Trends Transforming Trade

By Peter Langley, Vice President, FedEx Express Australasia

Small to medium-sized enterprises (SMEs) are the backbone of the Australian economy with its contribution to the nation’s GDP of 57 per cent and accounting for 67 per cent of total employment in Australia. We are increasingly seeing the business landscape changing for the benefit of SMEs, from policy recommendations that improve cashflow for SMEs, to free-trade agreements for the benefit of bilateral trade on all scales.

However, local businesses are also experiencing an increasing amount of pressure to go further afield. Even though cross-border trade has a positive impact to revenue, we are finding that only 75 per cent of Australian SMEs are currently exporting goods compared to 91 per cent importing.

Over 90,000 Chinese international students remain stuck outside Australia due to Coronavirus travel restrictions. China exposed export businesses will also be substantially impacted. Estimates of the potential direct adverse economic impact of the Coronavirus on Australia currently range from $3 - $8 billion and are increasing daily.

Edtech startup Practera platform is enabling one innovative response with its successful Global Trade Accelerator program and a range of Government, peak body, education provider and export partners.

Tickets are now on sale for the Margaret Thatcher Conference on Trade, in partnership with the City of London Corporation and HSBC.

The Margaret Thatcher Conference is the Centre for Policy Studies’ flagship annual event. It aims to provide a platform for senior politicians, business representatives and experts to discuss top line, international topics in front of a high level audience.

Opinion by Niels Strazdins, Head of Global Trade Policy & Europe Director at Global Trade Professionals

The 2020 coronavirus outbreak in China has been declared a global health emergency and concern is growing over its potential to become a pandemic. With over 600 fatalities to-date, the scale of the human tragedy cannot be ignored and is increasing by day.

Beyond its tragic human impact on the residents of Hubei province, China more broadly, and the rest of world, the outbreak’s economic consequences are also mounting.

Disruption is radiating from the world’s second-largest economy across international supply chains and commercial networks. It is testing their resiliency and the contingencies put in place to mitigate the impact of international crises such as viral outbreaks.

As the issue of sustainability continues to be at the forefront of global awareness, various initiatives and activities demonstrate the extent to which institutions are taking the matter more seriously. But is enough being done and is there sufficient understanding of the issues at play here?

Today’s business leaders confront a host of political, economic, policy, regulatory, environmental and institutional barriers.

On the international political front, the headlines are full of ‘trade wars’ news. The rise of populist sentiment in the developed world is challenging many of the post-cold war assumptions, wherein the march of trade liberalisation and liberal political systems were in lockstep.

Political debates increasingly reflect these international tensions, as well as the broader, deteriorating, regional security environment.

Security, trade and investment are now more, and increasingly, entwined, affecting trade policies and regulations across the globe.

Yet threats bring new opportunities including new trade routes opening and technological advancements that will simultaneously render cross-border trade easier to do, while multiplying the possibilities for dispersing production facilities internationally and bringing goods and services closer to consumers.

For many MSMEs, navigating the complexity of doing business globally whilemaintaining acompetitive edge requires the development of new skills and knowledge, as well as the ability todraw on a trusted network of skilled professionals and consulting services with the requiredcompetencies to support their business growth.Many of these businesses have significant international growth potential from day one of theiroperations and are essentially “born global”. Competing on a global scale from the outset means it isimperative that these businesses enjoy access to support networks and an ecosystem that allowsthem to take advantage of new opportunities.

By Karen Reddington, President, FedEx Asia Pacific

Innovation for all: the idea that innovation, in its fullest expression, serves everyone. Never before have small businesses and start-ups been so connected – in digital tools, technology, access and ideas.

Entrepreneurial innovators are leading with passion and counting on connectivity to expand their businesses across borders, seize niche opportunities and shape the global economic future.

So why then does evidence show that SMEs are failing to access trade deals – one of the most significant tools there is for multiplying business growth and opportunity? And what do agreements like the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) offer?

Whilst the world has started 2020 with political, economic, policy, regulatory, environmental and institutional challenges, the GTPA is committed to finding ways in which our services can help to unite and not divide.

