As Rupert Lee-Browne of the Forbes Council puts it, “small and medium businesses are driving economies across the globe.”

But here’s the truth: expanding into global markets isn’t easy, by a long shot. SMEs grapple with a mix of logistical, regulatory, and financial hurdles – not to mention trade disputes. Thankfully, for SMEs, understanding global rules and available support resources can make international expansion far less intimidating.

The good news? North America has begun to invest heavily in training, upskilling, and advisory programs. These resources are helping Micro, Small, and Medium Enterprise (MSME) exporters enter new markets. Read on to learn how SMEs can turn global trade challenges into new and exciting growth opportunities.

Small Businesses Are Making a Huge Impact Across North America

The North American economy is powered by small businesses. Over 99% of Canadian businesses are small or medium-sized, and 99.9% of all American companies are small. Although mega-enterprises tend to dominate the headlines, SMEs (especially micro-firms with less than 10 employees) are making more and more headway in the world of international trade.

Canada’s Growing Export Engine

Canadian small businesses have steadily expanded their global footprint. Per this Government of Canada resource:

• SMEs generated over 53% of Canada’s GDP from 2015 to 2019.
• SME export intensity rose from 3.5% to 5.0% over the last decade.
• The strongest SME export industries range from manufacturing and professional services to transportation and wholesale trade.
• Micro-firms (1–4 employees) are the fastest-growing group of new exporters.
• Service exports have jumped sharply; by 2020, 62.4% of SME exporters were selling their services abroad.

The U.S. Picture

U.S. small businesses export in different patterns but show similar momentum:

• Roughly 97% of U.S. exporters are small businesses, according to the U.S. International Trade Administration.
• MSMEs generated over $542 billion in export value in 2021.
• More SMEs are exploring markets beyond the United States–Mexico–Canada Agreement (USMCA) region, particularly in Asia, Europe, and South America.

Deputy Assistant Secretary for the U.S. Commercial Service, Bradley McKinney, says the America First Trade Policy has helped create “opportunities for U.S. businesses, especially small businesses, to sell their products and services around the globe.” And specific to Canada, the WTO’s Joint Statement Initiative has been instrumental in modernizing trade rules, boosting transparency, and alleviating the administrative burdens on smaller firms.

Together, Canadian and American SMEs are reshaping what North American trade looks like; it’s more digital, more diversified, and more resilient overall.

The Main Challenges Small Businesses Face When Going Global

Even though SME’s global trade influence is apparent in the U.S. and growing in Canada, SMEs still face formidable barriers when entering international markets. Some of the most common obstacles include:

1. Regulatory Complexity

Each country has different trade rules, certifications, labeling standards, safety requirements, and documentation procedures. For SMEs with very limited staff and resources, it can be highly difficult to keep up. Regulatory issues and violations can have several negative effects:

• Slow shipments
• Increased trade-related costs
• Problems entering new markets

The World Trade Organization (WTO) sums this up in an informative briefing: “Small firms are less resilient to regulatory changes, have less resources to adapt, are less able to absorb the costs of administrative requirements, and cannot spread these costs across a larger cost base.”

2. Access to Financial Backing

Exporting requires working capital for expenses like production, shipping, compliance, and insurance, all of which are essential for successful international trade.

Considering the general business climate, smaller firms often struggle to secure trade financing, especially when selling to new or unfamiliar markets. Many of these companies are simply trying to stay afloat in their home market.

3. Limited Market Intelligence

Many SMEs don’t have the time, resources, or specialized expertise to navigate the complexities of international trade. Specifically, they often struggle to:

• Analyze market demand: Figuring out what will sell and at what price can be tricky without in-depth research into foreign markets.
• Find distributors or agents: Finding and collaborating with dependable local partners is a challenge, but it’s a must for smooth operations.
• Assess risks: Shipping delays, currency swings, and other risks are rife in global trade, and the uncertainties can be paralyzing.
• Understand cultural or legal differences: Missteps in global regulations, labeling, or business etiquette can cost a business dearly.

Attempting to export goods or services without this knowledge can result in:

• Missed compliance deadlines
• Rejected shipments
• Poor partner choices

These missteps not only eat into profits but can also damage a company’s reputation and delay its ability to scale internationally. Over time, repeated mistakes can completely stall growth and make global expansion exceedingly risky.

4. Logistics and Supply Chain Management

International shipping can be incredibly complex, and many SMEs are ill-prepared for its intricacies. To get products from point A to point B, firms have to navigate customs procedures, Incoterms, insurance requirements, warehousing options, and return policies that vary widely by country.

For companies that have grown accustomed to domestic operations, keeping track of each of these moving parts can be overwhelming. In addition to that, mistakes can lead to higher costs, frustrated customers, and various other negative effects.

5. Trade Disputes and Geopolitical Uncertainty

Disputes over tariffs, subsidies, and market access aren’t uncommon in international trade situations. They often disrupt supply chains, raise costs, or force companies to tweak their export strategies. On-the-fly changes can hit smaller firms harder since they have fewer resources to absorb sudden shocks.

The reality for small businesses may be sobering, but these obstacles are highly navigable with the right support.

Resources Available to Small Exporters

North America has built an extensive ecosystem of programs to help SMEs build global capability. Here are the most important categories and where to find trusted support.

Training Programs

These programs give SMEs the foundational skills they need to navigate global markets.

• FITTskills International Trade Training. Globally-recognized online courses that let you learn essential international business skills at your own pace.
• Trade Commissioner Service (TCS) Learning Hub. Offers free courses, webinars, and market intelligence on exporting basics, trade agreements, cultural considerations, and industry-specific opportunities.
• U.S. Commercial Service Webinars and Bootcamps. Covers export readiness, e-commerce, documentation, customs, and compliance.
• Small Business Administration (SBA) Export Training in the U.S. Includes step-by-step export planning modules, plus sector-specific sessions.

Upskilling and Digital Tools

When small businesses continually refine their skills and employ the right digital tools, they can operate with far more confidence in global markets. Start with the following:

• Canada Digital Adoption Program (CDAP). Helps SMEs implement digital tools, automation, CRM systems, and e-commerce stores.
• Export.gov’s Market Research Library. Grants free access to country reports, sector guides, and opportunity analyses.
• ITA Digital Strategies for Global Sales. Educates users on cross-border e-commerce, online marketplaces, and digital marketing.

These tools make exporting more accessible and predictable, reducing operational barriers that stand in the way of international business for SMEs.

