USA / SWITZERLAND – The Inter-American Development Bank (IDB) and the World Trade Organization (WTO) agreed on Thursday to deepen their collaboration and work towards better trade for a better world. Both organizations will join efforts to foster digital trade, assist their members in investment facilitation, and ensure that the benefits of trade are inclusive and reach everyone in the Latin America and the Caribbean (LAC).
The announcement took place during the WTO Public Forum, an annual event that brings together governments, private sector, civil society, and multilateral organizations to discuss international trade challenges and opportunities.
Anabel González, IDB vice president for Countries, said:
“This enhanced collaboration between the IDB and the WTO is a significant step towards leveraging our combined strengths to help Latin America and the Caribbean countries use trade policy as a driver of economic growth, maximize the opportunities of digital trade, strengthen capacities on investment attraction and promote more inclusive trade.”
Ngozi Okonjo-Iweala, WTO director-general, said:
“This cooperation marks a significant milestone for efforts to promote inclusiveness through trade. The WTO looks forward to stepping up our cooperation with the IDB to make trade work better for all in Latin America and the Caribbean.”
On digital trade, the scope of this collaboration highlights the potential of digital trade as a catalyst for inclusive development in LAC. It proposes a collaborative framework to develop a comprehensive policy note, with an Action Plan, leveraging each organization´s own expertise to assess the current state of digital trade in the region, identify opportunities and challenges for LAC countries, propose policy recommendations, and encourage collaboration with other international organizations and stakeholders.
Digital trade has been growing at a rapid pace. Since 2005 the export value of digitally delivered services has quadrupled, reaching $4.25 trillion in 2023. The sector’s expansion has outpaced that of goods and other services, highlighting its growing importance in the global economy. In LAC digitally delivered services account for 1.6 percent of global exports, but despite this modest share, the sector is rapidly growing in the region.
LAC countries have been attracting increased foreign direct investment (FDI), with significant potential for further growth. In 2022, FDI inflows to LAC increased by 51 percent, reaching $208 billion, the highest level ever recorded for the region.
The IDB will support the development of national action plans, roadmaps and, together with the WTO, needs assessments to identify gaps and tailor capacity building efforts to boost domestic and FDI inflows by assisting developing and least-developed members in their preparations for the implementation of the Investment Facilitation for Development Agreement (IFDA).
Both organizations will also collaborate to improve policy coherence on aspects related to investment facilitation and address cross-border challenges through the establishment of regional networks for knowledge exchange, peer learning and sharing of best practices.
On inclusive trade, the IDB and WTO collaboration will focus on trade in services, particularly, services export promotion, where the IDB has accumulated knowledge and experience. Key areas of work will also include trade facilitation, promoting small and medium firms’ integration in the global economy, and fostering gender equality through trade. Through knowledge generation and sharing, technical assistance, and capacity building, this partnership will support LAC countries in navigating global trade dynamics and achieving inclusive economic growth.
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