OMC - Objetivos de Desarrollo Sostenible actualización 2024 foro político de alto nivel

WTO’s contribution to attaining UN Sustainable Development Goals: 2024 update to the High-Level Political ForumAcknowledgments This publication received guidance from Deputy Director-General Xiangchen Zhang and Taufiq Rahman Director of the Development Division. Preparation of the publication was a joint effort across several divisions of the WTO. Raúl Torres, Head of the Development Policy Unit of the Development Division directed the project. Roberta Allport, also from the Development Policy Unit, was the project coordinator. The publication was edited by Helen Swain (Information and External Relations Division). The design and layout were done by the Graphic and Event Design, Print, and Distribution Section. Contributing authors to this publication were Roberta Allport, Michael Roberts, Vishva Subramanian, and Raúl Torres (Development Division); Marc Bacchetta, Michael BlangaGubbay, Coleman Nee, Roberta Piermartini, Victor Stolzenburg, and Ankai Xu (Economic Research and Statistics Division); Jonathan Hepburn and Cédric Pene (Agriculture and Commodities Division); Svetlana Chobanova, Chen Lu, Sajal Mathur, Daniel Ramos, and Ludivine Tamiotti (Trade and Environment Division); Reto Malacrida, Philippe Pelletier, and Astghik Solomonyan (Intellectual Property, Government Procurement and Competition Division); Alexander Keck, Xinyi Li, Eugenia Lizano, Selvarany Reynaud-Casset, Karsten Steinfatt, and Marion Sidorenko (Trade Policy Review Division); and Amanda Miashiro, Maika Oshikawa, Alexandre Marchand, and Anais Wardak (Accessions Division). Disclaimer This publication has been prepared under the WTO Secretariat’s own responsibility. It does not necessarily reflect the positions or opinions of WTO members and is without prejudice to their rights and obligations under the WTO agreements. The opinions expressed and arguments employed herein are not intended to provide any authoritative

Disclaimer This publication has been prepared under the WTO Secretariat’s own responsibility. It does not necessarily reflect the positions or opinions of WTO members and is without prejudice to their rights and obligations under the WTO agreements. The opinions expressed and arguments employed herein are not intended to provide any authoritative or legal interpretation of the provisions of the WTO agreements and shall in no way be read or understood to have any legal implications whatsoever. The terms and illustrations used in this publication do not constitute or imply an expression of opinion by the WTO Secretariat concerning the status or boundaries of any territory.Abbreviations AMIS Agricultural Market Information System COP Conference of the Parties DDP WTO Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade EIF Enhanced Integrated Framework FAO Food and Agriculture Organization of the United Nations FCS Fragile and Conflict-Affected States FFSR Fossil Fuel Subsidy Reform GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product GHG Greenhouse Gas GPA WTO Agreement on Government Procurement HLPF High-Level Political Forum ICC International Chamber of Commerce ICT Information and Communications Technology IEP Institute for Economics & Peace IFD Investment Facilitation for Development IMF International Monetary Fund IRENA International Renewable Energy Agency ITC International Trade Centre ITU International Telecommunication Union LDC Least-Developed Country MC12 12th WTO Ministerial Conference (Geneva, 2022) MC13 13th WTO Ministerial Conference (Abu Dhabi, 2024) MSME Micro, Small and Medium-Sized Enterprise NFIDC Net Food-Importing Developing Country NTM Non-Tariff Measure OECD Organisation for Economic Co-operation and Development R&D Research and Development RTA Regional Trade Agreement SDGs United Nations Sustainable Development Goals SPS Sanitary and Phytosanitary Measures STDF Standards and Trade Development Facility T4P Trade for Peace TBT Technical Barriers to Trade TESSD Trade and Environmental Sustainability Structured Discussions TFA WTO Trade Facilitation Agreement TPR Trade Policy Review

