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G7 TRADE MINISTERIAL MEETING (VILLA SAN GIOVANNI REGGIO CALABRIA 16-17 JULY
2024) – MINISTERIAL STATEMENT

 * Publication date: July 17 2024
 * Tipology: Press Releases

Preamble

We, the G7 Trade Ministers, met on 16-17 July 2024 in Reggio Calabria and Villa
San Giovanni to discuss how to reform and strengthen the multilateral trading
system, with the World Trade Organization (WTO) at its core, and enhance our
cooperation on common challenges, building upon the outcomes of the G7 Apulia
Summit.

To meet these challenges, we commit to devoting our efforts to maintain a free
and fair rules-based and market-oriented multilateral trading system and enhance
economic resilience and economic security. We underline the importance of
fostering international trade as an engine for growth, welfare and development.
We will increase our commitment to keep our economies open and competitive and
to promote free and fair trade and investment, and we will engage partners
globally, including in regions like the Indo-Pacific, Latin America and Africa.

The lasting global threats, particularly Russia’s illegal war of aggression
against Ukraine, including its continuous attempts to disrupt maritime trade in
the Black Sea, and the persistent Houthi attacks on commercial vessels
transiting the Red Sea and Gulf of Aden, have highlighted the critical need to
address vulnerabilities in global supply chains, sea lanes, ports and trade
flows.

We reaffirm that freedom of navigation is essential in allowing trade to fully
express its potential globally to the benefit of all. Maritime security and
navigational rights and freedoms are critical to ensuring free movement of
commodities, including essential ones, to destinations and populations all over
the world.

We are grateful for the insights of Ministers and representatives of invited
countries (Australia, Brazil, Chile, India, Kenya, New Zealand, South Korea,
Türkiye and Vietnam) as well as for the contribution of the Director-General of
the WTO and the Secretary-General of the Organisation for Economic Cooperation
and Development (OECD) who participated, together with the B7, in the Opening
Session of our meeting, dedicated to the resilience of supply chains.

Strengthening a free and fair rules-based and market-oriented multilateral
trading system through WTO reform

We remain united in our commitment to a rules-based market-oriented, free and
fair, openequitable, sustainable and inclusive and transparent multilateral
trading system, with the WTO at its core. We strive to ensure that the WTO
continues to fulfil its mandate to promote trade as a means to strengthen
economic growth and foster sustainable development.

During our meeting we took stock of the work done at the Thirteenth WTO
Ministerial Conference (MC13). While regretting that the progress in Abu Dhabi
was less ambitious than we had hoped and worked for, we welcome the outcomes
related to e-commerce, new disciplines on Services Domestic Regulation, dispute
settlement reform, accessions of two LDCs to the WTO and certain development
issues, as well as the advancement of work on trade and environment.

Echoing G7 Leaders, we welcome, in particular, the decision to maintain the
moratorium on customs duties on electronic transmissions until MC14 and we
reiterate our support for a permanent prohibition. We are committed to working
towards a timely conclusion of the negotiations of the Joint Statement
Initiative on E-Commerce. In addition to the entry into force of the Phase 1
Agreement on Fisheries Subsidies, we also call for continued negotiations to
reach a more comprehensive agreement on fisheries subsidies in line with
Sustainable Goal Target 14.6 including through disciplines on certain forms of
fisheries subsidies that contribute to overcapacity and overfishing.

We underscore the need to continue our efforts to reform the WTO’s monitoring,
deliberative, negotiating and dispute settlement functions. We remain committed
to conducting discussions with a view to having a fully and well-functioning
dispute settlement system accessible to all members by the end of 2024. To
achieve this objective, in line with the WTO Ministerial Decision of 2 March
2024, we renew our commitment to accelerating those discussions in an inclusive
and transparent manner, building on the progress already made, and to working on
unresolved issues, including issues regarding appeal/review and accessibility.
We call on relevant Members to refrain from claiming Special and Differential
Treatment in the WTO, commensurate with their economic weight and role in the
global trading system. We support plurilateral Joint Statement Initiatives as a
means to advance issues of interest to members, foster new ideas and approaches,
and build momentum towards multilateral agreement. We encourage the integration
of their outcomes into the legal framework of the WTO.

We reiterate the need for forward-looking work in the WTO on contemporary key
trade issues, including on areas such as the nexus between trade and industrial
policy, and trade and inclusivity and for the intensification of ongoing work on
trade and environment.

We recognize the importance of the development dimension of trade, and we will
continue to engage with least developed countries, and other developing
countries as appropriate, in Africa and elsewhere, to better support their
integration into global trade.

As we confirmed in the G7 Trade Ministers’ Statement in Osaka-Sakai last year,
we reaffirm the importance of SPS measures being science-based and applied in
line with international obligations.

Ensuring a Level Playing Field

We continue our work to ensure the sustainability, transparency, stability and
predictability of the rules-based multilateral trading system. We will continue
to coordinate on promoting transparency in international trade to facilitate a
more level playing field.

