WT/L/989  
 
18 July 2016  
(16-3860)  Page: 1/8  
  Original: English  
 
 G20 TRADE MINISTERS MEETING STATEMENT 
9-10 July 2016, Shanghai 
The following communication, dated 15 July 2016, is being circulated at the request of the 
delegation of China. 
 
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 1. We, the trade ministers of the G20, met on 9-10 July 2016 in Shanghai, China under the chairmanship of H.E. Mr. Gao Hucheng, Minister of Commerce of the People's Republic of China. 
 
2. The global recovery continues, but it rema ins uneven and falls short of our ambition for 
strong, sustainable and balanced growth. Downside risks and vulnerabilities persist. We agree that 
we need to do more to achieve our common object ives for global growth, stability, and shared 
prosperity. Trade and investment should continue to be important engines of global economic growth and development, generating employment , encouraging innovation and contributing to 
welfare and inclusive growth. 
 3. G20 members agree to provide political leader ship by acting with determination to promote 
inclusive, robust and sustainable trade and invest ment growth, which is integral to achieving our 
ambition of 2% additional growth by 20 18 set by G20 Leaders in Brisbane in 2014. 
 4. More broadly, we resolve to step up our e fforts to better communicate the benefits of trade 
and investment openness and cooperation to a wider public, recognizing their important 
contribution to global prosperity and development. We welcome the continuing inputs from relevant international organizations, which have provided strong analytical support to members, 
and from the B20 and T20. 
 Strengthening G20 trade and investment mechanism 
5. In Antalya, G20 Leaders reaffirmed their st rong commitment to better coordinate efforts to 
reinforce trade and investment, asked Trade Minister s to meet on a regular basis, and agreed on a 
supporting working group. We welcome the esta blishment of the G20 Trade and Investment 
Working Group (TIWG), and endorse its Terms of Reference (Annex I). We encourage officials to 
make good use of the TIWG to better support Trade Ministers Meetings and to further strengthen 
G20 trade and investment cooperation.  
Promoting global trade growth 
6. According to the WTO statistics, global trade growth has slowed significantly since 2008, 
from an average of over 7% per annum between  1990 and 2008, to less than 3% between 2009 
and 2015. 2015 marked the fourth consecutive year with global trade growth below 3%. 
 
7. To help address the global trade slowdown, we agree to improve global trade governance 
and remain committed to an open global economy, and will further work towards trade 
liberalization and facilitation. We endorse the G20 Strategy for Global Trade Growth (Annex II). 
Under the strategy, we will lead by example to lower trade costs, harness trade and investment 
policy coherence, boost trade in services, enhance trade finance, promote e-commerce 
development, and address trade and developmen t. We recognize that these activities, by 
promoting trade opening and integration and supporting measures for economic diversification and industrial upgrading will contribute to glob al prosperity and sustainable development. 
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  8. We welcome the World Trade Outlook Indicator released by the WTO for the first time at the 
G20 Trade Ministers Meeting. This can serve as an important leading indicator to help guide the recovery and growth of global trade.  
9. The G20 welcomes further joint work by the WTO, World Bank and OECD, in collaboration 
with other relevant international organisations, within their existing mandates and resources, to measure trade costs and assess the determinants and impacts of those costs, to help improve 
economic trade modelling and strengthen the ev idence base on the link between structural 
measures, trade, investment and GDP.  10. We recognize that the structural problems, including excess capacity in some industries, 
exacerbated by a weak global economic recovery  and depressed market demand, have caused a 
negative impact on trade and workers. We recognize that excess capacity in steel and other industries is a global issue which requires collective responses. We also recognize that subsidies 
and other types of support from governments or government-sponsored institutions can cause 
market distortions and contribute to global exce ss capacity and therefore require attention. We 
commit to enhance communication and cooperation, and take effective steps to address the 
challenges so as to enhance market function and encourage adjustment. The G20 steelmaking 
economies will participate in the global community's actions to address global excess capacity, including by participating in the OECD Steel Committee meeting scheduled for 8-9 September, 
2016 and discussing the feasibility of forming a Global Forum as a cooperative platform for 
dialogue and information sharing on global capa city developments and on policies and support 
measures taken by governments.  
Supporting the multilateral trading system 
11. We reaffirm the central role of the WTO in today's global economy. The WTO provides the 
multilateral framework of rules governing international trade relations, an essential mechanism for 
preventing and resolving trade disputes, and a forum for addressing trade related issues that 
impact all WTO Members. We remain committed to a rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system and are determined to work together to further strengthen the WTO. 
 