SDGs United Nations Sustainable Development Goals SPS Sanitary and Phytosanitary Measures STDF Standards and Trade Development Facility T4P Trade for Peace TBT Technical Barriers to Trade TESSD Trade and Environmental Sustainability Structured Discussions TFA WTO Trade Facilitation Agreement TPR Trade Policy Review TPRB WTO Trade Policy Review Body TPRM Trade Policy Review Mechanism TRIPS Trade-Related Aspects of Intellectual Property Rights UN United Nations U NCTAD United Nations Trade and Development UNDP United Nations Development Programme WEF World Economic Forum WFP UN World Food Programme WHO World Health Organization WIPO World Intellectual Property Organization WOAH World Organisation for Animal Health WTO World Trade Organization4 Content Key Points 5 Introduction 8 The 2024 High-Level Political Forum and the WTO 8 Trade as a catalyst for sustainable development: navigating challenges in a fragmented world 8 SDG 1: No Poverty 11 Multilateral trade has led to rising income levels and reduced poverty 11 Fragmentation hinders global economic convergence and poverty reduction 12 WTO rules and flexibilities offer a means of poverty reduction 13 More open and predictable agriculture and services markets could reduce poverty 14 Increasing opportunities for the poor to gain from the digital transformation 15 Policies targeting the specific challenges faced by the poor are necessary 16 SDG 2: Zero Hunger 17 Current threats to food security 17 Trade in food and farm goods has helped to absorb economic shocks and strengthen resilience 17 Trade supports livelihoods and improves access to food 18 Trade has helped bring food prices down from recent record peaks 19 Many developing economies still face high food prices due to inflation 20 The WTO is contributing to progress 20 Negotiating reforms to agricultural trade rules 20 Providing a space for dialogue 21 Conducting research and monitoring policies 21 Building capacity 22 Communication and engagement 22 SDG 13: Climate Action 23 Trade can be part of the solution to environmental challenges 23 Trade can increase transportation and production-related pollution 23 Trade can also promote environmental protection by diffusing green technologies 23 Trade-related policy tools are increasingly used to address environmental challenges 24

Building capacity 22 Communication and engagement 22 SDG 13: Climate Action 23 Trade can be part of the solution to environmental challenges 23 Trade can increase transportation and production-related pollution 23 Trade can also promote environmental protection by diffusing green technologies 23 Trade-related policy tools are increasingly used to address environmental challenges 24 Policy fragmentation could hinder the green transition 24 Geopolitical tensions threaten environmental sustainability 25 Integrated trade and environmental governance 25 Trade policy tools for climate action 25 Government procurement and climate action 26 The green transition offers development opportunities 27 The role of the WTO in supporting environmental sustainability 28 SDG 16: Peace, Justice and Strong Institutions 29 The relationship between trade and peace 29 The effects of conflict on trade 29 The effects of trade on conflict 29 The history of the multilateral trading system 29 Contribution of WTO accessions to SDG 16 30 Technical assistance and capacity building 30 The Trade for Peace Programme 31 The WTO Trade Policy Review mechanism: building stronger institutions for development 31 SDG 17: Partnerships for Trade and Development 33 Trade as a tool for development 33 References 35 Endnotes 385 Key Points SDG 1: No Poverty • International trade has contributed to cross-country income and productivity convergence, and growth in trade has coincided with a significant decrease in poverty worldwide, indicating the impact of trade on supporting economic development and improving people’s lives (WTO, 2024a). • However, geopolitical fragmentation is likely to reduce trade efficiency and negatively affect many economies, particularly developing economies and least-developed countries (LDCs), including by decreasing knowledge diffusion and access to certain technologies. • The WTO and other organizations can help to make international cooperation more inclusive through multilateral coordination of trade rules, opening trade in services and e-commerce, opening up agricultural trade, and supporting LDCs to build capacity for integration into international trade. Domestic policies can also play an important role. • Fragmentation can negatively impact poverty and inequality by disrupting international trade, investment patterns and migration flows. This can lead to lower economic

