Economic research and trade policy analysis
Introducción
El comercio y la producción empezaron a crecer de nuevo en el segundo semestre de 2009 después de que se registrara un descenso sin precedentes a principios del año. La recuperación hasta el primer trimestre de 2010 no fue suficiente para que fuera posible alcanzar los niveles anteriores a la crisis. La OMC prevé que la recuperación continuará en 2010 lo que permitiría anular algunos de los efectos del hundimiento del comercio. Uno de los hechos positivos de 2009 fue que entre los Miembros de la OMC no hubiera un aumento importante de los obstáculos al comercio como medida para hacer frente a la crisis a pesar del elevado desempleo en muchos países. El sistema de reglamentación del comercio de la OMC ha contribuido en gran medida a impedir una nueva vuelta al proteccionismo que tanto agravó las condiciones económicas en el decenio de 1930.
Digital Platforms and Global Value Chains
The two largest changes that have affected international trade since the 1990s are the creation of the new digital economy and the development of global value chains (GVCs). Both are inherently connected to new information and communication technology (ICT) and both have seemingly increased trade inclusivity benefitting the trade participation of micro small and medium-sized enterprises (MSMEs) and developing countries. The interaction between the digital economy and GVCs is not well explored however. Although the growth of both may have been in parallel is there evidence that the digital platforms at the core of the digital economy affect GVC participation? This chapter examines the role of digital platforms especially e-commerce marketplaces in the modern economy; the ways these platforms can increase economic inclusivity; and the development of GVCs and their effect on trade participation. The chapter also reviews the evidence on the link between digital platforms and GVC participation.
Developments in the global economy and trading system effects: The transformation of world trade
The Great Recession of 2008–2009 tested the resilience of economies across the world and placed enormous strain on the frameworks underpinning global cooperation. In no arena was the test more severe than in world trade which against a background of collapsing output and surging unemployment in the industrialised countries fell about one-quarter in the first half of 2009 a rate of decline that exceeded the worst years of the Great Depression of the 1930s. Although the rate of recovery remains sluggish and the pace of trade liberalisation has slowed a relapse into protectionism has been avoided and world trade volumes have surpassed the pre-crisis peak by some 25 per cent. The world trading system seems to have passed this most strenuous of tests. This chapter examines how two great changes in the global economic landscape deepening trade integration (trade as a means of production as well as consumption) and the rising weight of developing countries are changing trade and investment flows and creating new challenges for policy-makers.
Specific health issues and WTO agreements
As noted in the preceding Chapter several WTO agreements are relevant to health policy. Generally the positive growth and income effects of more open and predictable trade regimes can provide the resources as well as goods services and information for effective health systems. The WTO agreements explicitly allow governments in pursuing national health and other policy objectives to take measures to restrict trade in order to protect health. This is legitimate as a matter of principle. The emphasis in WTO rules is on how policies are pursued without questioning the underlying objective. For example is a measure applied or enforced in a way that discriminates between trading partners or between imported products and products produced domestically? Are there ways of implementing policy that would be less restrictive on trade? Thus it is the manner in which government pursue specific health policies in practice which might have trade-related implications which are examined in this Chapter.
Can Blockchain revolutionize international trade?
The number of headlines claiming that Blockchain can revolutionize various areas of international trade from trade finance to customs procedures and intellectual property are legion. The transparent decentralized and immutable nature of Blockchain has sparked the interest of private actors – and governments – to explore the potential of this technology to enhance the efficiency of trade processes and a myriad of proofs of concepts and pilot projects using Blockchain have been developed in virtually all areas of international trade.
Integrating into the multilateral trading system and global value chains: The case of Russia
For most countries foreign trade makes a critical contribution to the national economy and the Russian Federation is no exception to this. Over the last five years the world economy has been strongly affected by the global economic crisis which also seriously affected the Russian economy in general and its foreign trade in particular.
The COVID-19 pandemic: impact on DLT projects in trade
COVID-19 has uprooted processes and established outlooks in many industries around the world. To gain a detailed understanding of the impact that the global pandemic has had on DLT projects in trade the WTO and TFG conducted a supplementary survey of projects featured in the 2020 Periodic table update.
Executive Summary
Over recent decades the global economy has experienced a profound transformation mostly as a result of the joint forces of trade integration and technological progress accompanied by important political changes. Increased trade integration has helped to drive economic growth in both high-and low-income economies lifting millions out of poverty in emerging and developing countries. Since the global financial crisis of 2007–08 however trade productivity and income growth have decelerated. At the same time trade is increasingly perceived as leaving too many individuals and communities behind.
WTO accessions: A rules perspective on growth – the approach of the European Union
In today’s difficult economic conditions and in the aftermath of the global financial crisis growth is more than ever the priority of governments. Economic growth employment wealth health and political stability are intrinsically linked notions and each is essential for the others. Trade and economic integration have been credited as core means to deliver growth. The heads of the EU member states have recently reiterated the importance of free fair and open trade for growth and have highlighted the European Union’s objective to promote among other things international regulatory convergence. Trade liberalisation is a major structural reform in itself creating incentives for investments modernisation and increased competitiveness. Moreover in a world of increasing production interdependence as a consequence of global supply chains achieving regulatory convergence is not a question for consideration but an imminent necessity if trade and growth are to be preserved and stimulated. The WTO offers both a beacon for economic reforms and an unprecedented forum for economic partnership.
Supply chains and services
Supply chain production has likely made production more services-intensive. Only recently has the extent of reliance on services in supply chains become evident particularly since global trade statistics measured in value-added terms were developed. However a full understanding of the role of services in supply chains remains elusive. Recent work reported here attempts to capture the multiplicity of distinct services implicated in supply chain production; the interdependent nature of markets; the tendency towards reliance on networks and the resultant bundling or modularising of product offerings that combine different goods and services; the role of services as a driver of innovation; services as a potentially untapped source of value-added capture and a range of data challenges that will take time to resolve.Supply chain production has likely made production more services-intensive. Only recently has the extent of reliance on services in supply chains become evident particularly since global trade statistics measured in value-added terms were developed. However a full understanding of the role of services in supply chains remains elusive. Recent work reported here attempts to capture the multiplicity of distinct services implicated in supply chain production; the interdependent nature of markets; the tendency towards reliance on networks and the resultant bundling or modularising of product offerings that combine different goods and services; the role of services as a driver of innovation; services as a potentially untapped source of value-added capture and a range of data challenges that will take time to resolve.
The economics of standards and trade
We live in a world profoundly reliant on product standards. Faxes can be sent around the world because fax machines obey a common protocol. Computer files can be shared because computers employ various standardized hardware and software formats. The need for product standards is not a new phenomenon. In biblical times the lack of a common (standardized) language wreaked havoc at the Tower of Babel (Shapiro 2000). In more recent times during the great Baltimore fire of 1904 fire fighters called in from neighbouring cities were unable to fight the blaze effectively because their hoses would not fit the hydrants in Baltimore.
Foreword
The World Trade Report 2005 follows the pattern established in previous years and takes up a number of key trade policy issues facing the international trading system for analysis and discussion. The underlying objective of the Report is to contribute to a deeper understanding of trade policy issues facing governments. The core topic in this year’s report is standards and international trade. Shorter essays have been prepared on three other topics – the use of quantitative economic analysis in WTO dispute settlement international trade in air transport services and offshoring services.
Introduction
Over the last 50 years the remarkable opening and integration of the world economy in combination with the rapid pace of technological change has contributed to raise the living standards of billions of people around the world including some of the poorest. But this process of globalization has necessarily been accompanied by economic change churn and displacement as labour together with other factors of production shifted from declining industries to expanding ones.