China’s Belt and Road policy can foster trade and inclusive growth

The world is facing a backlash against globalization from some of the most advanced economies, while the global trading system undergoes the biggest threat it has ever experienced to its existence.

There have been important efforts to foster some deals and agreements, such as the US-China Comprehensive Economic Dialogue, or the launch of Free Trade Negotiations between Australia and Peru.

Other efforts have promoted deeper regional integration, like the IDB’s study on the viability of a Latin America and Caribbean Free Trade Area.

However, other long-lasting agreements and negotiations have been jeopardized — TPP and NAFTA to name two.

In a context of uncertainty regarding the path of the global trading system, Trade Facilitation Reforms provide an opportunity to speed up global trade.

Multi-stakeholder approach

Trade Facilitation can be defined as policies to reduce transaction costs and create standard efficiencies.

Recognizing that an effective implementation of those reforms requires the involvement both of governments around the world and the private sector, the World Economic Forum, along with other relevant stakeholders, created the Global Alliance for Trade Facilitation.

The Alliance seeks to support trade facilitation efforts measured by actionable data, and has the Global Enabling Trade Report as its flagship publication, which helps to promote evidence-based dialogue and policy-making.

The Global Enabling Trade Report, published belt and road initiative route 2008, measures trade facilitation using the Enabling Trade Index (ETI). The ETI assesses whether economies have set up market-access policies, border institutions, infrastructure, and broader business and regulatory policies, which facilitate the free flow of goods over borders until reaching their destination.

The image below depicts the ETI’s conceptual framework: 57 trade-enabling metrics are aggregated to produce a composite indicator, spread over four subindexes and seven pillars, containing information from different international organizations’ databases, as well as indicators derived from the World Economic Forum’s Executive Opinion Survey conducted in 141 economies.

Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *