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UNCTAD’s 60th Anniversary: A Renewed Vision for Global Trade and Development

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Global Logistics, Global Trade Daily, International Trade

UNCTAD’s 60th Anniversary: A Renewed Vision for Global Trade and Development

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In celebration of the 60th anniversary of the United Nations Conference on Trade and Development (UNCTAD), UN Secretary-General António Guterres highlighted the organization’s pivotal role in promoting a more equitable and sustainable global economy. Addressing the Global Leaders Forum on June 12 at the Palais des Nations in Geneva, Guterres commended UNCTAD’s innovative agenda and its enduring commitment to advocating for the interests of developing countries.

Read also: UNCTAD Advocates for Resilient Global Supply Chains Amid Trade Disruptions

The forum, running through June 14, gathered high-profile speakers, including UNCTAD Secretary-General Rebeca Grynspan, and leaders from Barbados, Brazil, China, Comoros, Cuba, Madagascar, Timor-Leste, and Switzerland. Additionally, over two dozen trade and foreign affairs ministers, along with economists, business leaders, and civil society representatives, convened to map out a new development trajectory in response to a rapidly changing world.

Legacy of Advocacy and Inspiration for Future Decisions

In his keynote address, Guterres emphasized UNCTAD’s historical impact on creating a fairer global economic landscape. “UNCTAD’s work has not only created a legacy. It continues to be an inspiration for today’s debates and decisions,” he remarked, praising the organization’s persistent efforts over the past six decades to champion a more inclusive global trading system that promotes economic growth, reduces poverty, and fosters social progress.

Addressing Contemporary Global Challenges

Guterres also addressed the pressing challenges faced by developing countries, including escalating global tensions, deepening inequalities, and the exacerbating climate crisis. He criticized the “outdated, dysfunctional and unjust” international financial architecture that has failed to alleviate the burdens of developing nations struggling with unprecedented levels of public debt.

While acknowledging the potential of trade to drive prosperity and innovation, Guterres cautioned against its role in perpetuating inequality and environmental harm. He lauded UNCTAD’s efforts to address these systemic issues, affirming the organization’s crucial mission in the pursuit of a shared and prosperous future.

Vision for a Sustainable and Inclusive Future

Guterres called for a collective reimagining of global trade, urging a move away from geopolitical rivalries towards a vision where trade fosters shared prosperity. He advocated for global supply chains that drive green innovation and climate action, emphasizing that sustainable development must be a central goal rather than an afterthought.

“Your role remains essential,” Guterres asserted, “in identifying and closing gaps and discrepancies in the system and proposing pragmatic, evidence-based solutions.” He urged the international community to draw inspiration from the founders of UNCTAD, to craft a future where trade becomes a catalyst for sustainable development and global equity.

This renewed vision for UNCTAD underscores its essential role in shaping policies and initiatives that promote an equitable, sustainable, and inclusive global economy for the future.

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Wealthy Nations Resist as UN Advances Global Tax Reform Initiative

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Pushback from Wealthy Countries: Risk of Diluting the UN’s Global Tax Convention

A minority of countries opposed to a legally binding UN tax convention are attempting to dilute its impact, raising concerns that it could become as ineffective as the OECD’s efforts, experts warn. The ongoing debate over wealth and corporate taxes has become a contentious issue as the United Nations negotiates a framework for a new global tax system.

Read also: Top 5 Corporate Tax-Friendly Nations 

The initial round of negotiations, which concluded on May 8, saw progress amid ongoing tensions between higher-income OECD members and African UN member states, backed by the developing nations coalition, the G77.

“Both the developed and developing countries agreed easily on environmental taxes but strongly disagreed on taxes for wealth,” said Abdul Chowdhary, a senior program officer for the South Centre Tax Initiative. Developed countries argue that the OECD is already addressing tax reforms adequately, while developing nations believe the OECD’s efforts are insufficient and want the UN to play a more significant role.

