By Dr. Jan Yves Remy
Brazil’s Presidency of the Group of 20 (G20), held under the theme “Building a Just World and Sustainable Planet,” comes to an end in December 2024. The G20 is a coalition of the world’s largest economies that discusses and coordinates global economic policy, and which recently admitted the African Union as a member. Less known, however, are the “feeder” – or engagement – groups like the Think20 (T20), Business20 (B20), Women20 (W20), Labour20 (L20) which provide inputs throughout the yearlong presidency of the host government and which in theory inform G20 leaders’ agendas and ultimate G20 declarations and recommendations. When Brazil’s G20 presidency concludes this year, it will pass to South Africa, along with the leadership of the various engagement groups and processes.
Though not a national of a G20 member country, I was honored to be invited by one of Brazil’s T20 Task Forces dealing with Trade and Investment for Sustainable and Inclusive Growth (TF04) to co-chair a subgroup on Women and Trade. Along with the co-chairs of the other subgroups, tackling critical issues in trade policy like poverty and hunger, MSME support, neo-protectionism in global value chains, food security and climate action, and digital transformation, our task over the course of the year was to review 50 policy briefs from thinktanks across the G20 and the world.
At the last meeting of the T20, I was invited to Rio de Janeiro in Brazil to present concrete implementation options for the Task Force 04 recommendations—a tall order given the scope and depth of the proposals emanating from a rich and highly rewarding process.
The Role of the WTO in Supporting Sustainable Development
In addressing the audience at the iconic Itamaraty Palace in Rio, my opening point was that, quite surprisingly, the recently issued G20 Principles on Trade and Sustainable Development and T20 Brazil Communiqué still position the World Trade Organization (WTO) as the primary body to drive sustainable and inclusive development in trade. I say “surprising” given current geopolitical tensions and the lack of progress in key areas like WTO dispute settlement and negotiations on newer topics, as reflected at the 2024 WTO meeting of Ministers in Abu Dhabi. Moreover, the WTO has, from its inception, been viewed primarily as an economic institution, only recently broadening its focus to encompass areas like environmental protection and social equity. The WTO’s Agreement on Fisheries Subsidies, for instance, shows how trade rules can address sustainability when backed by robust multilateral support, though securing consensus on this remains a challenge.
A new role is emerging for the WTO as a forum for dialogue, sharing best practices, and fostering cooperation on sustainability among a subset of “middle players”—several of which are part of the G20. These nations, which are neither the smallest nor the largest economies, are driving initiatives like the Trade and Environmental Sustainability Structured Discussions (TESSD), the Plastics Dialogue, and reforms around fossil fuels. These platforms facilitate collaboration on critical issues, from reducing plastic pollution to transitioning away from fossil fuel subsidies, reflecting a growing recognition that trade policy can support global sustainability goals.
Another “softer” but equally important role for the WTO in sustainability is its emerging function as a convenor, fostering coherence on climate initiatives. This is evidenced through partnerships of the WTO (with the World Bank and the World Economic Forum) on Action on Climate and Trade (ACT); the Joint Task Force on Climate Action, Carbon Pricing, and Policy Spillovers among the IMF, OECD, UNCTAD, World Bank, and WTO on carbon pricing; and with the UNFCCC through COP Trade Days. The G20 should further bolster the WTO’s capacity to promote interoperable climate standards, addressing the diverse regulatory approaches that often increase administrative costs—especially for exporters from developing regions. Through advocacy for streamlined, globally accepted standards, the G20 can serve as a linchpin for climate-aligned trade policies, ensuring that trade does not become a barrier but an enabler of sustainable development.
Addressing Food Security through Trade
A key focus of Brazil’s G20 Presidency has been fighting hunger and poverty, and this commitment was reflected in the T20 discussions. With an estimated 733 million people facing hunger in 2023, trade’s role in ensuring food security is more crucial than ever. As climate change and geopolitical conflicts increasingly destabilize agricultural supply chains and drive up food prices, trade interventions that support resilient food systems and global food accessibility are essential.
Nevertheless, the WTO’s engagement in food security remains piecemeal. We discussed the complexities of implementing policies that balance food security with fair trade practices. For instance, the WTO’s peace clause on public stockholding allows countries to build food reserves, but it has also sparked debates over potential trade distortions. Brazil’s recent proposal for a sustainable agriculture dialogue could open pathways for fostering resilient food systems, sustainable agricultural practices, and greater food access for vulnerable populations—areas where the G20 could drive reform.