Consulting Services and One-on-One Support

SMEs perform best when they have advisors who understand their industry, target markets, and risk profile. These consulting and support resources can be a tremendous help:

• Trade Commissioner Service Advisors. Deliver matchmaking, market entry guidance, local introductions, and trade mission opportunities.
• EDC Export Advisors. Offer consulting on financing, insurance, cash-flow planning, and buyer risk assessment.
• SBA Export Assistance Centers (USEACs). Provide hands-on help with regulations, financing, and export planning.
• Provincial Trade Promotion Organizations. Deliver localized guidance, mentorship, and industry-specific expertise.

Whether you train digitally or in person, advisory services help to propel MSMEs from intention to action.

Get Started in the World of International Trade

Exporting is no longer reserved for massive corporations with deep pockets and global networks. SMEs across North America are expanding into new markets at a growing pace, supported by stronger training programs, more accessible advisory services, and a steadily improving export ecosystem.

If you’ve been thinking about international expansion, now is the time to take the first step. Start out small:

• Take a FITTskills course.
• Book a call with a trade advisor.
• Explore one new market using government-provided market data.
• Pilot a single product or service internationally.

The global marketplace only gets broader with time. With solid know-how, professional support, and confidence, MSME exporters won’t just participate – they’ll thrive.

The post Why global trade is within reach for small and mid-sized businesses appeared first on Trade Ready.

Trade-related organizations play a critical role in ensuring the viability of businesses all around the world. They set and create needed median standards for all trade professionals and the broader business community. This community benefits from the comprehensive and strict oversight in regards to rules, laws, regulation and access to trade and business-related resources.

The Forum for International Trade Training (FITT), for example, has developed global competency standards for the knowledge and training required to succeed internationally, supported by educational credentials and the CITP®|FIBP® professional designation. In this way, we ensure that professional standards and educational resources are always relevant and current for the changing needs of international trade.

In the same way that our organization creates fair and formalized standards and processes for trade training, other trade organizations set standards for the global community in a broad range of other categories. Most people recognize the names of the organizations such as the World Trade Organization (WTO) and the International Monetary Fund, but may be surprised to find out that there are many others.

What are the other key organizations that international businesses and business people should be aware of and how exactly do they govern trade and impact international businesses?

To help answer these important questions, we’ve compiled a quick guide to international trade organizations that touches on some of the most important players and how they influence international trade and business ecosystems. Here they are:

World Trade Organization

Since 1994, the World Trade Organization (WTO) has worked to maintain open lines of communication regarding international trade with its 164 member countries. It oversees existing trade agreements, ensuring that countries are upholding the terms of their agreements, and also helps settle disputes about those agreements.

The WTO also helps countries negotiate and forge new agreements, and it calls out unfair trade practices. With its current membership, the WTO serves all major world economies. Through the WTO, international businesses and organizations can find data and regulatory information related to trade.

International Monetary Fund

While the WTO focuses on supporting the international economy by facilitating trade, the International Monetary Fund (IMF) focuses on establishing sound monetary and economic policies to support the global economy. To do so, the IMF monitors economic policies within its 190 countries to identify potential risks and provide advice. IMF also issues loans to countries to help stabilize economies and provides training programs that help countries modernize their economic policies and workforces to spur economic growth. The IMF also upholds the system that allows for foreign monetary exchanges.

World Customs Organization

The World Customs Organization (WCO) brings customs officials from around the world together to work toward making customs processes easier to navigate for international businesses. It also influences the WTO’s rules of origin and customs valuation processes. International businesses may recognize the work of the WCO through the Harmonized System—the numeric system that is now used by more than 200 countries to help code and classify internationally traded goods.

International Chamber of Commerce

While the above organizations deal with world governments,

the International Chamber of Commerce (ICC) represents companies that do business on an international scale. The ICC seeks to promote the free trade of goods internationally. It advocates on behalf of businesses to the WTO, United Nations and other organizations that affect international trade and business.

Organizations for trade development, trade law, sea and air transportation and economic funding

There are many other organizations that enable international trade and support businesses that trade globally. The United Nations Conference on Trade and Development (UNCTAD) helps developing countries find entry points to international markets, and the United Nations Commission on International Trade Law (UNCITRAL) brings nations together to modernize their economic policies and workforces to spur economic growth.

For shipping companies, the International Maritime Organization and the International Air Transport Association provide guidance and support to marine and air logistics companies, respectively. Meanwhile, The World Bank seeks to reduce poverty globally by offering loans and other support to developing nations.

All of the organizations that impact global trade play specific roles in creating a healthy international economy. While they are all separate, they also coordinate their efforts and support one another to reach their common goals.

Want to learn more about international organizations and business law? Read our article The role of international organizations in international business law.

The post A quick guide to international trade organizations appeared first on Trade Ready.

The Border Adjustment Tax (BAT) is currently a hypothetical plan that has been presented by President Trump and the Republican Party (GOP). While there is growing speculation and uncertainty around this topic, here is what is known thus far, along with some tips for importers to curtail the BAT.

What would the BAT mean for trade?

The BAT would tax goods that are made overseas and shipped to the United States (imports), but would not tax goods that are produced in the United States (U.S.) and sold domestically or internationally (exports).  This would change how foreign and domestic companies calculate the corporate taxes they pay on profits.

As explained by The Economist, “for tax purposes, ‘profits’ would be domestic sales minus domestic costs.” The “border adjustability is all part of a plan to create a destination-based cash flow tax,” Forbes added, which would change the current corporate income tax. The destination-based cash flow tax would cause the tax rate to be lowered to 20% from the current average rate of 39%.

As a result, businesses would be able to write off their capital investments in the year those investments were purchased. They will also no longer have to pay taxes to the IRS for profits they earn overseas, and will no longer have the ability to “deduct interest as a business expense;” the Tax Foundation explained.

Based on an economic theory perspective, import taxes and export taxes would cancel each other out, therefore creating two potential avenues where BAT would not affect trade. Either the dollar might appreciate just enough that imports and exports end up costing the same as they did before the tax; or American prices and wages would rise enough to undo the competitive advantage that border-adjustment confers.

However, if the economy does not adjust to the BAT, importers would end up paying a lot more taxes in comparison to exporters, which could cause an unprecedented surge in inflation.

To prevent a negative impact on the economy, the Federal Reserve would have to provide a way to raise the value of the dollar to ensure taxes on imports and subsidies on exports would offset each other.

Is the BAT a VAT?

Some economists have compared BAT to a Value Added Tax (VAT), which is used in the European Union. In general, they consider the VAT a “broadly based consumption tax assessed on the value added to goods and services.” The Wall Street Journal added that “Businesses along the chain [of production] collect the tax and send it to the government. …it is the consumer who pays the tax, because the final price of the goods and services [consumers] buy reflect all of the taxes that have been charged up that point.”

