Brasil leads initiative to reconfigure international trade

TRADE AND INVESTMENTS

At the G20 headquarters in Brasília, the coordinators of the G20 Sherpa Track Trade and Investment Working Group, Tatiana Prazeres—Secretary of Foreign Trade at Brazil’s Ministry of Development, Industry, Commerce and Services (Ministério do Desenvolvimento, Indústria, Comércio e Serviços/MDIC)—and Ambassador Fernando Pimentel, Director of the Ministry of Foreign Affairs’ (Ministério de Relações Exteriores/MRE) Commercial Policy Department, took stock of the first meeting coordinated by Brazil. Proposals will focus on promoting sustainable trade, on female participation, and on aligning investment agreements. Brazil leads the way towards a fairer, more inclusive and environmentally responsible global economy.

During the meeting it was also observed that investment flows have suffered an impact, and been reduced amid uncertainty. In response, it is essential to explore innovative approaches, focusing on promoting investments that are aligned with UN 2030 Sustainable Development Goals (SDGs). Secretary Tatiana Prazeres explained that the group seeks pragmatic solutions to revitalize international trade and investment, thus contributing to the recovery of the global economy. “We need to create minimum parameters for International Trade,” she said. “The sustainable development agenda is here to stay.”

Multilateralism and sustainability

The Working Group’s priorities highlight the commitment to following the global trade and investment scenario closely, focusing on cooperation and multilateralism. The proposal is for G20 members to work towards a common understanding of key trade and sustainable development principles, establishing policy guidelines. Brazil suggests a joint effort to identify concepts and principles that serve as a basis for future discussions and policies, highlighting the importance of “avoiding unilateral measures disguised as green protectionism.”

The need to accelerate progress towards inclusive international trade through measures to promote greater female participation, was another of the meeting’s highlights. Women leading businesses have less access to foreign markets and less access to credit.

Member country representatives and guests watched a presentation by the International Trade Center (ITC)—the UN agency for trade—and the Organization for Economic Cooperation and Development (OECD), according to which only 20% of international trade is carried out by women-led companies. Likewise, a study coordinated by the MDIC Foreign Trade Secretariat (Secretaria de Comércio Exterior/MDIC) last year revealed that only 14% of Brazilian export companies are led by women.

Brazil is expected to launch guidance on G20 best practices towards increasing female participation in international trade, mapping challenges and presenting national policies and initiatives to address disparities.

Progress in the reform of global governance institutions is also among the priorities of Brazil’s G20 presidency, and the country is expected to propose that members continue to advance discussions on political support to the reform of the WTO and the strengthening of the Multilateral Negotiation System. To the coordinators, countries must improve the institutional operation of the WTO; restore the dispute settlement system; and leverage negotiations concerning old and new issues.

WTO reform must prioritize development, ensuring that all members fully benefit from the global trading system. The G20’s continued support of WTO reform will be reflected in the Ministerial Declaration on Trade and Investment to be presented at the November G20 summit in Rio de Janeiro.