WTO Report on G20 Trade Measures

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Introduction; Recent economic and trade developments

1. The Report reviews trade and trade-related measures implemented by G20 economies from mid-October 2023 to mid-October 2024 (the “review period”), a time of heightened geopolitical tensions when threats to trade flows are fueling general instability of the world economy. (p. 5) 
2. The volume of world merchandise trade expanded in 1H 2024, up 2.3% year on year following a 1.1% decline in 2023 due to inflation, rising interest rates, and lingering effects of high energy prices; merchandise trade is expected to grow 2.7% in 2024 and 3.0% in 2025, supported by falling inflation and cuts to interest rates - a slightly upgraded forecast for 2024 and a slight downgrade for 2025. (p. 8, Chart 2.1) 

3. Two key differences between current and previous forecasts are: 1) Europe is expected to see weaker than estimated trade growth, and 2) Asia is expected to have stronger than expected growth, making the world’s biggest contribution to import demand; the global economy continues to improve, with differences across countries and regions. (pp. 8-10, Charts 2.2-2.3)

Trade and trade-related policy developments

1. 627 trade and trade-related measures were recorded for the G20 economies, excluding Covid-related measures, comprising 305 trade remedy initiations, 90 trade remedy terminations, 141 trade-facilitating measures, and 91 other trade measures, in total covering over US$2 trillion in trade; import and export-restrictive measures implemented covered US$828.9 billion in trade, up from US$246.0 in the previous year. (pp. 16-17 and 22; Charts 3.1-3.2) 
2. 141 new trade-facilitating measures were introduced, covering US$1,069.6 billion in trade; 80.1% were import-facilitating, comprising reductions and eliminations of import tariffs and easing of customs procedures and quantitative restrictions, covering US$949.7 billion of merchandise imports or 5.19% of G20 imports and 3.82% of world merchandise imports, up significantly year-on-year, mostly relating to mineral fuels and oils and electrical machinery and parts; 19.9% were export-facilitating, including eliminating quantitative restrictions and reducing export duties, covering US$119.9 billion or 0.67% of G20 merchandise exports or 0.49% of world merchandise exports, a massive increase from the previous year, related mostly to vehicles and their parts. (pp. 17-19; Tables 3.1-3.2; Chart 3.3)  
3. G20 economies took 395 trade remedy actions, accounting for 63% of all measures recorded, with anti-dumping the most frequent, accounting for 78.0% of all initiations and 94.4% of all terminations; most trade remedy investigations focused on electrical machinery and parts and iron and steel; trade remedy investigations initiated covered approximately US$98.1 billion, or 0.54% of G20 merchandise imports and 0.39% of world imports; terminations were valued at US$6.4 billion, or 0.035% of the value of G20 merchandise imports or 0.026% of world imports. (pp. 19- 20; Tables 3.3-3.4; Chart 3.4) 
4. 91 other trade-related measures were recorded, representing 14.5% of the total measures, with 68 on the import side covering US$598.1 billion, or 3.27% of G20 merchandise imports and 2.4% of world imports – measures included increases in import tariffs and stricter import procedures and quantitative restrictions – and 22 on the export side covering US$230.8 billion or 1.3% of G20 merchandise exports or 0.9% of world exports – mostly quantitative restrictions. (pp. 20-22; Tables 3.5-3.6; Chart 3.5) 