Some economists consider the BAT, in its current state, to be very similar to the VAT in regards to retail markets, affecting the consumers who purchase personal commodities. For example, apparel stores relying heavily on imported inventory would face a tax bill that can be 3-5 times larger than their actual profits. While economists are not certain what the long-term effects will be, they do predict that in the short term there could be a 15-20% increase in prices on many household items. This could force many middle class consumers to purchase fewer goods.

Does the BAT violate GATT or GATS?

Other economists and members of the World Trade Organization (WTO) believe BAT could violate Article III of the General Agreement on Tariffs and Trade (GATT).

The broad and fundamental purpose of Article III is to avoid protectionism in the application of internal tax and regulatory measures. More specifically, the purpose of Article III, ‘is to ensure that internal measures not be applied to imported or domestic products so as to afford protection to domestic production.’

For the BAT to comply with GATT, any current or future U.S. tax measures “must be levied on imported products at a rate or amount no higher than the rate/amount levied on domestically produced ‘like’ products; and must provide a border adjustment on exports that is no greater than the amount of tax actually levied or owed on those goods.”

Currently, the GOP’s potential plan is in contravention of GATT, as it would give tax deductions for domestically produced goods, while at the same time denying deductions for those same goods that would be imported.

Another issue that could arise within the WTO is whether the BAT would violate the General Agreement on Trade in Services (GATS). The question would then arise, as suggested by PIIE, as to whether the denying a business deduction for an imported service amounts to less favorable treatment than that given to the same service purchased from a domestic supplier. If BAT does create treatment that is less favorable to imported services than to domestic services, then the BAT would also be in violation of GATS.

While there is much uncertainty, speculation of a future BAT will continue to grow. Until the Trump Administration and GOP present a comprehensive plan with congressional approval, one thing is certain: importers have to begin planning now.

The post New trade taxes may be coming – here’s how you could be affected appeared first on Trade Ready.

The GATT and WTO

Barriers to trade, including tariffs and quotas, are challenging for international businesses, as they can adversely affect international trade and economic stability as a whole.

Before the end of the Second World War, several government delegates met at the Bretton Woods Conference in the U.S. to, among many goals, establish an International Trade Organization (ITO) in order to promote economic recovery and stabilize world trade after the war ended. But the U.S. Congress refused to approve participation and the attempt to formally establish an ITO subsequently failed.

The attempt to formalize an ITO was not without accomplishment. Its legacy document, the General Agreement on Tariffs and Trade (GATT), was a 1947 document agreed to by all parties, including the United States, which aimed to reduce trade barriers (especially tariffs).

The GATT provided both trade rules and a forum for members to discuss and address trade issues. It also established some basic rules to direct international trade, following several years of gathering members (rounds) for negotiations.

Three major rules were established:

• Tariffs and the Binding Concessions rule: If a WTO member lowers a tariff, it is considered “bound” and the country is prohibited from subsequently raising the tariff. The bound tariff applies to all WTO members.
• The Most-Favoured-Nation rule: The MFN principles prohibit discrimination among like products regardless of their origin and the rules relating to the importation or exportation of goods or payments on the basis of their origin or destination.
• The National Treatment rule: “The requirement, set forth most prominently in GATT Article III, that members treat imported goods no less favourably than domestically-produced like products once the imports have passed customs”. (See Raj Bhala, Dictionary of International Trade Law).

While the GATT made significant progress in the reduction of tariffs, other trade agreements (multi-lateral and bi-lateral) and national protectionism began to emerge as significant barriers to trade. In April of 1994 in Marrakesh, Morocco, more than 100 countries agreed to form a World Trade Organization (WTO) and the WTO came into effect in January, 1995.

According to its website, the WTO is:

• A place where member governments go to try to sort out the trade problems they face with each other
• A set of rules, contracts and agreements binding governments to keep their trade policies within agreed limits
• A harmonious way to settle trade differences through neutral procedures based on an agreed legal foundation The WTO is the only international organization responsible for the rules pertaining to trade between nations for goods, services, intellectual property, dispute settlement, and monitoring members’ trade policies.

Want to learn more about how to excel in new markets by establishing and managing strategic global business alliances? Check out the FITTskills International Market Entries Strategy online course!

Negative impact of trade barriers: the Great Depression

One of the most disastrous examples of the negative impact of trade barriers are the U.S. protectionist measures (quotas, high tariffs) taken in an attempt to mitigate the effects of the Great Depression.

The hope was to acquire revenue from tariffs and to increase the demand for goods produced domestically.

The response of industrialized nations to the crisis of the depression was to impose barriers on trade imports. This periodically paralysed international trade.

There are however, a number of additional organizations working to make international trade freer:

UNIDROIT

The International Institute for the Unification of Private Law (UNIDROIT) is an independent intergovernmental organization that studies “needs and methods for modernising and harmonising private and, in particular, commercial law as between States and groups of States”. 

UNCITRAL

The United Nations Commission on International Trade Law (UNCITRAL) was established by the UN General Assembly in 1966 to play an active role to overcome the “disparities in national laws governing international trade created obstacles to the flow of trade”.

ICC

The International Chamber of Commerce (ICC) is an organization that has worked to harmonize private international law. This Paris-based industry group is also playing a major role as an arbitration institution.

Although the ICC works in tandem with the UN, it is not a governmental organization. Rather, it is a group made up of specially appointed business executives that form a council. National committees of business industry executives volunteer their time to ensure their nations’ business perspectives are heard. As well to help formulate ICC policies and agendas.

In addition, with regards to instruments that will help promote uniformity and transparency in international trade, the ICC creates and makes recommendations to industries and intergovernmental organizations. For example, by codifying the following, the ICC has been influential in harmonizing international contract terms as well as arbitration practices:

• Incoterms: Universally accepted contract terms governing international transportation
• Uniform Customs and Practice for Documentary Credit (UCP 600): Defines terms and credit rules for documentary credits on demands and guarantees predominately used by banks all over the world

Hague Conference on Private International Law

The Hague Conference on Private International Law is a global intergovernmental organization. They are working towards the harmonization of private international laws states have adopted. This will address individuals and corporations connected to more than one state. Representing all continents, it is a melting pot of different legal traditions that develops and services multilateral legal instruments, which respond to global needs.

European Union

Established in 1993, the European Union (EU) is a political community with 28 member states comprising a single economic market. This reduces the barriers and obstacles when moving goods, services and investments within the community. Through a standardized system of laws and a single currency (Euro), EU citizens can freely live, work, study and do business throughout the EU. As well as enjoy a wide choice of competitively priced goods and services.

OHADA

Established in 1993, the Organization for the Harmonization of Business Law in Africa, known by its French acronym OHADA, is working toward instituting more secure legal and judicial measures. As well as establishing a modern and uniform business law in order to attract investors to African states.

