The Financing for Development conference is a moment to point to specific changes that would help make global trade more inclusive and sustainable. The FfD4 outcome document will not be able to do everything, but even its treatment of broadly agreed upon priority issues could be more ambitious and forward looking.

In its current state, the first draft of the FfD4 outcome document touches on a range of important trade-related issues. Most of them are, however, familiar concerns, and the document misses an opportunity to articulate a vision for the role trade policy should play in financing development in the context of 21st-century challenges. Set out below are surgical fixes that could provide a forward-looking agenda for a more equitable and sustainable global trading system.

What should the FfD4 draft say about trade?

International trade is a powerful engine for economic growth, providing opportunities for market access, economic diversification, and poverty reduction. Yet, systemic inequalities, trade restrictions, and outdated agreements continue to limit the benefits that trade can deliver, particularly for developing countries. The FfD4 document should include three key elements of direction-setting. Reinforcing a rules-based, not power-based, trading system is the first step. Ensuring developing countries face fewer formal barriers when they access global markets is a second. Third, any new restrictions for environmental reasons should lift all producers toward sustainability.

Strengthening the multilateral trading system and World Trade Organization agreements

The multilateral trading system (MTS) under the World Trade Organization (WTO) is crucial to maintaining a fair and predictable global trade environment. However, rising trade tensions and stalled negotiations have weakened its effectiveness. The first draft recognizes the importance of a strong MTS and calls for the implementation of key WTO agreements on trade facilitation and fisheries subsidies. It also emphasizes the need for permanent solutions to public stockholding in agricultural trade. Each of these references is important. Completing negotiations on additional provisions for the WTO Agreement on Fisheries Subsidies is important for the ocean and all communities that rely on fishing. It would also enable us to fully meet SDG target 14.6.

The text rightly points out that rules on agricultural subsidies should be reformed to address trade distortions that disproportionately affect producers in developing countries. While public stockholding is a key priority, a comprehensive update of WTO agricultural trade rules is needed to remove trade distortions, particularly those affecting least developed countries (LDCs) and net food-importing developing countries.

The draft also points to the need for capacity-building support for LDCs to participate in international trade negotiations. This is crucial. The MTS must work for everyone; for it to do so, every voice needs to be heard.

Strengthening market access for developing countries

Market access remains a persistent challenge for developing countries, particularly LDCs and net food-importing developing countries. Although preferential trade arrangements exist, many developing economies continue to face barriers such as complex rules of origin and residual tariffs that limit their ability to compete effectively in global markets.

The first draft makes a welcome commitment to achieving full duty-free, quota-free access for LDCs. It also calls for real action on tariff escalation (where tariffs are higher on processed products) and support to help LDCs add value to what they produce. While long-standing, these priorities are key to building a more inclusive global economy.

Trade measures should support an inclusive, low-carbon global economy

The first draft calls for discussion of unilateral environment-related trade measures and their impact on prospects for developing countries. What the draft could usefully do is set out a vision of what these measures, if taken, should do. The FfD4 outcome document could clearly state that these measures—whether directly environment-related or trade measures implemented as a consequence of environmental policies—must be consistent with all relevant international obligations. Furthermore, they should be designed to support a transformation toward sustainable production everywhere rather than acting as barriers to market access.