5. Export restrictions have increased significantly since 2020 as a result first of Covid and then the Ukraine war and food security crisis; import restrictive measures mainly affected mineral fuels and oils, machinery and mechanical appliances, motor vehicles and parts, and electrical machinery and parts; export-restrictive measures covered motor vehicles and parts, mineral fuels and oils, and pharmaceuticals. (pp. 20-22; Tables 3.5-3.6) 
6. The number of G20 import restrictions in force since 2009 has grown steadily, in 2024 estimated to cover US$2,328 billion in trade, representing 12.7% of total G20 imports and 9.4% of global imports; since the beginning of Covid, WTO members introduced 461 Covid trade and trade-related measures affecting goods, of which 182 were G20 measures, 106 of which were trade-facilitating and 76 of which were trade-restrictive; during the review period, 1 of these measures was extended and 13 were terminated; most of the trade-facilitating measures related to imports (reducing or eliminating tariffs on medical and health products) while the restrictive measures related to exports (export bans or license requirements on health products and food); trade coverage of Covid measures still in force amounted to US$81 billion as of mid-October 2024, down from US$493 billion at the start of Covid. (pp. 23-25; Tables 3.7-3.8; Charts 3.6-3.8) 
7. A large number of export and import-related trade measures on food, feed, and fertilizers were adopted after the February 2022 start of the Ukraine war; such trade measures continue to be adopted but are now linked to climate change, inflationary pressures, and supply-side uncertainty; since 2022, 146 export trade-restrictive measures were introduced on agricultural commodities; during the review period, 20 new export restrictions were identified, including 8 by G20 economies; 70 restrictions, including export bans, quotas, duties, and licensing requirements are currently in force; trade coverage of export restrictions still in place is US$11.8 billion, down from US$29.6 billion as of the last report. (pp. 25-27; Chart 3.9) 
8. Since 2022 116 import-facilitating measures on agricultural products have gone into place, of which 18 came into effect in the past year, including 11 from G20 economies; 51 import-facilitating measures, including import tariff reductions, import quotas increases, introductions of tariff-rate quotas, exemptions from value-added taxes, and lifting of import permit requirements, remain in place covering US$60 billion in trade, down from US$82.9 billion last year; during the review period several trade and trade-related measures have been introduced citing national security as a justification; these measures cover only 0.2% or US$79.6 billion of world trade. (pp. 25-27; Chart 3.9) 
9. The report reviews trade remedies used by G20 economies from July 2022 to June 2024; initiation of anti-dumping (AD) and countervailing duty (CVD) investigations by G20 economies has increased significantly in the most recent six-month period (January-June 2024) compared to the previous six-month period, with AD actions the most numerous, increasing by 47% period on period and more than doubling on a year-on-year basis; measures applied are likely to increase in the coming years; most investigations focused on chemicals, metals, machinery, and plastics. (pp. 27-29; Table 3.9, Chart 3.10) 
10. CVD investigations initiated by G20 economies also increased in the most recent periods measured, with 52 from July 2023 to June 2024 compared with 12 from July 2022 to June 2023; over the 24 months of the review period, 21 countervailing measures were applied by G20 economies focused on metal and chemical products and machinery; between 2008 and June 2024, 70% of all G20 AD and CVD involved products from other G20 economies, with China the most frequently targeted, followed by South Korea. (pp. 29-30; Table 3.10, Chart 3.11) 
11. Safeguard measures are temporary measures applied in response to increased imports of goods causing serious injury, applied on products from all sources; safeguards follow different rules so are not directly comparable to AD and countervailing duty actions; the safeguard activity of G20 economies remains low in historical terms. (pp. 30-31; Table 3.11; Chart 3.12) 
12. This report covers sanitary and phytosanitary (SPS) transparency-related matters from 1 October 2023 to 30 September 2024; G20 economies account for 63% of total regular SPS notifications and 36% of emergency notifications between 1995 and 2024; during the review period, Brazil, Canada, the EU and Japan were among the top 10 WTO Members who submitted the most notifications, accounting for 62%; the objective most frequently identified in the SPS measures was food safety, accounting for 68% of all notifications; specific trade concerns (STCs) measures maintained by G20 economies are often discussed in the SPS Committee – including 94% of STCs in the review period and 79% since 1995; STCs relate to food safety, animal health and welfare, and plant health, among others. (pp. 32-35; Chart 3.13; Table 3.12) 