12. We note with concern that despite the G20's repeated pledges, the stock of restrictive measures affecting trade in goods and services has continued to rise, with about three quarters of 
the measures recorded since 2008 still in place, and the number of new trade-restrictive measures 
imposed by G20 economies affecting both goods and services has reached the highest monthly average registered since the WTO began its monitoring exercise in 2009. In response, we 
recommit to our existing pledge for both standstill and rollback of protectionist measures, and to 
extend it until the end of 2018. We also commit to improve the track record of notifications related to standstill and rollback efforts, including making better use of existing WTO bodies. We ask the WTO, OECD and UNCTAD to continue, within their respective mandates, their regular reporting on 
restrictive measures affecting trade in goods and services, and investment. 
 13. We note the important role that bilateral an d regional trade agreements (RTAs) can play in 
liberalizing trade and in the development of trade rules, while recognizing the need to ensure that 
they are consistent with the WTO rules and provisions and contribute to a stronger multilateral trading system. We encourage future RTAs by G2 0 members to be open to accession and include 
provisions for review and expansion. We apprecia te the factual overview of RTAs developments 
given by the WTO Director-General. We will work with other WTO Members towards the transformation of the provisional Transparency  Mechanism on RTAs into a permanent one and 
commit to lead by example in fully fulfilling related notification obligations. 
 
14. In Antalya, Leaders emphasized the importance of the prompt ratification and implementation of the TFA. In the current clim ate of continuing moderate economic and trade 
growth, G20 leadership in implementing the TFA could make a significant contribution to lowering 
trade costs and freeing up world trade. We theref ore commit to ratify the TFA by the end of this 
year and call on other WTO Members to do the same. We reaffirm our commitments to providing 
resources to Trade Facilitation assistance mechanisms designed to help least developed countries 
and developing countries most in need in implementing the TFA.  15. Building on the WTO's successful Bali and Na irobi Ministerial Conferences, we commit to 
implement rapidly the Bali and Nairobi outcomes . To guide and shape the WTO's post-Nairobi 
work, with development at its centre, and acknowledging that provisions for special and differential WT/L/989 
 
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  treatment will remain integral, we reaffirm our strong commitment to advance negotiations on the 
remaining DDA issues as a matter of priority, including all three pillars of agriculture (i.e., market access, domestic support and export competition), non-agricultural market access, services, development, TRIPS and rules. We agree to work with all WTO Members to set the direction 
together towards achieving positive outcomes at  MC11 and beyond in a balanced, inclusive and 
transparent way with a sense of urgency and solidarity. We also note that a range of issues, such as those addressed in various RTAs and by the B2 0, may be of common interest and importance to 
today's global economy, and thus may be legitimate issues for discussions in the WTO, without 
prejudice to respective positions relating to possible negotiations in the future. Any decision to launch negotiations multilaterally on such issues would need to be agreed by all Members.  
16. G20 members recognize that WTO consistent plurilateral trade agreements with broad 
participation can play an important role in complementing global liberalization initiatives. In this regard, we note the Information Technology Agreement and its Expansion Agreement, and 
negotiations on the Trade in Services Agreemen t and the Environmental Goods Agreement (EGA). 
WTO Members who share the objectives of participants in such plurilateral agreements and negotiations should be encouraged to join. In particular, we note the confirmation by all G20 
participants in the expanded Information Te chnology Agreement of their commitment to 
implement it without further delay. G20 EGA participants recognize the substantial progress made to date in the negotiations on an Environmental Goods Agreement, and aim to conclude, using best efforts, an ambitious, future-oriented EGA that seeks to eliminate tariffs on a broad range of 
environmental goods by an EGA Ministerial meet ing to be held by the end of 2016, having 
achieved a landing zone by the G-20 Summit in September in Hangzhou, after finding effective ways to address the core concerns of participants. 
 
