Trade Ministers’ Meeting Outreach Session (16 July 2024) Statement by the President.

On 16 July 2024, under the Italian Presidency, G7 Trade Ministers met in Villa San Giovanni - Reggio Calabria with representatives from Australia, Brazil, Chile, India, Kenya, New Zealand, South Korea, Turkey and Vietnam.

In the heart of the Mediterranean, where civilizations have intertwined and trade flourished over the centuries, the Ministers discussed how to foster cooperation on common challenges, promote a free and fair-trade system, and strengthen supply chains.

In view of the fundamental role of businesses, including Small and Medium Enterprises, the Ministers were joined in the "Outreach Session" by representatives of Business 7. The Director General of the World Trade Organisation and the Secretary-General of the Organisation for Economic Co-operation and Development also took part in the discussion, the ultimate goal of which was to enable trade to continue to be an engine for growth and stability.

In today's rapidly changing global landscape, the resilience of supply chains has emerged as a critical factor in maintaining and promoting economic stability and growth. Recent trade disruptions have highlighted the need for strong, flexible supply chains that can withstand challenges, from pandemics to geopolitical tensions. Strengthening the resilience of supply chains means not only mitigating risks, but also seizing opportunities to improve efficiency and innovation by investing in advanced technologies, diversifying sources and promoting greater collaboration between sectors. Above all, it means deepening collaboration between governments and businesses in a spirit of cooperation and mutual trust.

Current global threats,in particular Russia's war of aggression against Ukraine - including its continued attempts to hinder maritime trade in the Black Sea - and persistent Houthi attacks against commercial ships transiting the Red Sea and the Gulf of Aden, seriously undermine both supply chains and thesmooth functioning of ports in the affected areas, including the Mediterranean.

In the face of such challenges, freedom of trade and navigation is crucial for global trade and growth. Unrestricted access to international markets and sea lanes allows for the efficient movement of goods, services and resources. Securing this freedom requires a collective effort to ensure that the world trading system remains open and inclusive, benefiting all participants and supporting global stability and prosperity.

Likewise, free trade and the principles established by the World Trade Organisation remain the building blocks of global economic prosperity. They provide a framework within which countries can engage in fair competition, reduce barriers to trade and promote economic integration. Adapting the rules of the Organisation to new circumstances and technological innovations is the best way to ensure that it continues to play its essential role in promoting trade and economic growth and ensures a level playing field for all.

In today's rapidly changing environment, Artificial Intelligence is crucial for optimising supply chain logistics and multiplying the growth factor of trade. AI-driven innovations can significantly reduce costs and increase the volume of trade operations. However, Artificial Intelligence also entails security risks and socio-economic challenges. Harnessing the potential of AI while mitigating its risks, in line with a human-centred digital transformation, is also essential for the future of trade.