TRADE AND INVESTMENT

INTRODUCTION

South Africa assumes the G20 Presidency at a time of escalating geopolitical tensions, worsening climate-related challenges, fragmenting global supply chains, and growing economic disparities between developed and developing nations. Within this global context, many regions and localities are increasingly vulnerable to the adverse distributive impacts of globalisation and trade. Rising inequalities and unemployment have exacerbated feelings of exclusion and discontent, making it harder to build consensus around policies that promote global integration. In response, many countries have turned to trade-restrictive and industrial policy measures aimed at addressing domestic structural adjustments.

However, these actions often harm the trade and economic interests of other nations, particularly developing countries. African countries face further complications due to their dependence on commodities, heightened exposure to climate risks, increasing incidents of food insecurity, and mounting debt distress. Addressing these overlapping challenges requires enhanced international cooperation. In particular, mobilising support and resources to tackle the internal disparities driven by the uneven distributional effects of trade and globalisation is critical.

As the leading forum for international economic coordination, the G20 provides an essential platform for dialogue and action aimed at mitigating environmental, social, and economic risks while strengthening global economic resilience. Communities and regions that have been disproportionately harmed by global competition will look to both their governments and multilateral organisations for solutions. Therefore, policies aimed at trade, growth, job creation, and inclusion must also focus on fostering local or regional resilience. They must support institutional capabilities at both local government and national levels. As such, the G20 must strengthen resilience in multilevel governance.

Promoting inclusive trade and investment can help bridge both domestic and global divides, supporting the resilience of developing countries in particular. It is vital that the G20, under South Africa’s leadership, prioritises inclusive and sustainable development, structural economic diversification, green industrialisation, and the creation of robust, inclusive supply chains as key themes for its agenda.

The hosting of the G20 Presidency in 2025 on African soil is a momentous occasion for the African continent. South Africa will use this opportunity to champion Africa’s development, shift the focus from merely responding to successive shocks, and lay the ground for a medium-term agenda supporting strong, sustainable, balanced, and inclusive growth and development.

To ensure consistency, the South African Presidency is strongly committed to keeping the momentum and will build on the agenda set by the previous presidencies with a specific focus on inclusion and development to champion the African agenda and promote Africa’s sustainable development. This should also bridge the global divide and contribute towards a multilateral architecture that yields solutions to key global challenges. South Africa will be hosting the G20 presidency under the theme Solidarity, Equality, Sustainability.

PRIORITIES

PRIORITY 1: TRADE AND INCLUSIVE GROWTH

EXPECTED DELIVERABLES PRIORITY 1 

Principles on trade and inclusive growth and the Africa Cooperation Agenda that advances support for structural transformation of the African continent and support for the AfCFTA

Under the SA G20 presidency, the G20 members will deliberate and explore how to harness trade’s capacity to support inclusive growth, employment, and sustainable development. This will also include discussions towards enhancing the G20 partnership with Africa by developing a Cooperation Agenda with Africa that builds on the work of various presidencies in this regard. The key leading questions include:

• How can the G20 foster an international trade agenda that promotes inclusion, development and shared prosperity? – women and youth in trade, labour-absorbing trade agenda; enhanced participation of developing countries.
• How can the G20 take the Africa Partnership forward, including to support the implementation of the AfCFTA?
• How can G20 members work together to strengthen and diversify global supply chains while supporting developing countries’ meaningful integration into global value chains?

PRIORITY 2: G20 PRINCIPLES ON RESPONSIVE TRADE AND INVESTMENT AGENDA TO ADDRESS THE GLOBAL COMMONS 

EXPECTED DELIVERABLE PRIORITY 2 

• How the G20 can mitigate the threat of climate change and support just transition in a manner that contributes to unlock inclusive growth, including addressing the negative effects of measures implemented by Members, including addressing climate measures that have an impact on trade to avoid fragmentation?
• How can the G20 design an inclusive framework that mobilises financial and technological resources to bridge the gaps faced by developing countries during the climate transition?
• What are the trends in the Investment Treaty Regime and a reform toolbox for addressing the global commons, including energy transition?
• TIWG can explore how trade can contribute to equitable production and access to key medical tools that are critical to public health to explore mechanisms to ensure better preparedness to future pandemics.

PRIORITY 3: G20 FRAMEWORK/PLEDGE ON GREEN INDUSTRIALISATION AND INVESTMENTS TO PROMOTE SUSTAINABLE DEVELOPMENT 

EXPECTED DELIVERABLE PRIORITY 3

During the South African G20 presidency, G20 members will deliberate on elements that can constitute a G20 Framework on Inclusive Green Industrialisation. Such a framework will seek to define a grand bargain that would promote mutual benefits of the green transition in a manner that fosters predictable trade, advances value addition and industrial development at source, and ensures shared prosperity. The key leading questions include:

• What should constitute key elements of a grand bargain under a G20 Framework on Inclusive Green Industrialisation?
• How can the G20 support the diversification of green industries and the integration of developing countries in green global value chains?

PRIORITY 4: WTO REFORM

EXPECTED DELIVERABLE PRIORITY 4 

G20 Statement on the WTO

• How can the G20 work together towards clearer outcomes on WTO reform towards MC14?
• How can the G20 members advance the development dimension of the WTO to address global economic development asymmetries and move towards a more inclusive and development-oriented MTS?
• In view of persistent global food security challenges and the longstanding impasse and slow progress in negotiations, how to take negotiations on agricultural trade reform forward so as to make progress towards MC14?
• How to forge global consensus required to ensure a functioning dispute settlement system.

SUMMIT OUTCOME – KEY ELEMENTS 

• G20 principle on trade and inclusivity as well as endorsement of the Africa Cooperation Agenda as one of the flagship outcomes
• G20 principles for trade and investment in the context of the global commons
• G20 Framework on green industrialisation and investments
• WTO statement on the development dimension and WTO reform.