Development and building trade capacity

The multilateral trading system overseen by the WTO has contributed significantly to the unprecedented economic development that has taken place over the last decades across the world. Trade has allowed many developing countries to benefit from the opportunities created by emerging new markets by enabling them to integrate into the world market through global value chains. Moreover, the unbiased, predictable and non-discriminatory regime maintained by the multilateral trading system places all economies – developing and developed, small and large – on an equal footing.

This section discusses a number of the WTO’s features which help underpin development and explain their economic rationale. It is divided into four subsections. The first one illustrates how the WTO has been useful in helping developing countries take advantage of and manage the challenges arising from the four trends portrayed in the previous sections. The second subsection discusses, from an economic perspective, the role that commitments and flexibilities in trade agreements play for development. Economic literature supports the view that WTO rules and disciplines promote growth by providing the predictable environment that businesses require to flourish. At the same time, it justifies the existence of WTO flexibilities, including through special and differential (S&D) treatment, on the basis of market failures and the different ability of WTO members to implement obligations. The third subsection describes the specific rules and disciplines that specifically apply to developing countries. The final subsection illustrates the institutional features particularly relevant for developing country members.

El comercio electrónico está creciendo rápidamente en la Argentina y el Brasil, y en ambos países la proporción de la población que participa en transacciones de comercio electrónico supera el promedio latinoamericano. Los dos países han establecido un marco jurídico para la protección de datos, la reglamentación de Internet, la protección de los consumidores, la fiscalidad del comercio electrónico y los contratos y las firmas electrónicas. La Argentina y el Brasil también han presentado propuestas de negociación sobre el trato de las transacciones de comercio electrónico en los Acuerdos de la OMC y han incluido disposiciones sobre el comercio electrónico en sus acuerdos de libre comercio (ALC). Sin embargo, las diferencias en la reglamentación interna del comercio electrónico y en las posiciones mantenidas en las negociaciones internacionales indican la existencia de enfoques normativos dispares que aumentarán la incertidumbre jurídica y, por lo tanto, limitarán la inversión en el sector y su expansión. Una excepción es la reglamentación sobre protección de datos, en la que ambos países se basan en los principios establecidos en el Reglamento General de Protección de Datos (RGPD) de la Unión Europea. La mejor manera que tendrían los dos países de entablar nuevas negociaciones sobre la convergencia normativa en el ámbito del comercio electrónico sería a través del Mercado Común del Sur (MERCOSUR).

Depuis sa création, le système commercial international a été modelé conformément à des principes conjugués au pragmatisme. Les relations commerciales ne peuvent pas être déterminées seulement sur la base de principes simples et inviolés définis et convenus d’entrée de jeu. Des considérations pratiques, des questions politiques et les expressions particulières de l’intérêt national contribuent inévitablement à déterminer les positions prises par les gouvernements. Certains commentateurs font allusion à cette réalité lorsqu’ils évoquent, à propos d’une mesure ou d’une approche adoptée par des pouvoirs publics, «de la mauvaise économie mais de la bonne politique». Cependant, la solidité et le succès historique du système commercial multilatéral reposent, en grande partie, sur la volonté des gouvernements de s’engager a priori en faveur d’un ensemble de principes et de règles étayés par des arrangements contraignants concernant le règlement des différends commerciaux.

La section C a montré comment des facteurs économiques fondamentaux – démographie, investissement, technologie, ressources naturelles, transports et institutions – peuvent agir sur l’évolution du commerce. Celui-ci s’insère toutefois dans un contexte socioéconomique plus large, qui entre en ligne de compte pour le commerce et les politiques commerciales. Historiquement, les problèmes sociaux et macroéconomiques ont influencé à maintes reprises les décisions en matière de politique commerciale. La section B du présent rapport en a donné des exemples. Ces deux thématiques figurent actuellement parmi les grandes priorités politiques et il ne fait aucun doute qu’elles influeront à l’avenir sur les vues et les positions des décideurs politiques dans le domaine de la réforme du commerce. Il existe un troisième facteur, à savoir les préoccupations relatives à l’environnement, qui ont rapidement gagné en importance dans le débat politique national, régional et mondial. Ce facteur a lui aussi été fréquemment lié au commerce, notamment au vu de plusieurs différends retentissants qui ont été portés à l’OMC, dans le contexte des accords commerciaux régionaux et en tant qu’élément de l’actuel Programme de Doha pour le développement.