As we look ahead to a new year and a new decade, we remain steadfast in our belief that trade can be a mechanism to support greater inclusion and global security. This includes new trade routes opening and technological advancements that will simultaneously render cross-border trade easier, while multiplying the possibilities for dispersing production facilities internationally, and bringing goods and services closer to consumers at a better price point.

On a personal note, the GTPA has several members of our team situated in Australia. I would like to take this opportunity to send our thoughts and prayers to our staff and their loved ones, as well as to commend the firefighters who have been working tirelessly on the front lines for months, with no respite in sight.

The GTPA is delighted to welcome Dr Tomás Quesada to the team. With his background as a Doctor in Politics from the University of Oxford, Master in Comparative Politics (Democracy) from the London School of Economics and Political Science (LSE), and a lawyer from the University of Costa Rica, we are delighted to bring his expertise to the team.

As the business world looks toward continuing uncertainty and trade turbulence in 2020, GTPA CEO Lisa McAuley recently discussed the implications of this for international supply chains.

We are just days away from Going Global Live and we hope you are as excited as we are about meeting each other at the London ExCeL on the 27th & 28th!

As part of the GTPA’s involvement in the Going Global Live, our CEO Lisa McAuley is pleased to be visiting the UK to unveil our new solutions for UK businesses to gain access to online tools and training solutions to help them grow globally from 2020 onward.

GTPA is pleased to announce that it has been selected as a lead collaborator on one of six solutions as part of the 2020 Bloomberg New Economy Solutions. GTPA will be working to support unlocking inclusive tarade. Find out more about the solutions launched on Friday at the Bloomberg New Economy Forum in Beijing.

Now in its 9th edition, the ICC Academy, the educational arm of the International Chamber of Commerce (ICC), is set to host the next chapter of its annual Supply Chain Finance Summit. Marked by its year-on-year success, the event returns to Singapore on 4-5 March 2020, highlighting the island city-state’s standing as a pivotal trade and financial hub that continues to shape the development of Asia’s supply chain.

It is only one week to go until Going Global Live and we hope you are as excited as we are about meeting each other at the London ExCeL on the 27th & 28th!

In line with the International Chamber of Commerce’s (ICC) vision to secure peace prosperity and opportunity for all, the ICC Academy, the educational arm of the world business organization, is pleased to announce a dedicated scholarship programme for students and trade professionals worldwide.

The initiative offer an 80% bursary on the cost of the ICC Academy’s flagship online certificates on trade finance, the Global Trade Certificate (GTC) and Certified Trade Finance Professional (CTFP), as well as international business with the Export/Import Certificate (EIC).

IE School of Global and Public Affairs and the International Chamber of Commerce (ICC) have established a partnership to collaborate in knowledge generation and dissemination in the field of international trade and public policy.

On 31 October IE School of Global and Public Affairs Dean Manuel Muñiz and ICC Secretary-General John W. H. Denton AO signed the agreement, according to which both institutions will cooperate in areas of mutual interest which may include education, applied research and training. The ICC Academy, the educational arm of the International Chamber of Commerce (ICC), will be part of the Academic Committee of the Executive Master in Internationalization and Trade (EMIT), supporting IE in designing and rolling out the degree.

We are now just 2 weeks away from Going Global Live, and we’re counting the days before we get the opportunity to meet at the London ExCeL on the 27th & 28th!

Our CEO, Lisa McAuley has put the finishing touches to her informative seminar on Powering UK business to grow internationally post-Brexit with new online international business tools that she will be presenting on the 28th November at 11am. Make sure you’re there to hear it!

“Tariffs and Trade Wars: The New Normal for Supply Chains”

The SCRC will be hosting it’s Semi-annual Conference (formerly Semi-annual Partners Meeting) on December 5th, 2019 at the Duke Energy Hall in the James B. Hunt Library on NC State’s Centennial Campus.

