President of the Trade and Development Board, Ambassador Hashmi,
Deputy Secretary-General of UNCTAD, Mr. Moreno,
Director of the Division on International Trade and Commodities, Ms. Shirotori,
Excellencie and Distinguished delegates,
Ladies and gentlemen,

1. G77 and China has welcomed with appreciations the organization of a session dedicated to trade and the international trading system in the Trade and Development Board of UNCTAD. The group is of the view that this issue needs to be discussed in the UNCTAD main forum with more regularity to facilitate discussion on the emerging common vision of the need to improve the contribution of international trade in the SDGs achievement efforts.

2. Our discussions today constitute an excellent opportunity to look back and take stock of the international trading system since the creation of WTO in 1995. The multilateral trading system has been one of the underlying factors that facilitated the rapid growth in trade between 1995 and 2020. This trade growth has been one of the main engines of sustained economic growth over the past 3 decades. Some parts of the world, including some members of our groups, have undoubtedly benefited from trade in reducing poverty. However, these gains have been very unevenly distributed, and the COVID-19 crisis revealed a lack of resilience of some members of the group in times of economic shocks. The current cascading crisis continue to threaten developing countries to further derail the important progress they had achieved during the past decades as the poverty is in a high rise again.

3. The SDG target 17.11 was to “Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020”, of which has not been met, with the LDCs’ share of the world’s exports even declining from 0.95% in 2011 to 0.91% in 2020 (Source: Boosting trade opportunities for least-developed countries: Progress over the past ten years and current priorities (wto.org)

4. The Uruguay Round and the creation of the WTO had instilled hopes for a transparency, enforced rules, and improved market access for all members, including developing countries. About a third of the WTO MFN tariff lines in the world are now duty-free as opposed to 15% three decades ago. However, this progress has been compromised by other developments. While market access may have improved in terms of tariff levels, the increase in Non-Tariff Measures translates into difficulties for our countries to achieve their export potential. Even for preferential markets provided by developed countries and to some developing countries to least developed countries and some developing countries, their utilization has remained low due to their stringent rules of origin and its administrative requirements. As result, some members of our group remain affected by commodity dependence, and the benefit they can derive from trade is, therefore, at the mercy of the vagaries of prices in international markets, over which our nations have little influence.

5. These past few decades have seen new challenges emerge that are radically transforming the context in which business and trade are carried out. This includes digitalization and climate change. The shifts in the configuration of global value chains, with increased near-shoring and re-shoring, also had a massive consequence for some of our economies. It is undoubtedly the digitalization including e-commerce, is opening new opportunities, including for developing countries. Yet the digital divides among countries persist, particularly for least developed countries risks further exacerbating the existing inequalities.

6. Climate change exerts strong influences on the structure and the contents of a country’s trade policy. Developing countries are the least responsible for climate change but often are bearing the burden of its impact disproportionately. Countries, particularly LDCs and SIDS, lack the technical and financial resources to adapt to climate change, wreaking havoc on their trading infrastructure and agricultural sectors. Decarbonization and energy transition are calling for immediate actions and are seeing the emergence of new technologies and markets. But as research and investments are concentrated in very few countries, most of developing countries risk being marginalized in the emergence of these new sectors.

7. Considering the mentioned imbalances and asymmetries, G77 and China aspires for a Multilateral Trading System that genuinely supports the achievement of the SDGs. More than ever, we need a transparent and rules-based framework that helps our countries grow and diversify our economies for inclusive and resilient societies.

8. As we approach UNCTAD’s 60th birthday, the world needs more than ever the contribution of UNCTAD in discussions to help devise an international trading system that is more development-centred. Our group welcomes the return of discussions on “trade” as a new standing agenda item of the TDB and looks forward to having agreed outcomes in the future deliberations.

9. In closing, G77 and China welcomes with appreciation the continued support of UNCTAD to developing countries in capacity building on trade policy formulation and the continuation of work in the areas of Commodities, Trade Facilitation, Non-Tariff Measures and other market access challenges, Services trade and Creative Economy, Competition and Consumer Protection Policies, Trade and Environment, and others.

Thank you, Mr. President.