G20 Leaders' Communique Hangzhou Summit


4-5 September 2016

1. We, the Leaders of the G20, met in Hangzhou, China on 4-5September 2016.

2. We met at a time when the global economic recovery isprogressing, resilience is improved in some economies and newsources for growth are emerging. But growth is still weaker thandesirable. Downside risks remain due to potential volatility in thefinancial markets, fluctuations of commodity prices, sluggish tradeand investment, and slow productivity and employment growth in somecountries. Challenges originating from geopolitical developments,increased refugee flows as well as terrorism and conflicts alsocomplicate the global economic outlook.

3. We also met at a time of continued shifts and profoundtransformations in the configuration of the global economiclandscape and dynamics for growth. With these transformations comechallenges and uncertainties as well as opportunities. The choiceswe make together will determine the effectiveness of our responseto the challenges of today and help to shape the world economy ofthe future.

4. We believe that closer partnership and joint action by G20members will boost confidence in, foster driving forces for andintensify cooperation on global economic growth, contributing toshared prosperity and better well-being of the world[tu1] .

5. We are determined to foster an innovative, invigorated,interconnected and inclusive world economy to usher in a new era ofglobal growth and sustainable development, taking into account the2030 Agenda for Sustainable Development, the Addis Ababa ActionAgenda and the Paris Agreement.

6. In this context, we, the G20, as the premier forum forinternational economic cooperation, forge a comprehensive andintegrated narrative for strong, sustainable, balanced andinclusive growth, and thereby adopt the attached package ofpolicies and actions - the Hangzhou Consensus - based on thefollowing:

----Vision. We will strengthen the G20 growth agenda to catalyzenew drivers of growth, open up new horizons for development, leadthe way in transforming our economies in a more innovative andsustainable manner and better reflect shared interests of bothpresent and coming generations.

----Integration. We will pursue innovative growth concepts andpolicies by forging synergy among fiscal, monetary and structuralpolicies, enhancing coherence between economic, labor, employmentand social policies as well as combining demand management withsupply side reforms, short-term with mid- to long-term policies,economic growth with social development and environmentalprotection.

----Openness. We will work harder to build an open worldeconomy, reject protectionism, promote global trade and investment,including through further strengthening the multilateral tradingsystem, and ensure broad-based opportunities through and publicsupport for expanded growth in a globalized economy.

----Inclusiveness. We will work to ensure that our economicgrowth serves the needs of everyone and benefits all countries andall people including in particular women, youth and disadvantagedgroups, generating more quality jobs, addressing inequalities anderadicating poverty so that no one is left behind.

Strengthening Policy Coordination

7. Our growth must be shored up by well-designed and coordinatedpolicies. We are determined to use all policy tools - monetary,fiscal and structural - individually and collectively to achieveour goal of strong, sustainable, balanced and inclusive growth.Monetary policy will continue to support economic activity andensure price stability, consistent with central banks' mandates,but monetary policy alone cannot lead to balanced growth.Underscoring the essential role of structural reforms, we emphasizethat our fiscal strategies are equally important to supporting ourcommon growth objectives. We are using fiscal policy flexibly andmaking tax policy and public expenditure more growth-friendly,including by prioritizing high-quality investment, while enhancingresilience and ensuring debt as a share of GDP is on a sustainablepath. Furthermore, we will continue to explore policy options,tailored to country circumstances, that the G20 countries mayundertake as necessary to support growth and respond to potentialrisks including balance sheet vulnerability. We reiterate thatexcess volatility and disorderly movements in exchange rates canhave adverse implications for economic and financial stability. Ourrelevant authorities will consult closely on exchange markets. Wereaffirm our previous exchange rate commitments, including that wewill refrain from competitive devaluations and we will not targetour exchange rates for competitive purposes. We will carefullycalibrate and clearly communicate our macroeconomic and structuralpolicy actions to reduce policy uncertainty, minimize negativespillovers and promote transparency.

8. We are making further progress towards the implementation ofour growth strategies, but much more needs to be done. Swift andfull implementation of the growth strategies remains key tosupporting economic growth and the collective growth ambition setby the Brisbane Summit, and we are prioritizing our implementationefforts. In the light of this, we launch the Hangzhou Action Planand have updated our growth strategies, including new and adjustedmacroeconomic and structural policy measures that can providemutually-supportive benefits to growth. We will also strive toreduce excessive imbalances, promote greater inclusiveness andreduce inequality in our pursuit of economic growth.

Breaking a New Path for Growth

9. Our growth, to be dynamic and create more jobs, must bepowered by new driving forces. While reaffirming the importance ofaddressing shortfalls in global demand to support short-termgrowth, we believe it is also imperative to address supply sideconstraints so as to raise productivity sustainably, expand thefrontier of production and unleash mid- to long-term growthpotential.

