Piyush Goyal urges G7 govts to collaborate on regulatory framework to facilitate cross border trade, supply chains

Union Commerce Minister Piyush Goyal has urged governments of G7 nations to collaborate on a regulatory framework to ease the movement of supply chains and facilitate cross-border trade.

The Union Commerce Minister on Friday participated in the G7 Trade Ministers' Meeting in Osaka, Japan.

The Group of Seven is an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, UK and the US. The European Union is included as a "non-enumerated member".

During the meeting, Goyal made an important intervention on the topic of enhancing supply chain resilience and gave several suggestions on the issue, as per a release issued by the Union Ministry of Commerce and Industry.

He mentioned that the COVID pandemic and the geo-political events highlighted the vulnerabilities of the existing supply chains leading to an increase in commodity prices and global inflation.

The minister encouraged public-private partnership, investment in critical infrastructure and the need for innovation and digitalization of supply chains. Goyal highlighted the need for supply chain diversification and skilling and re-skilling of personnel.

He also recalled the Generic Framework for Mapping of Global Value Chains (GVCs) mentioned in the New Delhi Declaration of the G20.

The session also saw participation from representatives from the governments, private sector and international organisations like OECD, WTO, etc. Most of the private sectors shared their positive experiences in developing resilient supply chains, as per the official release.

Suzuki made a presentation on their experience in India. Suzuki mentioned how they developed a reliable and trusted vendor base in India and achieved over 95 per cent indigenisation in their supply chains in India.

ERIA also mentioned a study conducted by them that showed the growing share of India in global value chains.

Ministers from Australia, Chile, Indonesia and Kenya also made their interventions and shared suggestions on this topic.

The Union Commerce Minister had bilateral engagements with several ministers. He met Japan's Minister of Economy, Trade and Industry Nishimura Yasutoshi, UK's Secretary of State for Business and Trade Kemi Badenoch, Australia's Minister for Trade and Tourism Don Farrell and Ambassador, United States Trade Representative Katherine Tai and Germany's Secretary of State, Federal Ministry for Economic Affairs and Climate Action, Udo Phillip, according to the release issued by the commerce ministry.

The Japanese Economy Minister Nishimura wrote on X: "My table at the G7 reception is a "quad" table. It is a four-country collaboration between Japan, the United States, Australia and India. Minister Goyal, an ally of India, was excited about the video introducing the traditional culture of Japan and Kansai, saying, 'India and Japan have a lot in common culturally'."

Goyal in response wrote: "Thank you Minister Nishimura Yasutoshi for your warm hospitality and productive meetings."

During his bilateral engagements, Goyal discussed important issues including enhancing bilateral trade, removal of non-tariff barriers, an update on the status of the ongoing FTA negotiations and the upcoming ministerial conference on WTO. Goyal also met Director General of WTO Ngozi Okonjo-Iweala, and Chairman, Mitsui, Japan and Japan-India Business Cooperation Committee Tatsuo Yasunagawa (JIBCC).

G7 accounts for over half of global network wealth, 30-43 per cent of global GDP and 10 per cent of the world's population. India is among the select countries that have been invited by the G7 in the meeting of trade ministers in Osaka.