External Publication

Key policy options for the G20 in 2017 to support an open and inclusive trade and investment system

In the face of exceptional challenges, the G20 should step up its efforts in 2017 to preserve the current global trade and investment system, including effective multilateral dispute settlement procedures, while not losing sight of medium-term reforms. The G20 should focus on (1) supporting the World Trade Organization, (2) being upfront about the mixed effects of trade and investment, (3) improving G20 measures to tackle protectionism and (4) promoting investment facilitation.

By: , , , , , , and Date: April 3, 2017 Topic: Global Economics & Governance

This paper was originally published by The G20 Insights Platform and produced by the T20 Task Force on Trade and Investment.

The Think20 (T20) brings together research institutes and think tanks from the G20 countries in an independent, open network. In 2016/2017, the T20 develops policy recommendations for the G20 within eleven thematic Task Forces which will be published as Policy Briefs in the first half of 2017 on the website http://g20insights.org. Several international T20 conferences and workshops facilitate the interaction among research, the policy community and the broader public.

The Kiel Institute for the World Economy (IfW) and the German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) have been entrusted by the German government to organise the T20 process during the German Presidency in 2016 and 2017. Professor Dennis Snower (President of IfW) and Professor Dirk Messner (Director of DIE) will jointly chair the T20 during this time. Further information on the T20, e.g. on conferences and workshops, are available on the website http://t20germany.org/. In addition, the T20 blog publishes analytical and opinion pieces by high-level experts on key issues ahead of the 2017 G20 Summit in Hamburg.

The policy proposals in this Policy Brief relate to two of the priorities of the German G20 presidency in the areas of trade and investment, namely (1) supporting the multilateral trading system, including benefits of trade and anti-protectionism and (2) investment facilitation. The third priority, digital trade, will be covered by another Policy Brief of the T20 Trade and Investment.

We recommend that the G20 Trade and Investment Working Group in its third meeting should discuss the policy proposals submitted by the T20 in this Policy Brief. In light of the current policy environment, priority should be given to the first proposal on the supporting the WTO. In the transition period between the Hamburg Summit and the handover of the G20 chairmanship to Argentina in December 2017, the German G20 presidency should continue its efforts to promote dialogue among G20 countries to facilitate open and inclusive trade and investment policies. This can be achieved by an informal meeting of the Trade and Investment Working Group or by a high-level workshop that involved G20 governments as well as trade experts from the G20 Engagement Groups.

In order to highlight the importance of an open and inclusive trade and investment system, we suggest that the G20 calls for a special conference of finance and trade ministers in order to promote debate and consensus building ahead of the G20 Leaders’ Summit in July 2017 in Hamburg. The conference should be structured so as to achieve not only concrete results in terms of policy improvement, but also to maximize the likelihood of political “wins’ by participants, both by those who are content with the status quo and want its essence preserved, and those who are looking for tangible changes.

The agenda of the conference would include: (i) national policies and international reforms designed to mitigate the temporary and disruptive effects of globalization and technology on employment and income inequality while ensuring that consumers continue to benefit; (ii) international coordination to reduce global imbalances; (iii) reducing non-tariff barriers to trade; and (iv) revitalizing trade reforms with regard to autonomous, bilateral, plurilateral and multilateral policies.

View comments
Read article More on this topic More by this author

Blog Post

Something Putin and Juncker appear to agree on – the euro.

“It is absurd that Europe pays for 80% of its energy import bill – worth €300 billion a year – in US dollars when only roughly 2% of our energy imports come from the United States,” said President Juncker in his state of the union speech.* Europe’s largest supplier of energy – Russia, who accounts for a third of that bill – couldn’t agree more. Russia’s offer to switch to euros in trade with the EU will likely be costly to implement, but the US switch towards unilateralism is forcing its long-standing partners to question the dollar’s global dominance.

By: Elina Ribakova Topic: European Macroeconomics & Governance Date: September 25, 2018
Read about event More on this topic

Upcoming Event

Oct
3
09:00

International trade and the EU-Japan Economic Partnership Agreement

This event; jointly organised by Bruegel and the Graduate School of Economics, Kobe University, will discuss the EU-Japan trade deal and asses its impact.

Speakers: Sonali Chowdhry, Gabriel Felbermayr, François Godement, Hiroo Inoue, Sébastien Jean, Yoichi Matsubayashi, Tamotsu Nakamura, Masahiro Nakata, Luis Portero, André Sapir, Alessio Terzi, Agata Wierzbowska and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic More by this author

Podcast

Podcast

Backstage: Developing the EU-China relationship amid rising global trade tensions

Bruegel director Guntram Wolff is joined by Alicia García-Herrero, senior fellow at Bruegel, and Zhang Weiwei, director at The China Institute of Fudan University, following up a Bruegel conference focused on the potential for closer economic links between China and the EU.