10. We recognize that in the long run, innovation is a keydriver of growth for both individual countries and the globaleconomy as a whole. We are committed to tackling one of the rootcauses of weak growth by taking innovation as a key element of oureffort to identify new growth engines for individual countries andthe world economy, which will also contribute to creating new andbetter jobs, building a cleaner environment, increasingproductivity, addressing global challenges, improving people'slives and building dynamic, cooperative and inclusive innovationecosystems. We thus endorse the G20 Blueprint on Innovative Growthas a new agenda encompassing policies and measures in and acrossthe areas of innovation, the new industrial revolution and thedigital economy. In this context, we recognize the importance ofstructural reforms. We will act on the recommendations of theBlueprint in accordance with our national circumstances and in linewith our vision for leadership, partnership, openness,inclusiveness, creativity, synergy and flexibility.

11. We commit to important cross-cutting actions related tomulti-dimensional partnerships, supporting developing countries andimproving skills and human capital. We will set up a G20 Task Forcesupported by the OECD and other relevant internationalorganizations to take forward the G20 agenda on innovation, newindustrial revolution and digital economy, subject to thepriorities of the respective future G20 presidencies, ensuringcontinuity and consistency with the results so far, and promotingsynergies with other G20 workstreams.

12. To achieve innovation-driven growth and the creation ofinnovative ecosystems, we support dialogue and cooperation oninnovation, which covers a wide range of domains with science andtechnology innovation at its core. We deliver the G20 2016Innovation Action Plan. We commit to pursue pro-innovationstrategies and policies, support investment in science, technologyand innovation (STI), and support skills training for STI -including support for the entry of more women into these fields -and mobility of STI human resources. We support effort to promotevoluntary knowledge diffusion and technology transfer on mutuallyagreed terms and conditions. Consistent with this approach, wesupport appropriate efforts to promote open science and facilitateappropriate access to publicly funded research results on findable,accessible, interoperable and reusable (FAIR) principles. Infurtherance of the above, we emphasize the importance of open tradeand investment regimes to facilitate innovation throughintellectual property rights (IPR) protection, and improving publiccommunication in science and technology. We are committed to fosterexchange of knowledge and experience by supporting an online G20Community of Practice within the existing Innovation PolicyPlatform and the release of the 2016 G20 Innovation Report.

13. To seize the opportunity that the new industrial revolution(NIR) presents for industry, particularly manufacturing and relatedservices, we deliver the G20 New Industrial Revolution Action Plan.We commit to strengthen communication, cooperation and relevantresearch on the NIR, facilitate small and medium-sized enterprises(SMEs) to leverage benefits from the NIR, address employment andworkforce skill challenges, encourage more cooperation onstandards, adequate and effective IPR protection in line withexisting multilateral treaties to which they are parties, newindustrial infrastructure, and support industrialization, ascommitted in the action plan. We also support industrialization indeveloping countries, especially those in Africa and LeastDeveloped Countries (LDCs). We are committed to supporting ourworkforces throughout this transition and to ensuring that thebenefits of the NIR extend to all, including women, youth anddisadvantaged groups. We call for cooperation to maximize thebenefits and mitigate the negative impact of the expectedtechnological and industrial changes. In all these initiatives, theG20 will take into consideration the different opportunities andchallenges for developing and developed countries.

14. To unleash the potential of digital economy, we deliver theG20 Digital Economy Development and Cooperation Initiative, whichbuilds on our work begun in Antalya. We aim to foster favorableconditions for its development and to address digital divide,including through expanded and better and affordable broadbandaccess, flow of information for economic growth, trust andsecurity, while ensuring respect for privacy and personal dataprotection, investment in the ICT sector, entrepreneurship, digitaltransformation, e-commerce cooperation, enhanced digital inclusionand development of micro, small and medium-sized enterprises(MSMEs). We reaffirm paragraph 26 in the Antalya Communique, committo offer policy support for an open and secure environment andrecognize the key role of adequate and effective IPR protection andenforcement to the development of the digital economy. We welcomethe efforts made by the OECD, IMF, national and other internationalorganizations on the measurement of the digital economy, andrecognize that further relevant research and exchange areneeded.

15. We reiterate the essential role of structural reforms inboosting productivity and potential output, as well as promotinginnovative growth in G20 countries. We deliver the EnhancedStructural Reform Agenda, noting that the choice and design ofstructural reforms are consistent with countries' specific economicconditions. We endorse the nine priority areas of structuralreforms and a set of guiding principles identified in the Agenda toprovide high-level and useful guidance to members, while allowingthem to account for their specific national circumstances. We alsosupport the quantitative framework consisting of a set ofindicators, which will be improved over time, to help monitor andassess our efforts and progress with structural reforms andchallenges. We are putting in place an integrated strategy forgrowth with short, medium and long-term measures. We will ensurethat the Enhanced Structural Reform Agenda and the relevantelements of the Blueprint on Innovative Growth are wellarticulated.

