Strengthening the Global Trade and Investment System for the 21st Century E15 Full Thematic ...

536 Pages·2016·28.6 MB·English

Strengthening the Global
Trade and Investment
System for the 21st Century
E15 Full Thematic Policy
Options
Policy Options Papers
E15
The Initiative
STRENGTHENING THE GLOBAL TRADE AND
INVESTMENT SYSTEM FOR SUSTAINABLE DEVELOPMENT
Acknowledgements
E15Initiative Co-Conveners
Ricardo Meléndez-Ortiz, Chief Executive, ICTSD
Richard Samans, Managing Director and Member of the Managing Board,
World Economic Forum
E15 Knowledge Manager
Harsha Vardhana Singh, Senior Associate for Strategic Research and Policy
Analysis, ICTSD
E15 Managers
Marie Chamay, E15 Senior Manager, ICTSD
Sean Doherty, Head, International Trade & Investment, World Economic Forum
E15 Editor
Fabrice Lehmann, ICTSD
E15 Programme Officers
Rashmi Jose, Programme Officer, E15Initiative, ICTSD
Kate Ziemba, Junior Programme Officer - Communications, E15Initiative, ICTSD
E15 Joint Project Team
ICTSD World Economic Forum
Ahmed Abdel Latif Francesca Bianchi
Vinaye dey Ancharaz Katarina Hruba
Christophe Bellmann Cristian Rodriguez Chiffelle
Kimberley Botwright Aditi Sara Verghese
Shuaihua Cheng
Sofie H. Flensborg
Jonathan Hepburn
Ingrid Jegou
Anne-Katrine Pfister (2012–13)
Miguel Rodriguez Mendoza (2012–13)
Sherry Stephenson
Alice Tipping
Petra Walterova (2012–13)
Marie Wilke (2012)
Vivienne Blyth-Moore
With the support of
ICTSD’s Core and Thematic Donors:
©ICTSD and World Economic Forum®, 2016. Readers are
encouraged to quote this material for educational and non-
profit purposes, provided the source is acknowledged. This
work is licensed under the Creative Commons Attribution-
Non-commercial-No-Derivative Works 3.0 License. To
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Commons, 171 Second Street, Suite 300, San Francisco,
California, 94105, USA.
ISSN 2313-3805
REF 281215
E15 Knowledge Partners:
Center for
International
Development
at Harvard University
Note on the E15Initiative and this Volume
Jointly implemented by the International Centre for Trade and Sustainable
Development (ICTSD) and the World Economic Forum, the E15Initiative was
established to convene world-class experts and institutions to generate a
credible and comprehensive set of policy options for the evolution of the global
trade and investment system. In collaboration with 16 knowledge partners,
the E15Initiative brought together more than 375 leading international experts
in over 80 interactive dialogues grouped into 18 themes between 2012-2015.
Approximately 150 overview papers and think pieces were commissioned and
published in the process.
This full volume of policy options papers covering all topics examined by the
E15Initiative is complemented with a synthesis report that consolidates the
options into overarching recommendations for the international trade and
investment system for the next decade. The second phase of the E15Initiative will
see direct engagement with policy-makers and other stakeholders to consider
the implementation of E15 policy recommendations.
For more information on the E15Initiative: www.e15initiative.org
Published by
International Centre for Trade and Sustainable Development (ICTSD)
7 Chemin de Balexert, 1219 Geneva, Switzerland
Tel: [phone] – E-mail: [email protected] – Website: www.ictsd.org
Publisher and Chief Executive: Ricardo Meléndez-Ortiz
World Economic Forum
91-93 route de la Capite, 1223 Cologny/Geneva, Switzerland
Tel: [phone] – E-mail: [email protected] –
Website: www.weforum.org
Co-Publisher and Managing Director: Richard Samans
Policy Options for a Sustainable Global Trade and Investment System
Participating Experts and other Substantive Contributors
The E15Initiative organizers wish to thank the authors of the policy options papers presented in this volume as well as all
the experts who participated in the project. These experts, conveners, and contributors have been the brain trust behind
the E15 enterprise and the engine of the initiative’s success.
