On 8 June 2022 the World Trade Organisation (WTO) submitted a report to the UN’s High-level Political Forum (HLPF) on Sustainable Development.
The WTO contribution to the 2022 UN High-Level Political Forum considers the role of trade in helping countries recover from the economic problems caused by the pandemic and in achieving sustainable development. The report includes an analysis of the trading situation of developing countries and looks at trade issues related to the sustainable development goals (SDGs).
The HLPF, organised by the UN Department for Economic and Social Affairs (DESA) will be meeting in July 2022 to look at five of the SDGs, covering the goals related to education, gender equality, life below water, life on land and SDG 17 on partnership for the goals. The WTO report highlights the role of trade in achieving the SDGs.
The WTO report notes the stress on world trading systems caused by the pandemic and the measures introduced to control it. The strong rebound in global trade that took place in 2021 put strains on supply chains, with uncertainty caused by customs and logistical bottlenecks. The Ukraine war has increased the problems for supply chains, with problems for food security and high energy prices.
International cooperation in trade issues is therefore important to minimise the impact of problems in supply chains for important commodities. Cooperation on international trade can help to avoid the kind of export restrictions that occurred during the financial crisis from 2008 to 2010. In the longer term the supply chains can be protected by diverse international markets regulated by clear trading rules.
The pandemic hit younger workers and women disproportionately, and there was an increase in the number of informal workers in many economies. In the recovery, higher income countries are currently reducing poverty at a faster rate than before the beginning of the pandemic, but it is estimated that the number of poor people in lower income countries rose by around 2.7% in 2021.
Although trade in merchandise has recovered quickly, the recovery has been uneven. Trade in services has recovered more slowly than merchandise trade and the recovery is uneven across sectors.
Trade is essential to development, and also helps countries to better prepare for economic shocks by ensuring the availability of important goods and services in a timely manner. Diversification of supply and demand through international trade allows countries to cope with shocks by switching the sources of supply if there are domestic shortages. International trade can also speed up economic recovery through sustained foreign demand for exports.
International trade can support efforts to build back better by playing a role in diffusing green technology, reducing the cost of adaptation and facilitating the transition to a low carbon economy. Carbon emissions can be reduced through technological innovation and international climate cooperation. The report notes that the WTO’s Aid for Trade Initiative can mobilise funding for a green transition in developing countries.
The report notes that the WTO has contributed to trade cooperation through the reduction of trade barriers, streamlining of customs procedures, building trade capacity in poorer countries, and cooperation with international and regional organizations. The WTO can make a further contribution to the SDGs through its continuing work on initiatives relating to trade and health; fisheries; services; agriculture; electronic commerce; micro, small and medium enterprises (MSMEs); and the economic empowerment of women.
