When leaders of the G20 group of the biggest developed and emerging economies meet in China at the weekend, they can expect to be pressed by their hosts to take action to free up international trade and investment. It will be a tough ask.
A report last week shows that the G20 nations have acted overwhelmingly to restrict rather than liberalise trade in investment-related goods in recent years, while the rate of “greenfield” foreign direct investment in new productive activity has slowed — a record of G20 policymaking the report’s lead author described as “miserable”.
China has put promoting trade and investment at the core of its presidency of the G20 this year. In a message on the G20 website, President Xi Jinping points to “growing concern over the persistent decline in global trade growth” and notes that “protectionist measures in trade and investment have been rising significantly”.