G20 reaches deal to cut trade costs

The Group of 20 will work to trim global trade costs by 15 percentage points as part of a series of deals reached during a weekend meeting of trade ministers in Shanghai, according to the South China Morning Post. The ministers also agreed to ratify the World Trade Organization’s trade facilitation agreement by the end of this year, extended a promise to cut trade protectionism, and agreed to establish a new coordinated global investment policy. The accord contains provisions to expedite the movement, release and clearance of goods, and its roll-out could expand global exports by up to US$1 trillion per year, according to the WTO. The accord still needs the support of more than 20 WTO members to reach the two-thirds majority to have it adopted.