China and the G20 summit

2. Boost global trade growth

International trade and investment contribute to productivity increases by facilitating the optimal allocation and use of capital, labour, as well as technology. Current global trade growth, however, is sluggish. This year's G20 process could consider two initiatives to help re-harness trade and investment for global growth.

First, the G20 members could support negotiating a plurilateral Digital Trade Agreement, in order to maximise the contributions of Internet-based trade to economic development and employment, as well as boosting the integration of small-and-medium sized enterprises (SMEs) into global markets.

Second, the G20 can promote and develop a comprehensive framework for services trade facilitation so as to thoroughly explore the potential contributions of services to trade growth and quality job creation.

3. Promote inclusive, interconnected and sustainable global value chains.

With intermediate goods making up roughly 60 percent of total global imports, international production networks are a significant driver of trade and growth. This year's G20 could consider actions to help better integrate SMEs into global value chains (GVCs) and expand the development opportunities offered by global commerce.

First, set up a "Global Value Chain Partnership," as a public-private platform to enable the efficient functioning of supply chains and sustainable participation.

Second, provide clarity on and bolster the rules-based system in which GVCs must operate. This could include supporting an RTA Exchange as a public information platform on such deals. Efforts could also be made to simplify over 3000 international investment agreements, potentially through creating a new international model agreement, to serve as a template for best practice.

4. Enhance global investment policy cooperation and coordination

Like international trade cross-border investment is an important engine for economic growth and development. Recent instability in financial markets, tumbling commodity prices, slow growth in emerging economies alongside continued stagnation in major markets, among other issues, can act as a drag on investment.

This year's G20 could consider formulating a global investment policy cooperation compact. This could be non-binding, refer to an updated model investment agreement, include investment in the Aid for Trade initiative, and initiate a feasibility study for a G20 plurilateral investment promotion agreement. G20 members could also examine ways to improve investment dispute prevention and settlement.

5. Leadership for trade and sustainable development

In the area of promoting robust international trade and investment, the G20 could make several breakthroughs at the Hangzhou Summit, in addition to maintaining the Trade and Investment Working Group.

Supporting the multilateral trade system should remain a priority for the G20 agenda. However, the G20 should no longer view the WTO as an isolated institution, but instead develop its leadership role within the broader ecosystem of the global trade and investment architecture.

The author is Chief Executive of the International Centre for Trade and Sustainable Development (ICTSD).