Promoting global investment polic y cooperation and coordination 
17. Global investment is an engine of economic growth and sustainable development. It should 
contribute to building productive capacity, facilita te wider dissemination of technology, creation of 
employment and, including through Global Value Chains (GVCs), help to connect economies to world trade. Today, however, global investment flows remain well below pre-crisis peak levels. Policy attention and cooperation is required to put investment growth back on track. We welcome 
efforts to promote and facilitate international investment to boost economic growth and 
sustainable development, and agree to take action s in this regard, including promoting investment 
in Low Income Countries (LICs). This in turn should support a recovery of trade growth. We 
commit to maintaining a supportive business environment for investors, and agree to collectively 
play a proactive and catalytic role in this regard.  
18. We value discussions on investment promotion and facilitation, and encourage UNCTAD, the 
World Bank, the OECD and the WTO to advance this work within their respective mandates and work programmes, which could be useful for future consideration by the G20.  
19. With the objective of fostering an open, transparent and conducive global policy 
environment for investment, we endorse the G20 Guiding Principles for Global Investment Policymaking (Annex III). These principles will help promote coherence in national and 
international policymaking and provide greater pred ictability and certainty for business to support 
their investment decisions.  
20. We are committed to ensuring that trade, investment and other public policies, at both 
national and global levels, remain coherent, complementary and mutually reinforcing. We welcome further research and analytical work in UNCTAD, WTO, OECD and the World Bank, in consultation 
with the IMF, within their existing mandates and resources, to identify ways and means to 
enhance coherence and complementarity between trad e and investment regimes. In this context, 
we take note of the B20's recommendation fo r the WTO Working Group on the Relationship 
between Trade and Investment to resume its work. 
 
Promoting inclusive and coordi nated global value chains 
21. We recognize that GVCs, encompassing regional value chains (RVCs), have become an 
important feature of the global economy, and ar e important drivers of world trade. We support 
policies that allow firms of all sizes, including SMEs, in countries of all levels of economic development to participate in and take full advantage of GVCs. In particular, we support policies that encourage greater participation and value addition by business in developing countries, 
particularly in LICs, in GVCs. We will continue to promote responsible business conduct. WT/L/989 
 
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  22. G20 members will continue their efforts to enhance capacity building to promote inclusive 
and coordinated global value chains, and will conti nue to seek to develop and implement initiatives 
to assist developing countries, particularly LICs, and SMEs in the areas that matter most to GVCs. Such initiatives could include appropriate infrastructure, technology support, access to credit, 
supply chain connectivity, agriculture, innovation  and e-commerce, skills training and responsible 
business conduct. Additionally, G20 members with capacity to do so will continue to: assist 
developing countries' and SMEs' ability to adopt and comply with relevant national and 
international standards, technical regulations, and conformity assessment procedures; facilitate 
developing country and SME access to information on trade and investment opportunities, including via increased utilization of information technologies; and provide further information that would help them participate in GVCs and move up the value-chain. We welcome further work, 
within their mandates and resources, by th e ITC, OECD, World Bank and other relevant 
international organizations in this regard.  
Toward the Hangzhou Summit 
23. In a continuing environment of low global  economic growth, the role of the G20 in 
strengthening trade and investment remains vital. We recommend that G20 Leaders consider 
these important issues further at the Hangzhou Summit and we look forward to our leaders' 
instructions on ways to further intensify G20 efforts on trade and investment. We believe firmly that pursuing robust international trade and investment growth can play a vital part in achieving strong, sustainable and balanced growth. 
 