More Effective and Efficient Global Economic and FinancialGovernance

16. Our growth, to be resilient, must be underpinned byeffective and efficient global economic and financial architecture.We will continue our work in this regard.

17. We endorse the G20 Agenda Towards A More Stable andResilient International Financial Architecture. We will continue toimprove the analysis and monitoring of capital flows and managementof risks stemming from excessive capital flow volatility. We lookforward to the IMF's review of country experiences and emergingissues in handling capital flows by year-end. We note the ongoingwork on the review of the OECD Code of Liberalization of CapitalMovements. We support work to further strengthen the GlobalFinancial Safety Net (GFSN), with a strong, quota-based andadequately resourced IMF at its center, equipped with a moreeffective toolkit, and with more effective cooperation between theIMF and regional financing arrangements (RFAs), respecting theirmandates. In this respect, we welcome the upcoming CMIM-IMF jointtest run. We support maintaining access to bilateral andmultilateral borrowing agreements between members and the IMF, inline with the objective of preserving the IMF's current lendingcapacity, and call for broad participation of the IMF membership,including through new agreements. We welcome the entry into effectof the 2010 IMF quota and governance reform and are working towardsthe completion of the 15th General Review of Quotas, including anew quota formula, by the 2017 Annual Meetings. We reaffirm thatany realignment under the 15th review in quota shares is expectedto result in increased shares for dynamic economies in line withtheir relative positions in the world economy, and hence likely inthe share of emerging market and developing countries as a whole.We are committed to protecting the voice and representation of thepoorest members. We support the World Bank Group to implement itsshareholding review according to the agreed roadmap, timeframe andprinciples, with the objective of achieving equitable voting powerover time. We underline the importance of promoting sound andsustainable financing practices and will continue to improve debtrestructuring processes. We support the continued effort toincorporate the enhanced contractual clauses into sovereign bonds.We support the Paris Club's discussion of a range of sovereign debtissues, and the ongoing work of the Paris Club, as the principalinternational forum for restructuring official bilateral debt,towards the broader inclusion of emerging creditors. We welcome theadmission of the Republic of Korea and the decision of Brazil tojoin the Paris Club. We welcome China's continued regularparticipation in Paris Club meetings and intention to play a moreconstructive role, including further discussions on potentialmembership. Following the IMF's decision, we welcome the inclusionof the RMB into the Special Drawing Right (SDR) currency basket onOctober 1st. We support the ongoing examination of the broader useof the SDR, such as broader reporting in the SDR and the issuanceof SDR-denominated bonds, as a way to enhance resilience. In thiscontext, we take note of the recent issuance of SDR bonds by theWorld Bank in China's interbank market. We welcome further work bythe international organizations to support the development of localcurrency bond markets, including intensifying efforts to supportlow-income countries.

18. Building an open and resilient financial system is crucialto supporting sustainable growth and development. To this end, weremain committed to finalizing remaining critical elements of theregulatory framework and to the timely, full and consistentimplementation of the agreed financial sector reform agenda,including Basel III and the total-loss-absorbing-capacity (TLAC)standard as well as effective cross-border resolution regimes. Wereiterate our support for the work by the Basel Committee onBanking Supervision (BCBS) to finalize the Basel III framework bythe end of 2016, without further significantly increasing overallcapital requirements across the banking sector, while promoting alevel playing field. We welcome the second annual report of theFinancial Stability Board (FSB) on implementation and effects ofreforms, and will continue to enhance the monitoring ofimplementation and effects of reforms to ensure their consistencywith our overall objectives, including by addressing any materialunintended consequences. We will continue to address the issue ofsystemic risk within the insurance sector. We welcome the worktowards the development of an Insurance Capital Standard (ICS) forinternationally active insurers. We are committed to full andtimely implementation of the agreed over-the-counter (OTC)derivatives reform agenda, and we will remove legal and regulatorybarriers to the reporting of OTC derivatives to trade repositoriesand to authorities' appropriate access to data. We encouragemembers to close the gap in the implementation of the Principlesfor Financial Market Infrastructures and welcome the reports by theCommittee on Payments and Market Infrastructures, InternationalOrganization of Securities Commissions and FSB on enhancing centralcounterparty resilience, recovery planning and resolvability.Recognizing the importance of effective macroprudential policies inlimiting systemic risks, we welcome the joint work by the IMF, FSBand Bank for International Settlements (BIS) to take stock ofinternational experiences with macroprudential frameworks and toolsand to help promote effective macroprudential policies. We welcomethe FSB consultation on proposed policy recommendations to addressstructural vulnerabilities from asset management activities. Wewill continue to closely monitor, and if necessary, addressemerging risks and vulnerabilities in the financial system,including those associated with shadow banking, asset managementand other market-based finance. We will continue to address,through the FSB-coordinated action plan, the decline incorrespondent banking services so as to support remittances,financial inclusion, trade and openness. We look forward to furtherefforts to clarify regulatory expectations, as appropriate,including through the review in October by the Financial ActionTask Force (FATF) of the guidance on correspondent banking. We callon G20 members, the IMF and WBG to intensify their support fordomestic capacity building to help countries improve theircompliance with global anti-money laundering and countering thefinancing of terrorism (AML/CFT) and prudential standards. Weendorse the G20 High-level Principles for Digital FinancialInclusion, the updated version of the G20 Financial InclusionIndicators and the Implementation Framework of the G20 Action Planon SME Financing. We encourage countries to consider theseprinciples in devising their broader financial inclusion plans,particularly in the area of digital financial inclusion, and totake concrete actions to accelerate progress on all people's accessto finance.