13. G20 economies are the most frequent users of the Technical Barriers to Trade (TBT) Committee’s transparency mechanisms, with 40% of all TBT notifications since 1995, and 32% in the review period; most new TBT notifications submitted by G20 economies cited human health or safety as their main objectives; the top five notifying G20 economies are China, the US, EU, Brazil, and Korea;  STCs are also discussed in the TBT Committee and in the review period, 76% of STCs raised concerned measures maintained by G20 economies, covering a wide range of products, dealing with animal welfare, cybersecurity, deforestation, labelling, and transparency. (pp. 35-37, Box 3.1) 
14. The Committee on Agriculture discussed domestic support measures, export-limiting measures, and market access limitations for agricultural products, especially by Australia, Brazil, Canada, the EU, India, and the US, and import and export restrictions from G20 economies; the OECD database of export restrictions on staple foods catalogues export-restrictive measures like export quotas, showing an increased use of export restrictions during crisis periods; types of export restrictions vary by commodity; the duration and composition of export restrictions on staple crops varied during the three different crisis periods, and only a small proportion of export restrictions lasted less than a month. (pp. 37-40; Box 3.2)  
15. 41 WTO Members offered information on 328 economic support measures implemented, of which 38.7% were made by G20 economies; the number of new economic support measures introduced, like industrial policies, increased over the past year; measures were linked to climate change, the war in Ukraine, supporting agriculture and food sectors, funds and support to automotive manufacturing, as well as aid to transportation, aviation, heath-related activities, women’s and youth empowerment, technological development and innovation, and support to SMEs; the OECD is studying the scope, scale, and impacts of industrial subsidies; government support varies significantly by sector; the role of state enterprises as both recipients and providers of government support underscores the need for greater transparency on government investment in firms; the Global Trade Alert is studying the trend toward greater adoption of industrial policies, finding variation in stated objectives for industrial policies, policy mixes adopted, and products targeted. (pp. 40-45, Boxes 3.3-3.4)  
16. The Council for Trade in Goods convened three times during the review period, hearing trade concerns over political tensions, unilateral trade-related environmental measures, industrial policies, US 301 investigations; concerns were related to trade measures like quantitative restrictions, aspects of TBT and SPS measures, tariffs, subsidies, local content requirements, and others; most concerns targeted measures by the EU, China, India, and the US; the Committee on Market Access met twice, hearing 71 concerns, of which 57 were on G20 measures, increasingly related to political tensions and/or unilateral environmental measures. (pp. 47-48) 
17. WTO Members initiated 8 new disputes for dispute settlement, of which 7 concerned measures adopted by G20 economies; panel proceedings of 7 disputes were ongoing, of which 6 concerned measures adopted by G20 economies; panels circulated reports in 5 disputes, all of which concerned measures adopted by G20 economies; in the absence of a functioning Appellate Body, since 2020, parties to 13 disputes have appealed to an alternative appeal mechanism based on arbitration proceedings under Article 25 of the DSU, while 3 have reached mutually agreed solutions notified to the DSB during the review period. (pp. 48-49, Charts 3.14-3.15)
18. The G20 economies account for a major share of current regional trade agreements (RTAs); of the 17 RTAs notified during the review period, 12 included at least one G20 economy; 373 RTAs have been notified to the WTO and are in force, and two-thirds involve at least one G20 economy; most RTAs involving G20 economies include trade liberalization of both goods and services while for some G20 economies, including Argentina, Brazil, Russia, South Africa, and Türkiye, most RTAs involve trade in goods only; most G20 RTAs include other provisions that have an impact on trade, including subsidies, SPS, TBT, dispute settlement, labor and environment; the frequency of these other provisions is greater in RTAs involving G20 economies than in RTAs overall; a key development over the past year has been plurilateral and bilateral instruments relating to critical minerals, many of which involve G20 economies; G20 economies have also advanced other plurilateral initiatives on regulatory rather than market access provisions. (pp. 53-56; Charts 3.16-3.17) 
19. The Trade Facilitation Agreement (TFA) entered into force in 2017 and as of the end of the review period, 159 WTO Members had ratified the agreement; during the review period, the Committee received six TFA notifications from the G20 economies regarding an extension of time to implement, transparency, and Articles 22.1 and 22.2. (pp. 56-57, Chart 3.18)

Policy developments in trade in services

1. During the review period, 50 new measures affecting trade in services were introduced by G20 economies, with a trend towards liberalization and clarification of relevant regulatory requirements and good practices; 40% of the measures are restrictive; around 30% related to horizontal measures with a third specifically impacting mode 3 (commercial presence) and a third impacting mode 4 (movement of natural persons); a fifth of the measures referred to Internet- and other network-enabled services and telecommunications services. (p. 59) 
2. G20 economies updated FDI screening policies to enhance clarity and transparency, while some strengthened their screening mechanisms; six G20 economies adopted new measures relating to data protection and cross-border data flows, while G20 economies also introduced measures pertaining to communication services and digitally enabled services. (pp. 59-60) 
3. In the health sector, four new measures were adopted during the review period, including stricter rules regarding health data transfer introduced by two G20 economies; most measures introduced by G20 economies affecting the supply of services through the movement of natural persons were trade facilitating, reducing barriers to services trade; at the Council for Trade in Services, concerns were raised about measures adopted by some G20 economies, including on cybersecurity and 5G-related measures. (pp. 60-61)

Conclusion

The report, published just before the start of the 2024 G20 Leaders’ Meetings in Brazil, provides a strong indication of the approaches G20 economies are taking towards trade, particularly in goods but also in services.  It is a useful contribution to discussions and negotiations taking place as part of the G20 as well as in other international fora convening before the end of the year. 

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External Resources

• G20 Rio de Janeiro Leaders’ Declaration – Leaders of G20 Economies
• World Trade Report 2023: Re-globalization for a secure, inclusive, and sustainable future – WTO
• Report on G20 Trade Measures (Mid-October 2022 to Mid-May 2023) – WTO 

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