and e-commerce, opening up agricultural trade, and supporting LDCs to build capacity for integration into international trade. Domestic policies can also play an important role. • Fragmentation can negatively impact poverty and inequality by disrupting international trade, investment patterns and migration flows. This can lead to lower economic growth, limited access to global markets, and disruptions in global supply chains, which can erode gains in living standards. Workers in export-dependent sectors and low-income households are particularly vulnerable to these effects. • More multilateral cooperation is needed to ensure that the benefits of trade are shared more broadly within economies. This may be achieved by lowering tariffs and other trade costs, further opening trade in agriculture and services, and making digital trade more inclusive. WTO rules and flexibilities can also play a crucial role in poverty reduction by enhancing good governance and the predictability of market access conditions. SDG 2: Zero Hunger • Progress towards SDG 2, which aims to end hunger, achieve food security and improved nutrition, and promote sustainable agriculture, has faced setbacks in recent years. Around 9 per cent of the global population experienced undernourishment in 2022, according to the Food and Agriculture Organization (FAO). It is anticipated that conflicts and the COVID-19 pandemic will have left nearly 600 million people hungry by 2030, highlighting the need for urgent action to address food insecurity. • Agricultural trade, which has increased five-fold since 2000 (WTO, 2024b), has played a vital role in absorbing shocks and enhancing global resilience. The WTO6 serves as a platform for members to negotiate reforms in agricultural trade. In 2015, WTO members agreed to eliminate agricultural export subsidies, thereby contributing to SDG target 2b. • Through regular committee work and collaboration with other international agencies, the WTO actively monitors export restrictions, supports capacity-building, and plays a crucial role in addressing trade-related issues for improved food security. This work led to the adoption on 17 April 2024 of a report containing recommendations to help LDCs and net food-importing developing countries (NFIDCs) respond to acute food insecurity.

a crucial role in addressing trade-related issues for improved food security. This work led to the adoption on 17 April 2024 of a report containing recommendations to help LDCs and net food-importing developing countries (NFIDCs) respond to acute food insecurity. • To advance SDG 2, it is crucial that WTO negotiations on agriculture are revitalized and that political leaders deliver clear guidance to ensure that immediate outcomes in trade policies are delivered and benefit the most vulnerable. SDG 13: Climate Action • Trade has a complex relationship with environmental sustainability, as while production and transportation can contribute to increased emissions and pollution, trade can also facilitate the spread of green technologies and encourage sustainable practices. • Coordinated trade-related policies are crucial to address environmental challenges. Conversely, policy fragmentation can hinder the green transition, leading to less effective measures and potential trade frictions. International cooperation and integration – re-globalization – can offer avenues for environmental protection and sustainable growth. • The WTO publication Trade Policy Tools for Climate Action, launched at COP28 in 2023, identifies 10 key policy tools that can be harnessed to accelerate progress towards climate goals under the Paris Agreement, which was adopted at COP21 in 2015. • Government procurement, representing 13 per cent of world GDP, can help to address climate change by promoting greener goods and services and more eco-friendly suppliers, and by fostering green innovation. • The green transition could offer historically marginalized economies certain development opportunities, particularly in renewable energy trade and raw materials critical for clean energy production. The WTO plays a vital role in supporting environmental sustainability, for example by fostering the mutual supportiveness of trade and environmental policies.7 SDG 16: Peace, Justice and Strong Institutions • Trade can be disrupted by conflict, but it can also promote peace by creating economic interdependence among economies. The WTO was founded on the belief that open trade can help to promote peace. • The WTO accession process helps economies seeking WTO membership to improve their governance through legal reforms, greater transparency and inter-ministerial coordination. Technical assistance provided during the accession

economic interdependence among economies. The WTO was founded on the belief that open trade can help to promote peace. • The WTO accession process helps economies seeking WTO membership to improve their governance through legal reforms, greater transparency and inter-ministerial coordination. Technical assistance provided during the accession process strengthens institutions and increases private-sector participation in decision-making, contributing to SDG 16 goals. • The WTO Trade for Peace Programme explores how trade can contribute to peacebuilding for fragile and conflict-affected states through political engagement, public dialogue, research and capacity-building. • The WTO’s trade policy reviews promote policy coherence, both internationally and domestically, and can help build stronger institutions by enhancing information and increasing the effective participation of relevant stakeholders. SDG 17: Partnerships for the Goals • The Abu Dhabi Ministerial Declaration, adopted at the 13th WTO Ministerial Conference (MC13) in March 2024, reiterates WTO members’ commitment to a rules-based, equitable multilateral trading system that can promote economic growth, aligning with SDG 17. • The results from MC13 also recognize the potential of trade to contribute to broader sustainable development goals.WTO’S CONTRIBUTION TO ATTAINING UN SUSTAINABLE DEVELOPMENT GOALS 8 Introduction The 2024 High-Level Political Forum and the WTO The UN’s annual High-Level Political Forum (HLPF) offers organizations, including the WTO, the opportunity to review their progress toward meeting the targets of the UN Sustainable Development Goals (SDGs). For the WTO, this involves examining the contribution of international trade and the multilateral trading system to meeting the SDG targets and to development in general. The particular focus of the 2024 HLPF is SDG 1 (“No poverty”), SDG 2 (“Zero hunger”), SDG 13 (“Climate action”), SDG 16 (“Peace, justice and strong institutions”) and SDG 17 (“Partnerships for the goals”). These SDGs are also at the core of the Marrakesh Agreement establishing the World Trade Organization, which was signed 30 years ago this year.

