Global value chain and trade protectionism

The First Trade and Economic Ministers’ Meeting of G20 was held in Puerto Vallarta, Mexico on April 19. Its main topics are: global value chain, new interpretation on trade, and trade, growth and employment. Chinese Minister of Commerce Chen Deming headed a delegation to the meeting, and delivered a speech.

Chen Deming said that G20 trade ministers’ meeting is an important platform to discuss global economic and trade issues. Currently, the impact of the global financial crisis remains, and the process of world economic recovery is not smooth. The meeting shows a key note of cooperation, focuses on enhancing stability and maintaining growth, and plays a positive role in global trade and economic development.

Mr. Chen said there should be right interpretation on global value chain. Global value chain is a product of economic globalization. There shall be not only respect for the right and interests of all parties in the value chain, but also development and expansion of their common interests, and it should keep away protectionism which is a interference from people and avoid breaking-down of global value chain. G20 members shall help developing countries to join actively in the global value chain, so that they can reap benefit from it. Due to the development of global value chain, traditional trade statistical method is unable to reflect international trade as it is. WTO, UNCTAD and OECD have carried out some exploratory study on this issue. China supports the study, and would continue its involvement.

Chen said that due to joint efforts by all countries and control by WTO, trade protectionism has not yet become disastrous around the world , but it has been growing , and there should be great vigilance, and firmly oppose it.

Chen also pointed out that it is necessary to push forward Doha Round Negotiations, and give continuous support to multilateral trade mechanism, giving full play to its role as a core mechanism in trade liberalization. G20 members should take the lead to tackle difficulties , and resume negotiations as soon as possible, so as to promote the negotiations to achieve a comprehensive and balanced result at an early as possible.

Chen stressed that G20 members should attach great importance to the positive impact of global trade growth on economic development and job increase, and provide a policy environment conducive to stabilization of trade growth, promote liberalization and facilitation for trade and investment, increase trade financing for enterprises, especially small- and medium-sized enterprises, and reverse trade decline as soon as possible.

Source: Ministry of Commerce Website; http://english.mofcom.gov.cn/aarticle/newsrelease/significantnews/201204/20120408086384.html

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