Check against delivery.
Thank you Chair,
As an Organisation, promoting the sustainable expansion of global trade, on a multilateral, non-discriminatory basis and in accordance with international obligations is a core principle enshrined in Article 1 (c) of our Founding Convention.
It underpins our work in support of open markets, multilateral, rules-based trade and ensuring trade policies are aligned with international obligations.
At our MCM in 2023 we adopted our OECD Trade Strategy, reaffirming our commitment to promoting free and fair trade, investment and supply chain resilience.
Open markets and rules based global trade has been a powerful driver of growth, employment and higher incomes and living standards.
It has delivered clear economic benefits – through driving increased competition, innovation, productivity growth and efficiency – delivering benefits to consumers, businesses and workers.
All other things being equal, in well-functioning global markets, more trade and investment means stronger growth, more jobs, higher incomes, as well as lower costs and increased choices for consumers.
For that we need a rules-based global trading system in good working order, with, to the greatest extent possible a global level playing field and everyone playing by the rules.
Legitimate concerns about the impact of non-market practices on global competition, on economic security and on supply chain resilience have led to a lessening of public support for open markets and rules-based trade despite the economic benefits it has and can continue to deliver.
This has led to a growing trend towards more protectionist policy settings.
This is not a new trend – between 2009 and 2024 the proportion of imports subject to trade restrictive measures has increased from 0.6% to nearly 12%.
Our strong advice to all Governments, in particular market-based democracies, but all Governments committed in good faith to a global rules based trading system in good working order – work together, bilaterally and multilaterally, to find the best possible ways to make our international trading arrangements fairer and work better, in a way that helps preserve the benefits of open markets and rules based global trade.
This is what we are committed to support you to achieve:
First, through our work to strengthen supply chain resilience.
Yesterday, we launched the OECD Supply Chain Resilience Review, which provides new evidence on growing concentration in global import and export markets,
Our Review provides clear guidance on the full range of measures that governments can take to better detect and address risks.
It recommends strengthening trade facilitation tools to eliminate chokepoints at borders, lowering barriers for services underpinning supply chains such as transport and logistics services, and building closer co-operation with businesses to enhance awareness of supply chain risks.
Second, by providing an evidence base improving transparency in relation to market distorting practices in support of efforts to tackle those issues through productive dialogue and co-operation.
New evidence from our OECD MAGIC database for example shows the extent of non-market practices and their impact on industrial capacity and the global level playing field.
For instance, it shows that about 80% of firms that received large subsidies above 15% of revenue are in China, including in the semiconductor, aluminium, glass and cement industries.
Last week, we also launched the OECD Steel Outlook, which shows that excess capacity grew sharply between 2023 and 2024 due to subsidies and other distortionary policies and is set to continue to grow with planned increases of up to 6.7% expected worldwide between 2025 and 2027, led by substantial increases in China and India.
Our OECD Trade Committee allows Members to address these concerns in a co-ordinated way, to discipline non-market practices and address overcapacity.
And OECD instruments, including our Guidelines on the Governance of State-Owned Enterprises and our Recommendation on Competitive Neutrality – can be integrated into trade agreements with non-Member countries to help address competitive distortions from the state-owned sector.
Beyond these efforts, we are also supporting policymakers:
- To lift barriers to services trade and lift regulatory restrictions holding back international business and investment opportunities, and
- To boost the sustainability of international trade and investment on the basis of our analysis on Foreign Direct Investment Qualities.
This is an important session.
I look forward to hearing your views on how the OECD can continue to support you in advancing your trade policy goals, and ultimately unlocking stronger growth and prosperity.
Thank you.
Working with over 100 countries, the OECD is a global policy forum that promotes policies to preserve individual liberty and improve the economic and social well-being of people around the world.