This is a critical year in the world’s collaborative effort to end global poverty and boost the incomes of the poorest. We will endorse the Sustainable Development Goals, develop a plan for financing for development, and reach for a landmark agreement to mitigate and adapt to climate change. If we are to end extreme poverty by 2030, we must do all we can in this final push to raise the incomes of the extreme poor. The Role of Trade in Ending Poverty makes the case for how trade can contribute to this ambitious goal.

Tax rates on e-commerce in Russia should remain moderate, given the small size of its digital trade operations (so the rise in tax revenues from higher rates would be small) and substantial growth prospects (so future tax revenues from a developed sector could be quite large). The Russian Federation’s (Russia’s) taxation of e-commerce activities presents two important challenges. First, consumer goods purchased directly from foreign online sellers enjoy significant tax advantages compared to imports purchased in Russian retail outlets, undermining the profitability of Russian importers and reducing tax revenues. Second, the value-added tax (VAT) levied on foreign exporters of electronic services creates uncertainty because the legal definition of electronic services is unclear and impedes the operations of multinational companies in Russia because VAT is taxed on intra-firm imports of services. Russian authorities are establishing effective automated systems for collecting taxes and customs duties on cross-border e-commerce, calculating VAT compensation to exporters and accounting for receipts from online stores. These systems will help to prevent abuse of the tax system, as well as reduce the cost of compliance by firms.

Nigeria is the largest economy in Africa, with a GDP in excess of US$ 500 billion, dependent on oil and gas exports for the bulk of government revenues as well as foreign exchange. Its growth – which averaged about 7 per cent in the decade between 2005 and 2014 – has in recent years been driven by the non-oil sectors: services, agriculture and manufacturing. The principal challenge for the President Buhari administration, which took office in May 2015, is to build on this trend, by diversifying export income and the sources of government revenues, as well as kickstarting the long-overdue task of industrializing the Nigerian economy. One of the goals of this approach is to achieve robust, stable and predictable growth, free from short-to-medium-term cycles of boom and bust.

There are different ways to analyze the global economy. One is to view it through the lens of growth and structural change in individual economies, developed and developing. A second is to use the lens of global value chains (GVCs), the complex network structure of flows of goods, services, capital and technology across national borders. Both are useful and they are complementary to one another.

E-commerce is growing rapidly in Argentina and Brazil, and in both countries the share of the population participating in e-commerce transactions exceeds the Latin American average. Both countries have established a legal framework for data protection, regulation of the internet, consumer protection, taxation of e-commerce, and contracts and e-signatures. Argentina and Brazil also have submitted proposals for negotiations over the treatment of e-commerce transactions in WTO Agreements, and included e-commerce provisions in free trade agreements (FTAs). However, different approaches to internal regulation of e-commerce and differences in positions in international negotiations indicate diverging regulatory approaches that will increase legal uncertainty and thus constrain investments and market expansion in the sector. An exception is the regulation of data protection, where both countries are following principles laid out in the European Union’s General Data Protection Regulation (GDPR). Further negotiations between the two countries over regulatory convergence for e-commerce could best be undertaken through the Southern Common Market (MERCOSUR).

Indonesia has been regarded as one of the success stories of developing countries escaping the resource curse (Rosser, 2004; 2007). In many developing countries, instead of becoming a source of economic growth, abundant natural resources have been associated with stagnant growth, a condition known as the resource curse or the paradox of plenty. As argued by Sachs and Warner (1997), economies with abundant natural resources have tended to grow less rapidly than those with scarce natural resources. Similarly, the resource curse has been defined as “the phenomenon whereby a country with an export-driven natural resources sector, generating large revenues for government, leads paradoxically to economic stagnation and political instability” (ODI, 2006). This chapter will review the efforts undertaken by Indonesia to diminish its dependency on natural resources and to better connect to global value chains (GVCs).