By: The Sound of Economics Topic: Global Economics & Governance Date: September 20, 2018
Read about event

Upcoming Event

Oct
11-12
20:00

Policy responses for an EU-MENA shared future

In the third edition of the "Platform for Advanced & Emerging Economies Policy Dialogue" we will discuss trade flows and trade policy between Europe and MENA, integration of developing economies into global value chains, and regional energy relations.

Speakers: Mounssif Aderkaoui, Karim El Aynaoui, Marek Dabrowski, Uri Dadush, Giuseppe Grimaldi, Badr Ikken, Joanna Konings, Zahra Maafiri, Pier Carlo Padoan, Visar Sala, Nicolò Sartori, Nathalie Tocci, Simone Tagliapietra and Guntram B. Wolff Location: Rome
Read about event

Past Event

Past Event

Bruegel Annual Meetings 2018

The 2018 Annual Meetings will be held on 3-4 September and will feature sessions on European and global economic governance, as well as finance, energy and innovation.

Speakers: Maria Åsenius, Richard E. Baldwin, Carl Bildt, Barbara Botos, Maria Demertzis, Benjamin Denis, Lowri Evans, Mariya Gabriel, Svend E. Hougaard Jensen, Joanne Kellermann, Jörg Kukies, Emmanuel Lagarrigue, Philippe Lespinard, Rachel Lomax, Dominique Moïsi, Jean Pierre Mustier, Ana Palacio, Jean Pisani-Ferry, Lucrezia Reichlin, Norbert Röttgen, André Sapir, Johan Van Overtveldt, Martin Sandbu, Margrethe Vestager, Reinhilde Veugelers, Nicolas Véron, Thomas Wieser, Guntram B. Wolff and Georg Zachmann Topic: Energy & Climate, European Macroeconomics & Governance, Finance & Financial Regulation, Global Economics & Governance, Innovation & Competition Policy Location: Brussels Comic Strip Museum, Rue des Sables 20, 1000 Brussels Date: September 3, 2018
Read article Download PDF More on this topic

Policy Contribution

International trade under attack: what strategy for Europe?

This Policy Contribution analyses the economic consequences of a full-scale trade war. The US position, focusing on bilateral trade imbalances presumably resulting from unbalanced trade policies, is seriously threatening the multilateral trading system. The authors estimate the impact would be damaging for everyone. Though the EU is partly protected by the size of its internal market, it must engage resolutely in a strategy of defence of trade multilateralism.

By: Sébastien Jean, Philippe Martin and André Sapir Topic: Global Economics & Governance Date: August 28, 2018
Read article More by this author

Opinion

US-China trade war: What’s in it for Europe?

To help evaluate whether the market response is warranted or exaggerated, the author measured the trade impact of additional import tariffs based on standard economic theory, namely two key parameters—the tariff pass-through rate and the price elasticity of demand. The end of multilateralism seems clear, at least for trade.

By: Alicia García-Herrero Topic: European Macroeconomics & Governance, Global Economics & Governance Date: August 23, 2018
Read article More on this topic More by this author

Opinion

Is Europe America’s Friend or Foe?

Since Donald Trump took office as US president, a new cottage industry in rational theories of his seemingly irrational behavior has developed. On one issue, however, no amount of theorizing has made sense of Trump: his treatment of America's oldest and most reliable ally.

By: Jean Pisani-Ferry Topic: Global Economics & Governance Date: July 30, 2018
Read article More on this topic More by this author

Blog Post

Economy of Intangibles

Economists have been discussing the implications of the rise of the intangible economy in relation to the secular stagnation hypothesis, and looking more generally into the policy implications it has for taxation. We review some recent contributions.

By: Silvia Merler Topic: Finance & Financial Regulation Date: July 16, 2018
Read article More on this topic More by this author

Blog Post

World Cup Economics

As we approach the final rounds of the tournament, here are some recent contributions about the economics and economic impact of the World Cup.

By: Silvia Merler Topic: Global Economics & Governance Date: July 9, 2018
Read article More on this topic More by this author

Opinion

Ubu ou Machiavel?

L'administration Trump veut imposer une approche transactionnelle des relations économiques gouvernée par le rapport de force bilatéral en lieu et place du contrat multilatéral. Un défi d'une ampleur inédite pour l'Europe.

By: Jean Pisani-Ferry Topic: Global Economics & Governance Date: July 6, 2018
Read article More on this topic More by this author

Opinion

Die Unternehmensteuer muss reformiert werden

Der deutsche Kapitalstock schrumpft. Das liegt zum einen an sinkenden Investitionen von Unternehmen. Eine Reform der Unternehmensteuer könnte helfen.

By: Guntram B. Wolff Topic: European Macroeconomics & Governance Date: July 3, 2018
Load more posts