CDIP

The World Intellectual Property Organization (WIPO) is a UN agency whose mandate is to develop an international intellectual property (IP) system to ensure creativity and innovation to foster economic development while safeguarding public interest. In September of 2007 it announced the establishment of the Committee on Development and Intellectual Property (CDIP).

The CDIP was established to “develop a work-program for implementation of recommendations adopted in relation to the WIPO Development Agenda. The CDIP is also mandated to monitor, assess, discuss and report on the implementation of all recommendations”.

International law works to improve global business potential by enabling more open borders, modernized customary exchanges and reduced trade barriers around the world.

For entrepreneurs, this in turn can mean opportunities for market and labour growth and specialization, infrastructure research and development, jobs, and global, economic and social stature.

The post The role of international organizations in international business law appeared first on Trade Ready.

According to the World Trade Organization, over the past 20 years trade in services has become the most dynamic segment of world trade, growing more quickly than trade in goods.

Services represent in excess of 21 percent of world trade. Forecasters predict that this figure will reach 50 percent by the year 2025, as information and communication technologies continue to increase the tradability of services. The shift to knowledge-based economic activity also results in the assimilation of economic activities, which creates an increasingly integrated global economy. The outsourcing of inputs, including services, further fuels the integration process.

Trade in services between Canada and the U.S.

In both Canada and the U.S., the service sector is an important contributor to the economy. According to the U.S. Trade Representative’s Office, Trade in services with Canada (exports and imports) totaled an estimated $87.5 billion in 2015. Services exports to Canada totalled $57.3 billion, while services imports were $30.2 billion.

Trade in services was also a major job creator in the U.S. Exports of goods and services to Canada supported approximately 1.7 million jobs in the country in 2014.

Modes of Delivery: Four Ways Services Are Traded

Services include a wide range of activities. At one end of the spectrum are what might be termed personal services, such as training, live artistic performances and medical care. At the other end are impersonal services, such as telecommunications or the services embodied in manufactured products. In the case of telecommunications, for example, the service is delivered through automated equipment by a telephone company or a cable television operator.

The World Trade Organization (WTO) lists four modes of delivery or ways in which services are exported.

Mode 1: Cross-border

Cross-border trade takes place when the service itself crosses the border from one country to another without the movement of persons.

The service is transported either via electronic means (e-mail or fax) or by infrastructure, such as transportation services (air, rail, land or sea) or telecommunications (telephone or radio). 

Examples:

• Management consulting: studies, reports, business plans, financial advice
• Information and communication technology: Internet service provision, cellular telephony
• Marketing: market research, advertising, articles
• Consulting engineering: feasibility studies, drawings
• Health: tele-health
• Education and training: e-learning, distance learning
• Transportation: courier services, other transportation services

 Mode 2: Consumption abroad

Consumption abroad relates to services used by nationals of one country in another country where the service is supplied. This requires the consumer to travel across the border to another country to actually use the service. The supplier of the service, who is being paid by a “non-resident” customer, is technically exporting a service (even without leaving the country).

Examples:

• Tourism and travel-related services: tour operators, hospitality industry, business tourism, agri-tourism, eco-tourism, edu-tourism
• Education and training: study tours, conferences, foreign students, seminars
• Legal: client seeks legal advice in local market and so travels to the market
• Health: patient travels to foreign country for diagnosis and treatment

 Mode 3: Commercial presence

Commercial presence refers to instances where a company from one country sets up subsidiaries or branches to provide services in another country.

 Examples:

• Financial services: banks, investment companies, insurance brokers
• Construction engineering: sets up project offices to manage local infrastructure projects
• Information technology: local offices set up to service local clients
• Distribution: shipping, warehousing, logistics

 Mode 4: Movement of natural persons

Movement of natural persons refers to individuals travelling from their own country to supply services in another country.

Examples:

• Arts and culture: film industry—actors, directors, production crew, performers
• Construction: architects, tradespeople
• Education and training: trainers, professional speakers
• Environmental: consultants, specialists
• Geomatics: mapping, oceanography
• Recreational and sporting: coaches, trainers, promoters

Companies become service exporters if they are paid for their services by a “non-resident” customer, regardless of where the service is provided.

The subtlety of services trade

For an export to take place, residents of one country pay residents of another for some kind of benefit. In the case of trade in goods, merchandise is physically shipped from one country to another, making tracking and measurement relatively straightforward. Trade in services is much more subtle.

Take, for example, the case of a multinational corporation with offices in two adjacent countries. If the subsidiary in one country ships components to the subsidiary in the other, the transaction is recorded both within the corporation and in the customs offices of both countries. But if a manager from one subsidiary travels to the subsidiary in the other country to participate in meetings and offer advice, the export of that manager’s services is not recorded anywhere. Yet, value—in the form of several days of the manager’s time—has been transferred from one country to the other.

Services may also be part of more complex international transactions. For example, a firm may be hired to build a subway system in another country. Part of the export will consist of subway cars, but an equally important component will be the design, planning, project management and training involved in constructing and operating the finished system. Some of these services will be delivered in person by individuals travelling to the site of the contract, falling under mode 4. Others, such as plans and schedules, can be transferred electronically, falling under mode 1.

Technology is outpacing services trade regulation

As information technology has become more sophisticated, databases, advanced software applications and the Internet have made it possible for many businesspeople to export their services without travelling abroad. This makes counting, controlling and regulating service trade more difficult.

For example, medical services are rigorously regulated in virtually every country of the world. A doctor qualified in one country cannot practice in another without first passing a series of examinations in the second country. Yet, medical technology already enables X-rays and other types of body scans to be transmitted over long distances for examination and diagnosis. In another example, a doctor in one country may be asked to offer an opinion on the case of a patient in another—in effect, practicing medicine in the patient’s country.

The service sector has become a significant economic force in the 21st century. As a result, countries are re-thinking national strategies, entrepreneurial service firms are reinventing themselves and economists are delighting in having new trends and numbers to assess, analyze and forecast.

It may be relatively easy to anticipate new trends, but being in a position to capitalize on them is a different matter. Services are invisibles. They cannot be demonstrated, shipped and returned as products can.

Successful service firms have recognized that in selling these kinds of services, the key to success is in the building of relationships, the adaptation of services to meet customer needs and the continuous innovation of unique high-value solutions.

The post Know your service exports: 4 ways services are traded globally appeared first on Trade Ready.

There are currently 164 countries who are WTO members, 36 of whom have joined since 1995. The organization has been working to uphold trade policies, settle disputes, conduct economic research, help government officials, and educate the public about trade on behalf of its members for over twenty years.

However, despite the wide reach and large membership base of the WTO, there are 34 nations who are not a part of the organization.

These countries face significant obstacles to increasing their trade, as they do not hold the Most Favored Nation status given to all WTO members, nor do they receive the same lower trade barriers all WTO members must grant one another.