Join supply chain professionals from over 20 different companies for this day-long event as we discuss tariffs, trade wars, and navigating global trade. Please see below for a complete overview of the day’s events, including a list of guest speakers and presentation topics.

SESSION title: Powering UK business to grow internationally post-Brexit with new online international business tools

The GTPA will host a session as part of Going Global 2019 that will focus on powering UK businesses to grow internationally in a post-Brexit environment.

It will feature the launch of the Global Trade Capability Accelerator programme and eCommerce business tools as well as a demonstration of how these can be leveraged by UK businesses facing new international trading opportunities.

There’s only 4 weeks to go until we will be heading to the London ExCeL, to exhibit at Going Global Live 2019, and we couldn’t be more excited!

We’re going to be setting up base on stand 270, and we’d love to invite you to come and see us so that we can tell you all about our service in person!

The trade finance gap is not closing. Financing demands are becoming more specialized and difficult to meet, especially in the wake of regulatory stringency.

What working capital solutions are alternative lenders exploring to help businesses grow?
Can this help overcome entering frontier markets where risk is high but financing demand is strong? Will the credit insurance market begin to harden in 2020?

The International Chamber of Commerce (ICC) is convening a global business delegation to participate in the 14th annual Internet Governance Forum (IGF) in Berlin to discuss pressing digital policy issues and the future of Internet governance.

Launched in 2006 by United Nations (UN) Secretary General Kofi Annan, the IGF is the prime venue for multistakeholder policy dialogues on key legal, political, social, and technical issues related to the Internet. Since the first forum held in Athens, ICC has been actively involved in the IGF to facilitate business participation and advocate for an open, inclusive and cooperative approach to Internet governance.

Global Trade Development Week (GTDW), now into its 19th edition, provides a connecting platform to global trade stakeholders to explore opportunities to facilitate and increase sustainable and seamless cross border trade and to detect and counter illicit trade by:

- Collaborating and linking existing initiatives
- Sharing resources and best practices
- Identifying commonalities and points of convergence
- Discovering emergent and interoperable technologies and innovation
- Initiating recommendations to overcome threats and challenges
- Facilitating closed door G2G, B2B, B2G meetings

Sponsored by American Express, Going Global is the leading exhibition dedicated to providing businesses with absolutely everything they need to expand internationally and trade overseas. Jam-packed with industry-leading experts, content-rich seminars, unlimited networking opportunities, interactive masterclasses & over 150 of the world’s most innovative exhibitors, Going Global Live 2019 is set to be the biggest and best edition so far.

The fact that ongoing global events continue to raise concerns across the business world was the lead topic at GTR’s Commodities 2019 conference in Geneva, where the GTPA argued the case for caution in the face of uncertainty and disruption.

Whether observing events from a macro perspective or more granularly from a country or industry-based perspective, the disruption and uncertainty we are experiencing in the global economic and political environment is making it increasingly difficult for businesses to plan and invest for the future.

The GTPA works with women entrepreneurs to build capacity and provide access to global networks. As part of our ongoing mentoring support we recently visited two of our women entrepreneurs in Nepal to understand their export development and gain greater understanding of the challenges for future growth. The GTPA was delighted to be joined by Annette Ssemuwemba, Deputy Executive Director from the EIF Programme.

On the occasion of the WTO Public Forum, please join us for a Business Community Reception in support of global trade.

ICC has launched Incoterms® 2020, the newest edition of the renowned trade terms for the sale of goods, providing certainty and clarity to business and traders everywhere.

The Incoterms® rules define important responsibilities of buyers and sellers for the delivery of goods under sales contracts. They are the authoritative rules for determining how costs and risks are allocated to the parties. Incoterms rules are regularly incorporated into contracts for the sale of goods worldwide and have become part of the daily language of trade.

The GTPA will be represented by CEO, Ms Lisa McAuley in Nepal as part of a multi-faceted trip focused on supporting women entrepreneurs to trade globally as well as a session by the WTO on Gender Responsive Trade Policies: The Time is Now.

