The report on global value chains published by the OECD
Global value chains (GVCs) have become a dominant feature of international trade and investment, encompassing both the developed and the developing and emerging markets economies.
Following the instruction received from the G20 Leaders at the Los Cabos Summit, the OECD worked jointly with the WTO and UNCTAD to prepare their joint report on GVCs implications, i.e. analyzing the functioning of global value chains and their connection with trade and investment flows, development and jobs.
The international fragmentation of production has been driven, as stated in the report, by changes in the business and regulatory environment, new technologies, shifts in corporate thinking and firm strategies, and systematic liberalization of trade and investment over the past two decades.
In a world characterized by goods and services crossing borders multiple times before reaching final consumers, analyzing the rise of tariffs and intensifying agricultural and manufacturing capacities, as well as refraining from unnecessary non-tariff measures, is even more important in order to reduce trade costs and boost trade and growth.
It is also highlighted in the document that in a more interconnected world of today both the costs of protectionism and the benefits of multilateral liberalization are much higher than considered before.
The report will be presented to the G20 Sherpas during their forthcoming meeting in St.Petersburg, and passed on further for the G20 Leaders' consideration.
Full text of the report can be found here