In November 2023, the UN General Assembly overwhelmingly adopted a resolution proposed by Nigeria to create an inclusive UN forum to address international tax issues, including corporate tax reform and wealth taxes. This move would shift power from the OECD, criticized as a “rich countries’ club,” to a more inclusive global platform.

“It has been quite absurd and sad to see their hesitation because the failure of the global tax system impacts people in all regions of the world, and we urgently need solutions,” said Tove Maria Ryding, tax coordinator at the European Network on Debt and Development.

The OECD defends its record of significant changes in international tax policy, including the 2021 agreement for a 15% minimum tax rate for multinational corporations. However, recent UN negotiations in New York revealed deep divisions over procedural and substantive issues.

Developing countries favor a majority vote for decision-making to avoid diluted resolutions, while wealthy nations insist on consensus-only decision-making, effectively giving a minority veto power. This procedural clash is expected to be a major issue in upcoming negotiations scheduled for late July and August.

Despite pressure from wealthy countries, momentum appears to be with the Global South. Irene Ovonji Odida, a Ugandan lawyer and member of the Independent Commission for Reform of International Corporate Tax, supports the inclusion of corporate taxation in the convention’s terms of reference. She highlights the desire of over 60 countries for equitable taxation of multinational corporations, despite resistance from some Western nations.

The negotiations also touched on leveraging taxation to address climate and environmental crises and the broader issue of domestic resource mobilization, with varying emphases on capacity building and fair allocation of taxing rights.

The next round of negotiations aims to finalize the draft terms of reference, which will be voted on by the UN General Assembly before the year’s end.

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Global Logistics, Global Trade Daily, News

UNCTAD Advocates for Resilient Global Supply Chains Amid Trade Disruptions

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The inaugural United Nations Global Supply Chain Forum, organized by UN Trade and Development (UNCTAD) and the Government of Barbados, took place from May 21 to 24, 2024. Over 1,000 global participants gathered to address escalating disruptions in global supply chains.

Read also: Charting a Course for Sustainable Global Trade: UNCTAD’s Inaugural Global Supply Chain Forum

Global Disruptions and Supply Chain Vulnerability

UN Deputy-Secretary General Amina Mohammed, Barbados Prime Minister Mia Amor Mottley, and UNCTAD Secretary-General Rebeca Grynspan opened the forum amid a volatile trade landscape. The forum highlighted how disruptions are increasing shipping times and greenhouse gas emissions, stressing the need for more inclusive, sustainable, and resilient global production and distribution networks.

Climate Change and Geopolitical Tensions

Climate change, geopolitical tensions, and the COVID-19 pandemic have severely impacted global supply chains. UNCTAD’s critical analysis emphasized the role of ports in maintaining global value chains through technology and sustainable practices. Secretary-General Grynspan’s visit to Bridgetown Port underscored the importance of ports in SIDS adopting sustainable practices.

Decarbonizing Global Shipping

The forum explored decarbonizing global shipping, particularly in developing countries with renewable energy resources. Key steps include incentivizing low- or zero-carbon fuels, establishing safety frameworks, and developing port readiness assessment tools. The launch of the “Manifesto for Intermodal, Low-Carbon, Efficient, and Resilient Freight Transport and Logistics” marked a significant move towards transforming freight transport to meet climate targets and enhance socio-economic resilience.

Strategic Focus on Small Island Developing States (SIDS)

SIDS face heightened risks from climate change, impacting their transport infrastructure. The forum stressed the importance of improving connectivity through investments in maritime and air transport infrastructure and efficient multimodal networks. SIDS ministers called for international financial support to promote energy-efficient and sustainable maritime technologies.

Digital Solutions for Supply Chain Resilience

Digital technologies are vital for strengthening global supply chain resilience. Innovations like blockchain traceability and advanced customs automation were showcased as essential tools for optimizing trade processes, enhancing transparency, and reducing risks. UNCTAD presented guidelines for an electronic single window for trade, highlighting the need for collaboration and digitalization in the maritime sector.

