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WTO’s contribution to attaining

UN Sustainable Development Goals:

2023 update to the High-Level Political Forum

Acknowledgments

This publication received guidance from Deputy

Director-General Xiangchen Zhang and from Yuvan

Beedjadhur of the Ofﬁce of the Director-General.

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 conceptualized, and

directed the project. Roberta Allport, also from

the Development Policy Unit, was the project

coordinator. The publication was edited and reviewed

by Helen Swain of the Information and External

Relations Division.

Contributing authors to this publication were

Raúl Torres, Roberta Allport and Magdaline Morijoi

(Development Division); Ruosi Zhang, Ester Rubio

Colomer, Ayushi Singh and Martin Roy (Trade in

Services and Investment Division); Sajal Mathur,

Ludivine Tamiotti and Svetlana Chobanova (Trade

and Environment Division); Joseﬁta Pardo de León,

Mengqi Niu, Antony Taubman, Carol Cravero and

Reto Malacrida (Intellectual Property, Government

Procurement and Competition Division);

Roberta Piermartini, Ankai Xu, Stela Rubínová and

Jose-Antonio Monteiro (Economic Research and

Statistics Division).

Disclaimer

This publication has been prepared under the WTO

Secretariat’s own responsibility and without prejudice

to the position of WTO members and to their rights

and obligations under the WTO. The designations

employed in this publication and the presentation

of material therein do not imply the expression of

any opinion whatsoever on the part of the WTO

concerning the legal status of any country,

area or territory or of its authorities, or concerning

the delimitation of its frontiers.

CONTENT

Introduction 4

The 2023 High-Level

Political Forum and the WTO 4

Overview of international trade between 2022 and 2023 and projections for the future 4

WTO contributions to recovery from COVID-19 and future pandemics 7

SDG 6: Clean Water and Sanitation 8

Trade policies and trade measures for water conservation and management 8

Water supply and sanitation services 9

The UN 2023 Water Conference and the Global Commission on the Economics of Water 9

International trade in water 10

SDG 7: Affordable and Clean Energy 11

Trade is increasingly shaping the clean energy landscape 11

Addressing trade barriers in clean and renewable energy 12

International trade cooperation can speed up access to affordable clean energy worldwide 13

SDG 9: Industry, Innovation and Infrastructure 15

Government policies to promote innovation and sustainability 15

Examples of WTO initiatives that facilitate innovation 17

The role of intellectual property and the WTO TRIPS Agreement in innovation 17

Policies of micro, small and medium-sized enterprises 20

The role of the Agreement on Government Procurement (2012) in infrastructure development 20

The role of Aid for Trade in SDG 9 21

The geographical distribution of Aid for Trade 22

Strengthening multilateral cooperation on industrial subsidies 24

SDG 11: Sustainable Cities and Communities 26

The role of tourism and services in supporting the development of sustainable cities 26