This section describes the increased synchronization and spread of macroeconomic shocks in the last few years after what appeared to be a general moderation of volatility. It examines the role of global value chains in the transmission of macroeconomic shocks and looks at how export structures influence volatility. It describes how the economic crisis spread from developed to developing countries and how a coordinated response helped to limit the use of protectionist measures in the wake of the crisis. Despite suffering the greatest economic downturn since the 1930s, the world did not see a widespread resort to protectionism. Among other explanations for this was the existence of a set of multilateral trade rules.

Over the past decades, trade flows have become increasingly global. Today, South- South trade represents around one-half of global trade and the top ranks of major traders are not exclusively occupied by industrialized countries (OECD, 2010). Trade now spans all major world regions and continues to grow within and across those regions. Trade also takes new forms as trade in goods is increasingly accompanied by trade in tasks. Capital flows more freely across regions and trade and capital flows together have contributed to an increased transfer of technological change across regions. There is a strong sense that companies and countries well integrated in these global networks are part of a virtuous circle involving technological progress and growth. Not being connected, however, can represent a very serious bottleneck for future growth and economic development.

Un objetivo fundamental de la OMC es promover el desarrollo económico mediante una participación efectiva en el comercio mundial. En lo que respecta a la cuestión de cómo pueden los países en desarrollo derivar mayores beneficios de su participación en el sistema de comercio, tienen pertinencia tres aspectos de la estructura y las normas de la OMC. En primer lugar, las normas propiamente dichas, junto con las excepciones e interpretaciones permitidas, constituyen los cimientos del sistema y desempeñan una función clave en la determinación de las condiciones y oportunidades de comercio. En segundo lugar, se plantea la cuestión del alcance del sistema. No hay ningún tema que la OMC haya considerado y luego descartado, de modo que esto se refiere a la inclusión de nuevos asuntos. En tercer lugar, las medidas de protección aplicadas a las exportaciones de un país también contribuyen considerablemente a definir las condiciones y oportunidades de comercio. En síntesis, la índole de las normas de la OMC, el alcance de esas normas y las condiciones del acceso a los mercados son las tres cuestiones principales que determinan la calidad y utilidad de la OMC para sus Miembros. Por lo tanto, no debe sorprender que cada uno de estos tres elementos figure de manera destacada en el Programa de Doha para el Desarrollo.

More than two-thirds of world trade occurs through global value chains (GVCs), in which production crosses at least one border, and typically many borders, before final assembly. The phenomenal growth in GVC-related trade has translated into significant economic growth in many countries across the globe over the last two decades, fueled by reductions in transportation and communication costs and declining trade barriers. But, at the same time, it has contributed to distributional effects that mean that the benefits of trade have not always accrued to all, which has, at least in part, been a driver in the backlash against globalization and the rise of protectionism and threats to global and regional trade agreements. In addition, new technological developments such as robotics, big data, and the Internet of Things (IoT) are beginning to reshape and further transform GVCs. This second GVC development report takes stock of the recent evolution of GVC trade in light of these developments.

La présente étude s’intéresse à la situation actuelle du commerce électronique à Maurice, ainsi qu’aux défis et aux possibilités qu’il présente. En 2017, la part de la population qui réalisait des achats en ligne était de 14%, le deuxième taux le plus élevé en Afrique (derrière la Libye), ce qui découlait en grande partie de l’augmentation de l’utilisation et de la pénétration d’Internet, associée à l’utilisation accrue des cartes de crédit et au développement de systèmes de paiement en ligne sécurisés. En outre, dans l’Indice du commerce électronique B2C de la CNUCED (état de préparation électronique), Maurice était classé au premier rang des pays du continent africain. Une enquête menée auprès des consommateurs a révélé que le niveau de satisfaction concernant les achats en ligne était élevé en raison d’un choix plus vaste, de la possibilité de gagner du temps, de l’accessibilité et la relative facilité de recherche de produits en ligne. Les principales préoccupations comprenaient le fait de ne pas être à l’aise avec la divulgation de renseignements personnels et la possibilité limitée de contacter les vendeurs. Les personnes interrogées qui n’avaient jamais effectué d’achats en ligne ont évoqué des préoccupations liées à la navigation en ligne, à la sécurité des paiements et aux coûts élevés. Les vendeurs en ligne se sont montrés très optimistes quant à la croissance future du marché, mais ils étaient également préoccupés par la préférence locale pour des sites Web internationaux, par les limitations techniques du service Internet et par la petite taille du marché. Les entretiens avec des décideurs ont fait état d’un cadre juridique et réglementaire solide soutenant les paiements électroniques, mais ont décrit le besoin d’une coopération réglementaire plus forte avec d’autres pays en matière de commerce électronique et d’un travail plus important de collecte de statistiques. Pour ce faire, une assistance technique serait utile.