19. We will continue our support for international taxcooperation to achieve a globally fair and modern international taxsystem and to foster growth, including advancing on-goingcooperation on base erosion and profits shifting (BEPS), exchangeof tax information, tax capacity-building of developing countriesand tax policies to promote growth and tax certainty. We welcomethe establishment of the G20/OECD Inclusive Framework on BEPS, andits first meeting in Kyoto. We support a timely, consistent andwidespread implementation of the BEPS package and call upon allrelevant and interested countries and jurisdictions that have notyet committed to the BEPS package to do so and join the frameworkon an equal footing. We also welcome the progress made on effectiveand widespread implementation of the internationally agreedstandards on tax transparency and reiterate our call on allrelevant countries including all financial centers andjurisdictions, which have not yet done so to commit without delayto implementing the standard of automatic exchange of informationby 2018 at the latest and to sign and ratify the MultilateralConvention on Mutual Administrative Assistance in Tax Matters. Weendorse the proposals made by the OECD working with G20 members onthe objective criteria to identify non-cooperative jurisdictionswith respect to tax transparency. We ask the OECD to report back tothe finance ministers and central bank governors by June 2017 onthe progress made by jurisdictions on tax transparency, and on howthe Global Forum will manage the country review process in responseto supplementary review requests of countries, with a view for theOECD to prepare a list by the July 2017 G20 Leaders' Summit ofthose jurisdictions that have not yet sufficiently progressedtoward a satisfactory level of implementation of the agreedinternational standards on tax transparency. Defensive measureswill be considered against listed jurisdictions. We encouragecountries and international organizations to assist developingeconomies in building their tax capacity and acknowledge theestablishment of the new Platform for Collaboration on Taxation bythe IMF, OECD, UN and WBG. We support the principles of the AddisTax Initiative. We recognize the significant negative impact ofillicit financial flows on our economies and we will advance thework of the G20 on this theme. We emphasize the effectiveness oftax policy tools in supply-side structural reform for promotinginnovation-driven, inclusive growth, as well as the benefits of taxcertainty to promote investment and trade and ask the OECD and IMFto continue working on the issues of pro-growth tax policies andtax certainty. In this connection, China would make its owncontribution by establishing an international tax policy researchcenter for international tax policy design and research.

20. Financial transparency and effective implementation of thestandards on transparency by all, in particular with regard to thebeneficial ownership of legal persons and legal arrangements, isvital to protecting the integrity of the international financialsystem, and to preventing misuse of these entities and arrangementsfor corruption, tax evasion, terrorist financing and moneylaundering. We call on the FATF and the Global Forum to makeinitial proposals by the Finance Ministers and Central BankGovernors Meeting in October on ways to improve the implementationof the international standards on transparency, including on theavailability of beneficial ownership information of legal personsand legal arrangements, and its international exchange.

21. We recognize that, in order to support environmentallysustainable growth globally, it is necessary to scale up greenfinancing. The development of green finance faces a number ofchallenges, including, among others, difficulties in internalizingenvironmental externalities, maturity mismatch, lack of clarity ingreen definitions, information asymmetry and inadequate analyticalcapacity, but many of these challenges can be addressed by optionsdeveloped in collaboration with the private sector. We welcome theG20 Green Finance Synthesis Report submitted by the Green FinanceStudy Group (GFSG) and the voluntary options developed by the GFSGto enhance the ability of the financial system to mobilize privatecapital for green investment. We believe efforts could be made toprovide clear strategic policy signals and frameworks, promotevoluntary principles for green finance, expand learning networksfor capacity building, support the development of local green bondmarkets, promote international collaboration to facilitatecross-border investment in green bonds, encourage and facilitateknowledge sharing on environmental and financial risks, and improvethe measurement of green finance activities and their impacts.

