Committee on Market Access
at WTO Concludes Thematic Series on Supply Chain Resilience
·
UNESCAP
introduced the Trade Intelligence and Negotiation Adviser (TINA), developed to help
in the negotiation of trade agreements by providing insights into current tariffs,
non-tariff measures (NTMs), agreements and bilateral trade flows, as well as identifying
commodities with potential for tariff negotiations and simulating the impact of
different tariff scenarios, among other things.
·
China
introduced the 2024 Global Supply Chain Promotion Report, which summarizes the main
features of the global supply chain promotion system, together with the Global Supply
Chain Promotion Index (GSCPI), the world’s first index to quantitatively evaluate
the level of global supply chain promotion.
·
Singapore
explained the domestic challenges it faces due to land constraints, emphasizing
the importance of maintaining open trade to ensure essential services like food
and medical supplies.
·
The
United States discussed its strategy for supply chain resilience, highlighting collaboration
with partners in multilateral fora like the Organisation for Economic Cooperation
and Development (OECD), G20 and G7 as well as Phase Three of the Supply-Chain Connectivity
Framework Action Plan 2022-2026 by the Asia-Pacific Economic Cooperation (APEC).
The US also noted the value of the Indo-Pacific Economic Framework (IPEF), which
includes a dedicated supply chain agreement, and its cooperation with regional partners
through the America's Partnership for Economic Prosperity (APEP)
·
Challenges
were identified in animal protein and biofuels value chains which highlighted vulnerabilities
in inputs, infrastructure, currency stability, production and distribution as well
as external dependence on research and development.
The
Committee on Market Access held on 17 January the last of a series of thematic sessions
on supply chain resilience. The session presented examples of multilateral and regional
initiatives on supply chain resilience and how the WTO, especially the Committee
on Market Access, can support members in using the data and information available
to support supply chain resilience through trade policy.
The
moderator of the session, Mr Iain Fifer of the United Kingdom, stressed the importance
of how members use international cooperation and the WTO to build resilience into
supply chains. He noted that no one member has a complete view across supply chains,
and no one can act on its own when it comes to mitigating the effect of pandemics,
geopolitical tensions and climate change.
Mr
Fifer introduced the guiding points for the discussion: examples of effective regional
and international cooperation on supply chains and the use of resources from the
Committee on Market Access for analysis and policymaking. The session unpacked a
range of themes, including the different kinds of instruments that can be used to
build resilience, free trade agreements (FTAs), specific bilateral cooperation frameworks
and their contribution to the reduction of policy divergences, and the importance
of reducing issues affecting connectivity across borders.
The
session featured presentations from the United Nations Economic and Social Commission
for Asia and the Pacific (UNESCAP), Brazil, China, Singapore, St. Kitts on behalf
of the Organization of Eastern Caribbean States (OECS) and the United States.
UNESCAP
introduced the Trade Intelligence and Negotiation Adviser (TINA), developed to help
in the negotiation of trade agreements by providing insights into current tariffs,
non-tariff measures (NTMs), agreements and bilateral trade flows, as well as identifying
commodities with potential for tariff negotiations and simulating the impact of
different tariff scenarios, among other things.
The
tool, designed with input from trade negotiators, allows users to build a negotiating
list, simulate tariff liberalization, and analyze trade
patterns. It includes features for sustainable development products and simulating
preference losses for least-developed countries (LDCs). The tool uses WTO data and
a large language model to interpret trade agreement provisions, significantly reducing
analysis time from weeks to minutes. Its capabilities were praised for enhancing
supply chain provisions and trade agreement comparisons, making trade negotiations
more efficient.
China
introduced the 2024 Global Supply Chain Promotion Report, which summarizes the main
features of the global supply chain promotion system, together with the Global Supply
Chain Promotion Index (GSCPI), the world’s first index to quantitatively evaluate
the level of global supply chain promotion. It also presented the Global Supply
Chain Connectivity Index (GSCCI), which is the world’s first index to comprehensively
measure the connectivity of global supply chains.
