Business as usual – Kommersant

The list of recommendations from the Business G20 (B20) meeting – the format in which international business prepares proposals for the G20 summit – contains proposals for ensuring the sustainability of global supply chains. It is proposed to do this through anti-crisis measures, ensuring the availability of critical goods and developing regional integration. The RSPP, which oversees the participation of Russian companies in the association, considers the statement of the need to develop international cooperation to solve common problems to be the main achievement.

The meeting of the Business G20 (B20), which precedes the G20 summit on September 9-10, has ended in Delhi (the Russian Federation will be represented at it by Foreign Minister Sergey Lavrov). Participation in the “business” format is coordinated by the RSPP – representatives of about 30 Russian companies flew to Delhi. Following the meeting, a communiqué was issued with a list of recommendations for the G20 – a wide list of proposals for development finance, digital transformation, the future of employment, the climate agenda and the implementation of ESG principles. A new set of recommendations this year concerns the economic integration of Africa – representatives of the B20 explain their interest in forecasts for the growth of the population of the continent (from the current 1.3 billion people to 2.5 billion by 2030) and the expansion of consumer activity and the labor market (India even offered to make The African Union is a permanent member of the G20). Industrialization and the integration of African countries into global trade were discussed at the same time.

For Russian companies, the track on creating “sustainable” supply chains turned out to be the most relevant, where not only anti-crisis measures in case of new shocks were discussed, but also the reduction of barriers to trade. According to WTO data for 2021, cited by the drafters of the communiqué, 10.4% of world trade fell under some kind of restrictions (the expansion of sanctions clearly contributed to the growth of this share). This area also contains recommendations on the development of digital infrastructure and trade in services. The business G20 carefully bypasses the key fork in the future of world trade, pointing out that regional cooperation can contribute to integration into the global economy. Ensuring the security of supply also implies that countries will not only take into account “parameters such as efficiency and cost”, but also take into account “sustainability, security, transparency and inclusiveness”. At the same time, the authors of the report note the already ongoing decline in participation in global chains, which reduces the contribution of trade to GDP dynamics.

Sergei Mikhnevich, Managing Director for International Multilateral Cooperation and Integration of the RSPP, notes that now the recognition by international business of the need to cooperate to solve common problems and ensure the sustainability of supplies is especially expensive, and the work of the G20 business has reaffirmed the rational vision of international realities by business: it is very it is important to minimize trade restrictions and prohibitions.

One of the key proposals of the Russian side, according to Mr. Mikhnevich, was to stimulate global coordination to mitigate the crisis and ensure the stability of the world economy. This is possible, among other things, by addressing the problem of trade restrictions and ensuring unhindered trade in critical materials, with a special focus on food security.

Within the framework of the task forces, narrower issues were also discussed – for example, in discussions on the climate agenda (relevant, among other things, in the light of the introduction of a border carbon tax in the EU), delegations suggested taking into account the real possibilities of countries and following the agreements already reached. In particular, the Industry Focus Group recommendations suggest developing clear and transparent ecosystem and supply chain transit trajectories in line with the Paris Climate Agreement.

Tatyana Edovina