster an enabling business environment and to support the integrity and sustainability of the rules-based multilateral trading system, as affirmed in Sorrento, Riyadh and Tsukuba.
We commend the successful conclusion of the WTO MC12. Building on the outcome documents from MC12, as well as the G20 Leaders' declarations in Buenos Aires, Osaka, Riyadh, and Rome, we commit to seize and advance the positive momentum by engaging in active, constructive, pragmatic, and focused discussion on WTO reform with other WTO Members on the path leading to the 13th WTO Ministerial Conference.
We recognise that reviving global trade and strengthening the Multilateral Trading System with the WTO at its core is crucial to ensuring a sustainable recovery from the COVID-19 pandemic, building a more resilient and inclusive global economy. We note the importance of the contribution of the multilateral trading system to promote the UN 2030 Agenda and its Sustainable Development Goals in its economic, social, and environmental dimensions, in so far as they relate to WTO mandates and in a manner consistent with the respective needs and concerns of Members at different levels of economic development. To this end, we welcome the adoption of outcomes at MC12 that contribute to the achievement of SDGs.
We are concerned about the erosion of hard-won gains due to the pandemic and other recent crises that threaten to roll-back progress in achieving SDGs particularly on poverty elimination, zero hunger, good health and wellbeing. Therefore, we welcome MC12 outcomes on food security as a contribution in ending hunger. We further welcome MC12 outcomes on WTO Response to the COVID-19 Pandemic and Preparedness for Future Pandemics.
We believe that trade can and should contribute to the promotion of all dimensions and pillars of sustainable development, including in the environmental area, while respecting concerns of members at different levels of economic development. Trade and environment policies should be mutually supportive, consistent with WTO and multilateral environmental agreements, and should allow for the optimal use of the world's resources as a contribution to accelerating progress towards the achievement of SDGs, including on affordable and clean energy, on industry, innovation and infrastructure, on sustainable consumption and climate actions, life below water, and life on land.
We support the role of the WTO Trade and Environment Committee as the standing forum dedicated to dialogue between governments on the relationship between trade measures and environmental measures. G20 participants in the Trade and Environmental Sustainability Structured Discussions and in Informal Dialogue on Plastic Pollution and Environmentally Sustainable Plastic Trade encourage and support the active participation of all WTO members in these processes.
We welcome the MC12 Ministerial Decision on the Agreement on Fisheries Subsidies as well as recognition by Ministers at MC12 of global environmental challenges, including climate change and related natural disasters, loss of biodiversity and pollution. We reaffirm the importance of providing appropriate, effective, and relevant support to developing country Members, especially LDCs, to achieve sustainable development, including through technological innovations. We also note that trade can create opportunities for women's participation and economic development in a manner which acknowledges women's different context, challenges, and capabilities in countries at different levels of development, and we further note the importance of gender equality to achieve sustainable socio-economic development.
We note the Indonesia's presidency "Non-Binding Guiding Principles to Support Multilateral Trading System for Achieving Sustainable Development Goals (SDGs)."
We recognise the importance of a strong and adaptable global health architecture and underscore the role of the multilateral trading system with the WTO at its core in supporting increased resilience for COVID-19 and future pandemics. We welcome the adoption at the WTO's 12th Ministerial Conference (MC12) of the Declaration on the WTO Response to the COVID-19 Pandemic and Preparedness for Future Pandemics and Ministerial Decision on the TRIPS Agreement. As we agreed at MC12, no later than six months from the date of the Ministerial Decision on the TRIPS Agreement, WTO Members will decide on its extension to cover the production and supply of COVID-19 diagnostics and therapeutics.
We recognise that trade can be a source of economic resilience and diversification along supply chains. We also underscore the importance for countries to move up the value chain in GVCs, In this context, GVCs have been an important means of increasing the participation of developing and least developed countries, and MSMEs in global trade, playing a pivotal role in facilitating access to knowledge, capital and diffusion of technology beyond the domestic economy. GVCs also significantly contribute to addressing challenges in reducing poverty and offering new sources and opportunities for jobs and growth.
Recalling the "G20 Policy Guidelines on Boosting MSMEs' International Competitiveness" and the "G20 non-binding MSMEs Policy Toolkit", we reiterate the critical role of MSMEs in our economies and recognise their challenges in accessing global markets. We highlight the importance of assistance programs to strengthen the capacity of inter alia MSMEs, women and young entrepreneurs to participate in international trade, regional and global value chains. In addition, we further acknowledge the importance of full implementation of WTO Trade Facilitation Agreement to enable the continuity of trade flows during a global economic crisis.
We further recognise the opportunities offered by digital transformation for resilient, sustainable and inclusive economic growth and the importance of supportive and collaborative digital trade policies and digital technology for managing the risk and challenges associated with the digital advancement, sustaining economic activity and speeding up economic recovery. We encourage approaches to digital trade that are inclusive and ensure no one is left behind. We note the many challenges to be addressed and welcome the discussions of G20 digital economy ministers. We also recall G20 Rome Leaders' Declaration last year.