22. Recognizing the detrimental effects of corruption andillicit finance flows on equitable allocation of public resources,sustainable economic growth, the integrity of the global financialsystem and the rule of law, we will reinforce the G20's efforts toenhance international cooperation against corruption, while fullyrespecting international law, human rights and the rule of law aswell as the sovereignty of each country. We endorse the G20 HighLevel Principles on Cooperation on Persons Sought for Corruptionand Asset Recovery and welcome Chinese initiative to establish inChina a Research Center on International Cooperation RegardingPersons Sought for Corruption and Asset Recovery in G20 MemberStates, which will be operated in line with international norms. Wecommit to continue the G20 Denial of Entry Experts Network.Consistent with our national legal systems, we will work oncross-border cooperation and information sharing between lawenforcement and anti-corruption agencies and judicial authorities.We call for ratification by all the G20 members of the UnitedNations Convention Against Corruption and welcome the launch of thesecond cycle of its review mechanism. We will endeavor to applyeffectively the extradition, mutual legal assistance and assetrecovery provisions of the above Convention and other applicableinternational conventions. We endorse the 2017-2018 G20Anti-Corruption Action Plan to improve public and private sectortransparency and integrity, implementing our stance of zerotolerance against corruption, zero loopholes in our institutionsand zero barriers in our actions. We ask the Anti-CorruptionWorking Group to develop an implementation plan before the end of2016 as a flexible framework to carry this work forward withrenewed high-level attention and urgency. We also welcome outcomesof the London Anti-Corruption Summit in May 2016 and the OECDMinisterial Meeting in March 2016.

23. In line with the G20 Principles on Energy Collaboration, wereaffirm our commitment to building well-functioning, open,competitive, efficient, stable and transparent energy markets,fostering more effective and inclusive global energy architectureto better reflect the changing realities of the world's energylandscape, and shaping an affordable, reliable, sustainable and lowgreenhouse gas (GHG) emissions energy future while utilizing energysources and technologies. We stress that continued investment inenergy projects and better regional interconnection, particularlyin sustainable energy projects, remains critically important toensuring future energy security and preventing economicallydestabilizing price spikes. We endeavor to work with Sub-Saharanand Asia-Pacific countries to improve universal access toaffordable, reliable, clean, sustainable and modern energyservices, particularly by addressing barriers to electricityaccess. We encourage members to significantly improve energyefficiency based on the specific needs and national circumstancesof each member and promote energy conservation through appropriatelifestyle changes. We will explore innovative collaborativearrangements for international cooperation on energy efficiency. Weendorse the G20 Voluntary Collaboration Action Plan on EnergyAccess, the G20 Voluntary Action Plan on Renewable Energy and theG20 Energy Efficiency Leading Programme issued by the G20 energyministers and ask them to meet regularly to follow up on theimplementation of these plans.

24. We reaffirm the importance of energy collaboration towards acleaner energy future and sustainable energy security with a viewto fostering economic growth. We welcome the progress on thevoluntary international collaboration on energy efficiency in sixkey areas, taking into consideration the policies outlined in theEnergy Efficiency Leading Programme and in line with nationalcircumstances, including in heavy duty vehicles, and improving theefficiency of these vehicles. We also reaffirm our commitment torationalize and phase-out inefficient fossil fuel subsidies thatencourage wasteful consumption over the medium term, recognizingthe need to support the poor. We welcome G20 countries' progress ontheir commitments and look forward to further progress in thefuture. Further, we encourage G20 countries to considerparticipating in the voluntary peer review process. Given thatnatural gas is a less emission-intensive fossil fuel, we willenhance collaboration on solutions that promote natural gasextraction, transportation, and processing in a manner thatminimizes environmental impacts. We stress the importance ofdiversification of energy sources and routes.

Robust International Trade and Investment

25. Our growth, to be strong, must be reinforced by inclusive,robust and sustainable trade and investment growth. We note withconcern the slow growth in trade and investment globally and committo enhance an open world economy by working towards trade andinvestment facilitation and liberalization. We recognize theimportance of economic diversification and industrial upgrading indeveloping countries to benefit from more open global markets. Weendorse the outcome of the G20 Trade Ministers Meeting held inShanghai on 9-10 July, and welcome the establishment of the G20Trade and Investment Working Group (TIWG). We commit to furtherstrengthen G20 trade and investment cooperation.

26. We reaffirm our determination to ensure a rules-based,transparent, non-discriminatory, open and inclusive multilateraltrading system with the World Trade Organization playing thecentral role in today's global trade. We reiterate our commitmentto shape the post-Nairobi work with development at its center andcommit to advancing negotiations on the remaining DDA issues as amatter of priority, including all three pillars of agriculture(i.e. market access, domestic support and export competition),non-agricultural market access, services, development, Agreement onTrade-Related Aspects of Intellectual Property Rights (TRIPs) andrules. We also note that a range of issues may be of commoninterest and importance to today's economy, and thus may belegitimate issues for discussions in the WTO, including thoseaddressed in regional trade arrangements (RTAs) and by the B20. Wewill work together with all WTO members with a sense of urgency andsolidarity and with a view to achieving positive outcomes of theMC11 and beyond and we will work together to further strengthen theWTO.