Measuring the sustainability of tourism 27

The role of investment facilitation for development in the tourism sector 27

The role of trade in promoting sustainable cities 28

The WTO Trade Facilitation Agreement and sustainable cities 28

SDG 17: Partnerships for Trade and development 30

References 31

Endnotes 33

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WTO’scontributiontoattainingUNSustainableDevelopmentGoals:2023updatetotheHigh-LevelPoliticalForumAcknowledgmentsDisclaimerThispublicationreceivedguidancefromDeputyThispublicationhasbeenpreparedundertheWTODirector-GeneralXiangchenZhangandfromYuvanSecretariat’sownresponsibilityandwithoutprejudiceBeedjadhuroftheOfficeoftheDirector-General.tothepositionofWTOmembersandtotheirrightsPreparationofthepublicationwasajointeffortandobligationsundertheWTO.ThedesignationsacrossseveraldivisionsoftheWTO.employedinthispublicationandthepresentationofmaterialthereindonotimplytheexpressionofRaúlTorres,HeadoftheDevelopmentPolicyUnitanyopinionwhatsoeveronthepartoftheWTOoftheDevelopmentDivisionconceptualized,andconcerningthelegalstatusofanycountry,directedtheproject.RobertaAllport,alsofromareaorterritoryorofitsauthorities,orconcerningtheDevelopmentPolicyUnit,wastheprojectthedelimitationofitsfrontiers.coordinator.ThepublicationwaseditedandreviewedbyHelenSwainoftheInformationandExternalRelationsDivision.ContributingauthorstothispublicationwereRaúlTorres,RobertaAllportandMagdalineMorijoi(DevelopmentDivision);RuosiZhang,EsterRubioColomer,AyushiSinghandMartinRoy(TradeinServicesandInvestmentDivision);SajalMathur,LudivineTamiottiandSvetlanaChobanova(TradeandEnvironmentDivision);JosefitaPardodeLeón,MengqiNiu,AntonyTaubman,CarolCraveroandRetoMalacrida(IntellectualProperty,GovernmentProcurementandCompetitionDivision);RobertaPiermartini,AnkaiXu,StelaRubínováandJose-AntonioMonteiro(EconomicResearchandStatisticsDivision).3CONTENTIntroduction4The2023High-LevelPoliticalForumandtheWTO4Overviewofinternationaltradebetween2022and2023andprojectionsforthefuture4WTOcontributionstorecoveryfromCOVID-19andfuturepandemics7SDG6:CleanWaterandSanitation8Tradepoliciesandtrademeasuresforwaterconservationandmanagement8Watersupplyandsanitationservices9TheUN2023WaterConferenceandtheGlobalCommissionontheEconomicsofWater9Internationaltradeinwater10SDG7:AffordableandCleanEnergy11Tradeisincreasinglyshapingthecleanenergylandscape11Addressingtradebarriersincleanandrenewableenergy12Internationaltradecooperationcanspeedupaccesstoaffordablecleanenergyworldwide13SDG9:Industry,InnovationandInfrastructure15Governmentpoliciestopromoteinnovationandsustainability15ExamplesofWTOinitiativesthatfacilitateinnovation17TheroleofintellectualpropertyandtheWTOTRIPSAgreementininnovation17Policiesofmicro,smallandmedium-sizedenterprises20TheroleoftheAgreementonGovernmentProcurement(2012)ininfrastructuredevelopment20TheroleofAidforTradeinSDG921ThegeographicaldistributionofAidforTrade22Strengtheningmultilateralcooperationonindustrialsubsidies24SDG11:SustainableCitiesandCommunities26Theroleoftourismandservicesinsupportingthedevelopmentofsustainablecities26Measuringthesustainabilityoftourism27Theroleofinvestmentfacilitationfordevelopmentinthetourismsector27Theroleoftradeinpromotingsustainablecities28TheWTOTradeFacilitationAgreementandsustainablecities28SDG17:PartnershipsforTradeanddevelopment30References31Endnotes334WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSIntroductionThe2023High-LevelThereportprojectsmerchandisetradevolumegrowthPoliticalForumandtheWTOof1.7percentin2023,accompaniedbyrealGDPgrowthof2.4percentatmarketexchangeratesTheUN’sHigh-LevelPoliticalForum(HLPF),held(seeFigure1).However,thisprojectedmerchandiseannually,offersorganizations,includingtheWTO,tradevolumegrowthis,infact,anupwardsrevisiontheopportunitytoreviewprogresstowardsthefromthepreviousestimateof1.0percentmadebytheattainmentoftheUNSustainableDevelopmentWTOinOctober2022,andisduetotherelaxationGoals(SDGs).InthecaseoftheWTO,thisinvolvesofCOVID-19pandemiccontrolsinChina,whichisexaminingthecontributionofinternationaltradeandexpectedtounleashpent-upconsumerdemandinthethemultilateraltradingsystemtoattainmentofthecountry,resultinginaboosttointernationaltrade.SDGsandtodevelopmentingeneral.ThereportalsoshowsthatgoodstradewasmoreThe2023HLPFwillfocusparticularlyonGoal6resilientthanexpectedformostof2022,despite(“Cleanwaterandsanitation”),Goal7(“AffordabletheeffectsofthewarinUkraine.Year-on-yearandcleanenergy”),Goal9(“Industry,innovationandmerchandisetradevolumegrowthaveraged4.2perinfrastructure”),Goal11(“Sustainablecitiesandcentinthefirstthree-quartersof2022,beforeacommunities”)andGoal17(“Partnershipsforthesharpquarter-on-quarterdeclineinthefourthquartergoals”).TheHLPFwillalsotakeintoaccountthedraggedgrowthfortheyeardownto2.7percent.differentandparticularimpactsoftheCOVID-19Severalfactorscontributedtothatslump,includingpandemicacrosstheseSDGsandtheintegrated,elevatedglobalcommodityprices,monetarypolicyandinterlinkednatureoftheSDGs.tighteninginresponsetoinflation,andoutbreaksofCOVID‑19thatdisruptedproductionandtradeinTheHLPFprocessthereforegivestheWTOtheChina.opportunitytodelveintoSDGswhereconnectionswithtradehavenotbeenexaminedindetailuptoTradegrowthin2022wasinlinewiththe2.4to3.0now.percentbaselinescenariopredictedbytheWTO’sMarch2022reportonthewarinUkraine(WTO,Overviewofinternational2022a),whichwaswellaboveamorepessimistictradebetween2022andscenarioinwhichtheformationofcompeting2023andprojectionsforeconomicblocswouldhaveresultedintradegrowththefutureof0.5percent.Instead,asaresultofcontinuedopenmarkets,manyvulnerablecountrieswereabletoTheWTO’srecent“GlobalTradeOutlookandcompensateforincreasedfoodpricesandreducedStatistics”report(WTO,2023a)showedthat,duetosupplybyturningtoalternativeproductsandsuppliersstrongexternalpressures,2023projectionsfortrade(WTO,2023b).andoutputgrowtharebelowtherespectiveaveragesof2.6percentand2.7percentforthe12yearsLookingaheadto2024(seeFigure2),areboundofsincethetradecollapsethatfollowedtheglobaltradegrowthto3.2percentisprojected,asGDPfinancialcrisis.TheWTOrecognizestheimportantpicksupto2.6percent.However,thisestimateisrolethattrademustplayintheeconomicrecoverymoreuncertainthanusualduetothepresenceoffromtheCOVID-19pandemicandtheneedforanumberofsignificantrisks,includinggeopoliticaldecisivepositiveactiononmultilateraltrade;asWTOtensions,resurgentinflation,foodsupplyshocksandDirector-GeneralOkonjo-Iwealastatedduringthethepossibilityofunforeseeneffectsresultingfromlaunchofthe“GlobalTradeOutlookandStatistics”:monetarytightening.Interestratehikesinadvancedeconomieshavealsorevealedweaknessesinbanking“Tradecontinuestobeaforceforresiliencesystemsthatcouldleadtowiderfinancialinstabilityintheglobaleconomy…Thismakesitunlessaddressedbygovernmentsandregulators.Theevenmoreimportantforgovernmentstooutcomeoftheworst-casescenariocontinuestobeaavoidtradefragmentationandrefrainfromfoodcrisisthatcouldtriggerwidespreadhungerand,introducingobstaclestotrade.Investinginpotentially,politicalinstabilityinlow-incomecountries.multilateralcooperationontrade…wouldbolstereconomicgrowthandpeople’slivingInflationandcommoditypriceswerealsoamongthestandardsoverthelongterm.”1maindragsontradeandGDPin2022(seeFigure3).CoupledwithanappreciationoftheUSdollar,inflationratesin2022wereamongtheirhighestsincethe1980s,stronglyinfluencedbymassivecommoditypricefluctuations,whichalsoaffected2022tradevolumes.INTRODUCTION5Figure1:WorldmerchandisetradevolumeandGDPgrowth,2015-24Annual%change10.09.48.05.96.04.93.23.32.73.03.23.42.64.03.12.82.62.41.40.41.72.32.00.0–2.0–4.0-3.3–6.0-5.1201920152016201620172018202020212022P2023PMerchandisetradevolumegrowthRealGDPgrowthatmarketexchangeratesAveragetradegrowth2010-2022AverageGDPgrowth2010-2022Note:2023and2024areprojections.Source:WTOformerchandisetradevolumeandconsensusestimatesforGDP(WTO,2023a).Figure2:Volumeofworldmerchandisetrade,2015Q1-2024Q4Seasonallyadjustedvolumeindex,2015=10014013012011010090802015Q12015Q22015Q32015Q42016Q12016Q22016Q32016Q42017Q12017Q22017Q32017Q42018Q12018Q22018Q32018Q42019Q12019Q22019Q32019Q42020Q12020Q22020Q32020Q42021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q42023Q12023Q22023Q32023Q42024Q12024Q22024Q32024Q4Note:Theshadedregionrepresentsbothrandomvariationandsubjectiveassessmentofrisk.Sources:WTOandUNCTADforhistoricaldata,WTOSecretariatestimatesforforecastsandWTO(2023a).6WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSThesefluctuationswereparticularlystrongfor•Thepandemicdisruptedglobalsupplychains,Europeannaturalgasprices,whichrose48percausingshortagesanddelaysinthedeliveryofcentbetweenJanuaryandAugust2022,beforegoodsandservices.Internationaltradehelpedtofalling76percentbyFebruary2023.Pricesoffoodmaintainthesesupplychainsandensuredthatcommoditiesalsounderwentwidevariationsoveressentialgoodsandservicescontinuedtoflowthecourseof2022,surgingby19percentbetweendespitedisruptions.JanuaryandMay,beforeplunging15percentbetweenMayandDecember.Pricesoffertilizers•Thepandemiccausedasignificantdownturninregisteredanevenlargeryear-on-yearincreaseofglobaleconomicactivity,leadingtowidespread63percent.joblossesandbusinessclosures.InternationaltradehelpedtosupporteconomicrecoverybyTheCOVID-19pandemicwasalsoresponsibleforaenablingbusinessestoaccessnewmarkets,dramaticreductionininternationaltrade,resultinginoffsettingtheimpactofreduceddomesticdepressedGDPgrowth,particularlyin2020demand.(seeFigure1).Conversely,internationaltradehasplayedacriticalroleinacceleratingtheeconomic•Internationaltradehelpedtofacilitateglobalrecoveryfromthepandemicinanumberofways:collaborationandcooperationinaddressingcommonchallengesbyenablingthesharing•Thepandemiccreatedasurgeindemandforofknowledge,expertiseandresourcesacrossgoodssuchasmasks,ventilatorsandpersonalbordersandbypromotinginternationaldialogueprotectiveequipment.Internationaltradehelpedandcooperation.toensurethattheseessentialmedicalsuppliesandequipmentwereavailableinthecountriesthatneededthemmost,evenwhendomesticproductionwasunabletomeetthedemand.•InternationaltradeplayedacriticalroleinthetransportofCOVID-19vaccinesandrelatedmedicalsuppliestocountriesinneed,includinglow-incomeeconomieslackingresourcestodeveloporpurchasevaccines.Figure3:Globalaverageprimarycommodityprices,Index,2019=100January2019-February202380070060050040030020010002019M012019M032019M052019M072019M092019M112020M012020M032020M052020M072020M092020M112021M012021M032021M052021M072021M092021M112022M012022M032022M052022M072022M092022M112023M01EnergyCrudeOilNaturalGasFoodGrainsFertilizersSource:WorldBankandWTO(2023a).INTRODUCTION7WTOcontributionstoexperiencedduringthepandemic.AreasoffocusrecoveryfromCOVID-19andincludeexportrestrictions,foodsecurity,intellectualfuturepandemicsproperty,regulatorycooperation,services,tariffclassification,technologytransfer,tradefacilitationTheWTO’sworkhasbeeninstrumentalincreatingandtransparency.AyearlystocktakingexercisewillconditionsfavouringtherecoveryofinternationaltakeplaceintheGeneralCounciluptotheendoftradeandeconomiesfromtheCOVID-19pandemic.2024.4AnimportantexampleistheWTO’s12thMinisterialConference(MC12),heldinJune2022followingaTheMinisterialDecisionontheTRIPSAgreementdelayofovertwoyearsduetothepandemic.providesaplatformformemberstoworktogethertodiversifyvaccineproductioncapacity.ItallowsTheConferenceresultedintwooutcomesmembersgreaterscopetotakedirectactiontospecificallyrelatedtotraderesponsivenesstooverridetheexclusiveeffectofpatentsthroughapandemics,namely,theMinisterialDeclarationontargetedwaiverthataddressesspecificproblemstheWTOResponsetotheCOVID-19Pandemicidentifiedduringthepandemic,especiallyfacilitatingandPreparednessforFuturePandemics2andtheandstreamliningvaccineexportsforthenextfiveMinisterialDecisionontheAgreementonyearsandgreaterclarityregardingemergencyuseTrade-relatedAspectsofIntellectualPropertyRightsmeasures.Developing-economymemberswith(TRIPSAgreement).3existingCOVID-19vaccinemanufacturingcapacityareencouragedtooptoutofavailingthemselvesTheMinisterialDeclarationontheWTOResponseofthewaiver.MemberswerealsoduetodecidetotheCOVID-19PandemicandPreparednessonwhethertoextendthewaivertocovertheforFuturePandemicsresultedfromworkbyWTOproductionandsupplyofCOVID-19diagnosticsmembersonaholisticmultilateralresponsetotheandtherapeuticsbyDecember2022,thoughthispandemic,whichwouldalsotakeintoaccountfuturedeadlinehasbeenextended.pandemics.ThisDeclarationissolutions-orientedand,forexample,willenablememberstobetterleveragetheknowledgegeneratedbythenetworksestablishedbyWTODirector-GeneralOkonjo-Iwealainordertocoordinatediscussionsamongrelevantinternationalorganizations,developmentagencies,civilsocietyandbusinesses.ThedeclarationcallsuponrelevantWTObodiestocontinueorinitiateworkonlessonslearnedandchallenges8WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSSDG6:CleanWaterandSanitationKEYPOINTS•Tradecanprovidethemeanstodisseminatethetechnologiesneededforbetterwatermanagement.Itcanhelptoscaleupsolutionsandspreadbestpracticeswithregardtowatermanagementasgoodsproducersconnectthroughsupplychains.