Annex 
I: Terms of Reference of the G20 Trade and Investment Working Group 
II: G20 Strategy for Global Trade Growth 
III: G20 Guiding Principles for Global Investment Policymaking  
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  ANNEX I: TERMS OF REFERENCE OF THE G20 TRADE AND 
INVESTMENT WORKING GROUP 
Objective Trade and investment are vital engines for growth and job creation. However, international trade 
growth remains sluggish and FDI flows have not yet recovered to pre-crisis levels, which are both 
challenges to strong, sustainable and balanced global growth. Accounting for 85% of world GDP and 80% of global trade, the G20 is in a unique  position to address these challenges, through 
more effective policy cooperation and concrete actions. 
 In Antalya, our leaders reaffirmed their strong commitment to better coordinate efforts to reinforce trade and investment, and asked Trade Ministers to meet on a regular basis and agree to 
establish a supporting working group. In order to facilitate deliberations and develop a strong 
agenda on trade and investment issues, the G20 has decided to set terms of reference (ToR) for the TIWG. These define the scope of discussion and the organizational matters of the TIWG and 
will ensure the relevance, consistency and effectiveness of its work. The ToR will also create 
synergies between the TIWG and other work streams and relevant engagement groups.  
This ToR, including modalities, will be reviewed annually at the discretion of the Presidency. 
 Scope of Discussions 
The TIWG may support G20 discussions in the following aspects, including but not limited to: 
 
 To implement the commitments and instructions on trade and investment from previous 
Summits, Trade Ministers Meetings (TMMs) and Sherpa Meetings. 
 To undertake related cooperation on trade and investment taking into account the 
priorities of G20 Presidency. 
 To discuss other trade and investment issues of common interests raised by G20 
members. 
Participants Reflecting the G20 as a member-driven organisation, discussions will take place among members 
but, consistent with other G20 working arrangements, may also include invited guests. 
 
International Organizations (IOs) will be invited to the TIWG meetings, and provide technical support in accordance with their mandate, expertise, and comparative advantages. 
 
TIWG may also engage more directly with relevant stakeholders, including the Business 20, as required. 
 
Modalities 
The TIWG will be chaired by the Presidency and on e co-chair from the Members. The co-chair will 
be nominated by the Presidency, taking into account Members' willingness, and the balance 
between different regions and between developed and developing Members. 
 The TIWG will be convened as required, but not more than three or four times throughout the 
year. 
 The TIWG will report its work to the G20 Sherpa Meetings, TMMs and the G20 Leaders Summits. 
 
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  ANNEX II: G20 STRATEGY FOR GLOBAL TRADE GROWTH 
(SGTG) 
As an integral part of G20's efforts to achieve ou r ambition of 2% additional growth by 2018 set by 
G20 leaders in Brisbane in 2014, and as part of its broader efforts to strengthen global growth and 
to advance the Sustainable Development Goals (SDGs), the following Strategy sets out concrete 
individual and collective actions to this end. The G2 0 endorses the central role of the WTO in global 
trade governance and supports a further strengthening of its functioning. 
 