Roderick Abbott Liam Campling Sékou Falil Doumbouya
Ahmed Abdel Latif Burcu Can Jane Drake-Brockman
James Abraham Jim Cannon Peter Draper
Rudolf Adlung Otaviano Canuto Margareta Drzeniek-Hanouz
Manzoor Ahmad Antonio Capobianco Memory Dube
Usman Ahmed Jean-Guy Carrier Jeffrey Dunoff
Grant D. Aldonas Antonia Carzaniga Cédric Dupont
Peter Allgeier Olivier Cattaneo Mark Dutz
Jose Alvarez Julien Chaisse Dorothy Dwoskin
Scott Andersen Ramesh Chaitoo Jappe Eckhardt
Robert Anderson Anupam Chander Lorraine Eden
Emilie Anér Steve Charnovitz Kimberly Ann Elliott
Pol Antràs Bipul Chatterjee Manfred Elsig
Jean-Louis Arcand Sudip Chaudhuri Alice Enders
Mehmet Arda Song Chen Sean F. Ennis
Jean-Yves Art Shuaihua Cheng Dieter Ernst
Christer Arvíus Jung-Hee Cho Ana Escobedo
Frank Asche Aimee Christensen Ilaria Espa
Ken Ash Dan Ciuriak Joan Esteban
Nick Ashton-Hart Peggy A. Clarke Antoni Estevadeordal
Bosco Astarloa Cary Coglianese John Evans
James Bacchus Terry Collins-Williams Simon Evenett
Rob Bailey Jake Colvin Magdi Farahat
Richard Baldwin John Arthur Cooke Mark Feldman
Rubens Barbosa Marie-Claire Cordonier Segger Christopher Findlay
Véronique Bastien Aaron Cosbey John Fingleton
Christophe Bellmann Thomas Cottier Carsten Fink
Daniela Benavente Beatrice Crona Sofie H. Flensborg
Rafael Benke Andrew Crosby Eleanor M. Fox
George A. Bermann Daniel Crosby Sven Frisch
Johannes Bernabe John M. Curtis Henry Gao
Nathalie Bernasconi-Osterwalder Uri Dadush Gabriel Gari
Debapriya Bhattacharya Carsten Dannöhl Padmashree Gehl Sampath
Francesca Bianchi Kasturi Das Damien Geradin
Brian Bieron Jayant Dasgupta Michael Gestrin
Sadeq Bigdeli Gillian Davidson Joseph Glauber
Fikremarkos Merso Birhanu John Davies Ernesto Godelman
Lara Birkes Pedro de Camargo Neto Hernando José Gómez
David Blandford Jaime de Melo Anabel González
Jan Bohanes Paolo de Sa Carlos Grau Tanner
Thomas Bollyky Carolyn Deere Birkbeck Nicolle Graugnard
Nicola Borregaard Fabian Delcros Michael Grubb
Gabriel Bottini Rosa Delgado Francesca Guadagno
Kimberley Botwright Gérard Depayre Moustapha Kamal Gueye
Carlos Primo Braga Henry Derwent Patrick Guillaumont
Jennifer Brant Melaku Desta Pierre Habbard
Thomas Brewer Robert Devlin Christian Häberli
Peter Brun Vinaye dey Ancharaz Khalil Hamdani
Mathes Buhbe Michele Di Maio Stuart Harbinson
Jean Christophe Bureau Eugenio Diaz-Bonilla Jeremy T. Harris
William Burke-White Sean Doherty Ann Harrison
Mira Burri Müge Dolun David Hartridge
James Cameron Shaun Donnelly Milton Haughton
Policy Options for a Sustainable Global Trade and Investment System
Ricardo Hausmann David Lewis Kenichi Ohno
Jennifer Haverkamp (2014) Beatriz Leycegui Gardoqui Marcelo Olarreaga
Sean Heather Luping Li Federico Ortino
Jonathan Hepburn Justin Yifu Lin Maika Oshikawa
Nicholas Hodac Douglas Lippoldt Shotaro Oshima
Anthony Hodge Alejandro Litovsky Habib Ouane
Bernard Hoekman James Lockett Jorge Padilla
Gary Horlick Guoqiang Long Maria del Pilar Pardo
Henrik Horn Patrick Low Gloria Pasadilla
