A Broader Trade Facilitation Approach for Resilient and Sustainable Global Value Chains

The COVID-19 pandemic underscored the risks that international shocks pose to global supply chains. It also highlighted the importance of digitalisation and sustainability in mitigating the impacts of future shocks and promoting societal inclusivity. The G20 has pursued the agenda of resilient and sustainable supply chains through various initiatives, under which trade and transport facilitation has been a prominent theme. Sustainable trade facilitation that also incorporates transport measures and the use of technology should be a priority under India’s G20 presidency. This policy brief proposes four key recommendations: (i) collaborate on governance within and across countries for trade and transport facilitation, (ii) improve the implementation integrity of emergency protocols built into the World Trade Organization’s Trade Facilitation Agreement to enhance disaster preparedness, (iii) enhance digital trade and access to finance for greater inclusivity, and (iv) integrate sustainability parameters into trade facilitation components of global value chain development by defining ‘common’ sustainability and climate indicators. These recommendations can be reflected in statements from the G20’s trade and investment and digital working groups, and the Business20 and Think20 engagement groups.