Launch of Trade-and-Transport Dataset

The forum introduced the UNCTAD Trade-and-Transport Dataset, developed with the World Bank. This comprehensive repository provides data on global trade flows, commodities, transport modes, and associated costs. The dataset aims to enhance understanding and optimize global trade, aiding evidence-based policymaking.

Innovation and Youth Collaboration

Ahead of the forum, the first Supply Chain Innovation Challenge inspired solutions for greener, more efficient, and resilient supply chains. Winning proposals were presented at the event. Speaking at the University of the West Indies, Secretary-General Grynspan encouraged students to pursue their dreams and contribute to sustainable development, highlighting the resilience and innovation of Caribbean nations.

Future Collaborations and Saudi Arabia 2026

UNCTAD and the China Council for the Promotion of International Trade (CCPIT) signed an MoU to expand collaboration in trade and investment promotion. The outcomes of this forum aim to strengthen global supply chains and the resilience of SIDS. The next forum will be hosted by Saudi Arabia in 2026, reflecting the Kingdom’s commitment to enhancing global supply chains and positioning itself as a leading logistics hub.

This forum underscores the urgent need for resilient and sustainable global supply chains, focusing on digital solutions, decarbonization, and strategic investments in vulnerable regions like SIDS.

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Spearheading Gender Equality in the Digital Economy: UNCTAD Welcomes New Advocates

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The United Nations Conference on Trade and Development (UNCTAD) is ushering in a new era of gender inclusivity in the digital realm with the appointment of four dynamic advocates. This move revitalizes efforts to ensure that women’s voices are at the forefront of shaping policies that drive a digital economy benefiting all.

Read also: Global Trade Magazine Calls for Nominations for Annual Women in Logistics Feature

With the 2024-2025 cohort comprising six distinguished women entrepreneurs, UNCTAD underscores the crucial role of women in fostering innovation, job creation, and economic progress. Originating from diverse regions across Africa, Asia, and Latin America, these entrepreneurs are trailblazers in the tech industry, dedicated to championing women’s empowerment through e-commerce and digital innovation.

Secretary-General Rebeca Grynspan, in her announcement on 6th May in Geneva, emphasized the pivotal role of women digital entrepreneurs in propelling economic growth. This cohort includes four new advocates: Vèna Arielle Ahouansou of Benin, Hilda Moraa of Kenya, Angeline Tham of the Philippines, and Ajaita Shah of India. They join two existing advocates, Yasmine Abdel Karim of Egypt, and Ana Maria Sandoval of Colombia, amplifying the voices advocating for gender inclusivity in the digital economy.

Under the umbrella of the “eTrade for Women” initiative, these advocates will play a pivotal role in shaping policies aimed at promoting gender equality in the digital age. The program, a cornerstone of UNCTAD’s e-commerce and digital economy agenda, receives significant support from leading funding contributors such as Australia, Germany, the Kingdom of the Netherlands, Sweden, and Switzerland.

Let’s meet the new advocates:

– Vèna Arielle Ahouansou, co-founder and CEO of Kea Medicals (Cotonou, Benin), utilizes technology to enhance healthcare services in French-speaking Africa.
– Hilda Moraa, founder and CEO of Pezesha (Nairobi, Kenya), pioneers financial solutions to empower women entrepreneurs across English-speaking Africa.
– Angeline Tham, co-founder and CEO of Angkas (Manila, the Philippines), leverages digital technologies to create a safer and more inclusive transportation sector in Southeast Asia and the Pacific.
– Ajaita Shah, co-founder and CEO of Frontier Markets (Jaipur, India), bridges the digital divide for rural women in South Asia through her e-commerce platform.

The advocates’ mandate is to address the persisting gender gap in the digital economy, crucial for sustainable and inclusive development. Shamika N. Sirimanne, director of technology and logistics at UNCTAD, highlights their role in calling attention to the challenges women face in accessing finance, technology, and markets, shaping policies for gender equality in the digital age.

Women’s leadership in the digital economy takes center stage at the 7th meeting of the Intergovernmental Group of Experts on E-commerce and the Digital Economy in Geneva. Ana Maria Sandoval, advocate for Latin America and the Caribbean, stresses the importance of enabling women in developing countries to fully participate in and benefit from the digital boom.