Rupert Howes David Luff Joost Pauwelyn
Robert Howse Susan Lund Mark Pearson
Katarina Hruba Alexander Malaket Ulf Pehrsson
Yanzhong Huang Tabitha Mallory Carlos Pérez del Castillo
Gary Clyde Hufbauer Nikolai Malyshev Eduardo Pérez Motta
Nicolas Imboden Abdel-Hamid Mamdouh Annie Petsonk
Hiroyuki Ishige Shunsuke Managi Pierre Pettigrew
Lorenza Jachia Marcello Manca Amy Porges
Selina Jackson Howard Mann Bev Postma
Merit E. Janow David Manning Tatiana L. Prazeres
Alejandro Jara James Manyika Hassan Qaqaya
Sébastien Jean Mario Mariniello Reinhard Quick
Ingrid Jegou Keith Maskus Isabelle Ramdoo
Frédéric Jenny Susan Mathews Imanol Ramírez
J. Bradford Jensen Aaditya Mattoo Bill Reinsch
Veena Jha Mario Matus Magnus Rentzhog
Christine Jojarth Andreas Maurer Sandra Rios
Emily Jones Petros C. Mavroidis Ángel Alberto Rivera Benavides
Rashmi Jose Stephen Mbithi Mwikya Yose Rizal
Timothy Josling Karen McCabe Cristian Rodriguez Chiffelle
Anna Joubin-Bret Kevin McKinley Miguel Rodríguez Mendoza
Sharmila Kantha Pradeep S. Mehta Githa Roelans
Konstantinos Karachalios Udai S. Mehta Pedro Roffe
Rohan Kariyawasam Ricardo Meléndez-Ortiz Cathy Roheim
Jonas Kasteng Joshua P. Meltzer Sonia E. Rolland 
Céline Kauffmann Bryan Mercurio Osvaldo Rosales
Gabrielle Kaufmann-Kohler Patrick Messerlin Barbara Rosenberg
Tsuyoshi Kawase Seth Meyer Jodie Roussell
Fujio Kawashima Sébastien Miroudot Jayanta Roy
Alexander Keck D.K. Mittal Luca Rubini
Matthew Kennedy Kazuaki Miyagishima Charles F. Sabel
Nathaniel Keohane Rodrigo Monardes Kamal Saggi
Pascal Kerneis Raul Montemayor José Manuel Salazar-Xirinachs
Christophe Kiener Corinne Montineri Richard Samans
Meg Kinnear Theodore H. Moran Kaare Sandholt
Jane Korinek Tyler Moran Maximiliano Santa Cruz Scantlebury
William Kovacic Anna Caroline Müller André Sapir
Rubén Kraiem Sophia Murphy Karl P. Sauvant
Katrin Kuhlmann Darlington Mwape Pierre Sauvé
Pranav Kumar Junji Nakagawa Akihiro Sawa
Maki Kunimatsu Michitaka Nakatomi Stephan W. Schill
Willem-Jan Laan Rafael Nava y Uribe Hubert Schillinger
Jean-François Lambert Damien Neven Josef Schmidhuber
Frans Lammersen Richard Newfarmer Carl-Christian Schmidt
François-Charles Laprévote Hongxing Ni David Schorr
Robert Z. Lawrence Jaime Andrés Niño Tarazona Mark F. Schultz
Vinhcent Le Hildegunn Nordås Yulia Selivanova
Rafael Leal-Arcas Håkan Nordström Sourabh Sen
Timothy Lear Ana Novik Shree Baboo C. Servansing
Bernice W. Y. Lee Irmgard Nübler Gregory Shaffer
Keun Lee Dick Nyeko Wenhua Shan
Xiaodong Lee Herbert Oberhänsli Jingxia Shi
Hosuk Lee-Makiyama José Antonio Ocampo Harsha Vardhana Singh
Audun Lem John S. Odell Babajide Sodipo
Policy Options for a Sustainable Global Trade and Investment System
Marta Soprana Members of the E15 Steering Board
Renaud Sorieul
Muthucumaraswamy Sornarajah The E15 Steering Board provides
Selina Stead overall strategic advice and guidance,
Ronald Steenblik reviews progress, and makes
Debra Steger recommendations for future evolution.
