ITC and Alibaba to issue guidelines on using e-commerce to tackle trade in China
A panel discussion.
To help businesses go digital, International Trade Centre’s (ITC) and Alibaba will be launching a new publication spelling out how Asian firms – including Sri Lankan companies – can use e-commerce to break into the Chinese marketplace. Alongside these transformations in investment and trade, a revolution is underway on the consumption side, as consumers increasingly emphasize social and environmental considerations in their purchases. “We must ensure that we improve the quality of trade while supporting all business to match standards and regulations,” said Arancha Gonzalez, Executive Director, International Trade Centre delivering her opening remarks at the World Export Development Forum (WEDF) in Colombo on Wednesday. The trade agreements of the 21st century must respond to the economic and social realities of the century, she reiterated adding that in the trade topography of today, it’s seen that production dispersed in value chains that extend around the world.
While this has created new opportunities, for trade-led growth and job creation, tapping into value chains requires countries to address tariffs, but equally to open trade in services, from logistics, to telecommunications or to financial services, it’s important to not forget tourism and in doing so, non-tariff measures, such as standards and regulations need to be addressed, she said. “And in doing so, we must look at how we synergise trade at the multilateral level with regional trade agreements, which now includes so-called ‘mega-regional’ initiatives involving some of the world’s biggest economies.” This is the 16th sixteenth edition of this flagship event, Ms. Gonzalez said adding that Sri Lanka, its Government, its private sector, its institutions are determined to advance broad based, inclusive growth through trade.
“And this is why, ITC, the joint development agency of the United Nations and the World Trade Organisation fully dedicated to supporting developing countries succeed in international trade and investment, is proud to stand by your side today.” Over the past year, Sri Lankan Export Development Board, and ITC, have worked closely to put together an impactful WEDF programme, she added noting that insights from global thought leaders in the private sector and government will enrich discussions to address concrete challenges facing businesses in navigating the world economy, enabling them to create more and better jobs. Carefully curated business matchmaking will be complemented by a programme of company visits and cultural highlights.
Social realities
The trade agreements of this century must respond to the economic and social realities, she said pointing out that in the trade topography of today, production is dispersed in value chains that extend around the world. “While this has created new opportunities for trade-led growth and job creation, tapping into value chains requires countries to address tariffs, but equally to open trade in services, from logistics, to telecommunications or to financial services, not to forget tourism. And to address non-tariff measures, such as standards and regulations. And in doing so, we must look at how we synergise trade at the multilateral level with regional trade agreements, which now includes so-called ‘mega-regional’ initiatives involving some of the world’s biggest economies.” But making trade possible is only a first step, Ms. Gonzalez said noting that ‘we’ still need to make trade happen.
She said that by focusing on the theme for this event – Trade for Success: Connect, Compete, Change – there is a need to examine the three critical determinants for businesses to improve their competitiveness and use international markets to drive inclusive growth. Digital trade has rendered entire services sectors tradable, liberating them from the constraints of geography. Even for physical merchandise, e-commerce has created new opportunities for ‘micro-multinational’ SMEs to link up to customers around the world. Yet much needs to be done to open the digital economy to all, from improving connectivity, to facilitating payment systems or organising logistics, Ms. Gonzalez observed. She said that already over 160 companies from Sri Lanka and more than 30 countries around the world have already begun to explore potential deals.
“B2B matchmaking meetings have the potential to generate concrete results particularly in the specialty foods sector, tourism, IT and business process outsourcing,” she said reiterating that for trade to be truly inclusive, we need to ensure that women and youth are not relegated to the margins. “The second inclusion I want to talk about is geographic. The world’s centre of economic gravity is returning to Asia. By 2030, an estimated two-thirds of the global middle class will be in Asia. But we need to ensure everyone shares in this process.” At the heart of Indian Ocean maritime routes, Sri Lanka is strategically poised between today’s growth poles in East and South Asia, and tomorrow’s growth poles in Africa, she said noting that Sri Lanka cannot miss this opportunity to return to its rightful place in the trading routes.