G20 to reinforce rules on subsidies in move seen to be aimed at China, backs WTO reforms

Group of 20 (G20) trade and investment ministers met on Tuesday in Sorrento, Italy, and called for reinforced rules on industrial subsidies to ensure fair competition

They also said they remained committed to actively work with all World Trade Organization (WTO) members to undertake necessary reforms

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Trade and investment ministers in the Group of 20 (G20) major economies met on Tuesday in Sorrento, Italy. Photo: Xinhua

Published: 3:05pm, 13 Oct 2021Updated: 3:05pm, 13 Oct 2021

Trade and investment ministers in the Group of 20 (G20) major economies affirmed the need to reinforce international rules on industrial subsidies to ensure fair competition, according to a statement released on Wednesday by ministers.

The statement to address government subsidies distorting the market, released after their meeting on Tuesday in Sorrento, Italy, is apparently aimed at China, a G20 member that treats state-owned companies favourably with subsidies and other measures.

“We will continue to work to ensure a level playing field to foster an enabling business environment and to support the integrity and sustainability of the rules-based multilateral trading system,” it said.

The ministers also vowed to enhance the capacity of the multilateral trading system to cope with pandemics and large-scale disasters so each country and region can smoothly procure essential medical goods, the statement said.

We remain committed to strengthening its rule making arm by easing trade negotiations and fostering the update of the global trade rule book, and underscore the importance of the ongoing negotiations in the WTO

G20 trade and investment ministers

“The [coronavirus] pandemic has highlighted the importance of working toward enhancing timely, equitable and global access to safe, affordable and effective Covid-19 vaccines, therapeutics, diagnostics and personal protective equipment,” it said.