El crecimiento del comercio mundial se redujo al 2,0% en 2012 — frente al 5,2% registrado en 2011 —, y mantuvo un ritmo lento durante los primeros meses de 2013 a causa de la reducción de la demanda mundial de importaciones asociada a la desaceleración económica europea. La abrupta desaceleración del comercio en 2012 se ha atribuido principalmente al lento crecimiento de las economías desarrolladas y los repetidos episodios de incertidumbre acerca del futuro del euro. La escasa producción y el elevado desempleo en los países desarrollados redujo las importaciones y el ritmo de crecimiento de las exportaciones en las economías desarrolladas y en desarrollo. La evolución económica más favorable registrada en los Estados Unidos en los primeros meses de 2013 se vio contrarrestada por la persistente debilidad de la Unión Europea, donde las economías periféricas de la zona euro siguieron experimentando dificultades e incluso las principales economías de la zona se resintieron de la recesión en la región.

This section discusses the challenges and opportunities of commodity-based growth and development strategies in relatively high but volatile pricing environments. It first provides an overview of historical price developments in agriculture and natural resources. It then goes on to analyse how developing countries have been able to leverage agricultural and natural resource export potential in this high-price environment to underpin their development. The section highlights which policies have been useful, but also pinpoints remaining challenges in realizing this export potential. Finally, it also considers those challenges arising from heightened volatility, with a particular focus on food importers and natural resource exporters vulnerable to boom-bust cycles.

African trade is heavily concentrated in agricultural and natural resourcebased commodities, sectors that are highly embedded in international value chains. There has been significant trade dynamism in recent years, driven by greater participation by African firms and communities in value chains, especially in products like fresh produce and flowers. Much of this trade and production is for end markets in Europe, but there is also increasing trade of this type within Africa in some manufacturing sectors as well as within services such as tourism. Intra-regional trade remains well below potential, however, and the challenge to diversify trade and increase the value-added share of African trade continues to confront most African economies. There are improving prospects for this as a result of intra-African policy changes, ranging from a greater focus on trade facilitation to the ambition of creating a continental free trade area. A steep increase in supply chain trade in Africa is possible in coming decades if efforts continue to put in place a supporting policy environment. This must centre on substantially lowering trade costs for African firms by implementing trade facilitation measures, especially for intra-regional trade flows, and improving the productivity of transport, logistics and related services that determine the feasibility of efficiently operating regional value chains.

The WTO is central to achieving the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs), which set targets to be achieved by 2030 in areas such as poverty reduction, health, education and the environment. The SDGs put significant emphasis on the role that trade plays in promoting sustainable development and recognize the contribution that the WTO can make to the 2030 Agenda.

Les prévisions à long terme sont toujours difficiles. On n’aurait probablement pas pu prévoir avec certitude, il y a 20 ans, des phénomènes « révolutionnaires » comme l’explosion des systèmes de communication et de l’interactivité qui façonnent aujourd’hui notre vie quotidienne, des réseaux sociaux à l’externalisation internationale. L’on peut certes s’appuyer dans une large mesure sur des extrapolations des tendances actuelles, pour tenter de prédire l’avenir, mais cela peut aussi aider à faire l’inventaire des événements importants et à identifier les problèmes qui pourraient résulter des changements auxquels nous serons probablement confrontés.