Sherry M. Stephenson
Andrew Stoler Jonathan Fried
Jessica Su Ambassador and Permanent
Surya P. Subedi Representative of Canada to the WTO
Mahesh Sugathan
U. Rashid Sumaila Paul Polman
Xinhua Sun Chief Executive Officer, Unilever
Kati Suominen
Datuk M. Supperamaniam Nils Smedegaard Andersen
Alan O. Sykes Group Chief Executive Officer, A.P.
Amadou Tall Møller-Maersk A/S
Akihiko Tamura
Stefan Tangermann Mark Weinberger
Antony Taubman Global Chairman and Chief Executive
Mariana Tavares de Araujo Officer, EY
Robert Teh
Ellen Terpstra Ernesto Zedillo
Vera Thorstensen Director, Yale Centre for the Study
Julia Tijaja of Globalization (former president of
Alice Tipping Mexico)
Terri Toyota
Pilar Trivelli Richard Samans
Xinquan Tu Managing Director and Member of the
Debra Valentine Managing Board, World Economic
Guillermo Valles Galmés Forum
Harro van Asselt
Frank van Tongeren Ricardo Meléndez-Ortiz
Scott Vaughan Chief Executive, International
Brendan Vickers Centre for Trade and Sustainable
David G. Victor Development
Jorge E. Viñuales
Tancrède Voituriez
Christian Volpe Martinicus
Martin von Lampe
Xiaodong Wang
Rolf H. Weber
John Weiss
Reinhard Weissinger
David Weller
Erik Wijkström
Rorden Wilkinson
L. Alan Winters
Robert Wolfe
Alan Wolff
Jan Woznowski
Ho-Mou Wu
Mark Wu
Alan Yanovich
Yang Yao
Tan Sri Michael Yeoh
Margaret Young
Jaime Zabludovsky
James Zhan
Naigen Zhang
Hong Zhao
Longyue Zhao
Policy Options for a Sustainable Global Trade and Investment System
Contents
Introductory Note
Agriculture and Food Security
Clean Energy Technologies
Climate Change
Competition Policy
Digital Economy
Extractive Industries
Finance and Development
Fisheries and Oceans
Functioning of the WTO
Global Value Chains
Industrial Policy
Innovation
Investment Policy
Regional Trade Agreements
Regulatory Coherence
Services
Subsidies
Policy Options for a Sustainable Global Trade and Investment System
Introductory Note
The policy options papers presented in this volume are the result of a collective process involving 14 thematic Expert
Groups, three horizontal Task Forces, and an overarching theme looking at the global trade and investment architecture,
involving consultations with hundreds of thinkers and policy-makers. Each group has engaged on a broad range of
trade-related subjects. The groups were comprised of 20–30 experts—including academics, intergovernmental and
non-governmental organization representatives, business representatives, practitioners in international trade law, former
diplomats and policy-makers—reflecting a wide range of perspectives and geographies.
Given the cross-cutting nature of many of the issues, analyses, and recommendations, the papers have been ordered
alphabetically by theme. However, they can loosely be categorized under the headings below.