We echo the G7 Leaders’ commitments to stepping up our efforts towards a global
level playing field and keep our economies open and competitive and reaffirm our
attachment to transparency, to coordination, and to the respect of WTO rules in
our respective policies. In this regard, we reiterate our commitment to work
together to ensure a global level playing field and fair competition.

We will continue to tackle non-market policies and practices, as well as harmful
non-market excess capacity and other market distortions resulting from them. To
that end, we remain committed to effectively using our trade tools, and, as
appropriate, develop new tools, to identify, challenge, and counter these
practices, and to promote stronger international rules and norms, together with
partners.

We recognize that subsidies in some circumstances can be a tool to achieve
legitimate public policy objectives. At the same time we will continue to work
together to tackle pervasive, opaque, and harmful industrial subsidies and,
market distortive practices of State-Owned Enterprises (SOEs). We underscore the
need for all WTO members to ensure transparency both at the WTO through
subsidies notification and domestically by making information on subsidies
programs publicly available. We confirm our commitment to engaging inclusively
in discussions on trade and industrial policy issues at the WTO, such as on
trade-distortive industrial subsidies, including in the SCM Committee.

We stress the relevance of the revised OECD Guidelines on Corporate Governance
of SOEs as a leading tool to advance fair competition, transparency, and
accountability of SOEs while raising awareness about trade distortions and
encourage the mitigation of such distortions. We encourage adherence of non-OECD
members to those Guidelines.

We reiterate our concerns regarding all forms of forced technology transfer
including when they are used to target specific sectors for market dominance,
and will continue collaborating on the possible development of principles on
this issue and to deepen trade and investment relations with countries that seek
to ensure that technology transfers are voluntary and on mutually agreed terms.

We are following up on the G7 Leaders’ commitments to address, via strengthened
coordination, harmful market distortions and global non-market excess capacity
in key sectors resulting from non-market policies and practices. Through our
work on non-market policies and practices, we will contribute, as appropriate,
to forthcoming G7 efforts, as guided by our Leaders, to pursue joint monitoring
of these practices and the resulting excess-capacity and other spillover effects
and global distortions as well as to exchange information and consult on
respective responses, to best position the G7 to cooperate on responding
effectively.

We recognize that unjustified data localization measures have a negative impact
on cross border data flows. We remain committed to tackling unjustified data
localization measures that lack transparency and are arbitrarily imposed, which
should be distinguished from measures implemented to achieve legitimate
regulatory goals.

Encouraging environmental and social sustainability in trade

We believe trade and environmental policies should be mutually supportive and
contribute to sustainable development and to addressing the triple planetary
crisis of climate change, biodiversity loss and pollution, whilst promoting a
free and fair multilateral rules-based trading system.

Trade and the WTO have a vital role to play in addressing the global
environmental crises. Therefore, we support WTO deliberations on trade and
environment including plurilateral initiatives, such as those promoting and
facilitating trade in goods, services and technologies that help meet our
climate and other environmental goals, or fighting plastic pollution. We
encourage WTO Members to join the Trade and Environmental Sustainability
Structured Discussions (TESSD) to actively contribute to the development and
implementation of climate-friendly trade policies in line with the objectives of
the Paris Agreement. At the same time, we reaffirm that measures to combat
climate change and environmental degradation should be in line with our
international commitments. We will provide transparency and predictability and
we will pay attention to the needs of businesses including MSMEs facing capacity
constraints, in the design and implementation of such measures. In this regard,
we will cooperate, to the extent possible, to ensure international consistency
of methodologies for measuring embedded emissions.

We will continue to explore ways to address trade barriers in environmental
goods and services. We underscore that trade in sustainably-produced
environmental goods and services can contribute to the transition to a net-zero 
carbon economy by enhancing access to renewables and low-carbon technologies,
improving resource and energy efficiency, and promoting more environmentally
sustainable alternatives.

We recognize the importance of providing adequate support to least developed
countries and developing countries in need in order to help their national
transition towards net-zero, circular, climate-resilient, pollution-free, and
nature-positive development, including by expanding new opportunities in value
chains arising from that transition.

We acknowledge that our trade policies, as well as public and private
investments will play a major role in achieving common goals of addressing the
climate crisis and accelerating the global clean energy transition. In this
context, we will strive to cooperate openly and transparently reflecting our
Leader’s commitment not to act at each other’s expense.

We recall the G7 Trade Ministers’ Statements in October 2023 and September 2022
as well as the G7 Trade Ministers’ Statement on Forced Labor in October 2021,
and reiterate our concern of the use of all forms of forced labor and child
labor in global supply chains. We agree on the importance of upholding human
rights and of international labor standards in global supply chains. We recommit
to taking measures to strengthen our cooperation and collective efforts towards
eradicating the use of all forms of forced labor and child labor in global
supply chains, including through measures that promote corporate due diligence,
and will work to further enhance predictability and certainty for businesses.

