Global trade is becoming increasingly challenging due to rising protectionism and market fragmentation.
However, digital trade offers a promising solution to overcome these barriers.
Current trade environment
Protectionist measures are escalating, with countries such as the European Union and the United States imposing tariffs on Chinese electric vehicles (EVs), citing unfair subsidies. This reflects a broader trend affecting international trade.
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.
Opportunities in digital trade
Despite these hurdles, digital trade opens up new avenues for global market entry.
By developing multilingual websites, using platforms with international infrastructure, and facilitating easy digital transactions, businesses can bypass traditional trade restrictions.
Targeted digital marketing and expanding offerings to include software or consultancy services can further enhance global reach.
Addressing regulatory challenges
As highlighted by the World Trade Organisation, embracing digital trade is essential for resilience and growth in today’s economy.
To learn more about applying digital strategies to your business, contact us for expert advice.