We note the ministerial decision on the work programme on E-Commerce. G20 participants in JSI on E-Commerce encourage and support the active participation of all WTO members in the initiative and look forward to meaningful progress in the lead up to MC13. We note the concerns that have been expressed on rule-making by some G20 members that are not part of JSIs.
We underscore that sustainable investment is critical for strong economic recovery and creation of decent jobs. We are encouraged by the overall growth of SI. We will continue to strengthen our cooperation in spurring sustainable and inclusive investment that promotes among other goals, industrialization, employment, living standard, and income growth throughout the world in a fair and just manner. We recognize the importance of sustainable investments flows, to developing countries, especially to least developed countries.
We note that domestic/national key drivers to spur sustainable investment include: (1) Ensuring policy is coordinated and strategic to foster investment in support of sustainable development, (2) Improving open, transparent, non-discriminatory, inclusive predictable environment that foster sustainable investment (3) Ensuring transparency and predictability of investment measures (4) Simplifying and streamlining investment-related administrative procedures.
We reaffirm that in addition to environmental imperatives, sustainable, balanced and inclusive investment should prioritize other social and economic imperatives, keeping in mind the local and regional context. To that end, we note the need to promote value added by sustainable and inclusive investment in highly productive sectors such as but not limited to certain sub-sectors of downstream manufacturing and digital services, support developing countries to integrate with regional and global value chains to address poverty and hunger, undertake vocational education policies, boost domestic capability and foster linkage between foreign investors and local enterprises, particularly for MSMEs.
We recognise that adequate, affordable and accessible financing is a significant lever for sustainable investments. The international community needs a more conducive policy environment and fair cooperative approaches to mobilize transparent sources of financing for sustainable development. In this regard, like the G20 environment and climate ministerial meeting, we acknowledge that the generation and lawful availability of accurate risk data is crucial in order to support the sustainable development of fair, transparent and bankable projects that can mobilize private financing into developing countries, especially in Least Developed Countries (LDCs). Equitable and just market approaches could also contribute to easing the financing bottleneck for sustainable and inclusive investments while not replacing the need for scaled up public climate finance. We also welcome efforts of some G20 members that have adopted sustainable policies which could scale up sustainable and inclusive investment by private sectors.
We commend the sharing of good practices and initiatives by G20 member countries on the promotion of sustainable investment and we welcome "G20 Compendium on Promoting Investment for Sustainable Development (Bali Compendium)". The compendium can serve as a policy reference for devising and implementing strategies and programs for attracting sustainable investment, in accordance with respective international commitments and taking into account national sustainable development objectives and priorities. We appreciate the efforts of the Indonesia's presidency, along with the support of all members and our partner UNCTAD in devising the compendium.
Recalling the G20 Rome leader's declaration, we underscore the role of the Multilateral Trading System in restoring inter alia industrial productivity and agree on the importance of coherence between trade and investment with industrial policies to meet the current and future challenges. We also acknowledge the critical role of industrial policies and the private sector in general to ensure sustainable and inclusive economic recovery and development.
Recalling the G20 Trade and Investment Ministerial Statement 2018, we reaffirm that the adoption of digital technologies across all industries has wide ranging implications for the scope, scale, speed and pattern of production, trade and investment. We underscore that the adoption of technologies and innovation in production processes can play an important role in driving sustainable and digital transformations. In that sense, we recognise the importance of advancing cooperation on trade related industry aspects to support sustainable economic development in developing countries particularly in Least Developed Countries.
We agree to continue the discussion on the intersection between trade, investment and industry-related matters under the existing trade and investment working group. We note the initiative from the Indonesian Presidency to institutionalize discussion about industrial-related issues and deliberate on those issues in the future in the broader G20 process.
With a view to promote the policy coherence of trade, investment and industry that could effectively contribute to a resilient, inclusive and sustainable global economic recovery, we jointly recommend our Leaders to consider these important priorities at the Bali Summit.
We thank WTO, UNESCAP, OECD, World Bank, UNCTAD, UNIDO, IMF, WHO, ITC, IsDB and ERIA for their valuable contributions in our discussions and welcome further analysis to support the G20's work on trade, investment, together with trade-related industry matters moving forward.
We extend our gratitude to the Indonesian G20 Presidency for its determined efforts and leadership and will continue our cooperation towards India's G20 Presidency in 2023 and thereafter.
Trade has a significant role as an engine for economic growth, sustainable poverty reduction and development. Keeping markets open and resisting trade protectionism in all its forms is essential in this regard, as well as ensuring that trade's benefits are equitably spread among the population.
Members should ensure that agri-food trade flows and that it is sustainable, inclusive, equitable and resilient as this is crucial for tackling hunger. We reaffirm the importance of not imposing export prohibitions or restrictions in a manner inconsistent with relevant WTO provisions. We resolve to ensure that any emergency measures introduced to address food security concerns shall minimize trade distortions as far as possible; be temporary, targeted, and transparent; and be notified and implemented in accordance with WTO rules. In accordance with the WTO "Ministerial Decision on World Food Programme Food Purchases Exemption from Export Prohibitions or Restrictions", Members should not impose export prohibitions or restrictions on foodstuffs purchased for noncommercial humanitarian purposes by the World Food Programme.
