Trade ministers from the Group of 20 (G20) nations have reached an agreement known as the ‘Jaipur Call for Action’ to enhance information flow to small businesses and increase their participation in trade. They have also set out to develop a ‘generic framework’ for mapping global value chains, with a warning against the concentration of suppliers and markets. Additionally, they have agreed on 10 high-level principles for the digitization of trade documents, aimed at reducing trading costs across borders.
However, due to conflicting positions on the Ukraine conflict, a formal communique could not be issued. Commerce and Industry Minister Piyush Goyal clarified that the outcome document and chairs’ summary were unanimously decided upon, except for one specific paragraph. The Ukraine conflict has created divisions among G20 members since India’s presidency began with a meeting of finance ministers and central bank governors in Bengaluru.
Goyal stated that various agencies will work together in the coming years to establish the framework for implementing the decisions made. He emphasized that the movement towards global value chains will benefit all developing countries, using the example of mobile manufacturing in India to illustrate how it can stimulate job creation, investment, and the development of a production eco-system.
The minister also highlighted the significance of micro, small, and medium enterprises (MSMEs), a matter raised by Prime Minister Narendra Modi. Goyal expressed concerns regarding the dominance of big tech companies and stressed the need for equal and affordable access to be ensured for all. This aligns with the government’s initiatives, such as the Open Network for Digital Commerce (ONDC) and Unified Payments Interface (UPI), which aim to provide convenience to consumers and a level playing field for businesses.
The agreed outcome document acknowledged the uncertain near-term outlook for global trade and investments. It emphasized the necessity of a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable, and transparent multilateral system, with the World Trade Organization (WTO) at its core. Furthermore, the document called for a predictable and transparent regime for services trade, with simplified rules for the movement of professionals across borders—an issue of particular interest to India.