MOSCOW, September 30. /TASS/. Dialogue within the G20 can serve as an effective tool for addressing the risks of fragmentation in international trade and preserving the effectiveness of the multilateral trading system based on WTO rules, Russian Economic Development Minister Maxim Reshetnikov wrote in his column "G20 Trade Crossroads: Where Countries Meet or Part Ways?" for US magazine Newsweek.
"The G20 forum has repeatedly demonstrated its relevance in preserving the stability of world trade: during the global crisis of 2008-2009 and following the outbreak of the COVID-19 pandemic, when economic turbulence triggered a chain reaction of protectionist measures around the world. The G20 dialogue helped mitigate these trends. We therefore hope that, once again, we will be able to make effective use of this forum to address the risks of fragmentation in international trade and preserve the effectiveness of the multilateral trading system based on WTO rules," he wrote.
The minister stressed that, in this context, the efforts of the United States, which was instrumental in establishing the G20 and currently holds its presidency, to refocus attention on addressing key global challenges deserve high praise.
"However, this raises a question: do all four topics put forward for discussion this year truly represent the most pressing challenges, the failure to address which poses a central threat to global trade? Take the issue of trade in goods produced with forced labor as an example. No one can deny the importance of joint international efforts to combat forced labor, its ramifications and root causes. However, from the perspective of the challenges the international trade faces today, this particular topic does not seem to contribute much to the restoration of the mutual trust, conducive and seamless environment for our businesses worldwide or elimination of unjustified trade barriers," Reshetnikov stressed.
He expressed hope that existing trade disagreements "would not taint what needs to be done to eradicate this heinous human rights violation."
The Russian minister also pointed to the problem of global excess production capacity and overproduction.
"This concept is rather debatable - a country possessing certain comparative advantages will produce more than it consumes and will, consequently, export the surplus. This is perfectly normal and, indeed, underpins international trade as a whole. The real question, however, is whether such an excess of production over domestic consumption stems from genuine competitive advantages or is the result of distortions of competition," Reshetnikov wrote.
The Russian economic development minister believes that, in addition to large-scale industrial subsidies widely used by economies that traditionally declare their commitment to a market-based model, there is a whole range of practices that distort competition and create unjustified advantages for domestic exporters. These include tariffs and various non-tariff restrictions that guarantee demand for domestic suppliers. Export controls, restrictions on technology transfers, and the dominance of transnational corporations can lead to monopolization in individual industries, ultimately resulting in a critical level of excess production capacity, he said.
