G20 agrees to emphasize global value chains concept

Jakarta (ANTARA News) - G20 trade ministers agreed to emphasize a global value chains concept which allows each country to play a good role as a provider of raw materials, intermediate products and end products, an Indonesian minister said.

"There must be balanced discussions on global value chains to reflect the interests of developed nations and developing countries proportionally," Trade Minister Gita Wirjawan said in a written statement on Sunday.

He made the remarks at a meeting of G20 trade ministers held in Puerto Vallarta, Mexico, last Friday (April 20). The meeting brought together representatives from all G20 member countries and five countries as observers, namely Cambodia, Chile, Peru, New Zealand, and Singapore.

The global value chains concept was important to consider the developing countries` interests due in part to the adoption of agriculture as an important sector to encourage growth and create job opportunities, he said.

The other reason was growing aspirations in the discussion of trade chains, ranging from providing raw materials, processing intermediate materials to producing end products. As such, developing countries like Indonesia could benefit from added value in the trade chains, he said.

In the trade chains, such sectors as service, financing and trade facilitation served as the key to ensuring smooth global value chains, he said.

He also attached significance to investment in human resources development, arguing that the opening of market supported by advanced technology, innovations and transparency would not yield maximum benefit unless it was supported by competent human resources. (*)