27. We commit to ratify the Trade Facilitation Agreement by theend of 2016 and call on other WTO members to do the same. We notethe important role that bilateral and regional trade agreements canplay in liberalizing trade and in the development of trade rules,while recognizing the need to ensure they are consistent with WTOrules. We commit to working to ensure our bilateral and regionaltrade agreements complement the multilateral trading system, andare open, transparent, inclusive and WTO-consistent. WTO-consistentplurilateral trade agreements with broad participation can play animportant role in complementing global liberalization initiatives.G20 Environmental Goods Agreement (EGA) participants welcome thelanding zone achieved in the WTO EGA negotiations, and reaffirmtheir aim to redouble efforts to bridge remaining gaps and concludean ambitious, future-oriented EGA that seeks to eliminate tariffson a broad range of environmental goods by the end of 2016, afterfinding effective ways to address the core concerns ofparticipants.

28. We reiterate our opposition to protectionism on trade andinvestment in all its forms. We extend our commitments tostandstill and rollback of protectionist measures till the end of2018, reaffirm our determination to deliver on them and support thework of the WTO, UNCTAD and OECD in monitoring protectionism. Weemphasize that the benefits of trade and open markets must becommunicated to the wider public more effectively and accompaniedby appropriate domestic policies to ensure that benefits are widelydistributed.

29.We endorse the G20 Strategy for Global Trade Growth, underwhich the G20 will lead by example to lower trade costs, harnesstrade and investment policy coherence, boost trade in services,enhance trade finance, promote e-commerce development, and addresstrade and development. We welcome the World Trade Outlook Indicatorreleased by the WTO as an important leading indicator of globaltrade. We endorse the G20 Guiding Principles for Global InvestmentPolicymaking, which will help foster an open, transparent andconductive global policy environment for investment.

30. We also support policies that encourage firms of all sizes,in particular women and youth entrepreneurs, women-led firms andSMEs, to take full advantage of global value chains (GVCs), andthat encourage greater participation, value addition and upwardmobility in GVCs by developing countries, particularly low-incomecountries (LICs).We welcome the B20's interest to strengthendigital trade and other work and take note of it's initiative on anElectronic World Trade Platform (eWTP).

31. We recognize that the structural problems, including excesscapacity in some industries, exacerbated by a weak global economicrecovery and depressed market demand, have caused a negative impacton trade and workers. We recognize that excess capacity in steeland other industries is a global issue which requires collectiveresponses. We also recognize that subsidies and other types ofsupport from government or government-sponsored institutions cancause market distortions and contribute to global excess capacityand therefore require attention. We commit to enhance communicationand cooperation, and take effective steps to address the challengesso as to enhance market function and encourage adjustment. To thisend, we call for increased information sharing and cooperationthrough the formation of a Global Forum on steel excess capacity,to be facilitated by the OECD with the active participation of G20members and interested OECD members. We look forward to a progressreport on the efforts of the Global Forum to the relevant G20ministers in 2017.

Inclusive and Interconnected Development

32. Our growth, to be strong, sustainable and balanced, mustalso be inclusive. We are committed to ensuring the benefits of ourgrowth reach all people and maximize the growth potential ofdeveloping and low-income countries. In this context, we placesustainable development high on the G20 agenda.

33. We pledge to enhance policy coherence on sustainabledevelopment and reaffirm our commitment to further align our workwith the universal implementation of the 2030 Agenda forSustainable Development and the Addis Ababa Action Agenda onfinancing for development, based on the comparative advantage andthe added value of the G20 and in accordance with our nationalcircumstances, while acknowledging that the global follow-up andreview of the 2030 Agenda is a UN-led process. We commit tocontributing to the implementation of the 2030 Agenda by setting anexample through bold, transformative collective and intendednational actions in a wide range of areas. By endorsing the G20Action Plan on the 2030 Agenda for Sustainable Development whichalso includes high-level principles, we reaffirm our commitment toachieve the ambition of the 2030 Agenda. We note the Addis TaxInitiative, welcome the establishment of the TechnologyFacilitation Mechanism and stress the importance of enhancedcooperation on technologies to achieving sustainabledevelopment.

34. We welcome the Hangzhou Comprehensive Accountability Reporton G20 Development Commitments, which reflects our progress alreadymade over the period of 2014-2016.

35. We launch the G20 Initiative on Supporting Industrializationin Africa and LDCs to strengthen their inclusive growth anddevelopment potential through voluntary policy options including:promoting inclusive and sustainable structural transformation;supporting sustainable agriculture, agri-business and agro-industrydevelopment; deepening, broadening and updating the local knowledgeand production base; promoting investment in sustainable and secureenergy, including renewables and energy efficiency; exploring waysto develop cooperation on industrial production and vocationaltraining and sustainable and resilient infrastructure andindustries; supporting industrialization through trade inaccordance with WTO rules; and leveraging domestic and externalfinance and supporting equitable access to finance - with a focuson women and youth; and promoting science, technology andinnovation as critical means for industrialization.