Instead, they may face higher numbers of tariffs, import quotas and regulations when dealing with most of the world, and cannot resolve their trade conflicts through WTO courts.

Here are eight of the most important trading nations who aren’t currently WTO members:

1. Iran

Iran has the 27^th largest economy in the world in 2016, with a projected nominal GDP of $412.304 billion USD. Out of all the nations who are not already members of the WTO, Iran has the largest economy.

Iran has attempted to join the World Trade Organization over 20 times in the last two decades. However, there were objections, largely from the United States, about the nation’s nuclear activity.

The country is now much closer to becoming a WTO member after its recent nuclear deal in late 2015. But, it still has to comply with WTO requirements regarding subsidies, lowering of tariffs, transparency, and copyright laws before the process can continue.

Iran has a very strong economy. Its main exports include chemicals, natural gas, oil, plastics, fruits, and ceramic products. Joining the WTO could increase Iran’s ability to export even more of these items to major global markets by lowering tariffs placed against their goods, most notably their oil.

2. Algeria

Algeria has the 55^th largest economy, with a nominal GDP of $165.974 billion. It is not yet a member of the WTO because it is still in the process of amending its trade regime to meet the organization’s policies, such as reducing import, pricing and investment restrictions, limiting export subsidies and liberalizing service industries. However, Algeria has been in negotiations with the WTO for the last several years and is making progress toward this goal.

Algeria has the 10^th largest natural gas and the 16^th largest oil reserves in the world. It is also a major natural gas exporter, currently ranking 6th worldwide. Algeria’s access to the Mediterranean and proximity to the Atlantic Ocean puts it in a great location for international trade, a situation that could be taken even more advantage of as a WTO member with fewer trade barriers in these markets.

3. Sudan

Sudan has the 63^rd largest economy in the world with a nominal GDP of $93.729 billion. The country has been trying to join the WTO since 1994, during the late stages of the organization’s formation.

In order to become a member of the organization, Sudan has been working to lower tariffs and guarantee the rights of exporters and importers to abide by WTO policies. Sudan filed an application for membership again in 2015, but it has not yet been granted.

Sudan produces 70-80 % of the entire global output of gum arabic (also known as acacia gum).

Gum arabic is used in soft drinks and candy in the food industry, as well as in glue, paint, incense and several other products.

The economy in Sudan is also fueled by gold mining and oil production. However, oil production has been less predominant in the country ever since South Sudan seceded to become an independent nation.

4. Belarus

Belarus currently has the 83^rd largest economy in the world, with a nominal GDP of $45.887 billion. Belarus has applied for WTO membership and has been working for several years to try to reduce government intervention in the economy, and agricultural subsidies, in order to meet WTO requirements and make foreign exports more competitive. However, the nation has not been approved, largely because the government has made little progress on these fronts.

Belarus may be able become a member of the WTO once it makes the necessary changes, but the application process can take up to five years.

The top exports from Belarus include equipment, machinery, minerals products, chemicals, textiles, and metals.

5. Serbia

Serbia has the 92^nd largest economy in the world, with a projected nominal GDP of $37.755 billion for 2016.

Serbia first applied for membership to the WTO in 2004. Although the nation has not yet been accepted, it is getting closer to membership status. First, Serbia will have to complete several bilateral trade agreements with WTO members and get the endorsement of a multilateral working group at the WTO in Geneva.

Serbia’s primary exports include electronic equipment, vehicles, machines and engines, plastics, fruits, iron and steel. Serbia also imports large quantities of vehicle parts and petroleum. The country’s entrance to the WTO would therefore reduce tariffs on its exports and make it easier for Serbian companies to compete internationally.

6. Turkmenistan

Turkmenistan is currently the world’s 93^rd largest economy, and has a nominal GDP of $35.398 billion.

Agriculture is an important part of the country’s economy, representing 14% of its GDP, and both cotton and hydrocarbons are produced there in large quantities. The country’s main trade partners include China, Russia, and Iran.

Turkmenistan has not yet applied for WTO membership. Its government recently began studying the possibility of joining the WTO, but any membership application remains a long-term goal at best, as the process usually takes several years before countries are granted membership.

If it did eventually join, it could potentially open import and export opportunities with many new trade partners for this Middle Eastern nation, allowing it to diversify its economy.

7. Azerbaijan

Azerbaijan currently has the world’s 95^th largest economy, coming in with a projected GDP of $35.141 billion at the end of the year. Azerbaijan is located in southwest Asia. The government of Azerbaijan told the WTO that it “will enact all possible measures to accelerate our accession (to the WTO) process,” and is trying to alter its trade regime to comply with WTO standards. However, the nation is yet to be accepted into the WTO.

Azerbaijan’s economy has been growing steadily in recent years, largely due to its oil and gas exports.

The country’s real estate, banking, and construction sectors have also been growing. Azerbaijan’s trade with Turkey and the EU is increasing, so WTO membership could create opportunities to expand it even further by reducing tariffs faced by Azerbaijani companies.

8. Bosnia and Herzegovina

Bosnia and Herzegovina has the 113^th largest economy in the world, and the size of its nominal GDP for 2016 is $16.324 billion.

Bosnia and Herzegovina has not been accepted into the WTO yet because it has not been able to reach bilateral trade agreements with at least two nations. However, since 2015 it has been working harder to gain acceptance, so membership could come soon.

Bosnia exports metals, textiles, petroleum, and furniture in large quantities. The private sector in Bosnia and Herzegovina is continuing to grow slowly, despite a drop in foreign investment since 2007.

Moving closer to bringing the world under the same guidelines

The World Trade Organization is a powerful and expansive group that plays a crucial role in international trade by lowering tariffs, mediating disputes and creating more open global markets.

Unfortunately, there are still dozens of nations who are forced to conduct trade without the help of the WTO. Some of them are major players in global trade, whose membership would be beneficial for those individual nations and the global economy as a whole.

Bringing every country under the same basic trade policies as WTO members would mark a major milestone towards freer international trade. It would provide greater opportunities for businesses in more markets than ever before. Until then, keep an eye out for the WTO status of these country and others, as we await their next steps.

The post The 8 most important trading nations who aren’t WTO members appeared first on Trade Ready.

The goal of gender equality in trade policy formulation is to anticipate the unequal impact of trade policy and trade commitments across gender – to minimize the negative consequences and maximize positive outcomes.

Where does trade policy formulation and gender equality development intersect?

An effective trade policy articulates the role of trade in achieving a country’s national economic and development strategy. Ideally, the country’s national economic and development strategy incorporates goals of inclusive economic growth and prosperity for all of their citizens.

