Committee on Market Access concludes thematic series on supply chain resilience

The moderator of the session, Mr Iain Fifer of the United Kingdom, stressed the importance of how members use international cooperation and the WTO to build resilience into supply chains. He noted that no one member has a complete view across supply chains, and no one can act on its own when it comes to mitigating the effect of pandemics, geopolitical tensions and climate change.

Mr Fifer introduced the guiding points for the discussion: examples of effective regional and international cooperation on supply chains and the use of resources from the Committee on Market Access for analysis and policymaking. The session unpacked a range of themes, including the different kinds of instruments that can be used to build resilience, free trade agreements (FTAs), specific bilateral cooperation frameworks and their contribution to the reduction of policy divergences, and the importance of reducing issues affecting connectivity across borders.

The session featured presentations from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Brazil, China, Singapore, St. Kitts on behalf of the Organization of Eastern Caribbean States (OECS) and the United States.

UNESCAP introduced the Trade Intelligence and Negotiation Adviser (TINA), developed to help in the negotiation of trade agreements by providing insights into current tariffs, non-tariff measures (NTMs), agreements and bilateral trade flows, as well as identifying commodities with potential for tariff negotiations and simulating the impact of different tariff scenarios, among other things.

The tool, designed with input from trade negotiators, allows users to build a negotiating list, simulate tariff liberalization, and analyze trade patterns. It includes features for sustainable development products and simulating preference losses for least-developed countries (LDCs). The tool uses WTO data and a large language model to interpret trade agreement provisions, significantly reducing analysis time from weeks to minutes. Its capabilities were praised for enhancing supply chain provisions and trade agreement comparisons, making trade negotiations more efficient.

China introduced the 2024 Global Supply Chain Promotion Report, which summarizes the main features of the global supply chain promotion system, together with the Global Supply Chain Promotion Index (GSCPI), the world’s first index to quantitatively evaluate the level of global supply chain promotion. It also presented the Global Supply Chain Connectivity Index (GSCCI), which is the world’s first index to comprehensively measure the connectivity of global supply chains.

Overall, the report and the two indexes track the latest trends of global supply chain promotion and the status quo of global supply chain connectivity while interpreting the underlying reasons behind such changes. China noted that both the GSCPI and the GSCCI generally maintain an obvious upward trend, indicating that the development environment of global supply chains is generally stable, and positive factors have always outweighed negative ones.

Singapore explained the domestic challenges it faces due to land constraints, emphasizing the importance of maintaining open trade to ensure essential services like food and medical supplies. The COVID-19 pandemic highlighted the need for open supply chains and Singapore stressed its collaboration with like-minded partners, including Australia, the Republic of Korea and New Zealand, to ensure essential goods flowed. Singapore proposed enhancing supply chain analysis, early warning systems, and emergency communication channels to improve multilateral cooperation. The WTO and the Committee on Market Access were presented as potential fora to explore cooperation on enhancing supply chain resilience.

The United States discussed its strategy for supply chain resilience, highlighting collaboration with partners in multilateral fora like the Organisation for Economic Cooperation and Development (OECD), G20 and G7 as well as Phase Three of the Supply-Chain Connectivity Framework Action Plan 2022-2026 by the Asia-Pacific Economic Cooperation (APEC). The US also noted the value of the Indo-Pacific Economic Framework (IPEF), which includes a dedicated supply chain agreement, and its cooperation with regional partners through the America's Partnership for Economic Prosperity (APEP) and the United States-Mexico-Canada Agreement (USMCA). Recent policy papers show a shift towards supply chain resilience, focusing on sustainability, security, diversity and transparency, the US said.

Brazil outlined the difficulties it faced during the COVID-19 pandemic, prompting a governmental response to map value chains for food and energy. Strategic plans were developed in the areas of ecological transformation, industry, economic growth acceleration, tax reform and public policy. Also, challenges were identified in animal protein and biofuels value chains which highlighted vulnerabilities in inputs, infrastructure, currency stability, production and distribution as well as external dependence on research and development.

The OECS focused on the need to strengthen supply chain resilience through capacity building and diversification. Challenges for Eastern Caribbean States include limited regional transport, high taxes and over-reliance on imports from the US. The OECS shared examples of regional cooperation, such as the Regional Integration through Growth Harmonisation and Technology (RIGHT) Programme and the Guyana-Barbados-Trinidad and Tobago ferry service. Antigua's modernized port and the ferry service between Curaçao and St. Eustatius were also cited as best practices. The OECS stressed that supply chain resilience in the region can be strengthened through collaborative efforts, public-private partnerships, and a focus on regional integration.

Three previous thematic sessions on supply chain resilience were held by the Committee. At the first session in November 2023, representatives from the WTO Secretariat, the World Bank, UN Trade and Development (UNCTAD) and the World Customs Organization (WCO) gave presentations on the definition of supply chain resilience, how shocks affect the movement of goods through supply chains, and what factors go into supply chain resilience. 

In the second session in May 2024, seven speakers from the delegations of China, Ecuador, the European Union, India, Pakistan, Trinidad and Tobago (on behalf of the OECS), the United Kingdom and the United States shared their domestic experiences on how they have responded to supply chain challenges and what approaches they are using to build resilience. 

At the third session in October 2024, five presentations were given by experts from China, India, Switzerland, Thailand and the United States on the data that underpins the assessment and monitoring of critical supply chains. The Secretariat prepared summary reports for each of these sessions which were circulated in documents JOB/MA/713 and its addenda.

The interim Chair of the Committee, Nicola Waterfield of Canada, recalled members' interest in compiling the main information shared by members in the four thematic sessions in a final report and asked the Secretariat to draft the report. The draft report will be shared with the Committee for members' review and comments. Once finalized, the Secretariat's note could become a document by the Committee that members could use for future reference.

The Chair also reminded members that the Committee will move to the next series of thematic sessions on "Greening the Harmonized System (HS)", based on a proposal by Ecuador. The first session on this topic took place on 11 June 2024 and the summary report is available in document JOB/MA/179. The next session is scheduled for 4 March 2025.