(“Climate action”), SDG 16 (“Peace, justice and strong institutions”) and SDG 17 (“Partnerships for the goals”). These SDGs are also at the core of the Marrakesh Agreement establishing the World Trade Organization, which was signed 30 years ago this year. The theme for the 2024 HLPF, “Reinforcing the 2030 Agenda and eradicating poverty in times of multiple crises: the effective delivery of sustainable, resilient and innovative solutions”, aligns with recent WTO research. For example, the World Trade Report 2023 examined how re-globalization, or increased international cooperation, could address three major challenges facing the global economy, namely national and economic security, poverty and environmental sustainability. Trade as a catalyst for sustainable development: navigating challenges in a fragmented world As the global community strives to achieve the SDGs by 2030, the role of international trade in fostering economic growth, reducing poverty and promoting sustainable development has never been more critical. However, the current landscape of global trade presents both opportunities and challenges that significantly impact our collective progress towards these ambitious goals. According to the latest Global Trade Outlook and Statistics report by the World Trade Organization (WTO, 2024c), the world is slowly recovering from recent economic shocks. After a 1.2 per cent decline in world merchandise trade volume in 2023, projections for 2024 indicate a modest rebound (Figure 1). This recovery is crucial for SDG implementation, as trade growth often correlates with economic development and poverty reduction (SDG 1, “No Poverty” and SDG 8, “Decent Work and Economic Growth”). However, the path to recovery is not without obstacles. Inflationary pressures, geopolitical tensions and policy uncertainties continue to cast shadows over the global trade landscape. These factors have led to shifts in trade patterns and have raised concerns about potential fragmentation of the global trading system. The relationship between trade and GDP growth

obstacles. Inflationary pressures, geopolitical tensions and policy uncertainties continue to cast shadows over the global trade landscape. These factors have led to shifts in trade patterns and have raised concerns about potential fragmentation of the global trading system. The relationship between trade and GDP growth has evolved significantly over the past three decades. In the 1990s, goods trade grew more than twice as fast as real-world GDP, with this ratio declining to 1.5 times as fast in the early 2000s. Since 2010, however, trade and GDP have grown at approximately the same rate on average. This shift suggests a changing dynamic in the global economy, where trade is no longer outpacing overall economic growth as dramatically as it once did. The ratio of trade growth to GDP growth has fluctuated in recent years, with the COVID-19 pandemic causing significant disruptions. As of 2024, if WTO forecasts are realized, this ratio is expected to rebound to 0.94-to-1, indicating a closer alignment between trade and overall economic growth. This evolving relationship has important implications for how trade can be leveraged to achieve the SDGs, potentially requiring more nuanced and targeted approaches. One of the most pressing issues highlighted in the WTO report is the emerging signs of trade fragmentation along geopolitical lines. This trend poses significant risks to achieving the SDGs:

1. Disruption of global value chains: The report notes a 6 per cent decline in global trade of intermediate goods in 2023.

This disruption of global value chains can hinder industrial development in emerging economies, potentially impacting SDG 9 (“Industry, Innovation and Infrastructure”).

2. Shifts in services trade: Changes in ICT services trade patterns, with some economies favouring regional partners over global ones, could affect knowledge transferINTRODUCTION

9 Figure 1: World merchandise trade volume and GDP growth, 2018-2025

Note: Figures for 2024 and 2025 are projections. Merchandise trade grew 2.5% per year on average

favouring regional partners over global ones, could affect knowledge transferINTRODUCTION 9 Figure 1: World merchandise trade volume and GDP growth, 2018-2025

Note: Figures for 2024 and 2025 are projections. Merchandise trade grew 2.5% per year on average between 2010 and 2023 while GDP growth averaged 2.7%.