These goals should then be used to inform all aspects of the countries’ policies, including trade policy formulation and implementation. So, the intersection begins with having the goal of gender equality clearly enunciated in the country’s development strategy.

Secondly, while trade policy formulation begins with the state, civil society participation is an essential component of the process. It helps to determine and give voice to the goals and needs of the population and brings accountability to the process. Civil society participation is key to advancing pro-development goals in trade policy formulation.

Accordingly, a gender-sensitive approach to stakeholder selection during civil society participation is another key point of intersection. This means identifying men and women as distinct categories of stakeholders.

This approach will support the collection of gender-sensitive anecdotal and other pieces of data. For example, what are the relevant issues that face men and women as distinct categories of stakeholders?

Collecting and analyzing data from a gender perspective will help us find out if there are ways in which men or women will be disproportionately affected, positively or negatively, by proposed policies and their implementation.

Let me give an example:

Trade liberalization is a strong component of most countries’ trade policy. The policymakers might further decide that this commitment requires lowering tariffs on those goods most in demand by business owners. In the United States, 6 in 10 women-owned businesses are found in four sectors. Salons for hair, nails, and pets account for 22% of women-owned businesses in the country.

Trade liberalization of tariff rates for imported shampoos and hair-styling products used in the salon industry would have a disproportionate impact on women owners and workers. Understanding and taking decisions on trade policy in light of this reality is a simple example of collecting and using a gender-sensitive approach to shape trade policy.

Trade liberalization is just one step in the right direction

Policies that liberalize trade can have both a direct, or more indirect, impact on women, and it is worth exploring these effects in light of ongoing debate surrounding free trade and protectionist ideals.

Let’s start with some obvious benefits – reduced or eliminated tariffs generally get translated into lower prices on consumer goods. And trade facilitation is aimed at reducing the time and costs of moving goods from Point A to B, creating more savings that can be passed onto the consumer.

As a result of trade liberalization, most women can now select from a wider range of goods at more affordable prices when shopping for themselves and their families. And we know that women are the primary buyers in the majority of households.

There are concerns expressed about whether trade liberalization leads to a proliferation of low quality, shoddy goods masquerading as “consumer choice”. I think most women would prefer to be able to buy something, than nothing at all.

But undoubtedly, trade liberalization needs to be accompanied by heightened consumer protection – a regulatory environment and agency with real teeth!

A look at the impact of trade liberalization on jobs and income shows more nuanced results. Studies, which have focused on developing countries, have found that trade tends to create jobs for women in export-oriented economies.

At the same time, these jobs tend to be lower-skilled and lower-waged, most notably in the textile sector. This disparity is the result of less access by women to the time and resources they need to be trained to assume more skilled roles.

Finally, in the area of entrepreneurial activity, the results are abysmal. The same factors that hold women back in the domestic economy make it difficult for them to take advantage of opportunities created by trade liberalization, whether in the export or domestic market.

These limitations include, less time, less access to resources, as well as to the financing they need to grow from subsistence activity or even to enter into business at all.

Gender issues in global business are starting to be addressed

I see more reports and studies coming out on this issue, which remains under-researched.

The International Trade Center, whose mission includes the provision of solutions to support the growth of exports from developing economies, has developed a series titled, “Case Story on Gender Dimension of Aid for Trade.”

Organizations like the World Trade Organization (WTO) and the United Nations Conference on Trade & Development (UNCTAD) are also doing more work in this area. The World Customs Organization (WCO) held a conference in 2013 to examine “informal” cross-border trade.

I also think that the growing number of women-centered international and regional networks is a big plus. Some, like WEConnect International, are focused on supporting women entrepreneurs to enter into global markets.

Others, like the Organization of Women in International Trade (OWIT), provide education and support for women involved in international business and trade.

So, how can we as individuals support women in global business?

We can buy from each other; refer business to each other; and support companies that buy from and promote women-owned businesses and women entrepreneurs.

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Cross-border information flows are also the fastest growing component of trade.

Using International Monetary Fund data from 2008 to 2012, economist Michael Mandel found that such flows increased 49 percent, while trade in goods and services grew some 2.4 percent.

Digitization of goods (such as music and movies) is changing the mix of flows, transforming global logistics and enabling new and smaller players to participate in trade.

Policy makers can do a lot to hamper or encourage cross-border information flows. Individuals and firms currently move data from one location, in one country, with one set of rules, to another location with another set of rules.

If policy makers could form shared rules to encourage the free flow of information, more people would have greater access to information and more information would be created and exchanged, fostering economic growth.

Domestic needs versus the Internet’s global public goods nature

Some nations, such as Brazil and India, believe that governments should do more to exercise direction over the Internet. Often officials in these countries argue that greater government control will help them to provide public goods online, such as education or health care, and to foster innovation and economic growth.

Other governments, such as China and Russia, want a rethink of Internet governance and propose greater international control over the Internet. And still other governments, such as Vietnam, are just beginning to set the ground rules for the Internet within their countries.

Governments might have good reasons for restricting information flows, but doing so could result in unanticipated negative side effects on the Internet, as well as economic growth.

Economists generally agree that information is a global public good that governments should provide and regulate effectively.

When states restrict the free flow of information, they shrink access to information, which can reduce economic growth, productivity and innovation, not just in their own country, but globally.

Moreover, when officials place limitations on which firms can participate in the network, they might reduce the overall size of the network, which could also raise costs.

Why do governments use trade agreements to regulate information flows?

Trade agreements and policies could provide a framework to govern cross-border information flows.  The U.S., for example, made digital trade a top priority for the Trans Pacific Partnership a trade agreement signed by 12 Pacific nations) because of the importance of information technologies to the U.S. economy.

Specifically, the U.S. wanted to establish clear rules governing when nations could limit information flows and rules limiting digital protectionism, which can include restrictions on data flows such as censorship or filtering, data localization requirements, and server location requirements among others.

Moreover, policy makers recognize that when we travel the information superhighway, we are often trading.

Second, officials understand that digital trade creates wealth. There is huge potential if nation states can find common ground on not only what nations must do to encourage trade, but also the exceptions to the rules. For example: when nations can breach their obligations and how they must engage in trade policy making when doing so.

The most important and internationally accepted trade agreement, the WTO, already governs digital trade to some extent. The WTO has 161 member states that agree to adhere to its rules and to bring disputes that they cannot settle to its binding system of dispute resolution.

The WTO and other trade agreements have a long history of promoting trust between buyers and sellers who do not know each other. When we go online, just as when we trade, we operate on trust.

Producers and consumers of information often do not know each other. Thus, Internet producers and consumers must trust that others will protect personal or business confidential information.

The WTO contains several agreements covering issues affecting digital trade.