•Tradeinwaterservicescanhelpattracttheinvestmentsneededtobuildormaintainpublicwatersupplyandsanitationutilities.Tradecanalsoprovideaccesstoinnovativeandcompetitivetechnologiesthatincreasetheefficiencyofsanitationandwastewatermanagement.•WTODirector-GeneralOkonjo-IwealaparticipatedintheUNWaterConferenceinMarch2023andisaco-chairoftheGlobalCommissionontheEconomicsofWater.•Whilewateritselfismostlynottraded,indirecttradeinwater–particularlyasembeddedintradedagriculturalgoods–canplayanimportantroleinsavingwaterresourcesandenhancingfoodsecurity.Tradepoliciesandtradetothediffusionofwaterresourcemanagementandmeasuresforwaterconservationtechnologiesandproducts,includingconservationthedesign,construction,installationorprovisionofandmanagementtechnologiesandproductsrelatedtowatersupply.ItmayalsosupportwaterpollutionmanagementWaterisassumedbymanytobeprovidedbytechnologiesandproducts,suchasthoseneededfornatureandavailabletoallforfree,but,inreality,wastewatertreatmentmanagementandfortacklingwateraccesscannotbetakenforgranted.Waterwaterpollution(MullerandBellmann,2016;WTO,resourcesaredistributedunevenlyacrosstheglobe.2022b).Furthermore,itssupplyissignificantlyaffectedbyclimatechange,deforestation,andpollution.TradeTheWTOEnvironmentalDatabase(EDB)5isaandtradepoliciescanplayaroleinaddressingtheserepositoryofWTOmembers’environment-relatedchallenges,especiallyineconomiesmostvulnerablenotificationsandinformationdrawnfromtheirtradetoextremeweatherevents,waterorfoodscarcitypolicyreviews.6Between2009and2021,1,486andclimateshocks.Asdevelopedfurtherinthe2022trademeasureswerenotifiedandtaggedintheEDBWorldTradeReport,theremovalofunnecessarywiththeenvironment-relatedobjectiveof“waterbarrierstotradecouldsignificantlyaugmenttheconservationandmanagement”.WTOmemberspotentialoftrade,finance,investmentandaccesshavemostlydeployedsupportmeasures,intheformtotechnologies,andcouldhelpreducecostsandofgrantsandnon-monetaryinitiatives(27.1perexposuretoclimate-inducedshocks(WTO,2022b).centand26.8percent,respectively,ofthenotifiedmeasures)toincentivizeeffectivemanagementofTradecanfacilitatethedevelopmentanddeploymentwaterresources.ofgoods,servicesandtechnologies,suchasdrought-resistantcropvarieties,driporotherWith70–80percentoftheworld’sfreshwaterirrigation,andwaterconservationandstorageallocatedtoagriculturalpurposes,thereisasystems.ThereisWTOinterestininitiativesonstrongfocusonagriculture,withmorethanhalfenvironmentalgoodsandservices,and74WTOofsuchtrademeasuresforwaterconservationormembersareactivelyengagedintheTradeandmanagement(52.3percent)notifiedundertheEnvironmentalSustainabilityStructuredDiscussions.WTOAgreementforAgriculture,andtherestbeingTradeinenvironmentalproductscouldcontributenotifiedundertheWTOAgreementonSubsidiesandCountervailingMeasures(22.8percent)andtheWTOTechnicalBarrierstoTrade(TBT)SDG6:CLEANWATERANDSANITATION9Agreement(21.7percent)anddealingwithtechnicalGiventhatwaterservicesrequirecostlyspecifications,standards,andconformityassessmentinfrastructure,mostofwhichislaidundergroundprocedures.Measurestakenbydevelopingandentailslarge,fixedcosts,waterservicesareeconomiesandleast-developedcountries(LDCs)traditionallyoperatedbylocalpublicauthorities,andaccountfor43.8percentofthenotificationstaggedthescopefortheintroductionofcompetitionismoreonwaterconservationandmanagement.limitedthanforotherinfrastructureservices,suchastelecommunications.ThelasttwoorthreedecadesTheEnhancedIntegratedFramework–apartnershiphaveseentheincreaseofprivateinvestmentintheofeconomies,donorsandpartneragencies,watersectoracrosstheglobe.TheinvolvementoftheincludingtheWTO,thatassistsLDCs–andtheprivatesectorcantakeseveralforms,rangingfromWTOAidforTradeinitiativeincludeprojectstohelppublic-privatepartnerships(PPPs)tofullprivatization.countriesmobilizesupportandbuildtrade-relatedInthiscontext,tradeinwaterservices,inparticularcapacitiesforinitiativessuchasclimateadaptation,thesupplyofwaterservicesinvolvingforeigndirectirrigationandwaterconservationandmanagement.investment(correspondingtomode3oftheGeneralExamplesofsuchprojectsaretheprovisionofAgreementonTradeinServices(GATS)modesofgreenhousesandhailnetstosmallfarmersinsupply),7hasgainedmoreroomtodevelop.8Lesothotopromoteresiliencetochangingweatherpatterns,andmappinglandslideriskandpromotingDevelopingeconomiesfacingchallengesofsustainablesoilandwatermanagementinsustainabilityandfinancialviabilitymayconsiderTimor-Lestetoenhancecoffee-growingcommunities’PPPsasanoptiontoimprovetheirwatersupplyandadaptationtoandpreparednessforclimatechangesanitationservices.Inthiscontext,tradeinwater(WTO,2022b).servicescanhelpbringininvestmentneededforthebuildingormaintenanceofpublicutilities.TradecanThus,thereisamplescopetoexaminehowtradealsoprovideaccesstoinnovativeandcompetitivepolicycanimprovetheeconomicsofwaterrights.Intechnologiesthatincreasetheefficiencyofsanitationmanysectors,tradedistortionsarealsoeconomicandwastewatermanagement.distortions,andthereisneedforcoherencebetweentradeandeconomicpolicies.TrademayalsobekeyTheUN2023toadaptationasitdirectly–orindirectly,throughWaterConferenceandtradeinembeddedagriculturalorotherproducts–theGlobalCommissiononallowsformovementofwaterresourcesfromareastheEconomicsofWaterwithsurplustothosefacingscarcity.TheUN2023WaterConference,9whichwasWatersupplyandsanitationco-hostedbytheNetherlandsandTajikistaninMarchservices2023,markedawatershedmoment.Followingagapofnearly50years–theonlypreviousUNWaterServicesplayasignificantroleinthesustainableConferencehavingbeenheldin1977–globalmanagementofwaterandsanitation,whichconcernsleadersandkeypolicymakersengagedonwater.notonlythesupplyofwaterservicesperse,butalsoOneofthemainoutcomesfromtheUN2023Watervariousotherrelevantservices.ConferencewastheWaterActionAgenda,10whichcollectedover700commitmentsfrommemberWaterservicesconsistofthesupplyofwaterforstates,inter-governmentalorganizations(IGOs),consumptionandthetreatmentofwastewater,andnon-governmentalorganizations(NGOs)andotherwatersupplyinvolvesthecaptureoftheresource,stakeholders.itstreatmenttoreachadeterminedlevelofquality,transportationthroughaprimarynetwork(aqueductsWTODirector-GeneralOkonjo-Iwealaparticipatedormains)anddeliverytousersthroughasecondaryinthePlenaryInteractiveDialogue11oftheUN2023network(pipelinesandtaps).WaterConferenceonthesubjectofWaterforSustainableDevelopment,aswellasinanumberofWastewaterservicesentailtheremovalofsewageotherhigh-levelevents.throughpipesanddrainsanditschemical,physicaland/orbiologicaltreatmenttoremovecontaminantsDirector-GeneralOkonjo-Iwealaalsoengagedandmakethewatercontentavailableforreuseorwiththemediaandwithotherstakeholdersinherreleaseintotheenvironment.Thesupplyofwatercapacityasco-ChairoftheGlobalCommissionservicesentailsthebuildingofinfrastructureandtheontheEconomicsofWater.12AttheUN2023operationofspecializedprocesseswithcomplexWaterConference,theCommissionpublisheditstechnologies,whichnecessarilyimplicateawidepreliminaryfindingsin“TurningtheTide:ACalltorangeofotherservicesincludingdesign,engineeringCollectiveAction”(Mazzucatoetal.,2023),abasisandconstruction,installation,maintenanceandforitsfinalreport,whichistobepublishedinMayrepair,andtechnicalanalysisandtestingservices.2024.10WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSInternationaltradeinwatervirtualwaterflowsowingtotradeliberalization,withincreasingimportsofwater-intensivegoodsWateritselfismostlynottraded,atleastnotdirectlyandshiftstolesswater-intensiveactivitiesbyinlargevolumesorvalues.Thereis,however,water-scarceregions,andincreasedwater-intensivegrowinginterestinindirecttradeinwater,particularlyexportsbyrelativelywater-abundantregionsasembeddedintradedagriculturalgoods.Among(FAO,2022).However,moststudiesonthethethousandsofgoodstradedandlistedintherelationshipbetweeninternationaltradeandnationalHarmonizedSystem(HS)ofcommodityclassificationwaterendowmentsdemonstratethatotherfactors,usedtocodifyinternationaltradeandtariffs,onlyHSsuchaslabour,capital,landendowmentandaccess2201(Waters,includingnaturalorartificialmineraltoarableland,farmingstructure,technologyandwatersandaeratedwater(…);iceandsnow)isagriculturalpoliciesaremoreimportantthanwaterexplicitlyatradedproduct,withamerchandiseexportavailabilityindeterminingagriculturalandvirtualvolumeof871billionlitresor926billiontonnes,andwatertradepatterns(FAO,2022).merchandiseexportvalueofUS$3.7billionin2020,accordingtotheUNComtradeDatabase.13ThetopAnotherlimitingfactorintheconceptofvirtualfiveexportersareFrance,China,Italy,theUnitedwateristhefactthatthepriceoffreshwaterusedStatesandBelgium,andthetopfiveimportersareinagricultureorothersectorsgenerallydoesnottheUnitedStates,HongKong(China),Belgium,reflectitseconomicvalue,northeenvironmentalGermanyandJapan.Globally,theaverageWTOexternalitiesassociatedwithitsuse.Thisdistortionboundceilingtariffandtheactualappliedtariffoncanleadtosub-optimaldistributionofproductionbeveragewaters(HS220110)are53percentandandinternationaltradeflowsfromaneconomicand22percent,respectively(WTO,2022c).anenvironmentalpointofview.AligningtradeandsustainablewateruseisthereforealsocriticalinHowever,thistradeinwaterdoesnotimplythatfreshordertoimproveglobalwatergovernance.watersuppliesareevenlydistributedglobally.Thereareeconomies,orregionswithineconomies,withwaterscarcity,andotherswithwaterabundance.Internationaltradecouldpotentiallyhelptoalleviatelocalproblemsofwaterscarcitybymovingresourcestowheretheyaremostneeded,butforeconomic,politicalorenvironmentalreasons,economiesmaybeunableorunwillingtodoso.Large-scaleshipmentsofwaterareessentiallynon-existent.Reasonsforthelackofthistradearealsotechnical,aswaterisbulkyanddifficulttotransport(WTO,2010;Temmerman,2017).Thereisalsotheconceptofvirtualwatertrade.Intheory,tradein“virtualwater”wouldsuggestthatcountriesfacingfreshwaterscarcitycouldimportmorewater-intensiveproductsandexportlesswater-intensiveproducts.However,tradinginvirtualwatercanalsoenhancewaterinequalitiesifwater-scarcecountriesdecidetoexportwater-intensivecommoditiesthemselves.Itcanalsocreatetheriskofmaladaptationunlesscountriesfullyaccountfortheopportunitycostsoffreshwateruse.Themainuseroffreshwateristheagriculturesector,whichaccountsfor70–80percentofglobalwateruse.Importingwater-intensivecommodities,insteadofproducingthemwithlocalwater,couldthereforebeconsideredasanintegralpartinpoliciesthataimtoincreasefoodsecurityandnutritioninwater-constrainedcountries.Globally,virtualwatertradecouldplayanimportantroleinsavingwaterresourcesandenhancingfoodsecurityiftradeflowsaredirectedfromregionswithhigherwaterproductivitytothosewithlowerproductivity.Estimatessuggestthattradeinagriculturalproductsresultsinwatersavingof369billioncubicmeters,equivalentto4percentofglobalwateruse.14SomestudiesshowsmalltosubstantialincreasesinglobalSDG7:AFFORDABLEANDCLEANENERGY11SDG7:AffordableandCleanEnergyKEYPOINTS•Tradeinenvironmentalgoodsandservicescanplayanimportantroleinthetransitiontoalow-carboneconomybysupportingthedevelopment,deploymentanddiffusionofaffordablelow-carbonandenergy-efficienttechnologies.•Openinguptradeincleanerandrenewableenergyproductsandinenergy-efficientproductscouldraiseglobalexportsofthesegoodsby5percentby2030.Althoughthiswouldalsoraisethedemandforenergy,andthusincreasecarbonemissions,theeliminationoftariffsandthereductionofnon-tariffmeasureswouldneverthelessleadtoa0.6percentnetreductioninglobalcarbonemissionsby2030.