Implemented jointly by ICTSD and the World Economic Forum , the E15Initiative convenes world-class experts and institutions to generate strategic analysis and recommendations for government, business, and civil society geared towards strengthening the global trade and investment system for sustainable development. The Expert Group on Global Value Chains is co-convened with the Inter-American Development Bank . Global value chains (GVCs) have burst onto the trade policy scene in recent years as a key analytical device. Given their obvious relevance to economic development strategies, there is also substantial interest in applying the analytical lessons to trade negotiations, especially with reference to the WTO. However, perspectives on the developmental impacts of global value chains vary substantially. Similarly, opinion is divided as to the desirability of incorporating the policy agenda associated with the “GVC narrative” into WTO negotiations. Accordingly, we briefly review the meanings of GVCs in relation to the debate over their developmental impacts. We then sketch high level trade policy implications, and conclude with a brief assessment of the implications for negotiations in the WTO. In essence we argue that those countries which wish to proceed with negotiations on the basis of embracing the GVCs agenda should be free to do...
Written by Peter Draper