The impact of trade on employment and poverty reduction

The Trade and Development Commission

1. Takes note of the UNCTAD report on the impact of trade on employment and poverty reduction;
    
2. Recognizes that trade is an important element of any economic strategy and an engine for growth, employment creation and poverty reduction, and that the relationship among trade, employment creation and poverty reduction is complex. Integration into the global trading system could make a significant contribution to economic growth and sustainable development in developing countries provided that it is accompanied by complementary policies, including education and skill-building, investment, technology and finance, and based on enabling conditions, including supportive trade infrastructure and other relevant factors;
    
3. Stresses that the impact of integration into the global economy on employment and poverty varies between countries and sectors. In this regard, analyses should be undertaken on how trade can benefit those sectors that are labour-intensive or generate income opportunities for the poor, women and youth;
    
4. Stresses that the development of productive capacity in higher value added goods in agriculture, manufacturing and services, combined with appropriate policies, including an export-led strategy, offers expanded potential for job creation and poverty reduction. The need for broad-ranging and competitive producer services is essential in this respect, including in the financial sector, particularly for small and medium-sized enterprises;
    
5. Acknowledges the importance and the benefits of the services sector as a source of trade and employment and calls for a closer analysis on how to harness fully its potential in ensuring competitiveness, as well as reducing poverty, creating employment and providing good prospects for women and young entrepreneurs;
    
6. Requests UNCTAD to continue to support developing countries in their efforts to design and implement comprehensive, integrated and coherent national trade and development strategies; conduct further studies in close collaboration with the International Labour Organization and other relevant organizations to clarify the relationship between trade, employment, social inclusiveness and poverty reduction; examine strategies that would contribute to making trade an engine for creation of decent work; and support commodity-dependent developing countries and smallholder farmers, especially in Africa, in formulating sustainable and inclusive national development strategies and in promoting movement in the value chain; and encourages continued cooperation in the implementation and follow-up of its work in this regard.