•Internationaltradecooperationplaysanimportantroleinfacilitatingtradeandinvestmentinaffordableandcleanenergyproductsandservices.However,addressingthetradebarriersthathindertheadoptionanddiffusionoflow-carbonandenergy-efficienttechnologiesrequiresgreatercooperationattheregionalandmultilaterallevels.Tradeisincreasinglyshapinginrenewableenergyequipmentandproductsthecleanenergylandscapegrewbyover180percentbetween2000and2020,outpacingtheannualgrowthrateofoverallEnvironmentalgoods,servicesandtechnologies,merchandisetrade.whichhelptoproducecleanerandrenewableenergyandimproveenergyefficiency,arecriticalEconomiesofscale,innovation,andtheriseoftothetransitiontoalow-carboneconomy.Locallyglobalvaluechainsdriveimprovementsinmanylow-generatedrenewableenergycanallowdevelopingcarbontechnologies.Forexample,improvementsandleast-developedeconomiestobypassmanyintechnologyandproductionhavedrivendowntheofthelogisticaldifficultiesandhighcostsinvolvedcostofsolarelectricityby97percentsince1990inthetransmissionanddistributionoffossil(seeFigure4).Asignificantpartofthiscostdeclinefuelenergy,improvingtheirenergyaccessandhasbeenattributedtoglobalvaluechains,whichreducingtheirdependenceonenergyimports.haveenabledproducerstolowerproductioncostsThecleanenergyindustryisadynamicandfast-andreapeconomiesofscalebylocatingdifferentgrowingsector,althoughitisstillemerginginmanyproductionstagesindifferentcountries(WTOandcountries.ThescopeofgoodsandservicesrelatedIRENA,2021).Thecapacityofsolarpanelsgloballytocleanenergyandenergyefficiencyisbroadandtradedin2017reachedalmost80GW–theincludesequipmentandtechnologiesthatproduceequivalentofmorethan9percentofglobalwind,solar,hydro,geothermalandbiomassenergy,electricitygeneration(Wangetal.,2021).thatminimizeenergyuseandthatimproveheatandenergymanagement.Althoughmanynewenvironmentaltechnologiesaredevelopedinhigh-incomeeconomies,theTradepromotesthedevelopmentandadoptionproductionofmanycleanenergyandenergyofcleanandrenewableenergyequipmentandofefficiencygoodsandservicesisincreasinglyspreadenergy-efficientgoodsandservices.Basedonacrossalleconomies.Regionalandglobalvalueanillustrativelist,itisestimatedthatglobaltradechainsoffermanyeconomies,includingdevelopingones,anopportunitytoparticipatebysupplying12WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSFigure4:Assolarphotovoltaic(PV)panelexportsrise,theirpricefalls99008800SolarPVmodulepriceinrealUS$(2015)perwatt7700TradeinsolarPVpanelsinrealUS$million(2015)660055004400330022001100019952000200520102015019902020ImportsofsolarPVpanels(cellsandmodules)AveragesolarPVmodulepriceSource:WTO(2022b).parts,componentsandservicestoproduce,hingesonimportanttechnologicalbreakthroughs,distributeandmarketmanycleanenergyandnotablyinenergystorage.Moredevelopingenergyefficiencytechnologies.Forinstance,China,economiesarealreadymovingtoharnesstheirMalaysiaandVietNamaremajorexportersofsolarabundantrenewableenergypotential.Forinstance,powerproducts,includingsolarpanelsandsolarMoroccohoststheworld’slargestsolarpowerwaterheaterdevices.station,whileEgyptisbuildingasolarphotovoltaicpark,toutedtobecometheworld’slargest.TradeinenvironmentalservicescanalsosupporttheuptakeofcleanenergyandenergyefficiencyAddressingtradebarriersintechnologies.Manycleanenergyandenergycleanandrenewableenergyefficiencyservicesarecloselylinkedwithcleanenergyandenergyefficiencygoods,sincetheWell-designedclimatepoliciesareessentialtoprovisionoftheseservicesoftenreliesontheencouragethemarket,investorsandconsumerstouseofrelatedenvironmentalgoods.Thisisalsomakemorelow-carboninvestmentandconsumptiontrueofotherancillaryservicesessentialforcleandecisions,includingwithrespecttoenergy.Inthisenergyandenergyefficiencytechnologies,suchcontext,internationaltradeandtradepoliciescanasresearchanddevelopment,engineeringandcontributetoenablingaccesstoanddevelopmentconstruction,distributionandtransport,andanddeploymentofcleanenergyequipmentandthesale,delivery,installationandmaintenanceenergy-efficientgoodsandservices.ofequipment.Forinstance,morethan70percentoflabourforsolarphotovoltaicdeploymentConversely,barrierstotradeincleanandrenewableisconcentratedininstallation,gridconnection,energyequipmentandenergy-efficientgoodsoperationandmaintenanceservices(IRENA,2017).canbesignificant.Theaverageimport-weightedappliedtariffsonanillustrativelistofrenewableTradeinrenewableenergyandelectricitycanenergyequipmentremainrelativelylow,rangingalsohelptomakeproductionprocessescleanerfromaround2.4percentinhigh-incomecountriesbyprovidingaccesstoaffordablesustainableto8.3percentinlow-incomecountries.However,andrenewableenergysources.Internationaltheseaveragesmasktariffpeaksashighas50totradeinrenewableenergyandelectricitycan80percentappliedbysomeeconomiesonsomehelptocompensatefortheunevengeographicaloftheseproducts.Inaddition,anincreasingnumberdistributionofusablesunlightandwind,thoughthisSDG7:AFFORDABLEANDCLEANENERGY13ofantidumpingdutiesandcountervailingmeasuresInternationaltrade–sometimesexceeding100percent–havebeencooperationcanspeedupappliedtosomeoftheseenvironmentalgoods.accesstoaffordablecleanenergyworldwideInformationabouttraderestrictionsonenvironmentalservicescanbelimited,andrestrictivenationalInternationaltradecooperationplaysacriticalregulations,suchasprofessionalqualificationsandroleinfacilitatingtradeandinvestmentincleanimmigrationrules,canhinderthedelivery,installationenergyequipmentandinenergy-efficientgoodsandmaintenanceofcleanandrenewableenergyandandservices.Addressingthebarriersthathinderenergy-efficientequipmentineconomieswithlimitedtheadoptionanddiffusionoftheseenvironmentaldomestictechnicalcapacities.technologiesrequirestradecooperationattheregionalandmultilaterallevels.Openinguptradeinenergy-relatedenvironmentalgoodswouldraiseglobalexportsofthesegoodsbyRegionaltradeinitiativesandagreementshavebeen5percentby2030,aswellasraisingglobalGDPthemainavenuetopromotetradeincleanenergybyreducingdistortionsandincreasingproductivity.andenergy-efficientgoodsandservices.In2012,AccordingtoWTOsimulations,theeliminationofmembersoftheAsia-PacificEconomicCooperationtariffsanda25percentreductionintheadvalorem(APEC)agreedtoreducetheirrespectiveappliedequivalentofnon-tariffmeasuresonenergy-relatedtariffratesto5percentorlessbytheendof2020environmentalgoodswouldincreasetradeinonasetof54environmentalgoods,includingsolarenergy-relatedenvironmentalgoodsinrealtermsbypanelsandwindturbines.FacilitatingandpromotingUS$109billion(Bacchettaetal.,2022).tradeandforeigndirectinvestmentincleanenergyandenergy-efficientgoodsandservicesarealsoWhileopeninguptradeinenergy-relatedexplicitlyaddressedinanincreasingnumberofenvironmentalgoodswouldincreaseoverallregionaltradeagreements.economicactivityandglobalGDPbyraisingthedemandforenergyandtransport,thusincreasingAtthemultilaterallevel,WTOdisciplinesensurethatcarbonemissions,WTOsimulationsindicatethattradeincleanenergyandenergy-efficientgoodsandtheneteffectwouldactuallybeasmallreductioninservicesflowsaspredictableandfreelyaspossible.globalcarbonemissionsof0.58percentrelativetoWhilepastmultilateralandplurilateralnegotiationsthebaselineby2030.ThisprojectedfallcapturesattheWTOwereinconclusive,cleanenergyandonlycarbondioxide(CO2)reductionsresultingfromenergy-efficientgoodsandservicesbenefittedincreasedenergyefficiencyandreplacingnon-fromtrade-openingaspartoftheUruguayRoundrenewableenergysourceswithrenewableones.establishingtheWTO.FurtherCO2reductionscanbeachievedthroughtheknock-oneffectsofacceleratingthespreadofInaddition,tradeincleanenergyandenvironmentalinnovation,includingbyincreasingenergy-efficientgoodsandservicesisfosteredbythedemandforancillaryservicesrelativetothesale,thenon-discriminatory,transparentandpredictabledelivery,installationandmaintenanceofcleanenergytradeenvironmentunderpinnedbyWTOrules.andenergyefficiencytechnologies,whichwouldForinstance,theAgreementonTechnicalBarriersdrivedownthecostsofcleanenergyandofenergytoTrade(TBTAgreement)ensuresthattechnicalefficiencytechnologies,therebyprovidingeconomiesregulations,standardsandconformityassessmentwithgreateropportunitiestoadaptcleanenergyandproceduresoncleanenergyandenergy-efficientenergyefficiencytechnologiestotheirlocalneeds.goodsdonotcreateunnecessaryobstaclestotradeandarebasedonrelevantinternationally-Ambitious,credibleandtimelyclimatepoliciescanagreedstandards.Theprotectionandenforcementincreasethecontributionoftradeincleanenergyofintellectualproperty(IP)rightsundertheWTOgoodsandservicestothetransitiontoalow-carbonAgreementonTrade-RelatedAspectsofIntellectualeconomy.Thedevelopment,adoptionandsupplyofPropertyRights(TRIPSAgreement)arealsocleanenergytechnologiesalsorelyonessentialtosupportinnovationincleanenergyandwell-targetedandadequatelyfinancedinvestmentenergy-efficienttechnologies,whilealsopromotingintowell-functioningqualityenergyinfrastructure.thetransferoftechnology.Policiestoreduceuncertaintiessurroundinglow-carboninvestmentsareessential.DiscussionsamongWTOmemberscontributetoincreasedtransparencyandcooperationoncleanandrenewableenergy.AttheWTOCommitteeonTradeandEnvironment,membersaddressissuesattheintersectionbetweentradeandtheenvironment,exchanginginformationaboutnationalrenewableenergyandenergyefficiencyprogrammes,aswellasregionalinitiativestopromotecleanenergy.14WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSFurthermore,followinguponyearsofproductiveSustainabilityStructuredDiscussions(TESSD)discussionsintheCTE,theFossilFuelSubsidyexploreopportunities,bestpracticesandpossibleReform(FFSR)initiativewasofficiallylaunchedinapproachesforfacilitatingtradeinenvironmentalDecember2021andcurrentlycomprises48WTOgoodsandservices.TheFFSRinitiativealsoseeksmembers.Theinitiativeseekstorationalizeandphasetorationalizeandphaseoutinefficientfossilfueloutinefficientfossilfuelsubsidiesthatencouragesubsidiesthatencouragewastefulconsumption.wastefulconsumptionandencouragesmembersWTOmemberscouldturnthesediscussionsintotoshareinformationandexperiencestoadvanceconcreteactionswhichfostertradeincleanenergydiscussionsattheWTO.andenergy-efficientgoodsandservices.TheWTOcouldmakeagreatercontributiontopromotingtradeincleanenergyandenergy-efficientgoodsandservicesbyadvancinginitiativespursuedbydifferentgroupsofWTOmembers.Forexample,participantsintheTradeandEnvironmentalSDG9:INDUSTRY,INNOVATIONANDINFRASTRUCTURE15SDG9:Industry,InnovationandInfrastructureKEYPOINTS•Governmentsareadoptingandimplementingpoliciesaimedatsupportingthecreationoffruitfulinnovationecosystems,technologytransferandindustrialization.Domesticintellectualpropertyregimescanbetailoredtosupportthepolicyobjectivesofdifferenteconomies,andatthesametimecanprovidethenecessarycertaintyandpredictabilitytotheinnovationecosystem.•TheWTOAgreementonTrade-RelatedAspectsofIntellectualPropertyRights(TRIPSAgreement)playsacrucialroleinpromotinginnovationbyincentivizingcreators,protectingtheirrights,facilitatingtechnologytransfer,encouraginginvestment,fosteringcompetition,andestablishinginternationalstandardsforintellectualpropertyprotectionandenforcement.•Governmentprocurementofconstructionservicesiskeytoimprovingpublicinfrastructure.TheWTOplurilateralAgreementonGovernmentProcurement(GPA2012)providesaframeworkfortheconductofgovernmentprocurementandhelpitspartiestoattractinvestmenttoboostpublicinfrastructure.•AidforTradeplaysasignificantroleinsupportingtheindustrialization,innovationandimprovementoftradeinfrastructureindevelopingeconomies.AidforTradedisbursementsincreasedduringthepandemic,reachinganall-timehighofUS$48.7billionin2020andsupportedprojectsthatprioritizedbuildingproductivecapacityandeconomicinfrastructure.•Therehasbeenanincreaseintheuseofsubsidiesandnewdevelopmentsthatunderpincurrentindustrialpolicyhaveexposedcertaingapsintheexistingrules.Therefore,tomaintainthetransparency,openness,andpredictabilityofthemultilateraltradingsystemitisimportanttoincreasemultilateralcooperationonsubsidies.Governmentpoliciestopoliciesinordertofosterlong-termgrowth,increasepromoteinnovationandincomesandproductivity,and,indoingso,promotesustainabilityentrepreneurship,innovation,technologytransfer,skilldevelopmentandcompetition.Inmanyeconomies,governmentshaveimplementedpolicieswiththeobjectiveofimprovingthebusinessInnovationpolicieshaveshiftedwiththeevolvingenvironmentortiltingthestructureofeconomiclandscapeoftechnologies.Initially,industrialpoliciesactivitytowardsectors,technologiesortasksthatwerenarrowlydefinedaspoliciesthataimedtoareexpectedtoofferbetterprospectsforeconomicbuildcapacitymainlyinthemanufacturingsector.growthorsocietalwelfarethanwouldoccurinToday,digitalizationisoneoftheprimarydriversintheabsenceofsuchintervention.Governmentsspurringinnovationandproductivityinfieldssuchasgenerallyjustifytheadoptionofsectoral-levelscience,technologyandmedicine–forexample,thecurrentwaveofdigitalgeneral-purposetechnologies16WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSincludesartificialintelligence(AI),predictiveenergy-relatedinformationtoallowforinformedtechnologies,highlysophisticatedautomationandchoices,andvoluntaryagreements.bigdata(WIPO,2022a).Manycountriesaimtomodernizetheireconomies,includingtheirtraditionalOpenandtransparenttradepolicieshavealsomanufacturingsectors,inawaythatpromotesthecontributedtothedevelopmentandthespreadofshiftfrommechanicalandanalogueproductiontoenvironmentallyfriendlyandlow-carbontechnologies.digitally-enabledproductionprocessesandservices.Theshifttolow-carbonfarming–especiallyclimate-smartagriculturetechniquesthatfocusIncreasingconcernsaboutenvironmentalonintercropping,croprotation,agroforestryanddegradationandclimatechangehavegivenriseimprovedwatermanagement–couldbringfurthertogovernmentinterventionstodirecttheeconomybenefitstodeveloping-economyfarmersintermstowardsagreengrowthpath.Thepolicytoolstoofimprovedproductivity,greaterresilience,lessaddresssustainabilityissuescanincludecommand-deforestation,andreducedrelianceonfertilizersandand-controlmeasures(i.e.,regulatorymeasuresfuels(WTO,2022b).Inshort,thediffusionoforprohibitionofcertainproductsandpractices),low-carbontechnologiescanprovidepoorermarket-basedinstruments(e.g.,carbonpricing,economieswiththetoolstheyneedbothtogovernmentsupportandgovernmentprocurement),limitcarbonemissionsandtoacceleratetheirinformationinstrumentstoprovideenvironment-anddevelopment.CASESTUDYThesteelindustryAsthesteelindustryworkstowardcarbon-neutralproduction,theWTOcanhelpittolowercostsandreducepotentialtradefragmentationbyfacilitatingcoherenceandtransparencyindecarbonizationstandards.15Thetransitionofthesteelindustryandinvestmentsinbreakthroughsteelmakingtechnologies,inlinewithdecarbonizationstandards,canpresentnewopportunitiesfordevelopingeconomies.Newsupplychainsmayopenassteelmakingshiftstonear-zeroemissiontechnologies,andasnewinputssuchasgreenhydrogenandthenaturalcomparativeadvantageofdevelopingeconomiescouldbeexploitedtoallowthemtointegrateintothesenetworks(IEAetal.,2022).Forexample,thereispotentialforSouthAfricatoenterintogreenprimaryironproductionvaluechains(Trollipetal.,2022).Harmonizingdecarbonizationstandardsacrosstheironandsteelvaluecanbebeneficialfordevelopingeconomiestoexploitthesenewopportunities.Itisworthnotingthereisnoone-size-fits-allapproachOthergovernmentpoliciescanbebeneficialfortoinnovationpolicy.Differentsetsofpoliciesareinnovation.Theeconomicliteraturehighlightsthatrelativelymoreappropriateforcountriesatdifferentresearchanddevelopmenttaxcreditstendtolevelsofeconomicdevelopment.Atearlystagesofincreaseresearchanddevelopmentspendingand,indevelopment,governmentsmayfavourinvestment-somecases,increasepatentingactivity.Governmentbasedstrategies,whilehome-growninnovationresearchspendingandprocurementhaveabecomesmoreimportantasaneconomygrowsandgenerallypositiveimpactoninnovation.Recentapproachestheworldtechnologyfrontier(i.e.,theresearchshowsthatpublicfundingofuniversitymostrecenttechnologicalinnovations).Coupledresearchleadstomorepatentsbeingfiledbyprivatewithopenandcompetitivemarkets,innovationpolicyfirms.16Governmentresearchgrantsallocatedinacanhelpcountriestoescapethemiddle-incomecompetitivewaytoprivatefirmsgenerallysucceedtrap(i.e.,thefailureofacountrytotransitionfromainstimulatingprivateresearchanddevelopment.middle-incometoahigh-incomeeconomybecauseTheeffectisparticularlyprevalentforsmallfirms,ofrisingcostsandadeclineincompetitiveness)bywhicharemorelikelytoexperienceexternalfinancialfosteringthemostinnovativeentrepreneurs.However,constraints.Governmentscanalsohavealargeinindustriesandfirmsfarfromthetechnologyimpactoninnovationthroughprocurementpolicies,frontierthathavenotyetadoptedthemostrecentespeciallythosedirectedtowardssectorsandfirmstechnologicalinnovations,productivityismorelikelywithhightechnologicalcontent.tobespurredbyimprovementsinmanagementpractices.Likewise,investmentinprimaryandEducation,inparticularinscience,technology,secondaryeducation,forexample,isrelativelymoreengineeringandmathematics(STEM),isassociatedeffectivecomparedtoinvestmentinhighereducationwithhigherlevelsofinnovationactivities.Policiesindevelopingeconomies.toincreasethesupplyofSTEMgraduatesandSDG9:INDUSTRY,INNOVATIONANDINFRASTRUCTURE17attracthighlyskilledimmigrantshavebeenshownTheroleofintellectualtoboostinnovation.HighlyskilledscientistsandpropertyandtheWTOTRIPSengineersfromdevelopingeconomieswhoworkAgreementininnovationabroadcanalsogeneratenetpositivegainsintheirhomecountrieswhentheyreturnbackorfosterIntellectualproperty(IP)andtheWTOAgreementoncollaborationwithlocalentrepreneurs.Trade-RelatedAspectsofIntellectualPropertyRights(TRIPSAgreement)playsignificantrolesinpromotingPromotingcompetitivemarketsisgenerallybeneficialinnovation.toinnovation.StudieshaveshownthatmarketentrybarriersraisedbyproductmarketregulationIPreferstotherightsgrantedtoindividualsorreducetheintensityortheefficiencyofresearchandorganizations(i.e.,naturalorlegalpersons)overtheirdevelopmentinthesamesectororindownstreamcreationsorinventions.Itencompassesdifferentsectors.Severalstudiesshowthattheremovalofrights;forexample,copyrightsprotectcreationsandmarketentrybarriersfostersinnovation,includinginpatentsprotectinventions.IPsupportsinnovationby:digitalsectors.Indevelopingeconomiesthatarefarfromtheworldtechnologyfrontier,policieslimiting•Providingincentives:IPrightsprovidecreatorsproductmarketcompetitionmaybeusefultoimproveandinnovatorswithcontrolovertheircreationstheshort-runallocationofresourcesbutmayhaveorinventionsforaspecificperiodoftimeandadverselong-runconsequences.allowthemtoauthorizethirdpartiestousetheinnovation.BygrantingthemtherighttoprofitOtherpoliciesthatcreateaninnovation-friendlyfromtheirwork,IPencouragesindividualsandenvironmentincludebuildingandmaintainingbusinessestoinvesttime,effortandresourcestelecommunicationsinfrastructureandfavouringintoresearchanddevelopment,therebyagglomerationandearlyexposuretoinnovation.stimulatinginnovation.ExamplesofWTOinitiatives•Facilitatingtechnologytransfer:TheIPregimethatfacilitateinnovationprovidestheinfrastructurethatenablescreatorsandinventorstolicenseortransfertheirrightsTheplurilateralWTOAgreementonGovernmenttoothersinexchangeforroyaltiesorfees.ThisProcurement(GPA2012)providesthatitsfacilitatestechnologytransferandfostersthesignatoriesmustopentheirgovernmentprocurementdisseminationofknowledgeandinnovationsmarketstoeachother’ssuppliersinareciprocalacrossdifferentindustriesandregions.manner.TheGPA2012canhelpgovernmentstoobtainbettervalueformoney,forexample,when•Attractinginvestment:EffectiveIPprotectionpurchasingclimate-friendlygoodsandservicesenhancesinvestorconfidencebysafeguardingthroughgreenpublicprocurement.Notably,theGPAinvestmentsininnovativeprojects.Investorsare2012allowspartiestoapplytechnicalspecificationsmorelikelytosupportventureswhereIPrightsareaimedatpromotingnaturalresourceconservationorrespected,asitensurestheirpotentialreturnsandprotectingtheenvironment.Italsoallowspartiestoreducestheriskofunauthorizeduseorimitation.usetheenvironmentalcharacteristicsofagoodorserviceasanawardcriterioninevaluatingtenders•Promotingcompetition:IPrightsenable(2022b).innovatorstodifferentiatetheirproductsorservicesfromcompetitors,fosteringhealthyTheAidforTradeinitiativehelpsdevelopingcompetitioninthemarketplace.Thisdriveseconomies,inparticularLDCs,tobuildthecompaniestoinnovatecontinuallyandtoimprovetradecapacityandinfrastructuretheyneedtotheirofferingswithaviewtogainingacompetitiveincreasetheirparticipationinandbenefitfromedge,withthebenefitstoconsumersbeinginternationaltrade.Alimitedbutincreasingnumberenhancedchoicesandquality.ofAidforTradeprojectsintegrateenvironmentalconsiderations.In2020,AidforTradedisbursementsTofurtherexploretheconnectionbetweenIPwithaclimateobjective(i.e.,adaptation,mitigationorandinnovation,wemustalsolooktotheTRIPSanobjectivethatincludesboth)amountedtoUS$15Agreement,asitisthemostcomprehensivebillion,representing31percentoftotalAidforTrade.internationalinstrumentonIPrightsandtheirAroundUS$5.75billion,or12percentoftotalAidprotection,incorporatingdisciplinesthatwereforTrade,wereallocatedtoprojectswithadaptationpreviouslyscatteredindifferentconventions.asasingleorcross-cuttingclimateobjective(2022b).TheTRIPSAgreementisaninternationalagreementadministeredbytheWTOandsetsouttheminimumstandardsforIPprotectionandenforcementtowhichmembersmustadhere.ItsArticle1providesthatWTOmembersarefreetoimplementtheTRIPSAgreementaccordingtotheirownlegalsystemsandpractices.Article7spellsoutthepublic18WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSpolicypurposeoftheIPsystem,i.e.,thatitshouldAgreement,increasinglyinformedbythehorizontalhelppromotebothinnovationandthetransferanddisseminationofknowledgeaboutpracticalchoicesdisseminationoftechnology,tothemutualadvantageimplementedbycountriesofsimilareconomicandofproducersandusers,conducingtosocialandculturalbackground.economicwelfareandtoabalanceofrightsandobligations.TheIPregimeisalsoanimportantfactorintechnologytransfer,asitclarifiesownership,strengthensanTheTRIPSAgreement,therefore,hasseveralinventor’snegotiatingpositionandtherecipient’srole,implicationsforinnovation:andhelpstoattractpartnersandfinancing(WIPO,2022b).WhiletheTRIPSAgreementencourages•HarmonizationofIPStandards:TheTRIPStechnologytransfer,itmustbeborneinmindthatthisAgreementestablishesauniformsetofIPisapracticalcraftthatdependsonavarietyoffactorsstandardsandenforcementmechanismstobetobesuccessful.ItrequiresthereceivingeconomyorimplementedbyWTOmembers,whichensuresregiontobecapableofcreatingtherightconditionsaconsistentlevelofIPprotectionworldwide,forasolutiontowork,suchas:andthisinturncreatesamorepredictableandstablebusinessandinvestmentenvironmentforadequateeducationortraining;privatesectoroperations.•astableelectricitysupply;•Accesstotechnologyandknowledge:TheTRIPSAgreementrecognizestheimportanceof•goodtele-communicationsandinternetstrikingabalancebetweenprotectingIPrightsconnectivity;andensuringaccesstoessentialtechnologies,particularlyinareasofpublichealth,agriculture•reliabletransportanddeliverysystems;andeducation.ItalsoencouragesWTOmemberstoadoptmeasuresthatpromote•afunctioninglegalsystem;technologytransferandaccesstoaffordablemedicines,whilerespectingIPrights.WTO•efficientfinancialservices;ministerialdecisionshavereaffirmedWTOmembers’rightstousetheflexibilitiesavailable•opennesstotrade;intheTRIPSAgreementwhenpursuingpublichealthobjectives.•awell-functioningandsizeablemarket;and•Enforcementanddisputeresolution•peaceandstability.mechanisms:TheTRIPSAgreementprovidesaframeworkforcreatorsandinventorstoaddressTechnologytransfercanalsotakedifferentchannels,issuesrelatedtoinfringementoftheirIPrightsincludingforeigndirectinvestment(FDI),internationalintherespectivedomesticcourtsystem.Itistrade,jointresearch,patentsandlicensing,andalsocoveredbytheWTODisputeSettlementmobilityofknow-how,suchascorporatetemporaryUnderstanding,whichenablesmemberstobringtransfersandmigration.casesrelatedtotheTRIPSAgreement.WhenitcomestotheimpactoftheTRIPSAgreement•Technologycapacity-building:TheTRIPSondevelopmentanddevelopingeconomies,thisisaAgreementincludesprovisionsthatpromotecomplexissuewhichisoftensubjecttodebate.Whiletechnologytransfertoleast-developedcountrytheTRIPSAgreementhasprovisionsthataimtostrikemembers,encouragingdevelopedmembersabalancebetweenIPprotectionanddevelopment,toassistdevelopingnationsinenhancingtheiritisimportanttonotethattheimpactoftheTRIPStechnologicalcapabilities,therebyfosteringAgreementondevelopmentisnotuniformacrossinnovationandeconomicgrowth.alldevelopingeconomies,astheircircumstances,prioritiesandcapacitiesdiffer.SomeeconomieshaveThedomesticimplementationoftheTRIPSeffectivelyutilizedIPprotectiontodriveinnovationAgreementisanintegralpartoftheinnovationandeconomicgrowth,whileothersfacechallengesinecosystemandprovidesthenecessaryincentivesaccessingessentialtechnologiesormedicines.andcertaintyforresearchersandinvestorstoventureintonewareas,aswellaslegalavenuesBalancingIPprotectionwithdevelopmentneedsforcollaborationsandpartnerships,includingremainsacomplextask,andongoingdiscussionstechnologytransferandlicensing.EachWTOandinitiativesintheWTOaimtoaddressconcernsmembercantailoritsIPregimetosupportitsandenhancethepositiveimpactofIPsystemsondomesticprioritiesandpolicychoices.Thus,thedevelopmentindevelopingeconomies.Nevertheless,notionof“TRIPSimplementation”broadensandIPandtheTRIPSAgreementplaycrucialrolesmaturesintoastrengtheningofdomesticcapacitytoinpromotinginnovationbyincentivizingcreators,analyseandgiveeffecttoapolicyoptionwithintheprotectingtheirrights,facilitatingtechnologytransfer,generalframeworkofprinciplesestablishedbytheencouraginginvestment,fosteringcompetitionandestablishinginternationalstandardsforIPprotectionandenforcement.SDG9:INDUSTRY,INNOVATIONANDINFRASTRUCTURE19CASESTUDIESIPandinnovationindevelopingeconomiesCOTTON,EGYPTEgyptisoneoftheleadingproducersofpremiumcottonfibersintheworld.In1932,privatecottonstakeholdersestablishedtheAlexandriaCottonExportersAssociation(ALCOTEXA),whichoperatesasanon-profitorganizationwiththegoaloffosteringcottontrade.In2001,theEgyptianMinistryofEconomyandForeignTrade,alongwithALCOTEXA,developedalogoconsistingoffigurativeelements(thedrawingofacottonflower)andthewords“EgyptianCotton”topromoteandincreasetheexportofcottonproductsfromEgypt.ThetwoentitiesjointlyregisteredtheEgyptianCottonTMlogoasaninternationaltrademarkundertheWIPOMadridSystem.Thelogoisalsoprotectedinspecificnationaljurisdictions,andisregisteredasatrademarkinsomecountriessuchasDenmark,theUnitedKingdomandtheUnitedStates.Theuseandprotectionofthelogo,combinedwithpromotionalactivities,apartofthebrandingstrategyemployedtoincreaseconsumerrecognitionofthehighqualityandspecificattributesofEgyptiancottonwhichdifferentiateitfromcottonproducedelsewhereandjustifyitspremiumprice.17Despitethepandemic-andwar-relateddisruptions,in2021-2022Egyptsucceededinexporting50,000tonsofcotton,worthUSD274million.18SONOFILTER,BANGLADESHIPcancontributetodrivingpositivesocialimpacttoimprovethequalityoflives.Forexample,inBangladesh,drinkingwatercontaminatedwitharsenic–ahighlytoxicchemical–isveryprevalentduetoaconfluenceofinterlinkingfactors.Outof64districts,waterin61districtshasarsenicconcentrationabovethesafelimit,andupto77millionpeoplehaveexperiencedhealthproblemsasaresult.Tomitigatethisproblem,in2001DrAbulHussam,aBangladeshichemist,developedasimpleandeffectivefilter–theSONOfilter–toremovearsenicfromwater.Thisproductispatentedasthe“ArsenicRemovalFilter”(PatentNo.1003935,2002)withtheDepartmentofPatents,DesignsandTrademarksofBangladesh.TwointernationalpatentapplicationsforthecombinationofactivematerialsinthesystemhavebeenmadeunderthePatentCooperationTreaty(PCT),andapatentintheUnitedStateshasbeenpendingasof2010.TheSONOfilterhaspreventedhundredsofthousandsofpeopleinBangladeshfromexperiencinghealthproblemsduetoarsenicpoisoning.Forexample,accordingtoDrHussam,manypatientsexperiencingarsenicalmelanosis(skinpigmentchanges)haverecoveredandhavewitnessedsignificanthealthimprovements.Inaddition,therearenonewcasesofarsenicosisamongpeopledrinkingthewaterfilteredwiththeSONOfilter.Since2010,asmanyasonemillionpeoplearebelievedtobeusingtheSONOfilter,andnewfiltersarecontinuouslybeinginstalled.19AFLUENTA,ARGENTINAIPplaysaninstrumentalroleinprotectinginnovativetechnologiessuchasWeb3.0andfintech(i.e.,financialtechnology).Forexample,Afluentaisamarketplacelendingplatformthatconnectsborrowersandlendersdirectly,withouttheinvolvementofbanks.IPiskeytoAfluenta.TheprocessesAfluentadesigns,thecodes,thetrainingmethodology,theonboardingmethodandtheassessmentalgorithmsareallprotectedwithtradesecrets,i.e.,IPrightsonconfidentialinformationwhichmaybesoldorlicensed.TheprotectionofitsIPassetswasinstrumentalinhelpingAfluentatoattractinvestorstoscaleupitsbusinessoperations.2020WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSPoliciesofmicro,smallandsanitation.Inefficientandpoorqualityinfrastructuremedium-sizedenterpriseshasanegativeimpactoncitizens’welfareandsafety,andenvironmentalchallengessuchasMicro,smallandmedium-sizedenterprises(MSMEs)climatechangemayexacerbatethisimpact(UNEP,accountformostbusinessesworldwideandare2021).Inadequatepublicinfrastructurealsoaffectsimportantcontributorstojobcreationandglobaldevelopingeconomies’chancesofsuccessfullyeconomicdevelopment.Recently,variousdelegationsintegratingintoglobalvaluechainsandrealizingthesharedtheirnationalbestpracticesforMSMEsgainsfromtrade(NiggliandOsei-Lah,2014).duringtheTRIPSCouncil:Governmentprocurementofconstructionservicesis•InChile,tradepolicyhasbeengearedtowardskeytoimprovingpublicinfrastructure(Niggli,2015).increasingparticipationininternationaltradeasItcancontributetoSDG9(“Industry,innovationandawayofguaranteeingthatthebenefitsoftradeinfrastructure”),byhelpingbothtoupgradeexistinghaveapositiveimpactoneconomicgrowthandinfrastructureandtoachievenew,moresustainablethereductionofinequality.21infrastructure.However,successfulinfrastructureprocurementdependsonwell-governedprocurement•SouthAfricahaslaunchedflagshipprogrammessystemsthatensureintegrity,transparencyandthataimtohelpsmallbusinessestobenefitmoreaccountability–accordingtoonestudy,“83%ofallmeaningfullyfromtheIPsystem.Forexample,deathsfrombuildingcollapseinearthquakesovertheInventorAssistanceProgram(IAP)wasthepast30yearsoccurredincountriesthatarelaunchedjointlybyWIPOandtheCompaniesanomalouslycorrupt”(AmbraseysandBilham,2011).ofIntellectualPropertyCommission(CIPC).TheprogrammeaimstomaketheIPsystemTheWTOAgreementonGovernmentProcurementmoreaccessibletounder-resourcedinventors,(GPA2012)isaplurilateralagreementtowhichanyincludingwhentheyapplyforpatentprotection,WTOmembermayaccede.ItprovidesaframeworkeitherasindividualsorasapartofanMSME.fortheconductofgovernmentprocurementintheThisisachievedbyprovidingonlinecoursesoncontextofanopentradingsystemandsupportstheimportanceofIPprotectionandbypairingitspartiesinmaximizingvalueformoneyintheirinventorswithprobonopatentattorneys.22procurementsystemsthroughinternationaltrade.Italsostrengthensgoodgovernanceinthose•InIndia,theMinistryofMicro,Small&systems,includingbyobligingitspartiestoconductMediumEnterpriseshaslaunchedaNationalprocurementinwaysthatpreventcorruptionandManufacturingCompetitivenessProgrammeavoidconflictsofinterest(Andersonetal.,2016).(NMCP)toimprovethecompetitivenessoftheMSMEsector.TheprogrammeincludesThus,theGPA2012canhelpitspartiestoenhanceacomponentcalled“BuildingAwarenessoninternationalinvestors’confidenceindomesticIntellectualPropertyRights(IPR)forMicro,SmallprocurementsystemsandattracttheparticipationofandMediumEnterprises”,whichaimstoincreaseinternational,well-reputedinfrastructuresuppliersinproductivity,upgradetechnology,conservepublictenders,which,inturn,canhelpGPApartiesenergyinthemanufacturingprocessesandtoachievemoreaffordable,reliable,sustainableandexpandthedomesticandglobalmarketshareofresilientpublicinfrastructure.IntheinfrastructureIndianMSMEproducts.Anothercomponentofsector,internationalparticipationcanalsofosterthisprogrammeistoprovidefinancialassistancelocaleconomicdevelopment,asitoftenresultsinwithregardtopatentsandregistrationundersubcontractingoflocallyestablishedsuppliersandgeographicalindicationsofgoods.23thediffusionofinternationalbusinessstandardsandpractices.TheroleoftheAgreementonGovernmentProcurementTheGPA2012doesnotautomaticallycoverall(2012)ininfrastructurethepublicinfrastructureprocurementactivitiesofdevelopmenteachGPAparty.Foreachparty,onlyprocurementactivitiescarriedoutbyspecifiedcoveredprocuringInvestmentinglobalpublicinfrastructureentitiesandconcerningspecifiedgoods,servicesconstitutesasignificantpublicexpenditure,orconstructionservices,aswellaspubliccontractswhichisexpectedtorisetoUS$71trillionbyvaluedaboveaspecifiedthreshold,aresubjectto2030accordingtoestimatesoftheOrganisationthedisciplinesoftheGPA2012.FormostGPAforEconomicCooperationandDevelopmentparties,thethresholdforprocurementofconstruction(OECD).24InfrastructureinvestmentplaysacrucialservicesisSDR255million(approximatelyroleintacklingdevelopmentchallengesinsuchUS$6.7million).Thismeansthatbelow-thresholdsectorsastransportation,energy,informationgovernmentprocurementofconstructionservicesandcommunicationstechnology(ICT),waterandcanbereservedforthedomesticindustryorforjointventuresbetweeninternationalsuppliersandthedomesticindustry.Thisgivesdevelopingeconomiespolicyspacetopursueindustrializationobjectives,SDG9:INDUSTRY,INNOVATIONANDINFRASTRUCTURE21andcanprovideopportunitiesfordomesticsuppliersTheroleofAidforTradeintogainexperienceandgrow,enablingthemtoSDG9competeforlarger-scaleinfrastructureprojects.AidforTradehasasignificantroletoplayinMoreover,theGPA2012providesflexibilitiesforsupportingindustrializationandinnovationinseveraldevelopingeconomiestomanagetheirtransitiondevelopingeconomies.Thissupporthashelpedtoamoreinternationallyopenandcompetitivetheseeconomiestoimprovetheirtradeinfrastructure,governmentprocurementsystem.Specifically,least-promoteexport-orientedindustries,andimprovedeveloped-country(LDC)WTOmembersandanytheirbusinessenvironments,whichhasresultedinaotherdeveloping-economyWTOmembersmaybesignificantincreaseinexportsandhelpedtopromoteaccordedspecialanddifferentialtreatment(e.g.,innovationandentrepreneurshipintheseeconomies.thepossibilityofdelayingtheapplicationofcertainGPA2012obligations),whereandtotheextentForinstance,AidforTradehashelpedtoestablishathatitmeetstheirdevelopmentneeds.Theavailablestronginformationandcommunicationstechnologyflexibilitiesareinprincipletime-boundandsubject(ICT)sectorinRwanda.TheRwandanGovernmenttonegotiationwithexistingGPAparties(NiggliandhaspartneredwithprivatecompaniestoestablishOsei-Lah,2014).techhubs,whichhashelpedtomobilizeprivatesectorfundsandinternationalinvestorsandtocreateInsum,infrastructureprocurementiscentraltojobs,promoteinnovation,andimprovetheeconomy.achievingsustainabledevelopmentintheGlobalInanotherexample,GhanareceivedatotalofSouth.TheGPA2012isanadaptablepredictability-US$7.1billioninAidforTradedisbursements,whichandintegrity-enhancinggovernmentprocurementhavecontributedtoupgradingtradeinfrastructure,frameworkthatcanassistdevelopingeconomiespromotingexport-orientedindustriesandimprovinginmeetingtheirneedsforresilientandsustainableGhana’sbusinessenvironment.publicinfrastructure,whileatthesametimeensuringcost-effectivenessandthusasustainableburdenofOfficialdevelopmentassistance(ODA)remainsdebtforfuturegenerations(UNEP,2021).animportantsourceoffinancefordevelopingeconomies,particularlyforlow-incomeeconomies.In2019,ODArepresented63percentofexternalinflowstolow-incomeeconomies,37percentinlowermiddle-incomeeconomiesand20percentinuppermiddle-incomeeconomies(OECD,2019).Figure5:Disbursementsbysector,2019-2021TransportandstorageEnergygenerationandsupplyAgriculture,forestryandﬁshingBankingandﬁnancialservicesIndustryBusinessandotherservicesCommunicationsMineralresourcesandminingTradepolicyandadministrativeManagementTradefacilitationOtherTourism0246810121416202120202019Source:Author’scalculationsbasedontheOECD/CreditorReportingSystem(CRS)database(2022).Source:BasedonOECD(2022),OECD.Stat,CreditorReportingSystem,https://stats.oecd.org/.22WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSFigure6.TotaldisbursementsFigure7.Shareofdisbursementsbyregionbyregion,2021256%2%11%2040%Constant2021USDbillion151035%57%02006200720082009201020112012201320142015201620172018201920202021AfricaAmericaAsiaAfricaAmericaAsiaDevelopingEuropeOceaniaDevelopingEuropeOceaniacountries,countries,unspeciﬁedunspeciﬁedSource:BasedonOECD.Stat(https://stats.oecd.org/).AidforTraderepresentsaconsiderableshareEurope(6percent)andOceania(1percent).TheseofODA,andaccountedfor22percentoftotalsharesarealmostidenticaltotheAidforTradeODAdisbursementsand26percentofODAcommitmentsforthoseregions(38percenttocommitmentsin2020.Inrecentyears,anincreasedAfrica,followedby36percentforAsia,10percentfocushasbeenplacedonmobilizingalltypesofforAmerica,6percentforEuropeand1percentforresourcestowardstheSDGs.Oceania)indicatingthatdonorsfollowthroughwiththeirstatedcommitments.AidforTradedisbursementsincreasedduringthepandemic,reachinganall-timehighofSince2018,AidforTradedisbursementsallocatedUS$48.7billionin2020.ProjectshaveprioritizedtoAfricahaveexceededdisbursementstoAsia.buildingproductivecapacityandeconomicAmericasawthehighestgrowth,frominfrastructure,whichjointlyaccountedfor98percentUS$3.1billiontoUS$5billion(+61percent)ofdisbursementsin2020.In2020,Africareceived(seeFigure6).thelargestshareofAidforTradedisbursements(38percent),followedbyAsia(35percent),ImportantdifferencesexistinthetypeofAidforAmerica(10percent),Europe(6percent)andTradeprojectsimplementedacrossdifferentregions.Oceania(1percent).Responsestothe2022AidforForexample,amajority(54percent)ofAidforTrademonitoringandevaluationexercisesuggestaTradedisbursementstoAfricafocusonbuildingshifttowardssustainabilityconsiderations,includingproductivecapacity,whileinAsia,supporttoclimatechange,andgenderequality.In2020,economicinfrastructureispredominant(63percent51percentofAidforTradecommitmentsincludedofdisbursements)(seeFigure6).climate-relatedobjectives,representing56percentoftotalclimate-relatedODAcommitmentsin2020.AidforTradedirectlycontributestoseveraltrade-relatedSDGs,notablySDG8(“DecentworkThegeographicalandeconomicgrowth”).SDG8includesatargetdistributionofAidforTradetoincreaseAidforTradesupportfordevelopingeconomies,inparticularleast-developedcountriesIn2020,AsiaandAfricajointlyaccountedfor(LDCs),includingthroughtheEnhancedIntegrated73percentofAidforTradedisbursements–ashareFramework(EIF)fortrade-relatedtechnicalthathasremainedrelativelystablesince2013.AassistancetoLDCs(UNStats,2021).Aidfortotalof38percentofdisbursementswenttoAfrica,TradealsocontributestotheSDGsinwaysthatgofollowedbyAsia(35percent),America(10percent),beyondpurelytrade-relatedtargets,includingbyenhancingthebenefitsofinternationaltrade.TheAddisAbabaActionAgendarecognisesthat,withappropriatesupportingpolicies,includingthoseSDG9:INDUSTRY,INNOVATIONANDINFRASTRUCTURE23targetinginfrastructureandeducation,tradecanalsoWithintheenergysector–whichaccountsforahelptopromoteproductiveemploymentanddecentlargeshareoftotalcarbonemissions–thereisanwork,women’sempowermentandfoodsecurity,emergingtrendtoallocatemoreandmoresupportcontributingtoareductionininequalityandtothetorenewableenergies.TheshareofAidforTradeSDGs.disbursementsallocatedtorenewablesourcesincreasedby36percentbetween2019and2020,RecentpilotmethodologiesdevelopedbythefromUS$3.3billiontoUS$4.5billion.DuringtheOECDusingmachinelearningprovidenewinsightssameperiod,theshareofdisbursementstonon-intothecontributionofAidforTradetotheSDGs.renewablesourcesdecreasedby26percent(fromForexample,thedatafromthe2022AidforTradeUS$1.6billiontoUS$1.2billion)(seeFigure9).reportshowthatoverallAidforTradecontributestoallSDGs,andthateachAidforTradeprojectFurthermore,itisimportanttonotethattrade-contributestoatleastoneSDG.In2020,relatedofficialdevelopmentfinancebeyondODA18percentofAidforTraderesourcesdisbursedhasincreasedand,togetherwithAidforTrade,targetedSDG7(“Affordableandcleanenergy”),hascontributedtomobilizingadditionalresources17percenttargetedSDG9(“Industry,innovationintrade-relatedsectors.Bothcommitmentsandandinfrastructure”)and16percentSDG8(“Decentdisbursementsinotherofficialtrade-relatedflowsworkandeconomicgrowth”).haveincreasedinrecentyears,reachingUS$44billionindisbursementsandUS$87billionAccordingtoresponsestothejointOECD/WTOincommitmentsin2020.2022monitoringandevaluationexercise,96percentofpartnercountriesthatparticipatedinthesurveyFurthermore,recentdatacollectedbytheOECDincludeenvironmentalconsiderationsintheirnationalshedslightontheroleofofficialdevelopmentfinancedevelopmentstrategies,policiesandplans,andinmobilizingprivateresourcesfordevelopment.The86percenthaveembeddedsuchobjectivesindatashowsthatduring2012-20,86.6percentofnationaltradedevelopmentpolicydocuments.privatesectorresourcesmobilizedwereintrade-relatedsectors,withanaverageannualgrowthofAlargeshareofclimate-relatedAidforTrade16.3percent.commitmentsisconcentratedinafewsectors,withenergy,transportandstorage,agriculture,forestryandfisheriesmakingup85percentofthesecommitments.Theseshareshaveremainedrelativelystableovertheyears,althoughclimate-relatedcommitmentsinthetransportandstoragesectormorethandoubledbetween2019and2020(+104percent)(seeFigure8).Figure8:Climate-relatedAidforTradeCommitmentsbysector,2011-21Constant2021USDBillion302520201220132014201520162017201820192020202115105-2011TransportandstorageEnergyAgriculture,foresty,ﬁshingBankingandﬁnancialservicesIndustry,mining,constructionOtherSource:OECD.Stat,CreditorReportingSystem(https://stats.oecd.org/Index.aspx?ThemeTreeId=3).24WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSFigure9:Energygenerationandsupplydisbursements,2011-20100%1490%Constant2020US$Billion1280%70%1060%850%40%630%420%210%0%0201020112012201320142015201620172018201920202021adGeneralEnergygeneration-renewablesourcesEnergygeneration-non-renewablesourcesHybridenergyelectricpowerplantsNuclearenergyelectricpowerplantsHeating,coolingandenergydistributionGrandTotalSource:OECD.Stat,CreditorReportingSystem(https://stats.oecd.org/Index.aspx?ThemeTreeId=3).Source:BasedonOECD.Stat(https://stats.oecd.org/).Strengtheningmultilateralbyprovidingsubsidies,orbyimposingprice,exportscooperationonindustrialorimportcontrols,itcandistorttheallocationofsubsidiesresourcesandpreventthemarketfromfunctioningefficiently.Inamoderneconomy,subsidiesdeservespecialattentionbecausetheyconstituteapre-eminentInaddition,governmentinterferencewiththeindustrialpolicytool.Theyarealsooneofthemarketcanleadtothedevelopmentofrent-seekingindustrialpolicyinstrumentssubjecttothemostbehaviour,whereindividualsorbusinessesseekmultilateralregulation.Tobetterunderstandbothtogainaneconomicadvantagethroughtheuseoftheirroleinmodernindustrialpolicyandtheneedforpoliticalinfluenceratherthanthroughproductivemultilateralcooperationonthisissue,itisimportanteconomicactivity.Thiscanleadtothemisallocationtorecallthereasonswhysubsidiesaresubjecttoofresources,discourageforeigninvestment,harminternationalrules.consumersbyartificiallyinflatingthepricesofgoodsandservices,andingeneralundermineeconomicDuringtheestablishmentofthemultilateraltradinggrowthandprosperity.systemundertheGeneralAgreementonTariffsandTrade(GATT),andsubsequentlytheWTO,membersForthesereasons,andtoavoidtheimpoverishingrecognizedthatsubsidiesorfinancialsupportfromeffectsofasubsidiesrace,membersagreedthegovernmentcouldservecertainlegitimateandtoregulatetheprovisionofsubsidies,notablyeconomicallyusefulpolicyobjectives,suchasthroughtheWTOAgreementonSubsidiesandcorrectingcertainmarketfailures.However,itwasCountervailingMeasures(SCMAgreement)andalsorecognizedthatsubsidescanhaveadversetheWTOAgreementonAgriculture.TheSCMeffectsontrade,ontheglobalcommonsandonAgreementregulatessubsidiesonthebasisofthetheefficientallocationofglobalresources,whichprinciplethatthemoretrade-distortingthesubsidyisoneoftheobjectivessetoutinthepreambleofthestricterwillbethedisciplinesapplied.theMarrakeshAgreementcreatingtheWorldTradeOrganization.Therefore,twokindsofsubsidies–exportsubsidiesandimportsubstitutionsubsidies–areprohibited,Classiceconomictheoryholdsthatthemarketistheasbothwerespecificallydesignedtoaffecttrade.mostefficientmechanismforallocatingresources.Allothersubsidiesaredeemedtobe“actionable”.ThisisbecausethemarketisdrivenbytheinteractionIfonememberbelievesthatanothermemberisofsupplyanddemand,whichreflectsthechoicesusingprohibitedsubsidies,orthatthesubsidiesareandpreferencesofindividualsandbusinesses.Whencausingitadverseeffects,itmaybringacasetotheagovernmentinterfereswiththemarket,forexample,WTOandseekthewithdrawalofthosesubsidiesorremovaloftheadverseeffects,inthecaseofactionablesubsidies.MemberswhicharesufferingSDG9:INDUSTRY,INNOVATIONANDINFRASTRUCTURE25injurytotheirdomesticindustrycausedbysubsidedthearchitectureofglobaltraderulesandtheirimportsmayalsotakedomesticmeasures,mostlyinunderlyingassumptionsofamarket-driventheformofimportdutysurchargesto“countervail”economymaybestretchedwhenappliedtotheamountofsubsidizationortheinjury.differenteconomicmodelsunderasinglerules-basedmultilateralsystem.Despitetheexistenceofmultilateralregulation,andamplejurisprudencethatclarifiesit,therearestillTheurgencyofincreasingmultilateraldialoguesignificantgapsintheseinternationalrules.Theseandcooperationtobetterunderstandandaddressgapshavebeenmademoreevidentastherulesthesenewrealitiesisbeingcompoundedbyrecenthavenotbeenadaptedtonewrealitiesandemergingannouncementsofnewsubsidyprogrammesglobalissues.Thenewdevelopmentsthatunderpininsomemajoreconomiescoveringkeysectorscurrentindustrialpolicycanbesummarizedas:suchaselectricvehicles,renewableenergyandsemiconductors.Accesstosomeofthesefundshas•Theemergenceofglobalvaluechains,andbeenmadecontingentontheuseofdomesticinputsthecurrentneedtomakethemmoreresilientandlocalizingproduction.tocopewithextraordinaryeventssuchastheCOVID-19pandemicandincreasinggeopoliticalThesemeasurescouldhaveanegativeimpacttensions.Thishasledgovernmentstoseekontheglobaleconomy,astryingtorepatriatealternativesourcesofsupplyandproductionforproductioncouldresultinpriceinflationwhichwillkeyinputs,energyproductsandfoodstuffs,inharmthepoorerandmostvulnerableeconomiesandsomecasessubsidizinglocalproduction.people.Thesetypesofsubsidiescouldalsocreateduplicationofsupplychains,increasinginefficiencies•Greaterawarenessbygovernmentsoftheurgentandmayultimatelyraisethecostsoftransitioningtoaneedtotakeactionagainstclimatechangeandgreeneconomy,orleadtoawasteofpublicfunds.thecorrespondingaspirationtoreachareduced-carbon-emissionseconomy,requiringlargeAllofthiscomesatatimewhentheWTODisputeinvestmentsandstatesupportforadaptationSettlementMechanism,whichismeanttodealwithandmitigation.Thishasledtogovernmentstradedistortingsubsidies,isnotfullyfunctional.Asandpolicyexpertsarguinginfavourofagreateraresult,membersarelesslikelytochallengetheseuseofsubsidiestocorrectmarketfailuresandmeasures,andthereisariskthattheymayinsteadprovideincentivestodevelopnewenvironmentaltrytoreproducethemiftheypossessthefinancialtechnologies.Thereisalsoagrowingrecognitionmeanstodoso.thatmanyexistingsubsidies,forexamplefuelsubsidies,havenegativeenvironmentaleffectsIfthetransparency,opennessandpredictabilityofandshouldbesubjecttostricterregulation.themultilateraltradingsystemistobemaintained,andindeedincreased,broad-basedcooperationon•Agrowingunderstandingthatsubsidiessubsidiesisrequired.Recentevidenceshowsthatmayplayasignificantroleingovernments’theuseofsubsidiesbygovernmentsispervasive,responsetoeconomic,health,naturaldisasterexpandingandfrequentlymis-targetedintermsofandsocialemergencysituationsthatrequiretheirenvisionedpolicygoals26.Thisconditionnotonlypublicintervention.Thesesubsidiesshouldberaisesquestionsabouttheeconomicefficiencyofdesignedinamannerthatdoesnotsupportsuchsubsidies,butalsoencouragestheemploymentcompanieswhichareinefficientandwouldofunilateraltraderemedymeasures,erodespublichaveexitedthemarket,doesnotcauseharmtosupportforopentrade,andcontributestoseveretradingpartners,andcanbeeasilyphasedoutcommercialdisputesthatobstructtheachievementoncetheemergencytheyweremeanttoaddressofotherinternationalgoals,includingthoseinscribedhaspassed,preventingfurtherdistortions.inthe2030AgendaforSustainableDevelopment.•TheincreaseddigitalizationoftheeconomyandGovernmentsshouldmovequicklytoenhanceandthestrategicimportanceofnewtechnologiesclarifytheinternationalrulesgoverningsubsidies,hasledgovernmentstoenteraracetosupportwhilealsoacknowledgingtheusefulfunctionsthattheseindustries.Governmentsalsobelievethat,properlycraftedsubsidiescanplaytocorrectmarketbecauseofthegeneral-purposenatureofdigitalfailures,spurtechnologicalinnovationandprovidetechnologies,subsidiestodigitalinnovationwillsocialsafetynets.Moreworkisrequiredtodevelopleadtolargecross-sectoralpositivespilloveranagendatobettertheunderstandingofpresenteffects.subsidyprogrammesandtheirconsequencesfortradepartnersandtheglobalcommons.Bytaking•Therisingimportanceofeconomiesinwhichtheamoreactivepartintransparency,researchandstateplaysacentralrole,andofinternationalconsultationaboutsubsidymethods,internationalstate-ownedenterprises,wheresomeorganizationscanalsobeofassistanceinthisgovernmentsbelievethatthecurrentrulesmayimportantandurgenttask.27notbeabletocapturesomeinterventionsintheeconomy,leadingtounbalancedcompetition.Thisiscontributingtofuellingadebateonhow26WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSSDG11:SustainableCitiesandCommunitiesKEYPOINTS•Tourismcancontributetorevenuegenerationandeconomicgrowthforcities.However,itiscrucialtoaddressthenegativeimpactsoftourism,suchasovercrowding,pollutionandculturalcommodification.Therefore,sustainabletourismpracticesthatprioritizethewell-beingofresidentsandtheenvironmentarenecessary.•Tradecanhelptomakecitiesandcommunitiesinclusive,resilientandsustainablebyincreasingaccesstoenvironmentalgoodsandservices.•Ascitiesaroundtheworldinnovatetolowergreenhousegasemissions,addressresourcedepletionandwastegeneration,andadapttoclimatechange,internationaltradeinsustainablegoodsandenvironmentalserviceswillbeessentialinaddressingtheseproblems.Moreopentradealsoallowsdomesticproducersofgreengoodsandservicestotapintoarapidlygrowingglobalmarket.•TheWTO,asaforumforthereductionoftariffsandnon-tariffimportbarriers,providesopportunitiesforeconomiestopursuetheseobjectives.TheroleoftourismandHowever,tourismcanalsohavenegativeimpactsservicesinsupportingtheoncitiesandcommunities,suchasleadingtodevelopmentofsustainableovercrowding(“over-tourism”),pollutionandculturalcitiescommodification(i.e.,transformingcertainaspectsofacultureintoaproductforcommercialpurposes).TourismisconsideredatradableservicewithintheTheneedtopromotesustainabletourismpractices,contextofinternationaltrade.Itinvolvesthemovementwhichprioritizethewell-beingofresidentsandofpeople,oftenacrossborders,forthepurposesoftheenvironment,isgrowingasthetourismmarketvisitingandexperiencingvariousdestinationsandbecomesincreasinglyconsciousofitsnegativeengagingintourism-relatedactivities.impactontheenvironment,asvisitorsbecomeconcernedaboutenvironmentalissues,andasCitiesareimportantdestinationsforbothdomesticenvironmentalgroupsexertpressureonpublicandinternationaltourismforseveralreasons.Manyopinionregardingtheeffectsoftourismactivities.citiespossessiconiclandmarksandarecentresofculture,art,historyandentertainment,whichcanInaddition,asnotedbytheOECD(OECD,attractvisitorsfromaroundtheworld,andcitiesoften2021),thepandemichasexposedlong-standingofferawiderangeoftourismservicestovisitors,structuralweaknessesinthetourismeconomy,suchashotels,restaurants,transportationandtoursuchasfragmentationinthesector,thefactthatguides.itislargelymadeupofMSMEs,itsseasonality,problemscausedbyoverdependenceonthissingleInaddition,tourismcanbeanimportantsourceofsector,aswellasgapsingovernmentandindustryrevenueandeconomicgrowthforcities.Byattractingpreparednessforthepandemicandinresponsevisitorsfromaroundtheworld,citiescangeneratecapacity.Assuch,manycountriesviewedthetourismincomefromtaxes,feesandspendingonlocalcrisiscausedbythepandemicasanopportunitytogoodsandservices.Thiscanhelptosupportlocalmovetogreenerandmoresustainablemodelsofbusinessesandcreatejobsforresidents.tourismdevelopmentbyensuringthatrecoveryplanswerealignedwithsustainabilityprinciplesandtheSDG11:SUSTAINABLECITIESANDCOMMUNITIES27SDGs,whichcanactasaneffectivecompassforinvestmentinthetourismsectorcanhavenegativebothindustryandpolicymakers.impacts,suchasenvironmentdegradation,over-tourismandalossofculturalheritageandcanAccordingtotheWorldTourismOrganizationrendercitieslessresilienttosocial,economicand(UNWTO,2022),sustainabletourismmust:naturalshocks.Theonlyviablesolutionissustainableinvestmentintourism,whichinvolvestwoaspects.