G20 to reinforce rules on subsidies in move seen to be aimed at China, backs WTO reforms

Group of 20 (G20) trade and investment ministers met on Tuesday in Sorrento, Italy, and called for reinforced rules on industrial subsidies to ensure fair competition
They also said they remained committed to actively work with all World Trade Organization (WTO) members to undertake necessary reforms

G20

Kyodo

Published: 3:05pm, 13 Oct 2021

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Trade and investment ministers in the Group of 20 (G20) major economies affirmed the need to reinforce international rules on industrial subsidies to ensure fair competition, according to a statement released on Wednesday by ministers.

The statement to address government subsidies distorting the market, released after their meeting on Tuesday in Sorrento, Italy, is apparently aimed at China, a G20 member that treats state-owned companies favourably with subsidies and other measures.

“We will continue to work to ensure a level playing field to foster an enabling business environment and to support the integrity and sustainability of the rules-based multilateral trading system,” it said.

The ministers also vowed to enhance the capacity of the multilateral trading system to cope with pandemics and large-scale disasters so each country and region can smoothly procure essential medical goods, the statement said.

We remain committed to strengthening its rule making arm by easing trade negotiations and fostering the update of the global trade rule book, and underscore the importance of the ongoing negotiations in the WTO

G20 trade and investment ministers

“The [coronavirus] pandemic has highlighted the importance of working toward enhancing timely, equitable and global access to safe, affordable and effective Covid-19 vaccines, therapeutics, diagnostics and personal protective equipment,” it said.

Regarding the World Trade Organization (WTO), whose dispute-settlement system has been undermined, the ministers said the G20 economies remain committed to actively work with all WTO members to undertake necessary reforms in an inclusive and transparent manner.

“We remain committed to strengthening its rule making arm by easing trade negotiations and fostering the update of the global trade rule book, and underscore the importance of the ongoing negotiations in the WTO,” it said.

The Geneva-based institution has been criticised for its inability to reach consensus among its over 160 members.

The ministers pledged their commitment at the upcoming WTO ministerial conference, starting from late November, to make reforms and revitalise the organisation.