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Global/Regional Value Chains . Integration of Developing Countries Through Innovation WTO Public Forum 1-3 Oct 2013 CUTS/OIF. By Ambassador Shree B.C. Servansing ACP-EU TBT Progamme Brussels. Introduction.

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global regional value chains

Global/Regional Value Chains

Integration of Developing Countries Through Innovation

WTO Public Forum 1-3 Oct 2013


By Ambassador Shree B.C. Servansing

ACP-EU TBT Progamme


  • GVCs: Not a new phenomenon but a new analytical perspective to understand globalisation & shifts in the pattern of world trade
  • SVEs: open and export-oriented economies
  • Major Challenge: how canSVEs be empowered to seize opportunities presented by the increased globalization of production and fragmentation of tasks?
three key elements
Three Key Elements
  • Strategies for integrating/upgrading in GVC’s
  • Shaping factors and entry barriers in GVC’slocation
  • The Importance of Innovation & Policy implications for MTS, particularly A4T
strategies for integrating upgrading in gvcs
Strategies for integrating/upgrading in GVCs
  • Functional upgrading:improvement in the position of firms would result from increasing the range of functions performed or a change in the mix of activities performed towards higher value tasks
  • Process upgrading:efficiency gains by reorganizing the production system or introducing new technologies
  • Product upgrading: moving into more sophisticated product lines
  • Inter-chain upgrading:using the capabilities acquired in one chain to be capitalized in another more technologically advanced chain.
shaping factors entry barriers i
Shaping factors/ entry barriers (I)
  • Many factors determine and shape entry: Ennablingmaroeconomic environment, Good governance, Supply side constraints, Infrastucture, Investment, etc
  • All countries doing these things. What makes the difference? Improving Competitiveness.
  • Foster Innovation as a horizontal concept in Quality improvement and management
  • Permeates policy-making, processes in production/supply chains, products and services
    • OECD recommendations to its members applicable to SVEs also
      • Innovation policies
      • Policies to upgrade the human resource base of the economy
      • Policies to foster entrepreneurship and new areas of economic activity
      • Cluster policies and efforts at the local/regional level
      • Policies to enhance attractiveness
      • Governance
      • Intellectual property rights (IPR)-related policies
shaping factors entry barriers ii
Shaping factors/ entry barriers (II)
  • Capacity-building and financial support
  • Aid For Trade, an ideal vehicle
shaping factors entry barriers iii
Shaping factors/ entry barriers (III)
  • Promoting regional integration
  • Enhancing regional value chains
from raw sugar to sugar care cluster industries

Raw Material


From Raw Sugar to Sugar Care Cluster Industries





Special Sugars




Quality Rum



Bagasse by product



Services exports

Crucial Elements: - Industry Alliance: Lead Firm Sud Sucker

- Aid-for-Trade: EDF support for Sugar Sector Reform

- Technology Transfer: Brazil