They include:

• The Information Technology Agreement, which eliminates duties for trade in digital products;
• The Agreement on Trade-Related Aspects of Intellectual Property Rights, which protects trade-related intellectual property pertinent to information technology, such as computer programs;
• and The General Agreement on Trade in Services (GATS), which has chapters on financial services, telecommunications and e-commerce

The GATS e-commerce chapter sets rules governing how nations can trade services that are electronically delivered.

These rules also explain exceptions: how and when signatory nations can restrict trade in the interest of protecting public health, public morals, privacy, national security or intellectual property, as long as such restrictions are necessary and proportionate, and do not discriminate among WTO member states.

However, the language in the chapter predates the World Wide Web; the Internet; mobile and cloud computing; and the Internet of Things, among other developments.

Member states designed the GATS language to ensure it would remain relevant as technology changed, but several member states have said that they need clarification on specific points and want to update these rules to avoid misunderstanding.

How will the TPP affect this?

The TPP has clear language making the free flow of information the default for member states.

The Australian Department of Foreign Affairs and Trade asserted that:

“For the first time in a trade agreement, TPP countries will guarantee the free flow of data across borders for service suppliers and investors as part of their business activity. This ‘movement of information’ or ‘data flow’ is relevant to all kinds of businesses …TPP countries have retained the ability to maintain and amend regulations related to data flows, but have undertaken to do so in a way that does not create barriers to trade.”

The TPP recognizes that there are times when nations must limit information flows; these times are protected by rules called “exceptions.”

The USTR notes that “the General Exceptions chapter ensures that the United States and the other TPP Parties” are guaranteed “the full right to regulate in the public interest, including for national security and other policy reasons.”

The TPP incorporates the general exceptions delineated in the GATS. Chapter 29 contains the General Exceptions and General Provisions.

If a government censors or filters, it may cause rerouting of information flows and such actions often distort trade between entities within and among nations.

Hence, one TPP party could use the agreement to challenge censorship or filtering in nations that might do so in a discriminatory manner.

The two nations that have some record of censorship and filtering, Malaysia and Vietnam, were given two years to revise their policies and after that could be subject to such challenges.

The binding language in the e-commerce chapter is disputable under the rules in Chapter 28 of TPP.

The law firm Covington and Burling also notes “a government measure that violates a commitment in the e-commerce chapter might also violate an investment commitment in Chapter 9, and to that extent could be subject to investor-state dispute settlement.”

The TPP will have an impact on Internet governance simply because it covers so many Internet providers and users and because its commitments will affect how governments can behave when regulating cross-border information flows.

TPP parties have a population of some 800 million people, or 11.4% of the Earth’s total. Many of these individuals are already active on the Internet.

Moreover, the TPP includes important and growing markets for digital products and services such as Vietnam.  Colombia, Indonesia, the Philippines, South Korea, Taiwan, and Thailand have expressed interest in joining TPP should it come into effect.

Moreover, if TPP is approved, it could have significant spillover effects upon how other governments deal with cross-border information flows. They will have to comply with TPP rules when they exchange information with TPP parties.

At minimum, the US will want to use TPP as a guidepost for other trade agreements including TTIP and TISA under negotiation.

Meanwhile, other governments too will need to consider this language and what it means for their firms’ cross-border flows.

However, the US may be overselling the benefits of the agreement to the Internet just as critics are exaggerating the agreement’s costs to the Internet and Internet governance.

What needs to be updated with global trade laws for the Internet?

In 2011, the United States wrote that the WTO must update its work program (and ultimately the system of rules) on electronic commerce “if the WTO is to remain relevant to the innovative technologies and business models that can support economic growth and opportunity.”

The United States also expressed concerns that governments still lack guidance as to whether electronic commerce should be governed by WTO commitments under trade in goods or services and if these rules could cover the mobile Internet and cloud computing.

The WTO Deputy Director-General Harsha V. Singh, in 2013, admitted that “the issues we need to address at the WTO are fairly distinct and legalistic, including, for example: classification dilemmas, the implications of technological neutrality for the trade rules, when does a ‘challenge’ or ‘obstacle’ to e-commerce also fit within our definitions of a restriction on trade?”

Academics and business leaders have also argued that the WTO’s rules are incomplete, out of date and in need of clarification.

Meanwhile, although the GATS states nothing explicitly about information flows, WTO members have begun to apply these obligations when settling disputes about cross-border information flows.

The WTO’s Dispute Settlement Body has adjudicated two trade disputes related to information flows.

After Antigua challenged the United States’ ban on Internet gambling, the WTO ruled that governments could restrict service exports to protect public morals if these barriers were necessary, proportionate and non-discriminatory (not discriminating between foreign and domestic providers).

The WTO’s Appellate Body also examined China’s restrictions on publications and audiovisual products, noting that commitments for distribution of audiovisual products must extend to the distribution of such products by the Internet.

However, neither dispute has provided clarity regarding key issues such as whether governments can, for example, restrict sales of offensive items such as Nazi memorabilia, or if they can censor and filter websites.

Until members challenge these policies in a trade dispute or negotiate new rules, we will not have clarity on why, how and when governments can restrict cross-border flows.

The post Why turn to trade agreements and policies to regulate the Internet? appeared first on Trade Ready.

Rice producers in the U.S. will now be able to export their product to China, the USA Rice trade organization reported in late January.

This would mark the first time in recent history that American-produced rice is allowed into the Chinese economy, the trade organization said. Negotiation of the deal took 15 years; China was admitted into the World Trade Organization in 2001.

The agreement is “a long time coming,” USA Rice Chairman and rice farmer Dow Brantley said.

Overcoming complicated import regulations

He noted that the phytosanitary regulations are “more complicated and detailed than any other rice protocol in the world,” but was thrilled that the Chinese market is now open to American rice farmers.

Before a rice producer can market its products in China, it must first be inspected separately by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service and the organization’s Chinese counterpart, the General Administration of Quality Supervision.

Chinese officials must also provide a list of Chinese ports which are authorized to receive American-grown rice. The Chinese government must then issue a decree to authorize the import of the foreign-grown rice.

The agreement between the two economic powers are unlike any other rice agreement the U.S. has signed, one executive at a rice mill in California said. He added that the agreement was years in the making.

Though the agreement has been reached, shipments are not expected straightaway. Once inspections are completed, shipments to China could begin by early spring.

This agreement comes after a deal fell through a year ago, another industry report said. The negotiations reportedly failed over Chinese demands for American rice mills to set traps for beetles and other insects that can destroy stocks.

This round of talks was nearly sidelined when the Chinese side wanted American rice growers to label each variety of rice in its shipments.

However, the American side sidestepped the issue, saying that it was a business matter and should not be considered as part of the health and safety discussions. American rice producers must still list all the rice varieties which may be contained in shipments.