36. We will continue our work on addressing cross-borderfinancial flows derived from illicit activities, includingdeliberate trade misinvoicing, which hampers the mobilization ofdomestic resources for development, and welcome the communicationand coordination with the World Customs Organization for a studyreport in this regard following the Hangzhou Summit.

37. We acknowledge the important role of inclusive business indevelopment, and welcome the establishment of the G20 GlobalPlatform on Inclusive Business and its future actions. We welcomethe G20 Inclusive Business Report for the 2016 Summit.

38. We will fulfill our collective commitment to achieve asuccessful 18th replenishment of the International DevelopmentAssociation, as well as 14th replenishment of the AfricanDevelopment Fund.

39. We reaffirm our commitment to promote investment with focuson infrastructure in terms of both quantity and quality. We welcomethe Joint Declaration of Aspirations on Actions to SupportInfrastructure Investment by 11 multilateral development banks(MDBs), including their announcements of quantitative ambitions forhigh-quality infrastructure projects within their respectiveinstitutional mandates as well as their efforts to maximize thequality of infrastructure projects, strengthen project pipelines,collaborate further among existing and new MDBs, strengthen theenabling environment for infrastructure investment in developingcountries, as well as catalyze private resources. We stress theimportance of quality infrastructure investment, which aims toensure economic efficiency in view of life-cycle cost, safety,resilience against natural disaster, job creation, capacitybuilding, and transfer of expertise and know-how on mutually agreedterms and conditions, while addressing social and environmentalimpacts and aligning with economic and development strategies. Wewelcome the MDB Response to the G20 MDB Balance Sheet OptimizationAction Plan and call for further implementation of the Action Plan.We note that infrastructure connectivity is key to achievingsustainable development and shared prosperity. We endorse theGlobal Infrastructure Connectivity Alliance launched this year toenhance the synergy and cooperation among various infrastructureconnectivity programs in a holistic way. We ask the WBG to serve asthe Secretariat of the Alliance, working closely with the GlobalInfrastructure Hub (GIH), OECD, other MDBs, and interested G20members to support its activities. We endorse the G20/OECD GuidanceNote on Diversification of Financial Instruments for Infrastructureand SMEs and we welcome the Annotated Public-Private Partnership(PPP) Risk Allocation Matrices completed by the GIH to helpdeveloping countries better assess infrastructure risks. We supportthe effective implementation of the G20/OECD Principles ofCorporate Governance and G20/OECD High-level Principles on SMEFinancing and look forward to the revision of the assessmentmethodology of the G20/OECD Principles of the Corporate Governance,which will be informed by an FSB peer review on corporategovernance.

40. Generating quality employment is indispensable forsustainable development and is at the center of the G20's domesticand global agenda. We will work to ensure the benefits fromeconomic growth, globalization and technological innovation arewidely shared, creating more and better jobs, reducing inequalitiesand promoting inclusive labor force participation. We endorse thestrategies, action plans and initiatives developed by G20 labor andemployment ministers to enhance the growth and development agendaby taking effective actions to address changes in skill needs,support entrepreneurship and employability, foster decent work,ensure safer workplaces including within global supply chains andstrengthen social protection systems. We endorse Sustainable WagePolicy Principles. We recognize entrepreneurship is an importantdriver for job creation and economic growth, reinforce ourcommitments in the G20 Entrepreneurship Action Plan, and welcomeChina's contribution in the establishment of an EntrepreneurshipResearch Center on G20 Economies. We also endorse the G20Initiative to Promote Quality Apprenticeship with policy prioritiesof increasing the quantity, quality and diversity ofapprenticeships. We will further develop the G20 employment plansin 2017 to address these commitments and monitor progress in asystemic and transparent manner in achieving the G20 goalsespecially on youth employment and female labor participation. Werecognize strengthened labor market institutions and policies cansupport productivity and promote decent work, and therefore higher,sustainable wage growth, in particular for the low-income workers.We recognize the importance of addressing opportunities andchallenges brought into the labor market through labor migration aswell-managed migration can bring potential benefits to economiesand societies.

41. The G20 will continue to prioritize its work on foodsecurity, nutrition, sustainable agricultural growth and ruraldevelopment as a significant contribution to implementing the 2030Agenda for Sustainable Development. We endorse the outcome of theG20 Agriculture Ministers Meeting and encourage our agricultureministers to meet regularly to jointly facilitate sustainableagricultural development and food value chains, including throughtechnological, institutional and social innovation, trade andresponsible investment, as a means of food security, ruraldevelopment and poverty alleviation. We support increasing effortsin this regard by the agricultural scientific and private sectorsand welcome the opening of the First G20 Agricultural EntrepreneursForum. We recognize the role of family farmers and smallholderagriculture in development, and welcome the Good Practices onFamily Farming and Smallholder Agriculture that identifies a set ofpolicies, programs and tools that can prove useful to G20 membersand beyond. We welcome the contribution by programs and initiativesthat promote sustainable agricultural development, including theGlobal Agriculture and Food Security Program.

