Deutsche Post DHL Group Presents the First GoTrade Summit Report

The Deutsche Post DHL Group has today published the first GoTrade Summit Report. The report titled “Fostering Sustainable and Inclusive Trade” contains recommendations for policymakers and practitioners to promote inclusive and sustainable trade. These are based on the findings of the first GoTrade Summit, hosted by Deutsche Post DHL Group.

(Bonn) The summit attracted around 600 participants from more than 40 countries at the end of January 2022, who work for various international organizations. Trade, logistics, and the connection of people as structural levers for societal well-being found a broad echo at the event. All participants agreed that the benefits of cross-border trade should be utilized even more. The report provides insights into how modern trade policy can be shaped and how the global trading system can be further strengthened. Deutsche Post DHL Group intends to incorporate the insights and derived measures from this event into future GoTrade initiatives.

“Trade builds bridges that strengthen us as a global community. It creates jobs and a livelihood for people. Moreover, trade and globalization have contributed to peace and understanding among nations – and will continue to do so,” said Frank Appel, CEO of Deutsche Post DHL Group. “Our newly established GoTrade Summit attracted engaged advocates of trade facilitation to promote its societal benefits. This forum has shown that public-private initiatives for a sustainable and inclusive modernization of trade policy are urgently needed. Together, we want to ensure that the measures discussed at the event are implemented.”

Modern Trade Policy Must Expand Its Focus on Inclusion

The participants of the GoTrade Summit agreed on the need to promote inclusion in trade. The conflict between higher economic performance – thanks to free trade – and a fair distribution of the resulting benefits needs to be examined more thoroughly. In this context, it was noted that trade policy decision-making mechanisms must be transparent and consider the needs of smaller businesses. The imparting of trade knowledge to locally bound small and medium-sized enterprises while simultaneously reducing the complexity of cross-border trade is the recipe for success for inclusion.

A close collaboration between the public and private sectors, as seen in international vaccine logistics, can unleash the full potential of global trade
Effective collaboration between private and public institutions in the area of trade facilitation has shown its true strength in international vaccine logistics. When policymakers increasingly incorporate the views of the private sector, as they have done in combating the pandemic, it can help unleash the positive effects of trade facilitation. The collaboration between logistics providers, governments, and international organizations in the transport of COVID-19 vaccines serves as a blueprint for cross-border transactions. The procedures and practices introduced during the pandemic have served countries well and demonstrated the importance of a coordinated approach to achieve seamless efficiency in supply chains. Utilizing this concept can help cross-border trade grow even faster, for example, by reducing congestion through customs clearance of goods before arrival in the destination country.

Digital Tools and Technologies Play an Increasingly Important Role in Trade Facilitation

Digitalization is a crucial enabler for a more inclusive trade policy. The introduction of digital solutions helps to further improve the performance and efficiency of trade and customs procedures. Especially small businesses have always struggled with the complexity of global trade. On one hand, digitalization makes this easier; on the other hand, digital solutions must also be inclusive. This means that projects aimed at digitizing trade must focus on the implementation effort and the investments required for their use. Only if both are kept within a manageable scope for SMEs can they establish a foothold in global markets.

SMEs Suffer Disproportionately from Trade Barriers

Most business activities still take place within national borders. Cross-border flows of goods mainly move between neighboring countries. The prevailing trends still indicate a future where businesses can seize significant opportunities through stronger connections to global markets. SMEs need empowerment, training, and financial support to leverage the benefits of cross-border trade, especially in developing countries and the least developed countries.

Photo: © GoTrade