As part of the first day of the mission the GTPA along with EIF and the WTO will spend the day meeting with women entrepreneurs in Nepal as well as industry bodies specifically working to support women entrepreneurs including the Federation of Woman Entrepreneurs' Association of Nepal (FWEAN) and the SAARC Chamber of Women Entrepreneurs council (SCWEC) Nepal Chapter.

Lisa McAuley, CEO of the GTPA will join the panel session on Doing well by ‘doing good’: Promoting sustainability and the circular economy. Sustainability and ongoing efforts to highlight the importance of the circular economy – an economic system engineered to minimise waste and maximise resources – continue to be some of the hottest topics in the current climate.

GTPA Director, Collins Rex, has been appointed Lead Facilitator at the Australian Government’s two-day workshop at APEC’s SME Week in Concepcion, Chile.

The GTPA is delighted to be presenting a side event at APEC’s SME Week in Concepcion, Chile, on 4 September. This event, entitled “Powering MSMEs and women entrepreneurs to grow internationally via online channels”, is focussed on eCommerce and digital technologies as tools to empower women entrepreneurs to take a leap into the world of international trade.

The GTPA is honoured to have been invited to participate in APEC’s “CTI Public – Private Dialogue (PPD) on Promoting Transparency through the Improvement of information submitted in the Sanitary and Phytosanitary (SPS) Notifications”, which is being held in Puerto Varas, Chile, on 22 and 23 August.

The informal café session was moderated by Dayna Simpson from Monash University and we were joined by Anne Quarshie from LUT University of Technology (Finland) and Zhaohui Wu from Oregon State University as part of the 79th Annual Meeting of the Academy of Management to host a session on Emerging sustainability standards - How SCM scholars can get involved. As part of the informal discussion with Supply Chain Management professionals we discussed the development of ISO standards relevant to transparency and chain-of-custody, and how sustainable SCM can be incorporated in these standards.

The GTPA is delighted to announce that it will be hosting a formal session as part of the 79th Annual Meeting of the Academy of Management to discuss the development of the Seven Summits Trade Challenge to be formally launched later this year.

To succeed in today’s competitive business environment, exceptional individuals must rise out above the crowd.

The Seven Summits Trade Challenge (SSTC) provides trade and supply chain professionals with formal recognition of their career achievements, as well as giving them a structured pathway to build on their trade skills and expertise to reach new heights in the dynamic and ever-changing world of global commerce.

GTR Asia 2019 (formerly known as Asia Trade & Treasury Week) will return to Singapore September 3-4, 2019. Recognised as the world’s largest international gathering for the trade, commodity, fintech and treasury community, GTR’s annual event in Singapore last year welcomed a record-breaking total of over 1,100 industry participants from local and international banks to multinational corporations and SMEs, independent financiers, commodity brokers and traders, insurers and risk managers, lawyers, consultants, ECAs and multilaterals and more!

2019’s event is set to be even bigger and better! Participants will have the chance to hear over 100 of the world’s leading trade, treasury and fintech experts reflecting on developments in the Asian market and more globally, whilst also having the chance to network and discuss trade priorities with over 500 different companies.

Australia and Peru signed the Peru-Australia Free Trade Agreement (PAFTA) in February 2018. A fellow signatory to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) Agreement, Peru has been one of the fastest growing economies in Latin America over the last decade. PAFTA will build on the benefits of the CPTPP, enabling Australian exporters to diversify beyond traditional export markets and strengthening our economic relationship with Latin America.

Our recent session as part of the Aid for Trade Global Review emphasized the importance of women entrepreneurs in international trade. The title of the session "Women who rock the international trade" had its origins in a social media campaign that coincided with the international day of women to celebrate the contribution of women to the world of international trade. The campaign particularly focussed on the unsung heroes, the women who daily make a contribution, but out of the spotlight. The focus of the discussion was how women can capitalise on their huge potential to contribute to the world economy. Discussion centred around gender equality in trade, sustainable initiatives to encourage women to trade globally, and the constraints faced by women. The participants also discussed the need to integrate gender aspect into trade policy. The session was organised by GTPA and EIF.