Championing Inclusivity: Empowering Women and MSMEs through Trade
As one of three co-chairs on Women and Trade within the T20, I was especially keen to highlight the inclusive agenda within sustainability. Making trade accessible to women, micro, small, and medium enterprises (MSMEs), and other underrepresented groups is crucial. While the WTO has made strides in recognizing Women and Trade as a priority, actual implementation has been limited. One concrete recommendation was the establishment of a Women in Trade Consultation Platform within the G20 framework, aiming to create spaces where women leaders, policymakers, and advocates can exchange insights and promote policies that benefit women-led businesses globally.
Supporting MSMEs in the bioeconomy is another area ripe for action that has not received much visibility in policy discussions. Smaller businesses are ideally positioned to innovate in green sectors like bio-based solutions and renewable energy. However, they frequently lack access to green financing and resources. By supporting MSMEs in these areas, the G20 could enhance its inclusive trade agenda and promote a diverse, resilient economy that reflects all stakeholders’ contributions.
Addressing the “Green Squeeze”: Transparency and Fairness in Green Subsidies and Green Industrial Policy
As the global economy transitions toward greener policies, the rise in green subsidies presents both opportunities and challenges. While these subsidies promote sustainable industries, they can also create competitive disadvantages for developing and smaller economies—a phenomenon the ODI has labeled the “Green Squeeze.” For smaller and less developed countries, competing with larger economies that provide substantial subsidies can limit market access and reduce policy flexibility.
To address this issue, a worthwhile recommendation has been greater transparency, accountability, and notification through, for instance, the World Bank’s Green Subsidies which should be supported by the G20. A more far-reaching proposal has been the creation of new disciplines for subsidies made by the Remaking Trade Project under its Villars Framework 2.0, which calls for a rethinking of the current Subsidies Agreement at the WTO to integrate, in addition to trade distortive impacts, sustainability impacts as part of an assessment of whether subsidies should be permitted. It would lead to repurposing clearly “bad” subsidies that both distort trade and harm the environment, in favor of sustainability-enhancing subsidies such as those for renewable energy—with careful provisions to protect developing countries.
Building the Foundations for Sustainable Trade through Monitoring and Data
A truly sustainable trade agenda requires robust mechanisms for monitoring and accountability more generally. The G20 could lead the development of a sustainability accountability system, whether through an index or ex ante and ex post impact assessment mechanisms to benchmark and track progress on food security, climate resilience, and inclusivity across G20 member states. Additionally, digital platforms for assessing supply chain risks could provide crucial data to policymakers, enabling them to identify vulnerabilities and preemptively address disruptions. These tracking and data tools are essential to ensure that trade remains a stabilizing force in the face of global uncertainties, from pandemics to climate crises.
Looking Ahead: Making T20’s Role in Supporting Trade Reform More Effective
The T20 discussions underscored to me clearly that while the WTO remains a key venue for implementing sustainable trade reforms, it cannot be the only one. I believe T20 thinking can—and should—be bolder. As think tanks, our ideas should not be constrained by political realities, though they should be strategically informed by them. As Brazil demonstrated, I hope that the next T20 under South Africa’s leadership brings an African perspective to the G20 issues. With the next WTO Ministerial in Africa and the momentum of the African Continental Free Trade Area (AfCFTA) driving regional integration, Africa’s presidency should shine a light on issues that only Africa can champion.
In terms of process-related reforms, facilitating coordination across G20 tracks and engagement groups—both structurally and organically—on overlapping topics early in the process would support a more unified, effective, and holistic approach. Brazil’s T20 hosts excelled in fostering connections among the various stakeholders, providing a culturally rich environment that created synergies and enriched our interactions, but this can be further strengthened. I propose at the very least an organogram to demonstrate how all processes feed into and out of each other. More radically, Africa should make a plea for representatives of the T20 to be in the room and in the corridors where G20 leaders meet. As Madame Michelle Bachelet, former President of Chile and guest speaker at our T20 event, said: “We need to not just be at the table, but shape it!”
With South Africa assuming the G20 presidency in December 2024, the T20 handover ceremony marked a touching transfer of responsibilities at our meeting. The incoming South African T20 committee articulated their commitment to solidarity, equality, and sustainability—concepts that resonate deeply with Africa’s history and future. As they assume leadership, I say “Sawubona” in welcome, and “Obrigada” in gratitude to our Brazilian hosts, whose warmth, professionalism, and vision made this journey memorable.
Dr Jan Yves Remy is the Director of the Shridath Ramphal Centre for International Trade Law, Policy and Services at the Cave Hill Campus, University of the West Indies.