Enhancing economic resilience and economic security

Following up on the commitments taken by our Leaders in Hiroshima and in Apulia,
we remain determined to promote economic resilience and economic security, in
partnership and cooperation within and beyond the G7. In particular, we are
enhancing economic resilience including through building resilient and reliable
supply chains, enhancing our toolkits to deter and respond to harmful practices,
including economic coercion, and safeguarding critical and emerging technology
that could be used to threaten international peace and security.

Recognizing that economic resilience requires de-risking through diversification
and reduction of critical dependencies, including those resulting from
non-market excess capacity, in line with the “principles on resilient and
reliable supply chains”, we are actively engaging with partners and the private
sector to make coordinated efforts to strengthen the supply chains resilience
and sustainability of strategic goods in terms of both supply and demand and
preserve economic dynamism and openness. We will contribute, as appropriate, to
collective work on identification of critical goods, strategic sectors, and
supply chains, for future coordination within the G7 on relevant criteria that
take into account not only economic factors, but also factors linked to the
principles above.

We acknowledge that non-market policies and practices not only undermine the
free and fair rules-based international economic order, but may also exacerbate
strategic dependencies and vulnerabilities, and hinder emerging and developing
countries’ sustainable development. Therefore we reiterate the importance of
implementing the Leaders’ commitment to address, via strengthened cooperation,
harmful market distortions and non-market excess capacity in key sectors
resulting from non-market policies and practices. Our contributions to the
forthcoming G7 efforts to jointly monitor non-market policies and practices as
well as to exchange information and consult on respective responses, as guided
by G7 Leaders, will bolster this cooperative effort. We will support diplomatic
efforts with those contributing to overcapacity to address the issue at its
source, while intensifying engagement with developing countries and emerging
markets on our shared concerns on these practices.

We will continue to increase our capacity to monitor and exchange information on
the use of export controls on critical minerals as a potential threat to our
economic security and we are determined to work to prevent risks of supply chain
disruptions. We are working to advance high international environmental, social,
and governance (ESG) standards for critical minerals extraction, refining and
processing, and investments. In this regard, we will support local value
creation in critical minerals supply chains in line with WTO rules. In this
spirit, we will accelerate coordinated initiatives on critical minerals and
relevant supply chains, including the Minerals Security Partnership (MSP) and
its Forum.

Echoing G7 Leaders, we call on all countries to refrain from using economic
coercion and condemn any attempt to weaponize economic dependencies. We are
working together with partners to ensure that such attempts or corresponding
threats will fail, and stand ready to take actions, where necessary, against
economic coercion. To this end, we are monitoring areas of concern and key
threats and we will address potential, emerging, and ongoing cases, including
through the G7 Coordination Platform on Economic Coercion, and cooperating with
partners beyond the G7.

We are increasing our collective assessment, preparedness, deterrence, and
response to economic coercion, including threats of coercive measures, by
developing new tools, as appropriate, in line with our respective legal systems
and international law. We will also support, again as appropriate, targeted
states, economies, and entities and will conduct outreach activities to raise
awareness and to increase collaboration, including to support their efforts to
reduce dependencies. When necessary and appropriate, we will seek collective
engagement in pertinent multilateral fora, such as the OECD and the WTO.

Recognizing that evolving technologies present both opportunities and risks and
that rapid advances are changing the nature of dual-use technology, we will
promote efforts to ensure that potential gaps in our dual-use technology
protection ecosystem cannot be exploited. We will ensure that our tools are
sufficiently flexible to keep pace with the rapid development of new
technologies while avoiding undue restrictions on international trade and
investment.

We will continue to assess the risks posed by exports of rapidly advancing
dual-use technologies, including quantum technologies, and will promote efforts,
where necessary and according to our respective legal frameworks, to implement
export controls to address risks to international security. We will also work,
as appropriate, with our partners to further develop the understanding of how
export controls can be implemented quickly and in an assured manner to protect
national and international security.

We will continue to work to ensure the effectiveness of our respective foreign
investment screening, recognizing that some foreign investments may present
risks to international peace and security as well as national security,
including by providing access to sensitive technologies, data, and expertise.

We continue to work to make our economic security toolkit fit to address the
risks that our most sensitive technology could be used to threaten international
peace and security.  We believe that appropriate measures designed to address
risks from outbound investments could be important to complement existing tools
of targeted controls on exports and inbound investments. We will continue to
engage with and provide clarity to the private sector regarding these common and
urgent goals.

Recognizing the impact of AI on international trade, including trade
facilitation and enforcement we stress our commitment to pursuing an appropriate
balance between realizing the benefits of AI on trade and mitigating its risks,
consistently with a human-centered digital transformation.

Closing remarks

We, the G7 Trade Ministers, reaffirm our commitment to continuing our close
cooperation and collaboration regarding challenges facing international trade,
and look forward to further discussions under the Canadian Presidency in 2025.

 * Tags:
 * Diplomazia Economica
 * G7
 * Ministro

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