Further Significant Global Challenges Affecting the WorldEconomy

42. The outcome of the referendum on the UK's membership of theEU adds to the uncertainty in the global economy. Members of theG20 are well positioned to proactively address the potentialeconomic and financial consequences stemming from the referendum.In the future, we hope to see the UK as a close partner of theEU.

43. We reiterate our commitment to sustainable development andstrong and effective support and actions to address climate change.We commit to complete our respective domestic procedures in orderto join the Paris Agreement as soon as our national proceduresallow. We welcome those G20 members who joined the Agreement andefforts to enable the Paris Agreement to enter into force by theend of 2016 and look forward to its timely implementation with allits aspects. We affirm the importance of fulfilling the UNFCCCcommitment by developed countries in providing means ofimplementation including financial resources to assist developingcountries with respect to both mitigation and adaptation actions inline with Paris outcomes. We reaffirm the importance of the supportprovided by the Green Climate Fund. We welcome the G20 ClimateFinance Study Group report on "Promoting Efficient and TransparentProvision and Mobilization of Climate Finance to Enhance Ambitionof Mitigation and Adaptation Actions". We look forward tosuccessful outcomes in related multilateral fora, including theMontreal Protocol and the International Civil AviationOrganization.

44. Worldwide massive forced displacement of people,unprecedented since the Second World War, especially thosegenerated from violent conflicts, is a global concern. We reiterateour call in Antalya for global concerted efforts in addressing theeffects, protection need and root causes of refugee crisis to sharein the burden associated with it. We call for strengtheninghumanitarian assistance for refugees and refugee resettlement, andwe invite all states, according to their individual capacity, toscale up assistance to relevant international organizations inorder to enhance their capabilities to assist affected countries,intensifying efforts to find durable solutions, in particular forprotracted refugee situations, and in this regard, strengtheningthe contribution of development assistance to host communities. Wesupport the international efforts to respond to the ongoing crisisand note the upcoming high-level meetings which will take placeduring the UN General Assembly. We note the World Bank's effort towork with other international organizations and its shareholders todevelop a global crisis response platform to provide support torefugees and host communities in both low and middle incomecountries. The G20 will continue to address forced displacement in2017 with a view to developing concrete actions. The G20 will alsoexamine migration issues in 2017.

45. We strongly condemn terrorism in all forms andmanifestations, which poses serious challenges to internationalpeace and security and endangers our ongoing efforts to strengthenthe global economy and ensure sustainable growth and development.We reaffirm our solidarity and resolve in the fight againstterrorism in all its forms and wherever it occurs. We will tackleall sources, techniques and channels of terrorist financing,including extortion, taxation, smuggling of natural resources, banklooting, looting of cultural property, external donation, andkidnapping for ransom. In confronting terrorism, we remaincommitted to effectively exchanging information, freezing terroristassets, and criminalizing terrorist financing. We call for theswift, effective and universal implementation of the FATF standardsand of the provisions of the UN Security Council resolution 2253worldwide. We welcome the progress achieved by the FATF in theimplementation of its new Consolidated Strategy on CombatingTerrorist Financing and call for effective implementation of itsoperational plan. We call on the FATF to reflect by March 2017 onways to progress in strengthening its traction capacity andenhanced effectiveness of the network of FATF and FATF-styleregional bodies.

46. Antimicrobial resistance (AMR) poses a serious threat topublic health, growth and global economic stability. We affirm theneed to explore in an inclusive manner to fight antimicrobialresistance by developing evidence-based ways to prevent andmitigate resistance, and unlock research and development into newand existing antimicrobials from a G20 value-added perspective, andcall on the WHO, FAO, OIE and OECD to collectively report back in2017 on options to address this including the economic aspects. Inthis context, we will promote prudent use of antibiotics and takeinto consideration huge challenges of affordability and access ofantimicrobials and their impact on public health. We stronglysupport the work of the WHO, FAO and the OIE and look forward to asuccessful high-level meeting on AMR during the UN GeneralAssembly. We look forward to the discussion under the upcomingpresidency for dealing with these issues.

47. We reaffirm that the G20's founding spirit is to bringtogether the major economies on an equal footing to catalyzeaction. Once we agree, we will deliver.

48. We thank China for hosting a successful Hangzhou Summit andits contribution to the G20 process, and look forward to meetingagain in Germany in 2017 and in Argentina in 2018.



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