A report by the Secretariat of the United Nations Conference on Trade and Development (UNCTAD) concludes that the COVID-19 pandemic is likely to “reverse much of the economic and social progress already made” towards achieving the Sustainable Development Goals (SDGs). However, government interventions and significant reform of the multilateral trading system would provide an opportunity to pivot towards long-term growth and sustainable development.
The report entitled "International trade and development» concludes that the Economic and social disruptions caused by COVID-19 have caused losses of approximately 6 trillion dollars in world trade, 50% more than the decline in trade that occurred during the 2008 recession. Economic disruptions have affected some sectors more than others, particularly the automotive, textile and clothing, tourism and various machinery sectors. Falling crude oil prices have led to a “dramatic drop in export earnings” for oil exporters, and sustained low oil prices may affect the development of renewable energy as consumers have less incentive to switch from fossil fuels to renewables.
COVID-19 is “not just a health crisis, but also a jobs and livelihoods crisis” which affects progress on the SDGs, the authors say. Absolute declines in export earnings affect LDCs’ ability to achieve the SDGs overall and to meet SDG target 17.11 of doubling their share of global exports by 2020. The COVID-19 pandemic has exacerbated inequalities (SDG 10) and significantly affected economic sectors (SDG 5), such as the garment sector, pushing women workers into extreme poverty (SDG 1).
The report emphasizes that the implementation of the gender aspects of the 2030 Agenda”are at risk”. The economic crisis disproportionately affects women in several ways outlined in the report, including an “exponential increase in the time women spend on care work,” which affects their ability to maintain employment or continue working full-time. The result is moving women from stable, protected jobs to more informal work. In addition, countries with reporting systems have reported an increase in domestic violence against women.
Regarding the SDGs related to the the environment, the pandemic has had "observable positive effects» in carbon dioxide (CO2) emission levels and air, soil and water quality. Fish exports may “decline by about a third in 2020.” The report further suggests the possibility of combining solutions to climate change and COVID-19 into a coherent response. Still, the pandemic has also had negative environmental impacts, including increasing volumes of non-recyclable waste, disruption to the maintenance and monitoring of natural ecosystems, and disruptions to markets and value chains for biodiversity-based goods and services.
Macroeconomic impacts on revenues arising from COVID-19 are expected to affect the food safety. The report therefore recommends encouraging domestic food production and shorter regional food value chains to ensure that future food security does not become overly dependent on international markets and to reduce the carbon footprint of global food value chains.
The COVID-19 crisis has accelerated the adoption of digital technologies, which have been a “critical tool for maintaining business and life continuity” and have enabled increases in teleworking, telemedicine and online education. The Government of Senegal, for example, has facilitated and created an e-commerce platform to facilitate access to the websites of small and medium-sized enterprises (SMEs) selling essential goods, which has allowed businesses to continue to operate. However, not everyone is sufficiently prepared to embrace digitalization. As with the coronavirus crisis and other interconnected development challenges, the world will need a multilateral response to meet the challenge of digitalization, says UNCTAD.
The report recommends rebuilding a multinational trading system through reform of the World Trade Organization (WTO) that delivers negotiated outcomes and contributes to post-crisis recovery and longer-term development. In line with SDG target 17.10, the report calls for a universal, rules-based, open, non-discriminatory and equitable multilateral trading system. It suggests that one area for reform could be the principles of special and differential treatment for developing countries, replacing the practice of self-declaration of developing country status with objective criteria such as level of per capita income and participation in world trade.
Overall, the paper concludes that the pandemic risks reversing most of the progress on the SDGs, but the Government response interventions and reform of the multilateral trading system offer an opportunity to pivot global trade and national economies onto a path of long-term growth and sustainable development.
Aduana News foi o primeiro jornal aduaneiro da Argentina a lançar sua versão digital. Com mais de 20 anos de trajetória, suas publicações e iniciativas têm como objetivo oferecer o conhecimento mais relevante sobre temas aduaneiros, contribuindo para a promoção do comércio seguro e da facilitação do comércio na região.