Source: WTO for merchandise trade volume and consensus estimates for GDP.

Figure 2: Growth of digitally delivered services exports and goods exports by region, 2023 Annual % change Note: Regions are ranked according to their share in global exports of digitally delivered services. The Commonwealth of Independent States includes certain associate and former member states.

Source: WTO estimates.

Merchandise trade volume growth Real GDP growth at market exchange rates Average trade growth 2010-2022 Average GDP growth 2010-2022 2018 – 6.0 – 4.0 – 2.0 0.0 2.0 4.0 6.0 8.0 10.0 2019 2020 2021 2022 2023 2024P 2025P 3.2 3.3 0.4 2.6 9.6 6.2 3.0 3.1 -1.2 2.7 -5.0 -3.1 3.3 2.72.6 2.6 Digitally delivered services exports Goods exports – 30% – 25% – 20% – 15% – 10% – 5% 0% 10% 20% 15% 5% World 9% -6% Europe 11% -1% North America 3% -2% Middle East 6% -19% CIS -16% -23% Africa 13% -13% Asia 9% -7% South and Central America and the Caribbean -4%

11%WTO’S CONTRIBUTION TO ATTAINING UN SUSTAINABLE DEVELOPMENT GOALS

10

-19% CIS -16% -23% Africa 13% -13% Asia 9% -7% South and Central America and the Caribbean -4% 11%WTO’S CONTRIBUTION TO ATTAINING UN SUSTAINABLE DEVELOPMENT GOALS 10 and technological diffusion. This shift may have implications for SDG 4 (“Quality Education”) and SDG 17 (“Partnerships for the Goals”).

3. Policy fragmentation: The potential fragmentation of data flow policies could lead to a 1.8% decline in global real exports and a 1% decline, approximately, in global real GDP.

Such a scenario would significantly hamper progress across multiple SDGs, particularly SDG 8 (“Decent Work and Economic Growth”) and SDG 10 (“Reduced Inequalities”). The report’s projections for least-developed countries (LDCs) are particularly relevant to the SDGs. While the volume of LDC merchandise exports is expected to grow by 2.7 per cent in 2024, this is a slowdown from 4.1 per cent in 2023. On the other hand, the volume of LDC merchandise imports is projected to grow by 6.0 per cent in 2024 and 6.8 per cent in 2025, following a contraction of 3.5 per cent in

2023. These fluctuations can significantly impact progress on SDG 1 (“No Poverty”), SDG 2 (“Zero Hunger”), and SDG 10 (“Reduced Inequalities”).

The stronger growth projected for African merchandise exports (5.3 per cent in 2024, compared to 3.1 per cent in 2023) presents an opportunity for the continent to make strides in economic development and poverty reduction. However, this growth is coming from a low base, highlighting the need for continued support and investment in African trade infrastructure and capacity. Despite these difficulties, the fast expansion of services delivered through digital means offers a source of optimism. Global exports of digitally

in economic development and poverty reduction. However, this growth is coming from a low base, highlighting the need for continued support and investment in African trade infrastructure and capacity. Despite these difficulties, the fast expansion of services delivered through digital means offers a source of optimism. Global exports of digitally delivered services reached US$ 4.25 trillion in 2023, up 9.0 per cent year-on-year. This sector’s resilience and growth offer new pathways for developing economies to participate in global trade, potentially contributing to SDG 8 (“Decent Work and Economic Growth”) and SDG 9 (“Industry, Innovation and Infrastructure”). The accelerated growth of digitally delivered services exports in Africa (13 per cent) and South and Central America and the Caribbean (11 per cent) in 2023 is particularly promising (see Figure 2). If sustained, this trend could help bridge the digital divide and create new economic opportunities in these regions. International trade remains a powerful tool for achieving the SDGs. However, realizing this potential requires addressing the challenges of fragmentation, supporting developing economies and LDCs, and harnessing the opportunities presented by digital trade. The following chapters will delve deeper into how specific trade policies and practices can be leveraged to accelerate progress towards each SDGs that is under review at the 2024 HLPF. By understanding the current trade landscape and its implications for sustainable development, we can better chart a course towards a more prosperous, equitable and sustainable future for all.SDG 1: NO POVERTY 11 SDG 1: No Poverty Trade remains critical to delivering on so many national and global priorities: boosting growth, expanding economic opportunities, meeting the Sustainable Development Goals … without cooperation on trade, we would move towards an increasingly fragmented world economy, and all of these priorities would become harder, costlier, and in some cases impossible to achieve. WTO Director-General Ngozi Okonjo-Iweala, MC13 opening Ceremony,