As these advocates step into their roles, they symbolize a commitment to unlocking the full potential of women entrepreneurs in driving inclusive digital growth. Through their leadership and advocacy, UNCTAD is paving the way for a more equitable and prosperous digital future.

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Global Trade Daily, International Trade, News

Navigating Global Investment Challenges: UNCTAD’s Call for Equitable Development Strategies

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Amidst evolving global economic landscapes, the United Nations Conference on Trade and Development (UNCTAD) has unveiled a comprehensive report titled “Global economic fracturing and shifting investment patterns.” This report delves into the intricate dynamics of global foreign direct investment (FDI) and underscores the imperative for innovative investment strategies that prioritize inclusivity and sustainability.

The report delineates ten transformative shifts in investment priorities across industries and regions, elucidating how trends in global value chains and geopolitical dynamics have reshaped investment patterns. Moreover, it emphasizes the critical need to integrate sustainability and development goals into investment strategies to foster inclusive and sustainable economic growth.

Diverging Trends in Global Foreign Investments

UNCTAD identifies three diverging trends in global foreign investments that have emerged over the past two decades:

1. Disjunction Between FDI Growth and Traditional Economic Indicators: While global GDP and trade have experienced consistent growth, FDI growth has stagnated amidst rising protectionism and geopolitical tensions. This disjunction signals a significant shift in the global economic landscape.

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SOURCE: UNCTAD

2. Growing Emphasis on Services Sector: There is a notable shift in investment preferences towards the services sector, with cross-border greenfield projects increasingly favoring services over manufacturing. This trend has implications for global production dynamics and technology adoption.

economic developemnt global trade
SOURCE: UNCTAD

3. China’s Evolving Role in Global FDI: China’s reduced role as a recipient country for FDI has reshaped the geography of global investment. Despite diminished enthusiasm for new investments in China, the country remains a dominant player in global manufacturing and trade.

Transition from Divergence to Fracturing

Recent global conflicts and crises have catalyzed a transition from divergence to fracturing in global investment patterns. Geopolitical factors now exert a greater influence on investment decisions, complicating traditional approaches to investment promotion and hindering FDI-based development.

Sustainability Push and Implications for Developing Nations

While there has been progress towards sustainability, the impacts on developing nations are nuanced. The expansion of FDI into environmental technologies presents new opportunities but exacerbates disparities, particularly for smaller and less developed countries. The narrowing focus of FDI exacerbates economic fragility and underscores the need for equitable development strategies.

Call to Bridge Investment Gaps

UNCTAD advocates for immediate action to bridge investment disparities across sectors and regions. Policy recommendations include revising economic development strategies, promoting investment in Sustainable Development Goals, and fostering collaboration among global stakeholders to create a more open and equitable global investment environment.

In conclusion, UNCTAD’s report underscores the urgency of addressing global investment challenges and calls for concerted efforts to ensure that the benefits of investment are distributed equitably and aligned with sustainable development objectives.

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Navigating Global Economic Challenges: UN Report Highlights Concerns and Calls for Multilateral Action

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Amidst ongoing economic uncertainties, the latest report from the United Nations Trade and Development (UNCTAD) warns of potential further deceleration in global economic growth and trade disruptions in 2024. Secretary-General Rebeca Grynspan emphasizes the need for coordinated multilateral action to address shifting trade patterns, escalating debt, and the mounting costs of climate change, particularly impacting developing countries.

While expectations for lower interest rates offer some hope for alleviating pressure on private and public budgets worldwide, the report underscores that monetary policy alone cannot solve key global challenges. It emphasizes the necessity of balanced policy approaches, including fiscal, monetary, demand-side, and investment-boosting measures, to achieve financial sustainability, job creation, and improved income distribution.

Highlighting rising protectionism, disrupted maritime routes due to geopolitical tensions, and climate change, the report identifies threats to global trade and economic stability. Challenges such as attacks on ships in the Red Sea and disruptions in the Black Sea exacerbate existing trade disruptions, while rising protectionism and trade tensions further hinder economic growth.