New Economy Global Supply Sustainability System Reform Development
Networks
Clean Energy Competition Policy Agriculture & Food Functioning of the Finance &
Technologies Security WTO Development
Digital Economy Global Value Chains Climate Change Global Trade Industrial Policy
& Investment
Architecture*
Innovation Investment Extractive Industries Regional Trade
Agreements
Services Regulatory Coherence Fisheries & Oceans Subsidies
* To be released in late 2016
Building on their empirical insights and theoretical knowledge, the experts have outlined ideas and strategies for
strengthening the global trade and investment system for sustainable development. The groups had three specific and
sequenced objectives:
1. Explore and provide in-depth understanding of current and emerging 21st century challenges and opportunities within
their theme;
2. Assess the adequacy of the global trade and investment system, including the WTO, to respond to these challenges
and opportunities; and
3. Identify and suggest policy options for enhancing the ability of the global trade and investment system to better respond
to emerging challenges and promote opportunities.
To fulfil this mandate, the groups met 2–3 times in different venues for formal meetings and deliberations. Through the
convening power of ICTSD and the World Economic Forum, the E15Initiative gave these world-class experts a forum to
discuss pressing issues, develop original thinking, and identify forward-looking policy options. As conveners, ICTSD and the
Forum selected the leadership within each group, including a Theme Leader and a Knowledge Partner—an institution or
organization globally recognized for its expertise and leadership in the theme.
In addition to formal meetings and informal exchanges, the Expert Groups and Task Forces commissioned succinct Think
Pieces, mostly authored by group members, on select issues that were considered to deserve additional in-depth analysis,
and designed to feed into the dialogue process towards formulating policy options. Outside experts from government,
business, and civil society were also invited on occasion to enrich and help validate the ideas.
Policy Options for a Sustainable Global Trade and Investment System
The Theme Leaders prepared the policy options papers on behalf of their Expert Group or Task Force. The papers were
distributed internally for thorough group review. The accompanying Note to the papers makes clear that the options do not
represent full consensus given the wide variety of views and the at times contentious nature of the matters at hand.
As Ricardo Meléndez-Ortiz and Richard Samans indicate in the foreword to this volume, the options come in many
forms and cover a broad range of issues. A key variable behind many of the options is political feasibility—concrete
recommendations that can be implemented in the short to medium term. However, in view of its mission as a strategic
project with a vision, the E15Initiative has also encouraged the generation of proposals of a more aspirational and systemic
nature to be considered over a longer time horizon—“North Stars” worth striving towards that may animate discussions on
the improved governance of international trade and investment over the coming years.
The papers all recognize the need to ensure that trade and investment policy frameworks advance sustainable
development and that multilateral progress in recent years has been slow. However, the assessments vary between groups,
some leaning towards a market efficiency approach and others focusing more explicitly on public goods and developmental
constraints. Moreover, the papers cover diverse priority areas of relevance to countries at different levels of development.
Additionally, while the multilateral trade regime governed by the WTO gathers the attention of much of the policy insights
and recommendations, the global trade and investment system is explored across its multiple institutions and layers—from
plurilateral to regional and unilateral rule-making as well as informal networks and non-state initiatives. One consideration
that virtually all papers bring to the fore—in a world characterized by growing economic interlinkages and sustainability
imperatives—is the need for greater coordination and reciprocal engagement between the trade community and outside
constituencies, regulatory authorities, policy communities, and regimes.
The papers are structured in similar fashion. Following an introduction and background analysis, the policy options are
presented under specific headings, areas for reform, or work programmes. Where appropriate, suggestions concerning the
implementation process are outlined. The main options are ordered in a summary table found in annex to the papers. The
Expert Group and Task Force members are also listed in annex.
The E15Initiative has brought together some of the best minds in the world to critically engage on the intricate issues
surrounding the governance of international trade and investment in a newly emerging global economic landscape. The
resulting policy options offered for consideration in this volume are relevant to policy-makers and stakeholders, including the
business community, from developed and developing countries. Their purpose is to work towards strengthening the global
trade and investment system in a manner that is responsive to new demands and advances sustainable development.
Policy Options for a Sustainable Global Trade and Investment System
Agriculture and Food Security:
New Challenges and Options
for International Policy
Policy Options Paper
E15
The Initiative
STRENGTHENING THE GLOBAL TRADE AND
INVESTMENT SYSTEM FOR SUSTAINABLE DEVELOPMENT