By Rashmi Pandya, Macalvins’ COO
Let us consider the current state of global trade. It is facing significant challenges, with protectionism on the rise and increasing fragmentation.
Businesses are encountering difficulties in the international market.
However, there is a positive aspect – digital trade. Allow me to elaborate on how it can assist us in these complex circumstances.
The current international trade environment
The international trade environment is increasingly characterised by protectionist measures.
For instance, the European Union has imposed provisional tariffs of up to 37.4 per cent on Chinese electric vehicles (EVs).
The United States has introduced 100 per cent tariffs on the same products.
These measures are in response to allegations that Chinese EV producers benefit from unfair subsidies, enabling them to sell at extremely low prices and thus threatening jobs in Western countries.
Such protectionist actions are not isolated incidents; they represent a broader trend impacting global trade.
The potential of digital trade
Despite these challenges, digital trade presents a great opportunity for us to overcome some of these barriers.
E-commerce and digital services allow us to reach international markets without being constrained by physical trade restrictions. Here are several effective strategies we can employ:
- Developing a user-friendly, multilingual website enables us to connect with international customers directly.
- Utilising platforms with established international sales infrastructure can significantly benefit us.
- Facilitating easy transactions with digital payment systems for international customers.
- Creating targeted digital marketing campaigns on social media platforms can enhance our brand awareness globally.
- Expanding offerings to include software, digital media, or online consultancy services can broaden our reach.
Addressing regulatory challenges
Dr. Ngozi Okonjo-Iweala, Director General of the World Trade Organisation, has highlighted the high costs associated with continued fragmentation.
Embracing digital trade is a necessary step towards ensuring resilience and growth in the global economy.
Let us seize these opportunities and continue to advance.
If you’d like any advice or information about applying digital trade to your operations, contact us today.