The latest data from the UNCTAD Global Trade Update reveals a positive outlook for global trade. After a decline last year, the volume of world merchandise trade is expected to rise by 2.6% in 2024 and 3.3% in 2025. One significant trend in 2024 is the growing demand for products related to artificial intelligence (AI) and green energy. As technology and sustainable industries continue to drive trade dynamics, the global economy is set for significant transformation in the coming years, which will also benefit services trade.
The UNECE region will see benefits from these trends, but there are several challenges that hinder societies from fully taking advantage of economic integration, especially in countries with transitioning economies. These challenges include reliance on natural resources, limited government funding and financial resources for trade logistics development, and underdeveloped regulatory and institutional frameworks. Therefore, the removal of regulatory and procedural barriers to trade remains a top priority.
At the recent 9th session of the UNECE Steering Committee on Trade Capacity and Standards, government delegates, experts from international organizations, including other UN agencies, as well as representatives from the private sector and academia, gathered in Geneva to discuss trade-related development priorities in the UNECE region. Attendees included delegates from UNECE member states, the Organisation for Economic Co-operation and Development (OECD), World Trade Organization (WTO), United Nations Conference on Trade and Development (UNCTAD), United Nations Forum on Sustainability Standards (UNFSS), and the International Trade Centre (ITC), among other institutions.
The Committee addressed challenges to circular transitions in agri-food value chains and the traceability of textiles, the basics of quality infrastructure for trade, and regulatory and procedural barriers in the context of value chain integration for beneficiary countries (Armenia, Kazakhstan, and Kyrgyzstan). The Committee also explored the role of trade in services in promoting sustainable growth and economic diversification, as they can accelerate the achievement of the 2030 Agenda for Sustainable Development.
“The Steering Committee has made a significant contribution to UNECE’s normative work by developing international standards, procedures, and best practices to reduce transaction costs in export and import processes. Their efforts have greatly increased the efficiency, predictability, and transparency of trade regulations and procedures. I am pleased to see support for new initiatives that promote the transition to a circular economy in our region,” said Zdenko Lucić of Croatia, Chair of the Steering Committee.
The first day of the Trade Committee included the Regional Conference on Circular Economy, co-hosted with the Committee on Innovation, Competitiveness, and Public-Private Partnerships (CICPPP), where experts discussed ways to create synergies between private and public stakeholders to support necessary policy changes. Member States from countries with transitioning economies in the UNECE region emphasized the need for further resource mobilization towards circular initiatives by the donor community to bridge gaps.
The following days included reports on capacity building and technical assistance, as well as cooperation with other intergovernmental organizations and UNECE bodies. Two proposals were approved to initiate new studies on regulatory and procedural barriers to trade in countries that are in the process of accession to the WTO (i.e. Azerbaijan and Turkmenistan). “WTO membership is like a club card for a growth model,” said Hiddo Houben, Deputy Permanent Representative of the EU Mission to the WTO, adding that UNECE is well-positioned to guide beneficiary countries by providing concrete and actionable recommendations to prepare their regulatory trade-related base for facilitating accession.
This year’s session also examined the crucial role of trade in services in promoting sustainable growth and economic diversification. Representatives from the WTO and World Bank Group presented their joint Report on Trade in Services for Development and elaborated on the positive correlation between efficient services, competitiveness, and improved performance. Elisabeth Türk, Director of the Economic Cooperation and Trade Division of UNECE, pointed out that in today’s increasingly fragmented world, where trade is increasingly intertwined with environmental, technological, and geopolitical issues, the UN’s role as a platform for countries to exchange experiences and build capacities on how to harness trade, innovation, and infrastructure investment for sustainable development is more critical than ever.