G20 Australian Presidency - OECD Stocktaking Seminar on Global Value Chains 2014
OECD Stocktaking Seminar on Global Value Chains 2014
5 May 2014 | 14:30 - 18:00
Summary report now available: download the report in pdf format
At the Saint Petersburg Summit in September 2013, G20 Leaders noted “…the importance of better understanding the rapid expansion of global value chains (GVCs) and impacts of participation in GVCs for growth, industrial structure, development and job creation.” Leaders welcomed the work done by the OECD, the WTO and the UNCTAD and asked them “to seek the views of governments and continue their research on the impact of GVCs, particularly in relation to the influence of GVCs on trade, economic growth, development, job creation and distribution of value-added along GVCs.” Leaders also called on “the OECD in cooperation with the WTO and UNCTAD to deliver a report in the first half of 2014.” The World Bank Group has joined the effort in 2014, and it is within this context that this Stocktaking Seminar has been organised.
The Seminar will provide an opportunity for participants to take a deep dive into the policy lessons that are emerging from the new OECD-WTO Trade in Value added (TiVA) database. This database reveals that between 30% and 60% of G20 countries’ exports are comprised of imported inputs, or are used as inputs by others. It further reveals that services account for 42% of exports (in value-added terms) from G20 economies and more than 50% for some countries. As such, GVCs are becoming increasingly influential in determining production, trade and FDI patterns, as well as new growth opportunities.
How can policymakers best respond to this reality and promote a business environment that enables firms to participate in GVCs, but also facilitates upgrading opportunities over time? The OECD-WTO-UNCTAD-WBG report on “The Opportunities and Challenges of Global Value Chains” (to be released 5 May, 2014) offers some answers to this question, noting the vital roles of open trade and investment policies – including, in particular, the role that efficient and competitive services sectors and trade facilitation measures play in promoting GVC participation.
The report also highlights the importance of well-designed and enforced competition policies, a skills strategy, and complementary social policies to maximise the potential growth and job creation benefits from GVCs. These reforms start at home and the specific needs of countries at different levels of development have to be taken into account. Multilateral co-operation can help to ensure co-ordinated outcomes and to avoid “beggar thy neighbour” policies. Ministers and experts as well as business and labour representatives across OECD and G20 countries will contribute as lead speakers in an open discussion with all participants.
Previous GVC Stocktaking Seminars
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