Conference Presentation, Panel, Webinar
Technology and the Opening of Trade
- The WTO and other bodies are pursuing reform to modernize trade rules for the 21st century and address the fourth industrial revolution, though rapid technological advancement risks outpacing the slow consensus required for digital trade negotiations among over 80 diverse nations.
- Canada is preparing a virtual trade mission to South Korea for November and aims to build domestic digital capacity for SMEs, utilizing tools like the "Business Can" app as a future single entry point to facilitate e-commerce and gender-neutral access for female-led enterprises.
- Multilateral agreements such as USMCA and CPTPP are expected to serve as blueprints for digital trade chapters that prohibit electronic tariffs and reduce server localization, helping SMEs adopt technology and enter global value chains alongside multinational corporations.
- The UN estimates a need for approximately 50 million new jobs annually over the next 15 years, while the US historically creates about 1.5 million jobs yearly, yet specific communities and workers face losses that current systems fail to address adequately.
- There is a significant risk that communities will become "hollowed out" if economic growth does not support trade's specific losers, prompting calls for a robust, fully funded Trade Adjustment Assistance program and a coordinated approach to "lifelong readiness" for workers.
- The current US trade policy coordination involves a "bewildering" structure of 13 different agencies, creating confusion for businesses and leading to suggestions for a "trade cabinet" of eight to ten agencies to improve efficiency.
- SMEs in emerging markets require a stable environment with trust and a level playing field to justify investment, as frequent policy changes and a lack of regulatory clarity deter expansion and capital inflow.
- Digitalization is projected to be essential for economic recovery and future growth by lowering fixed and transaction costs, reducing border processing times, and enabling African and island economies to access global markets for creative products.
- The "spaghetti bowl" of bilateral and regional rules is considered an inevitable reality resulting from WTO paralysis, with experts suggesting that Mexico needs increased budget support for SMEs and a coordinated interagency commission to ensure compliance with trade agreements.
- Virtual trade modalities are anticipated to become increasingly necessary tools for market access during the pandemic, while new digital processes aim to make international trade more gender-neutral and allow micro-entrepreneurs to access millions of consumers with a single click.