Incredible opportunity for American rice producers

The USDA projects that China will import 4.7 million tons of rice in the 2015-16 year, an increase from 4.3 million tons of rice in the previous year.

Though the U.S. has yet to export rice to China, China has a quota of 2.7 million tons of rice that can be imported from the U.S. which was decided when it secured WTO membership. The U.S. expected to export approximately 3.1 million tons of rice in 2015.

The opening of the Chinese market to U.S. producers is warmly welcomed by farmers.

We wouldn’t have to have much of that market to make a material difference for our industry here,

Arkansas firm Producers Rice Mill Inc. President and CEO Keith Glover said.

China is the world’s largest rice market in the world, with Vietnam and Myanmar providing a substantial chunk of its imported rice. Pakistan and Thailand also provide substantial amounts of rice consumed in China.

China has steadily increased the amount of rice it has imported in the past few years, though it used to be self-sufficient. According to the USDA, China became the world’s top rice importer in 2012, surpassing Nigeria.

How do you think this new lucrative market will affect US agriculture? Do you think China will open its doors to more agricultural imports like this?

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The horrific events in Paris were very much in the hearts of participants, and even in that sadness there was a palpable sense of determination, particularly among several French delegates with whom I interacted over the summit weekend.

One gentleman, whose wife is a medical professional at a hospital near one of the hardest hit areas, reminded us that it was France that brought the aspiration of “Liberté, Egalité, Fraternité” to the world.

The heartfelt comments of IMF Managing Director Christine Lagarde on a panel at the B20 session were equally moving in their reminder of the value of even an expression of support and concern for friends and colleagues across France.

The words to inspire us all

The parallel tone of the event, and the privilege of being “in the room” at the B20 was brought sharply into focus for me in Frankfurt, just before leaving for Turkey. It transpired that a woman behind a cash register whom I spoke with briefly had just been to Antalya.

Her parting words, “do your best for the rest of us,” echoed in my mind several times over the next few days, even though I did not have the opportunity to express to this citizen approaching her retirement that my involvement was very narrow, peripheral and limited.

Her words should, however, resonate with those leaders in Antalya in the business community, and certainly in the political leadership, as well as various complementary streams of activity.

The privilege of true leadership should come with a compelling sense of duty to ‘do the best for the rest of us’ and a determination to deliver substantively, even on the toughest issues.

Today’s strong leadership is looking at the bigger picture

As an unabashedly proud Canadian, it was excellent to see our new Prime Minister make his international debut at the B20 session in Antalya, very warmly received by top business leaders and the heads of various international organizations who shared the podium with Prime Minister Trudeau.

It was good to hear Financial Stability Board Chair and Governor of the Bank of England Mark Carney (another fellow Canadian) speak with focus and authority on the efforts underway to assure long term stability in the global financial and economic system.

And from the perspective of the work of our Task Force, it was inspiring to hear Governor Carney specifically mention trade finance in his remarks.

Trade finance is an esoteric domain, the critical importance of which is increasingly appreciated in business and political circles today.

Business leaders, including the CEOs of Coca Cola, Nestlé, SEB Bank, Sabanci and numerous others, were in attendance, as were the heads of the IMF, the WTO, the OECD and the International Chamber of Commerce. One striking undercurrent in the formal remarks, and in the exchanges which followed, is a sense among even the most hard-core business leaders that we need to start thinking more, and more seriously, about the bigger picture.

Numerous interventions reflected notions around the social responsibility of business, the role of commerce in international development, poverty reduction and peace and security. Chief among them was the imperative for executives to think long-term, and to think strategically about issues like sustainability and climate change.

This discussion is crucial, even as some sectors struggle with post-crisis regulatory issues, inconsistent legal standards across borders and issues like skills gaps and labour mobility.

Critical role of international trade in economics and sustainability a common thread

A cynical view might suggest that such musings are shaped by the context, and by the high visibility of the B20/G20 event. However, the sincere non-verbal cues – of certain speakers in particular – were undeniable, and the global nature of the gathering ensures a wide range of perspectives, reference points and ideological leanings.

All of it was underpinning a far-reaching exchange of ideas, even for the business-focused stream of the B20.

Several senior business leaders advocated directly and energetically for ratification of the WTO Trade Facilitation Agreement, and WTO Director General Azevedo, also a promoter of the importance of trade financing (as shown in his remarks at the Conference for Financing and Development in Addis Ababa last July) invited business leaders to engage more directly with the WTO going forward.

The crucial role of trade in the creation of economic value, reflected in part by the growth of global GDP, was specifically addressed by OECD Secretary General Angel Gurria.

Financial and economic inclusion, as well as the importance of small business, were also recurring themes, addressed directly or through advocacy for the Trade Facilitation Agreement by delegates like Guler Sabanci, Chair, Sabanci Holdings and Sunil Bharti Mittal, Chairman and CEO, Bharti Group, and Vice Chair, International Chamber of Commerce.

The critical role of small business in underpinning economic growth was widely acknowledged, not only at the Antalya Summit, but in the year-long work of the various B20 Task Forces, and the reports and recommendations produced by each task force.

Turning ideas into action

The dialogue and deliberations of the B20 Summit touched on numerous important points, and reflected a high degree of alignment on several major business-related themes, even those with wider and more complex implications, and a focus on the tag line “Business Diplomacy at its Best”.

The Turkish Presidency explicitly sought to maintain continuity with the efforts of the B20 Australia summit in 2014, and directed task forces to focus on the generation of implementable ideas and implementation.

Even with this focus and alignment, it is understood that one of the objectives of the business stream – gaining the attention and support of the most senior political leadership of the G20 – is a very difficult task, given the many highly sensitive priorities vying for attention.

The channel is very narrow, and demands a short, focused message, even with the support of organizations like the International Chamber of Commerce and many others actively and strongly supporting such efforts.

While reaching the G20 is an important objective of the B20 (and other parallel) processes, in the end, the research, analysis and recommendations of a series of task forces with world-class chairs and knowledge partners, stands on its own merits.

The year-long work of task force members serves as an excellent global basis for the development, sharing and dissemination of transformational business policy and practices.

Preparations are already underway for the next G20 and B20 events under the Presidency of China in 2016, with the official handover completed in Antalya.

It is incumbent upon all of us, however, to ensure that the work completed over the past year becomes part of an iterative, evolving process and contributes meaningfully to doing “the best for the rest of us”.

What else does Alexander do?

Learn more about the intricacies of Trade Finance from one of the leading subject market experts on the topic. His critically acclaimed book Financing Trade and International Supply Chains will give you deeper insights into nature of trade finance at its core, and of the versatility of this discipline in enabling trade flows involving businesses of all sizes.

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