Members can promote the diversification of vaccines and medicines production across both developed and developing economies. Members recognize the important role of an enabling investment environment for FDI involved in the creation of vaccine production capacities abroad in ensuring efficient organization of the production globally. Members underscore that the international intellectual property (IP) system forms part of the broader infrastructure for innovation in health technology. Members also acknowledge the need for regulatory flexibilities. In that sense recalling the Doha Ministerial Declaration on the TRIPS Agreement and Public Health of 2001 and the 2022 Ministerial Declaration Ministerial Declaration on the WTO Response to the COVID-19 Pandemic and Preparedness for Future Pandemics, we reaffirm that the TRIPS Agreement may be interpreted and implemented in a manner supportive of WTO Members' right to protect public health and, in particular, to promote access to medicines for all.
We encourage Members to design and implement gender-responsive trade policies that create opportunities for women to integrate in the workforce. Members may consider eliminating discriminatory legal barriers and enhancing trade finance access for women entrepreneurs to be able to participate in global trade and supply chains. To bridge the data gap, Member may initiate further sex disaggregated data collection and analysis to gauge women's participation in trade.
Members are encouraged to expand non-trade distorting efforts to build trade-related infrastructure in developing countries, with a focus on export diversification and value addition. Members may emphasize voluntary technology diffusion on mutually agreed terms as a factor in long-term economic growth.
Members may continue to explore means of addressing global inequality through trade, including by reducing trade costs and fully implementing the WTO's Trade Facilitation Agreement. Members recognizes the importance of increasing access to trade finance, and investment in developing economies. It is also necessary to address the digital divides, including the gender digital divide with the aim of making e-commerce a force for inclusion.
We encourage Members to design and implement proactive trade policies to scale up circular economy solutions globally. Open and transparent trade policies can also facilitate access at lowest cost to critically important circular economy solutions, from waste sorting machines and devices that break down hard-to-recycle materials to the critical inputs needed to produce biodegradable plastics. At the same time, appropriate action is needed to help ensure that trade in end-of-life products do not pose a threat to human health and the environment.
Trade may contribute to sustainability by improving access to environment-friendly goods, services and technology at lower costs and by allowing an efficient use of natural resources, such as land and water. Members could make efforts to ensure that measures adopted to achieve a sustainable, green economy are transparent, do not discriminate or restrict trade, and are in line with WTO rules. Trade like other economic activities can have direct environmental consequences, including pollution from international shipping and aviation. Efforts by the private sector to reduce such effects, such as decarbonization of the shipping industry may be encouraged by Governments. Members in the Trade and Environmental Sustainability Structured Discussions and in Informal Dialogue on Plastic Pollution and Environmentally Sustainable Plastic Trade encourage and support the active participation of all WTO members in these processes. International cooperation and initiatives such as Aid for Trade could also mobilize funding for green infrastructure and support the private sector in developing countries to adapt and mitigate to climate change.
Members should expeditiously accept the Protocol amending the WTO Agreement and implement the WTO Agreement on Fisheries Subsidies prohibiting subsidies to a vessel or operator engaged in illegal, unreported, and unregulated (IUU) fishing or fishing related activities in support of such fishing, subsidies for fishing or fishing related activities regarding overfished stocks and subsidies for fishing on the unregulated high seas high-seas fishing. Members are encouraged to support the Fisheries Funding Mechanism to assist with implementation of the WTO Fisheries Subsidies Agreement. We underscore the need to support global efforts to reduce plastics pollution and initiate the transition to a more circular and environmentally sustainable global plastics economy.
We recognize that trade has the potential to propel economic transformation toward environmental sustainability and safeguard efforts to protect and restore biodiversity. Therefore, Members are encouraged to design trade policies that can promote sustainable agricultural practices and circular economy models, green infrastructure projects, resource-smart food systems and land restoration, and more energy efficient technologies. We welcome the MC12 Declaration on Responding to Modern SPS Challenges and urge Members to support the work programme to explore how the implementation and application of the SPS Agreement can support life on land.
Members may encourage the use of the multilateral trading system as a pathway to development and sustainable peace by establishing creative and interdisciplinary approaches that mainstream trade and economic integration into the peace, security, and humanitarian fields, including the Women, Peace, and Security agenda. Our mutual prosperity depends on stronger multilateral cooperation, respect for the rules-based order, and adherence to international law.
[1] This Non-Binding Guiding Principle was prepared by the Indonesian Presidency of the G20, under the Presidency's own responsibility, drawing on various inputs from the member States of the G20. It is without prejudice to the positions of individual G20 members and the member States of the international organizations involved. ↩
NB: For the "G20 Compendium on Promoting Investment for Sustainable Development (Bali Compendium)", please download the PDF.
Source: Official website of Indonesia's G20 Presidency
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