•Conserveenvironmentalresourcesandprotectbiodiversity;First,investmentinthesectorshouldnotharmordeterioratetheexistingenvironmentalandcultural•Respectandpreservetheculturesofhoststatusofthecity.Forinstance,newinvestmentcommunitieswhilebenefitingthem;projectsthatmaydisplaceeitherindividualswhoarealreadyproductivelyemployedorlocalbusinesses,•Addresstheneedsofthevisitorsandindustrythatmayaffecttheculturalornaturalheritageofthewhileprovidingsocio-economicbenefittoall.cityortheenvironment,orthatmaymakethecitymorevulnerabletonaturaldisasters,shouldbeundesirable.MeasuringthesustainabilityoftourismSecond,greeninvestmentshouldbepromoted.GreeninvestmentreferstoinvestmentswhichreduceMeasuringsustainabletourismcancontributetoorremovegreenhousegasesorthosewhichhelpbalancingtheeconomic,environmentalandsocialbuild“adaptivecapacityandresilience”forclimateimpactsoftourism.change(Golubetal,2011),i.e.,investmentingreeninfrastructureorinsustainability-.buildingprojects,Bymeasuringthesustainabilityoftourism,citiessuchaspollutionreduction,wastemanagement,canidentifyareaswhereimprovementscanbeenergyefficiencyandrecycling,whichcanhelptomadetominimizenegativeenvironmentalandsocialbuildsustainablecities.impacts,whichcanbehelpfulindesigningmitigationstrategies.AnefficientwaytoapproachandencouragesustainableinvestmentisthroughtheWTO’sInaddition,astourismprovidesjobsandincometoInvestmentFacilitationforDevelopmentinitiative.Thislocaleconomies,bymeasuringsustainability,tourisminitiativeaimstofacilitateinvestmentflows,improvingcanbenefitthesecommunitiesinawaythatisthetransparencyandpredictabilityofinvestmenteconomically,sociallyandenvironmentallyviableovermeasures,simplifyingandspeedingupinvestment-thelongterm.Also,astravellersbecomeinterestedrelatedadministrativeprocedures,strengtheningtheinsustainabletourism,measuringandpromotingdialoguebetweengovernmentsandinvestors,andsustainabilitycanprovideacompetitiveadvantagepromotingtheuptakebycompaniesofresponsiblefordestinationsandbusinessesthatprioritizebusinessconductpractices.Italsoaimstoensuresustainability(UNWTO,2022).specialanddifferentialtreatment,technicalassistanceandcapacity-buildingfordevelopingandleast-UNWTOhaslaunchedaStatisticalFrameworkfordevelopedeconomies.29MeasuringtheSustainabilityofTourism28withtheobjectiveofdevelopinganinternationalstatisticalThepromotionofresponsiblebusinessconductframeworkformeasuringtheeconomic,environmental,practicessupportseconomically,sociallyandandsocialdimensionsofsustainabletourism.environmentallysustainableinvestment.TheremovalofredtapereducesthelikelihoodofunsustainableTheroleofinvestmentinvestmentsseepinginduetocorruptionornegligentfacilitationfordevelopmentpolicies.Technicalassistanceandcapacity-buildinginthetourismsectorsupportsthelocaleconomicdevelopmentofcitiesandenablesknowledgeandtechnologytransfersinAsanimportantandfast-growingindustry,theareassuchasenvironmentalconservation,therebytourismservicessectorisbecomingacriticalareaforfavouringinclusiveandsustainableurbanizationforeigninvestment,forexampleinhotels,restaurants,(PericandNiksicRadic,2011).Predictabilityintransportationservices,travelagencies,tourguideinvestmentmeasures,suchasstreamlinedpoliciesorservicesandrecreationalservices(PericandNiksiclegalframeworksandeffectiveinvestmentfacilitationRadic,2011).services,andthetransparencyofinvestmentmeasures,suchastheeasyavailabilityoflawsandForeigninvestmenthelpstodeveloptourismpoliciesandtheresponsibledisclosureofchangesinfrastructureinthehostcountrybybringingininlawsandpolicies,helpinattractingthedesiredglobaltechnologyandexpertise,anditleadstotheinvestment.socioeconomic,culturalandeconomicgrowthofcities.Atthesametime,unplannedandunmanagedWhilepoorly-managedforeigninvestmentcanhavenegativeimpacts,sustainableinvestment,supportedbyinvestmentfacilitationfordevelopment,hasthepotentialtopromotetheeconomicdevelopmentof28WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALScitiesthroughthedevelopmentofthetourismsectorInaddition,tradecanhelptopromoteinnovationandwhilekeepingsocial,environmentalorculturaldamagetechnologytransfer,whichcansupportsustainableincheck.development.Whencitiesengageintrade,theymaybeexposedtonewideas,technologiesandpracticesTheroleoftradeinthatcanhelpthemtoreducetheirenvironmentalpromotingsustainablecitiesimpactandpromotesustainability.SustainablecitiesarecitiesthataredesignedandTradecanalsohelptosupporteconomicmanagedtominimizenegativeimpactsonthedevelopmentandjobcreationincities,whichcanenvironmentandmaximizesocialandeconomicbeanimportantfactorinpromotingsustainablebenefitsfortheirresidents.development.Bycreatingeconomicopportunitiesandsupportinglocalbusinesses,tradecanhelptoCitiesareresponsibleforasignificantproportionofreducepovertyandpromotesocialsustainability.globalgreenhousegasemissions,andunsustainableurbandevelopmentleadstoairandwaterpollution,Internationaltradeenablescountriestoaccessdeforestationandlossofbiodiversity.Sustainablesustainablegoodsandenvironmentalservicescitiesaimtoreducethesenegativeimpactsthroughthattheymaynothavethecapacitytoproducetheuseofgreentechnologies,renewableenergy,themselves.Thisallowscitiesbasedinthesewastereduction,andothersustainablepractices.countriestomeettheirenvironmentaltargetsandreducetheircarbonfootprintbyimportingproducts,Sustainablecitiescanalso,promotesocialequitysuchasrenewableenergytechnologies,organicfoodandinclusivity.Byprovidingaffordablehousing,productsandgreenbuildingmaterials.accessibletransportationandpublicspacesforallresidents,sustainablecitiescanensurethatFurthermore,internationaltradecanencouragetheresidentshaveaccesstotheresourcestheyneedadoptionofglobalenvironmentalstandardsandtolivehealthyandfulfillinglives.Theyalsoprioritizeregulations,suchastheParisAgreement,30whichsocialjusticebyaddressingissuessuchaspoverty,aimstostrengthentheabilityofeconomiestodealinequalityanddiscrimination.withtheimpactsofclimatechangeandtopromotedevelopmentinasustainablemanner,andtheBaselInaddition,sustainablecitiescanbeeconomicallyConvention,31whichaimstominimizethegenerationresilientandcompetitive.Bypromotinginnovation,ofhazardouswasteandensureitsenvironmentallyentrepreneurshipandsustainability,sustainablesoundmanagement.Adoptingthesestandardscitiescanattractinvestment,createjobsanddrivecanhelptoensurethatsustainablegoodsandeconomicgrowth.Theyalsobenefitfromreducedenvironmentalservicesareproducedandtradedenergycosts,improvedpublichealthandincreasedresponsibly.qualityoflife,whichcanmakethemmoreattractivetobusinessesandtalent.Internationaltradecanalsofacilitatetheexchangeofbestpracticesbetweencities.ByengagingintradeSustainabletourismpracticesappliedinsustainablewithothersustainablecities,citiescanlearnfromcitiescaninvolvemeasuressuchaslimitingtheeachotherandadoptsustainablebestpracticestonumberofvisitorstoreduceover-tourism,promotingachievetheirgoals.sustainablemodesoftransportationsuchasuseofelectricvehicles,bikesorscooters,supportingTheWTOTradeFacilitationlocalbusinessesandinvolvinglocalcommunitiesinAgreementandsustainabletourismplanninganddecision-making.citiesTradecanplayanimportantroleinpromotingTheWTO’sTradeFacilitationAgreement(TFA)sustainabilityincitiesbyincreasingaccesstosupportssustainableinternationaltrade,whichinenvironmentalgoodsandservices.Whencitiesturncanhelpinbuildingsustainablecities.Inforceengageintrade,theycanaccessresourcesandsince22February2017,theTFAaimstoexpediteexpertisefromotherregions,whichcanhelpthemtothemovement,releaseandclearanceofgoods,promotesustainabledevelopmentandreducetheirincludinggoodsintransit.Italsosetsoutmeasuresenvironmentalimpact.foreffectivecooperationbetweencustomsandotherappropriateauthoritiesontradefacilitationForexample,citiesmaytradeinrenewableenergyandcustomscomplianceissues,anditcontainsresourcessuchaswindorsolarpower,whichcanprovisionsfortechnicalassistanceandcapacity-helptoreducetheirrelianceonfossilfuelsandlowerbuildinginthisarea.32theircarbonfootprint.Citiesmayalsoactashubsinwhichsustainablegoodssuchasorganicfood,eco-TheTFAisacatalystfordevelopment.Expertsarefriendlyproducts,orsustainablyharvestedtimberoftheopinionthateffectiveimplementationofthearetradedtopromotesustainableconsumptionandTFAhasthepotentialtostimulateprogresstowardsproductionpractices.SDG11:SUSTAINABLECITIESANDCOMMUNITIES29meetingSDGsbygeneratingemployment,improvingtransparencyandreducingthenegativeenvironmentalimpactsofinternationaltrade.33TheTFAhasbeenproventoreducecosts(DuvalandUtoktham,2022),whichpromotestradecompetitivenessandmakestradeaffordable.Itfacilitatestradeinandaccesstogreengoodsandtechnology.Itfurtherenablesdevelopmentofresilientandsustainabletourisminfrastructure,forinstance,transportsystemsbuiltwithgreeninputscausingreducedcarbonemissions.Tradefacilitationultimatelyresultsineconomicresilience.34Inessence,tradefacilitationcanbeusedtosupportsustainabletourismandthedevelopmentofsustainablecities.30WTO’SCONTRIBUTIONTOATTAININGUNSUSTAINABLEDEVELOPMENTGOALSSDG17:PartnershipsforTradeanddevelopmentKEYPOINTS•TheWTOrecognizestheneedforpartnershipswithotherinternationalorganizationsanddevelopmentpartnerstoimprovethecapacityofdevelopingeconomiesandleast-developedcountries(LDCs)toparticipatemorefullyininternationaltrade.•WTOrepresentativesparticipatedactivelyintheFifthUnitedNationsConferenceontheLeastDevelopedCountries(LDC5),whichwasheldon5–9March2023,takingpartintwohigh-levelroundtablesandholdingbilateralmeetingswithinternationalorganizationsanddevelopmentpartners.TheWTOrecognizestheneedtoworkinDDGXiangchenZhangparticipatedintheUNpartnershipwithotherinternationalorganizationsPrincipalsmeeting,ahigh-levelroundtablesessionanddevelopmentpartnerstoimprovethecapacityoftitled“EnhancingtheparticipationofLDCsindevelopingeconomiesandleast-developedcountriesinternationaltradeandregionalintegration”,and(LDCs)toparticipatemorefullyininternationaltrade.ahigh-levelroundtablesessiontitled“SupportingsustainableandirreversiblegraduationfromtheThus,bymeansofAidforTrade,theEnhancedleastdevelopedcountrycategory”.TheWTOalsoIntegratedFramework,theStandardsandTradeorganizedthreesideeventswithotherinternationalDevelopmentFacilityandtheTradeFacilitationorganizationsandheldseveralbilateralmeetingsAgreementFacility,theWTOmaintainspartnershipsontheside-linesofLDC5,includingwiththewithavarietyofinternationalorganizationsOECD,UNCTAD,UNDESA,theOfficeoftheHighincluding,butnotlimitedto,theCodexAlimentariusRepresentativefortheLeastDevelopedCountries,Commissionforfoodsafety,theWorldOrganisationLandlockedDevelopingCountriesandSmallIslandforAnimalHealth(WOAH),theInternationalPlantDevelopingStates(UN-OHRLLS),andwithUNProtectionConvention(IPPC),theUnitedNationsresidentcoordinatorsinCambodia,theEuropeanConferenceonTradeandDevelopment(UNCTAD),UnionandNepal.theInternationalTradeCentre(ITC)andUNDepartmentofEconomicandSocialAffairsLDCgraduationisakeypriorityfortheWTOLDC(UNDESA).Groupandtherefore,WTOrulesanddevelopmentcooperationassistinfacilitatinggraduatingIn2022and2023,theWTOcreatedseveralLDCs’smoothtransition.Inthisregard,thepartnershipsattheFifthUnitedNationsConferencemaindeliverablesfromLDC5includedanonlineontheLeastDevelopedCountries(LDC5),withtheuniversity,aninternationalinvestmentsupportaimoffurtherintegratingLDCsintothemultilateralcentreandasustainablegraduationsupportfacilitytradingsystem.Over5,000participants,including(iGRAD).37LDCdevelopmentpartnersmade130ministersand47headsofstate/governmentseveralcommitmentstosupportLDCs,includingattendedLDC5.TheWTOwasrepresentedcommitmentsofUS$60millionbyQatar,EUR200byDeputyDirector-GeneralXiangchenZhang.millionbyGermany,US$80millionbytheGreenTheinternationalcommunitytookstockoftheClimateFundandaUS$800millionloanpackageimplementationoftheDohaProgrammeofActionbytheKingdomofSaudiArabia.Inaddition,thefortheLeastDevelopedCountriesfortheDecadeEuropeanCommissionannouncedcooperation2022-2031(DPoA),35adoptedinMarch2022duringagreementswithAfricaamountingtoEUR130thefirstpartoftheLDC5conference.Thesecondmillionofinvestment.partoftheconference,whichtookplacefrom5to9March2023,concludedwiththeadoptionoftheDohaPoliticalDeclaration.36REFERENCES31ReferencesAmbraseys,N.andBilham,R.(2011),“Corruptionkills”,Nature469:153–5.Retrievedfromhttps://doi.org/10.1038/469153a.Anderson,R.D.,Kovacic,W.E.andMüller,A.C.(2016)“PromotingCompetitionandDeterringCorruptioninPublicProcurementMarkets:SynergieswithTradeLiberalization”,E15ExpertGrouponCompetitionPolicyandtheTradeSystemThinkPiece,Geneva:InternationalCentreforTradeandSustainableDevelopment(ICTSD)andWorldEconomicForum(WEF).Retrievedfromhttps://www.researchgate.net/publication/301683897_Promoting_Competition_and_Deterring_Corruption_in_Public_Procurement_Mar-kets_Synergies_with_Trade_Liberalization.Bacchetta,M.,Bekkers,E.,Solleder,J.-M.andTresa,E.(2022),“EnvironmentalGoodsTradeLiberalization:AQuantitativeModellingStudyofTradeandEmissionEffects”,conferencepaperpresentedduringthe25thAnnualConferenceonGlobalEconomicAnalysis(virtualconference),Geneva:WorldTradeOrganization.Retrievedfromhttps://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=6681.Duval,Y.andUtoktham,C.(2022),“HastheWTOtradefacilitationagreementhelpedreducetradecosts?:anex-postanalysis”,EconomicandSocialCommissionforAsiaandthePacific(ESCAP)WorkingPaperno.02,July2022.Retrievedfromhttps://www.unescap.org/kp/2022/has-wto-trade-facilitation-agreement-helped-reduce-trade-costs-ex-post-analysis.FoodandAgricultureOrganizationoftheUnitedNations(FAO)(2022),TheStateofFoodandAgriculture2022,Rome:FAO.Re-trievedfromhttps://www.fao.org/publications/home/fao-flagship-publications/the-state-of-food-and-agriculture/2020/en.Golub,S.S.,Kauffmann,C.andYeres,P.(2011),“DefiningandMeasuringGreenFDI:AnExploratoryReviewofExistingWorkandEvidence”,OECDWorkingPapersonInternationalInvestm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