The report also delves into the pressing issue of global debt architecture reform, particularly impacting developing countries facing significant debt and development challenges. It calls for the establishment of efficient multilateral frameworks to address sovereign debt issues and strengthen the global financial safety net.

Additionally, the report addresses the rising food prices affecting low-income households in developing countries, exacerbated by factors such as global commodity cycles, supply chain concentration, and stricter standards imposed by importing nations. Food insecurity remains a critical concern, with projections indicating a potential increase in chronically undernourished individuals if current market trends persist.

In conclusion, the report emphasizes the urgent need for concerted multilateral efforts to navigate the complex economic landscape, mitigate risks, and ensure sustainable development and prosperity for all.

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Charting a Course for Sustainable Global Trade: UNCTAD’s Inaugural Global Supply Chain Forum

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Amidst a backdrop of unprecedented global challenges, the inaugural Global Supply Chain Forum (GSCF) 2024 promises to be a pivotal gathering, convening leaders and experts to navigate the evolving landscape of international trade and logistics. Organized by the United Nations Conference on Trade and Development (UNCTAD) in collaboration with the Government of Barbados, this landmark event, scheduled for May 21-24, 2024, aims to shape the future of global trade in a rapidly changing world.

In recent years, the global trade arena has grappled with significant disruptions, ranging from the Covid-19 pandemic to the impacts of climate change and geopolitical tensions. These challenges have not only stress-tested global supply chains but have also underscored the critical need for resilience and sustainability, particularly for developing countries.

At the heart of the forum lies an innovation challenge, designed to inspire solutions that foster greener, more efficient, and resilient global production and distribution networks.

Focus on Resilience and Sustainability

GSCF 2024 will shine a spotlight on the indispensable role of global supply chains in driving economic growth, fostering job creation, and advancing poverty reduction, in alignment with the 2030 Agenda for Sustainable Development.

This forum is part of a broader series of events commemorating 60 years since the establishment of UNCTAD, a stalwart advocate for the Global South. Recognizing the disproportionate impact of supply chain disruptions on vulnerable economies, particularly Small Island Developing States (SIDS) and Landlocked Developing Countries (LLDCs), the forum will delve into strategies for bolstering resilience and sustainability across global supply chains. These strategies encompass everything from trade facilitation reforms to the integration of digital innovations.

Research conducted by UNCTAD reveals that the Covid-induced supply chain crisis led to a 1.5 percent increase in global consumer price levels, primarily driven by elevated maritime transport costs. The impact was even more pronounced in SIDS, where consumer price inflation surged by an additional 7.5 percent.

Strengthening the Backbone of Global Trade: Seaports

Seaports serve as vital gateways for trade, facilitating over 80 percent of global merchandise exchange. The forum will explore avenues for enhancing the resilience of seaports, particularly in vulnerable coastal nations. Additionally, digital solutions, including blockchain technology, will be championed to mitigate emerging risks and safeguard the sustainability of global supply chains amidst the rising tide of e-commerce and cyber threats.

Global Collaboration and Bridging Gaps

GSCF 2024 aims to foster collaboration among stakeholders worldwide, bringing together policymakers, industry leaders, and international organizations such as the International Labour Organization (ILO), the International Maritime Organization (IMO), and the UN Industrial Development Organization (UNIDO). With more than 500 participants from approximately 100 countries expected to attend, and over 100 entities already onboard as partner organizations, the forum promises a rich tapestry of perspectives and insights.

Government ministers of transport will converge to deliberate on a joint declaration, which will feed into forthcoming discussions at the UN’s 4th International Conference on Small Island Developing States, scheduled for late May in Antigua and Barbuda.

In Conclusion

The Global Supply Chain Forum 2024 represents a pivotal moment for charting a course towards sustainable and resilient global trade. By fostering collaboration, innovation, and practical solutions, this forum endeavors to pave the way for a future where trade serves as a catalyst for inclusive growth and shared prosperity.