Global trade, WTO role to be most pressing issues at G20 summit - Russian sherpa

MOSCOW, November 22. /TASS/. Tensions in international trade relations and the modernization of the World Trade Organization (WTO) will be the most acute issues at the G20 summit scheduled to be held in Buenos Aires from November 30 to December 1, Russian G20 Sherpa Svetlana Lukash has told reporters. "International trade and the role of the World Trade Organization will be the most pressing issues. Now it is not quite in working order, the WTO’s basic institutions practically do not perform their functions. Of course, there is an understanding that it is necessary to modernize the WTO bringing it in line with today’s realities. Many issues remain outside the scope of regulation, that is, investment and eTrading, which form the basis of the economy. This is not conducive to enhancing its credibility. However, all countries believe the WTO should remain at the center of regulating global trade," Lukash said. Russia hopes that during the summit, the G20 countries will be able to develop an approach to the WTO reform issue. "Some time ago, the European Union came up with proposals on how that should be done. We believe that we need first of all to decide on the approaches towards the issue, because it is inadmissible to tackle such basic issues of our development unilaterally or behind the scenes. We hope that the leaders will discuss this issue at the summit in Buenos Aires and decide on how we should move forward," she pointed out. Global economic risks World trade will be discussed as part of the traditional financial agenda - the coordination of macroeconomic policies, financial regulation and the implementation of the tax reform. "These are the key pillars, which pose a threat to the sustainability of economic growth in the future," Lukash explained. The G20 singles out among the key risks to global GDP growth the consequences of curtailing the quantitative easing policies in some large economies, which tightens financial conditions for emerging markets and leads to volatility of capital flows. Other risks include the lack of clarity in the political situations in some countries, in particular Brexit and the escalation of trade tensions between countries. "If the current situation evolves in accordance with a negative scenario, the 3.7% forecast [for global economic growth] will be downgraded substantially within the next two years," she added. Digital economy and climate issues According to Lukash, during the summit, the leaders will also discuss the current state of the global economy and the future of the world of work in the context of digitalization. They will discuss in particular how the approach towards employment and education will change amid digital transformation. "There will also be a discussion of the effects, both negative and positive, of the digital economy related to inequality and labor release due to the lack of digital skills and how to adapt the education system to the new global economic realities," Lukash pointed out. The issue of gender equality will be raised as well. The focus will be on equal opportunities and efforts to reduce the gender gap in labor markets. "These are the issues related to further international efforts in the field of climate change and the implementation of the Paris Agreement," she said. A separate meeting will be dedicated to the priorities of Argentina’s G20 Presidency, specifically, the future of the labor market, infrastructure investment and food security. Read more