Economic research and trade policy analysis
Acknowledgements
This publication is the result of a joint effort of the IFC and the WTO and was prepared under the guidance of Susan Lund, Vice President of Economics at the IFC, and Ralph Ossa, Chief Economist of the WTO. Nathalie Louat and Denis Medvedev of the IFC and Marc Auboin of the WTO provided leadership for the research. Marcio Cruz, Maty Konte, Francesca de Nicola, Alexandros Ragoussis and Trang Thu Tran of the IFC and Eddy Bekkers and Alexei Timofti of the WTO managed the project teams across the two organizations. Working team members included: Karlygash Dairabayeva, Milagros Deza and Gianluca Santoni of the International Bank for Reconstruction and Development (IBRD); Stephanie Annijas, Gbenoukpo Robert Djidonou, Sarah Hebous, Ibrahim Nana, Alexander Vanezis and Ariane Volk of the IFC; and Kirti Jhunjhunwala, Saptarshi Majumdar and Ruoyi Song of the WTO.
Foreword
The Global Value Chain Development Report 2023: Resilient and Sustainable GVCs in Turbulent Times, the fourth in this biennial series, is released at a critical juncture in the evolution of Global Value Chains (GVCs). It first provides an update on trends in GVCs highlighting that international production networks remain a central part of globalization despite mounting pressures. The report then turns to its main theme which is informed by the fact that the intricate networks of international flows of goods, services, capital, and technology are currently facing exceptional challenges arising from geopolitical complexities and the impacts of climate change in the Post-COVID era.
Literature review on studies analysing the customs revenue implications of the WTO moratorium on customs duties on electronic transmissions
The first attempt to estimate the foregone customs revenue of the WTO moratorium on customs duties on electronic transmissions was undertaken by Schuknecht and Pérez-Esteve (1999). They used a list of goods that included cinematographic film, newspapers and videogames to provide upper bound estimates of possible tariff revenue losses, based on the assumption that all trade that could be digitized would be digitized. The analysis suggests that the potential foregone revenue effects would amount to less than 1 per cent of total tariff revenue across most economies. The paper also highlighted the strong potential for electronic transmissions to enhance services trade, underscoring that tariff revenue losses would need to be weighed against gains arising from growing trade in services (see also Mattoo and Schuknecht (2000) and Mattoo, Pérez-Esteve and Schuknecht (2001).
Executive summary
Trade has an important role to play in the global response to climate change, providing economies with tools to draw on in their efforts to mitigate climate change and to adapt to its consequences.
Executive summary
This report explores the opportunities and challenges for developing economies arising from digital trade and discusses the role of international cooperation in tackling these opportunities and challenges. The report considers policy actions in the areas of digital infrastructure, skills, international support for capacity development, and the regulatory and policy environment. Specific policy issues include the WTO e-commerce moratorium, regulation of cross-border data flows, competition policies and consumer protection.
Foreword
The expansion of trade depends on reliable, adequate and cost-effective sources of trade financing, which help to fill the time gap during which goods are produced, shipped and paid for. Trade finance is routinely supplied to exporters and importers by banks and other financial intermediaries, which mitigate the financial and payment risk involved in crossborder trade. While developed countries can often rely upon large and advanced economic sectors mobilizing sophisticated trade finance instruments, such as supply chain finance, significant shortages exist in developing countries. These shortages can have many reasons, both international (inflation, availability of correspondent banking relationships, country risk) and local (level of development and expertise of the financial sector, cost, access to finance by local firms).
Clarifying: Transparency in a pandemic
Alongside the scramble for critical goods such as personal protective equipment (PPE), the early stages of the pandemic saw an urgent need for accurate and credible information, a necessity for governments across the world confronted with an unprecedented global threat, not only to human health but also to economic and social well-being.
Conclusion: Looking back to look ahead
This overview of the WTO’s response to the pandemic is not intended to be exhaustive or authoritative and focuses exclusively on the critical period of the pandemic from 2020 to 2023.
Cooperating: From information and dialogue to action
Effective engagement with the multifaceted challenges of the pandemic required the WTO to undertake extensive cooperation, both with established international partners and with new partners, including the creation of new cooperative arrangements.
Convening: Sharing experience and reviewing policy responses
The convening power of a multilateral organization such as the WTO becomes even more valuable in a truly global crisis such as the COVID-19 pandemic.