International trade will be one of the prominent issues on the agenda when Commonwealth leaders meet in Malta between 27 and 29 November.
International trade will be one of the prominent issues on the agenda when Commonwealth leaders meet in Malta between 27 and 29 November, as countries seek ways to respond to urgent global challenges.
Under the theme ‘The Commonwealth – Adding Global Value’, heads of government will gather at the biennial summit to address international priorities including climate change, migration and violent extremism. Their aim is to strengthen cooperation and find solutions to improve the lives of Commonwealth citizens.
And trade will feature heavily: the Commonwealth has consistently championed a fair, inclusive, multilateral trade system that provides opportunities for all member countries, particularly the smallest, poorest and most vulnerable. A fairer, expanded trade system equals better prospects for everyone.
Changing landscape
The international trade landscape is fundamentally changing, and member countries are adapting to new realities. These changes are driven by factors such as the rapidly growing trade of developing countries, increasing interconnectedness through global value chains and rising trade flows through regional arrangements. The urgent need for actions to combat climate change will also have implications for future trade prospects.
Many developing Commonwealth countries, particularly small states, are facing serious challenges arising from certain characteristics such as small domestic markets, remote geographic locations prompting excessive trade costs and the erosion of trade preferences. Consequently, they have experienced a declining share of global trade.
Also, these countries, heavily reliant on commodity exports, are particularly vulnerable to external shocks, including natural disasters. Extreme weather in Dominica and Vanuatu, for example, ripped away infrastructure in an instant, and will take decades to rebuild. Both countries are struggling to recover as a result.
And this is all taking place against the backdrop of an economic slowdown following the 2008 global financial crisis. Growth in trade has been sluggish for several years now.
In the medium to long-term, the outlook, however, remains positive. Trade in the Commonwealth is predicted to rise. This perhaps surprising forecast can be partly attributed to the strength of its association – historical ties, long-established trading relations, use of largely one language and familiar legal and administrative systems – which has helped boost trade and investment flows over the years.
The Commonwealth advantage
The Commonwealth plays a leading role in supporting member countries to manage challenges and speak more forcefully in global trade negotiations. Its Small States Office in Geneva promotes a more inclusive global framework and enhances trade between members.
The Commonwealth Secretariat’s policy work has persistently championed the interests of developing member countries, including small states in areas of regional and multilateral trade. Through its Trade Competitiveness Section, the Secretariat is currently providing technical assistance to 16 member states and implementing 20 projects to boost trade competitiveness. The work secures sustainable market access for priority exports, unlocks the potential of services exports and builds capacity in trade facilitation.
Hub and Spokes
The Commonwealth’s long-term commitment to capacity-building in the trade sector is demonstrated by the success of the Hub and Spokes Programme.
Launched jointly by the European Union, the Commonwealth, the Organisation Internationale de la Francophonie and the ACP Secretariat in 2004, the programme advances sustainable economic development and poverty reduction in African, Caribbean and Pacific (ACP) countries through closer regional integration and increased participation in international trade.
Regional trade advisors (Hubs) provide technical assistance to key regional and national organisations, while national trade advisors (Spokes) are deployed to strengthen the capacity of government ministries.
During the first phase of the project, the Commonwealth Secretariat deployed 60 experts across ACP regions. Hub and Spokes II was launched in July 2012 to help businesses, academic institutions and civil society design, negotiate and implement trade policies and agreements more effectively.
Making progress
In the changing global trade landscape, there are certainly opportunities to be had in capitalising on the strengths of the Commonwealth to unlock trade potential to bring about positive social and economic change.
The countdown to the summit begins.
Commonwealth officials and business representatives present in Malta are set to be on the same page to promote trade as a powerful force for achieving better development outcomes.
The Commonwealth Business Forum, taking place in the run-up to the summit, will serve as a platform for countries to showcase investment opportunities and improve trade. During the Forum, the Commonwealth will launch its new trade report, which provides an in-depth analysis of trade issues relevant to the Commonwealth.
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