the Sustainable Development Goals … without cooperation on trade, we would move towards an increasingly fragmented world economy, and all of these priorities would become harder, costlier, and in some cases impossible to achieve. WTO Director-General Ngozi Okonjo-Iweala, MC13 opening Ceremony, 26 February 2024 (WTO, 2024d) Multilateral trade has led to rising income levels and reduced poverty One of the most striking features of the global economy in the recent decades has been how trade-enabled growth has brought incomes in developing economies closer to those of rich economies. Trade, and in particular the integration of developing economies into global value chains (GVCs), has contributed to improvements in income and productivity across economies (WTO, 2023). Since 1995, decreasing trade costs have enabled an increase in trade, as containerization and technological developments have lowered transportation and communication costs and tariffs and non-tariff measures (NTMs) have been reduced, many of them through multilateral, plurilateral and regional trade agreements. Global trade costs declined by 15 per cent between 2000 and 2018, according to the WTO Trade Cost Index.1 In 1995, through the newly created WTO, members committed to a rules-based multilateral trade regime providing a predictable trading environment that has fostered trade and growth for the past 30 years. Between 1995 and 2023, total world trade — goods and commercial services — increased almost fivefold.2 From 1981 to 2019, lowand middle-income economies increased their share in global exports from 19 to 29 per cent, and this contributed to reducing the share of their populations subsisting on less than US$ 2.15 per day from 55 per cent to 10 per cent (see Figure 3). Trade can reduce poverty by increasing growth, and comprehensive trade-opening in developing economies increased on average economic growth by an average of

reducing the share of their populations subsisting on less than US$ 2.15 per day from 55 per cent to 10 per cent (see Figure 3). Trade can reduce poverty by increasing growth, and comprehensive trade-opening in developing economies increased on average economic growth by an average of 1.0 to 1.5 percentage points (Irwin, 2019). Economic growth, in turn, has been found to increase the real income of the poor (Dollar, Kleineberg and Kraay, 2016). However, certain regions, such as sub-Saharan Africa, have encountered slower progress due to limited trade growth. Growth is essential to reduce poverty. Although the causes of poverty are multi-dimensional, the strong growth in developing economies has been a significant driver for the reduction of the number of extreme poor. GDP growth helps to generate the resources needed to improve standards of living, health, education, and water safety, to provide housing and, very importantly, to invest in achieving the United Nations Sustainable Development Goals (SDGs). Trade is a crucial engine for the growth that would contribute to ending extreme poverty by 2030, as per SDG 1. Trade can contribute to positive growth in a number of ways, such as by inducing a more efficient use of resources and by incentivizing innovation by facilitating access to technology available in the global market. It can also directly contribute to poverty reduction, for example by making more affordable goods available to poor households and opening up opportunities for poor farmers by improving their access to foreign markets. Trade can play a key role in empowering women in poor communities, given that exporting firms in developing economies tend to employ a significantly higher share of women than non-exporting firms, which can, in turn, affect other household decisions, such as education (World Bank and WTO, 2020). Open trade also helps the poor because it is critical to economic security, given that it allows for diversification. For example, trade was central

higher share of women than non-exporting firms, which can, in turn, affect other household decisions, such as education (World Bank and WTO, 2020). Open trade also helps the poor because it is critical to economic security, given that it allows for diversification. For example, trade was central in responding to sharp fluctuations in demand – for example, for medical products – during the COVID-19 crisis and has helped economies highly dependent on products whose supply has been affected by the war in Ukraine to adapt by switching12 WTO’S CONTRIBUTION TO ATTAINING UN SUSTAINABLE DEVELOPMENT GOALS suppliers for the same product or replace products with substitutes and establish trading relationships with new partners (WTO, 2023a). While disruptions did occur in both instances, evidence suggests that less openness would have worsened the impacts. Despite this, not all economies have benefited equally. Export-led growth has reduced poverty in East Asia and parts of Eastern Europe, but the number of poor people in sub-Saharan Africa has st