Global value chains are an important new reality in the world economy. But can increased GVC activity in developing countries generated by trade facilitation help promote economic, social, and environmental sustainability, as embodied in the UN Sustainable Development Goals? This blog post argues that the answer lies less in trade policy than in a broad set of complementary policies covering environmental and social regulation, as well as human capital development. It also suggests that there are a number of key points for policymakers in designing trade facilitation programmes to promote sustainable development through GVC engagement. Trade is an important means of implementation for the UN Sustainable Development Goals (SDGs), adopted in September 2015. The SDGs take a holistic view of development, including economic, social, and environmental aspects. Although there is no trade goal, and treatment of trade in the accompanying targets and indicators is limited, it remains important for the trade community to look at ways in which sensible trade policy can help promote sustainable development objectives . A key reality of the current trade agenda is the rise of global value chains (GVCs). This new business model relies on narrow niches of specialisation and trading in tasks to fragment...
Written by Ben Shepherd