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ERIA's Intervention in the Trade and Investment Working Group Meeting of Deputies
Mumbai, 28-30 March 2023: ERIA, represented by Ms Anita Prakash, the Senior Policy Advisor for International Economic Cooperation, attended the first meeting of the deputies of the Trade and Investment Working Group (TIWG) that was held in Mumbai from 28-30 March 2023.
In the meeting, the four pillars discussed by members and invitees were:
- Trade for prosperity and growth
- Trade and resilient GVCs
- Integrating MSMEs in global trade
- Logistics for trade.
ERIA was able to make interventions in three of the four sessions.
Session 1. Trade for Prosperity
- ERIA thanks India for inviting it as a Knowledge Partner to the Trade and Investment Working Group (TIWG) meeting of India’s presidency of G20, and for the preparation of the priority areas of this meeting.
- We hope to contribute our research knowledge into making the G20 agenda and deliberations a success, and to tailor them to the needs of the different regions which are participating in the international trade at different levels of integration in the regional or global value chains.
- From developing economies perspective, ERIA hopes to contribute further in aligning this working group’s deliberations, and outcomes, to ensure trade openness for both members of G20 and also the non members – as the latter constitute the largest part of the South economies. We believe that enhancing the capacities of developing economies and the smaller firms to adapt and respond to changes in global trade and trade policy patterns will be important for the agenda of this TIWG.
- For making trade inclusive for both developing and developed economies, ERIA will be happy to share its research on conditions that facilitate trade integration and production sharing, and investments in and the facilitation of MSME’s participation in supply chains, as also our digital platforms for NTMs in the East Asia Summit Region, a region which consists of some of world’s largest economies, middle economies, emerging markets, as well as LDCs and even LLDC.
- Honourable Chair, ERIA affirms the inclusive agenda in this G20 presidency, the recognition of oneness of global problems – and their solutions. We will contribute to operationalise the outcomes in this working group and to be continued into the next presidencies in Brazil and South Africa thereafter. Our ground level data and research on trade, investments, and GVC performance in developed and developing Asia can be called upon to support this agenda.
Session 2. Trade and Resilient GVCs
- The Indonesian presidency in 2022 highlighted the opportunities associated with digital transformation to achieve resilient and sustainable economic growth. The India presidency conjoins the resilience of GVCs with digitalisation of information on, and monitoring of trade integration through data analysis and research. ERIA is equipped and ready to support this important deliverable in this Working Group’s agenda.
- Honourable chair, after the pandemic induced shocks to supply chains and their relatively robust bounce back in Asia, it is generally agreed that GVCs are equally susceptible to non-traditional trade policies that affect the international supply chains. Keeping markets open, an effective supplier network, and integrated and balanced GVCs are important advantages for all countries in the recovery and growth phase.
- From developing economies perspective, ERIA research shows that developing Asia, especially the East, Southeast and South Asia’s GVC participation rate has been high by global standards. This Working Group can build upon the existing strengths of regional value chains, and the proposal for monitoring of supply chain connectivity and resilience through digital initiatives, will provide level fields for all economies - both inside and outside the G20. We look upon the theme of resilient and balanced GVCs as a sort of public goods in the recovery and rebuilding phase, and affiliate our research support for information and monitoring of GVCs required by the outcomes endorsed by this working group .
Session 4. Logistics for Trade
- International trade and resilient supply chains that were discussed in priority area 2 of the working group yesterday are intrinsically related to the priority area of logistics for trade.
- Speaking once more from the developing economies perspective that are aspiring for greater integration into the regional and global supply chains, ERIA wishes to inform that it is working closely with the ASEAN in developing the ASEAN Single Window mechanism – an example of developing and middle economies, including some LDCs, to bring their differentiated capacities and infrastructure for trade logistics under a common platform for cargo movement - both physical, regulatory, and institutional. Our colleagues from Indonesia, also the chair of ASEAN this year, will bear out this intervention
- Honourable Chair, ERIA will be pleased to share its knowledge of the challenges in developing the mechanisms and practical solutions on infrastructure connectivity, regulatory coherence, and digitalisation of trade documents and clearances for the G20 initiative such as the Global Supply Chain Network Platform showcased in the note, as we have done in ASEAN. That this system works was proved during the COVID 19 disruptions to trade in Southeast and East Asia, underwriting the resilience of GVCs in their robust bounce back in our region. It is worth noting that several Dialogue Partners, including Australia, China, Japan, Republic of Korea, the United States, and New Zealand are working on possibility to exchange trade-related documents through ASW environment. So, together with priority area 2 on resilient and balanced GVCs, ERIA recalls its experience on similar tasks in Southeast Asia and offers support to the initiatives on logistics for trade in India’s presidency and provide research solutions over the next presidencies too.