European Commission Directorate General for Inte : Global value chains
The development of sustainable and responsible GVCs is a cornerstone of the EU’s internal and external policies, the objective of which is to create the framework conditions that allow countries to integrate into, and move up, regional and global value chains in accordance with international standards and guidelines in the areas of human rights, labour, environment and anti-corruption.The vertically-fragmented nature of GVCs means that the EC needs to adopt both sector-specific and horizontal, cross-cutting approaches to policy formulation when addressing these issues. The unequal distribution of value along GVCs is also something that needs to be addressed.There is also scope for Private Sector Engagement in this process, as companies stand to benefit from the triple advantage of increased revenue, reduced supply chain costs and benefits to their brand from their participation in responsible chains.DG DEVCO works closely with DG TRADE and other EC services to ensure coherence of policy and to guarantee that the interests of developing countries are protected in international trade arrangements. The overarching aim here is to promote inclusive growth, one feature of which is the ability of developing countries to participate in, and benefit from, GVCs.GVCs require a strong global institutional framework to address the new challenges and opportunities that they present. In this context, the European Commission is committed to working closely with the World Trade Organisation and seeks to place the development of rules to govern global trade, including value chains, at the heart of the WTO.Ultimately, the aim of the European Commission’s trade and development policies is to ensure that the widest number of people benefit from trade, through better inclusion of the disadvantaged in business models and value chains. This means making sure that trade and investment policy is effective and tackles real issues based on an up-to-date understanding of the role of global value chains in the world economy.European Commission – Directorate-General for International Cooperation and Development published this content on 17 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 October 2016 12:38:01 UTC.Original documenthttp://ec.europa.eu/europeaid/sectors/economic-growth/trade/global-value-chains_en