Trade ministers and bank governors of the Group of Twenty convened in Shanghai recently to discuss global trade policies.
On Sunday, Commerce Minister Gao Hucheng said "the G20 members will push the implementation of the accord as soon as possible, help developing countries build capacity . . . for the agreement, and endeavor to cut global trade costs by 15 percentage points."
This latest agreement will enable countries to gradually break the barriers of protectionism among the G20. The effects of which will create more liberal policies on exports and imports. The impact of more liberal laws will launch an additional $1 trillion annually, according to the World Trade Organization (WTO).
The WTO also said that more than 1,500 restrictive trade policies were taken into effect by the G20 since 2008.
To loosen up trade policies and cut global costs, the WTO set a target to free up protectionist trade policies.
The G20 promised to meet the WTO target by 2018.
Gao also said that the ministers agreed to form nine core guiding principles for global investment. These principles will include ratification of laws to encourage transparency in trade and investors' protection against discrimination when settling disputes.
The establishment of these guiding principles is a first in the history of the world, said Vice Commerce Minister Wang Shouwen.
The G20 Summit will be held in September in Zheijang Province. Members of the G20 are finance ministers and central bank governors of 19 member nations, which include the United States, Germany and China.
The purpose of the G20 is to study, review and encourage high-level policy discussions on global commerce. The mission of the G20 is to ensure stability of the financial market around the world.