Overall,
the report and the two indexes track the latest trends of global supply chain promotion
and the status quo of global supply chain connectivity while interpreting the underlying
reasons behind such changes. China noted that both the GSCPI and the GSCCI generally
maintain an obvious upward trend, indicating that the development environment of
global supply chains is generally stable, and positive factors have always outweighed
negative ones.
Singapore
explained the domestic challenges it faces due to land constraints, emphasizing
the importance of maintaining open trade to ensure essential services like food
and medical supplies. The COVID-19 pandemic highlighted the need for open supply
chains and Singapore stressed its collaboration with like-minded partners, including
Australia, the Republic of Korea and New Zealand, to ensure essential goods flowed.
Singapore proposed enhancing supply chain analysis, early warning systems, and emergency
communication channels to improve multilateral cooperation. The WTO and the Committee
on Market Access were presented as potential fora to explore cooperation on enhancing
supply chain resilience.
The
United States discussed its strategy for supply chain resilience, highlighting collaboration
with partners in multilateral fora like the Organisation for Economic Cooperation
and Development (OECD), G20 and G7 as well as Phase Three of the Supply-Chain Connectivity
Framework Action Plan 2022-2026 by the Asia-Pacific Economic Cooperation (APEC).
The US also noted the value of the Indo-Pacific Economic Framework (IPEF), which
includes a dedicated supply chain agreement, and its cooperation with regional partners
through the America's Partnership for Economic Prosperity (APEP) and the United
States-Mexico-Canada Agreement (USMCA). Recent policy papers show a shift towards
supply chain resilience, focusing on sustainability, security, diversity and transparency,
the US said.
Brazil
outlined the difficulties it faced during the COVID-19 pandemic, prompting a governmental
response to map value chains for food and energy. Strategic plans were developed
in the areas of ecological transformation, industry, economic growth acceleration,
tax reform and public policy. Also, challenges were identified in animal protein
and biofuels value chains which highlighted vulnerabilities in inputs, infrastructure,
currency stability, production and distribution as well as external dependence on
research and development.
The
OECS focused on the need to strengthen supply chain resilience through capacity
building and diversification. Challenges for Eastern Caribbean States include limited
regional transport, high taxes and over-reliance on imports from the US. The OECS
shared examples of regional cooperation, such as the Regional Integration through
Growth Harmonisation and Technology (RIGHT) Programme and the Guyana-Barbados-Trinidad
and Tobago ferry service. Antigua's modernized port and the ferry service between
Curaçao and St. Eustatius were also cited as best practices. The OECS stressed that
supply chain resilience in the region can be strengthened through collaborative
efforts, public-private partnerships, and a focus on regional integration.
Three
previous thematic sessions on supply chain resilience were held by the Committee.
At the first session in November 2023, representatives from the WTO Secretariat,
the World Bank, UN Trade and Development (UNCTAD) and the World Customs Organization
(WCO) gave presentations on the definition of supply chain resilience, how shocks
affect the movement of goods through supply chains, and what factors go into supply
chain resilience.
In
the second session in May 2024, seven speakers from the delegations of China, Ecuador,
the European Union, India, Pakistan, Trinidad and Tobago (on behalf of the OECS),
the United Kingdom and the United States shared their domestic experiences on how
they have responded to supply chain challenges and what approaches they are using
to build resilience.
At
the third session in October 2024, five presentations were given by experts from
China, India, Switzerland, Thailand and the United States on the data that underpins
the assessment and monitoring of critical supply chains. The Secretariat prepared
summary reports for each of these sessions which were circulated in documents JOB/MA/713
and its addenda.
The
interim Chair of the Committee, Nicola Waterfield of Canada, recalled members' interest
in compiling the main information shared by members in the four thematic sessions
in a final report and asked the Secretariat to draft the report. The draft report
will be shared with the Committee for members' review and comments. Once finalized,
the Secretariat's note could become a document by the Committee that members could
use for future reference.
The
Chair also reminded members that the Committee will move to the next series of thematic
sessions on "Greening the Harmonized System (HS)", based on a proposal
by Ecuador. The first session on this topic took place on 11 June 2024 and the summary
report is available in document JOB/MA/179. The next session is scheduled for 4
March 2025.