This Strategy complements the undertakings and commitments set out in the G20 Trade Ministers' Statement, including with respect to standstill and rollback of protectionist measures, trade facilitation, the WTO, other trade agreements, guiding principles for global investment 
policymaking, and promoting inclusive global value chains. 
 Lowering trade costs 
The WTO Trade Facilitation Agreement (TFA), once  implemented, will significantly lower global 
trade costs and positively impact on trade fo r development and the integration of small and 
medium enterprises (SMEs) into global value chains (GVCs). G20 members note the importance of 
individual country actions to address trade costs, and to reduce the time and uncertainty of 
moving goods and services, including by addressing behind the border measures. Individual actions could be reflected through national growth strategies. G20 members are thus committed to further actions on reducing trade costs and encourage all WTO Members to fully implement the 
TFA, which according to projections by the OECD and the WTO has the potential to reduce global 
trade costs by up to 15%. G20 members thank the OECD, WTO and World Bank for their work on monitoring trade costs. G20 members agree that capa city building and technical assistance will be 
critically important to ensure developing countries most in need are able to meet this objective, 
and will continue to support efforts in this regard.  
Harnessing trade and investment policy coherence 
G20 members will ensure our trade, investment and other public policies are complementary and 
mutually reinforcing, including through reforms outlined in our national growth strategies. G20 members recognize the particular importance of GVCs as drivers of global trade and 
investment flows, and commit to adopt policies that support expanded, sustainable and more 
inclusive GVCs, and that encourage greater participation and value addition by business in developing countries. With the aim of identifying and addressing policy inconsistencies or gaps and 
developing suggestions to improve policy coherence, G20 members note the report on the 
relationship between trade and investment co nducted by the WTO, UNCTAD, OECD and World 
Bank, which suggests a number of important policy options for consideration. G20 members 
welcome additional analytical work on those important issues to be conducted in the international 
organizations, within their respective mandates and resources.  Boosting trade in services 
G20 members commit to policies that support an open, transparent, and competitive services 
market. This will facilitate the participation of service providers, especially from developing countries and low income countries, in GVCs, recognizing that this can contribute to a smooth flow 
of goods and services along GVCs and support more efficient production and trade, thereby 
contributing to economic growth and new an d better employment opportunities. G20 members 
agree to consider work on issues that can expand trade in all modes of services, which contribute 
a significant share to most of our domestic ec onomies and international trade across the globe. 
The G20 encourages further analysis by the WTO, OECD and World Bank, within their respective mandates and existing resources, to provide G20 members with a clear picture of the role of service sectors in the overall economy and along su pply chains, their contribution to trade growth 
and economic development, as well as to the achievement of public policy objectives. This 
analytical work by the international organizations will help inform G20 members on policy options likely to improve efficiency, productivity and welfare, while offering the greatest potential 
reduction of trade costs in G20 services markets, taking into account their different levels of 
development.  WT/L/989 
 
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  Enhancing trade finance 
Trade financing gaps hamper trade and economic  growth. Gaps are highest among the poorest 
countries, notably in Africa, developing Asia and Small Island developing states where access to 
know-how and skills in handling trade finance instruments is also a challenge. The G20 takes note of the recommendations included in the study on trade finance and SMEs done by the WTO with 
the support of World Bank, and of existing trade finance facility programs of the multilateral and 
regional development banks. G20 members furthe r note the WTO Director-General's call to 
enhance the availability of trade finance supported by existing multilateral trade finance facilitation 
programmes. 
 
Developing a World Trade Outlook Indicator 
All countries benefit from having better information on the evolving circumstances that impact 
trade and economic growth. The G20 welcomes the release of the WTO's first World Trade Outlook 
Indicator. G20 members expect that the Indicator can provide an "early warning" system for trade, 
giving policy makers and business more real-time information on trade developments that will help them in their trade decision-making and policy design. 
 
Promoting e-commerce development 
In the light of the profound transformation of ec onomic and trade structures triggered by the rapid 
development of digital trade and technology, G20 members agree to deepen discussions and 
cooperation on e-commerce issues. G20 members thank OECD, UNCTAD and WTO for their inputs 
on e-commerce in international trade and related policy matters. G20 members recognize that e-
commerce constitutes an important tool to boost the participation of SMEs in global trade. To provide better access for SMEs and developing countries to digital technology to obtain a greater 
share in its benefits, and to assist in promoting inclusive trade growth, G20 members encourage 
dialogue among governments and businesses to identify the opportunities and challenges in developing e-commerce, and to research and discuss trade-related policy issues, standards and 
patterns. By enhancing conversations, collaboration on policy coherence can be strengthened. 
G20 members take note of the B20's initiative on an Electronic World Trade Platform (eWTP). 
 
