India is aiming to build consensus in G20 on increasing participation of developing countries in global value chains and leveraging digital technology to integrate MSMEs in the global trading system, the first discussions for which will be held in the meeting of the Working Group on Trade and Investment in Mumbai, Commerce Secretary Sunil Barthwal said.
“Priority issues of diversification of global supply chains and integrating MSMEs in the global trading system will be discussed in the working group. The Indian presidency seeks to build consensus on leveraging digital technology to overcome the barriers of access to trade-related information, finance and markets to hasten the integration of MSMEs in global trade,” Barthwal said while addressing the media on March 24.
Micro, small and medium enterprises are central to inclusive growth and development. Despite their vital role in economic growth and in providing livelihood opportunities, MSMEs are under-represented in the arena of global trade.
The first meeting of the Working Group on Trade and Investment will be held in Mumbai between March 28 and 30. After a series of these meetings and developing consensus the ministerial meeting on trade and investment will be held in Jaipur in August, official sources said.
Trade and production networks have become increasingly organised around global value chains over the last two decades. Post-pandemic, the vulnerabilities in global value chains have been exposed, making it essential to prioritise building resilience.
“Under India’s G20 presidency, the working group will emphasise increasing the participation of developing countries in global value chains, making it work for inclusive development and building them to withstand future shocks,” Barthwal said.
The global uncertainties resulting from the Covid-19 pandemic and ongoing geopolitical conflicts have led to trade fragmentation and disruptions in supply and production networks.
“The G20 meeting will discuss accelerating global trade to mitigate poverty and income inequality and make growth more inclusive. It will address the worrisome increase in trade barriers across goods and services, and smoothening trade by focusing on trade facilitation are the prime concern. The focus will be on finding shared outcomes to build inclusive trade policies to usher in global prosperity,” he said.
The meeting will also discuss logistics, which is an integral part of trade and global supply chains. A robust logistics ecosystem with efficient infrastructure and services is a key driver in facilitating international trade.
“The Indian presidency calls for global cooperation towards streamlining trade logistics procedures, standardising regulatory frameworks, and promoting the digitalisation of international trade documents. Investments in resilient infrastructure especially in production, building and transportation and overall logistics is another significant facet,” the Commerce Secretary said
Along with these, a seminar on trade finance will also be held on the challenges and gaps and solutions for the global landscape.
“The role of banks, financial institutions, development finance institutions and export credit agencies will be the theme of the seminar on trade finance. It will focus on accelerating digitisation and fintech solutions for improving access to trade finance for MSMEs,” he said.
The working group on trade and investment will discuss the WTO multilateral arrangement to resolve disputes in trade at a later stage.