Addressing trade and development 
Trade has been a powerful engine for economic development in recent decades. The 2030 Agenda 
for Sustainable Development also highlights the key role trade must play in achieving inclusive 
growth, sustainable development and poverty reduction. Given trade's central role in achieving the SDGs, and building on the G20's previous wo rk on the relationship between trade and 
development, G20 members affirm their commitment s to better leverage trade for development as 
set out in this Strategy, G20 members recognize that facilitating trade and investment will enhance the ability of developing countries and SMEs to participate in and move up the value chain 
in GVCs, and recognize the importance of economic diversification and industrial upgrading in 
developing countries. G20 members recognize the importance of initiatives aimed at broadening the participation of low income countries in RTAs, addressing issues related to availability of trade finance, supporting sound agriculture policies, investment and trade in support of the SDGs, 
facilitating participation in GVCs, promoting responsible business conduct, enhancing trade-related 
skills development, and advancing and sharpening  the Aid-for-Trade initiative. Additionally, 
G20 members will make efforts to take steps to operationalize their commitment under the Addis 
Ababa Action Agenda to "integrate sustainable de velopment into trade policy at all levels". The 
G20 notes the suggestion by some members that  the G20 Trade and Investment Working Group 
(TIWG) study whether there are trade-related step s that could be taken to alleviate the adverse 
impact on low and middle income countries hosting an especially large number of refugees. 
 
Conclusion 
G20 members are confident that, through this strategy as a complement to the undertakings and 
commitments in the G20 Trade Ministers' Statemen t, we can meaningfully promote trade opening 
and integration, thereby contributing to global prosperity and development. The TIWG will 
continue to work closely with relevant G20 work streams to enhance synergy and avoid duplication of work. G20 members also welcome input from the international organizations, and from G20 
engagement partners, in particular the B20 and T20, and will continue to collaborate with them to 
achieve strong, sustainable, inclusive and balanced growth.  
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ANNEX III: G20 GUIDING PRINCIPLES FO R GLOBAL INVESTMENT POLICYMAKING 
With the objective of (i) fostering an open, tr ansparent and conducive global policy environment 
for investment, (ii) promoting coherence in national and international investment policymaking, 
and (iii) promoting inclusive economic growth an d sustainable development, G20 members hereby 
propose the following non-binding principles to provide general guidance for investment 
policymaking. 
 1. Recognizing the critical role of investment as an engine of economic growth in the global economy, Governments should avoid protectionism in relation to cross-border investment. 
 
2. Investment policies should establish open, non-discriminatory, transparent and predictable conditions for investment. 
 
3. Investment policies should provide legal certainty and strong protection to investors and investments, tangible and intangible, including access to effective mechanisms for the prevention 
and settlement of disputes, as well as to enforcement procedures. Dispute settlement procedures 
should be fair, open and transparent, with appropriate safeguards to prevent abuse.  4. Regulation relating to investment should be developed in a transparent manner with the 
opportunity for all stakeholders to participate, and embedded in an institutional framework based 
on the rule of law.  
5. Investment policies and other policies that impact on investment should be coherent at both 
the national and international levels and aimed at fostering investment, consistent with the objectives of sustainable development and inclusive growth. 
 
6. Governments reaffirm the right to regulate in vestment for legitimate public policy purposes. 
 7. Policies for investment promotion should, to maximize economic benefit, be effective and 
efficient, aimed at attracting and retaining investment, and matched by facilitation efforts that 
promote transparency and are conducive for inve stors to establish, conduct and expand their 
businesses. 
 
8. Investment policies should promote and facilitate the observance by investors of international best practices and applicable instruments of responsible business conduct and 
corporate governance. 
 9. The international community should continue to cooperate and engage in dialogue with a view to maintaining an open and conducive policy environment for investment, and to address 
shared investment policy challenges. 
 10. These principles interact with each other and should be considered together. They can serve 
as a reference for national and international investment policymaking, in accordance with 
respective international commitments, and taking into account national, and broader, sustainable development objectives and priorities. 
 
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