Enhancing Trade Capacities for Landlocked Nations
UN Official Calls for Green, Digital, and Organic Trade at World Export Development Forum
In her keynote address at the World Export Development Forum 2023 in Ulaanbaatar, Mongolia, Ms. Rabab Fatima, the United Nations Under Secretary General and High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States (SIDS), emphasized the importance of diversifying trade in ways that are green, digital, and organic. She also underscored the need to include small businesses in regional and global trade.
Fatima shed light on the challenges and opportunities faced by the most vulnerable nations in the global trade system – the LDCs, LLDCs, and SIDS, which account for 92 countries with exports below 1% of global trade. While acknowledging the role of trade in driving economic growth, she highlighted the particular obstacles faced by landlocked countries, especially in the context of climate change.
One of the main hurdles for these nations is the higher transit transport costs they incur due to their remote locations from major global markets. Fatima argued that this contributes to increased greenhouse gas emissions and climate change. She called for a reassessment of trade composition and patterns to minimize the carbon footprint while achieving rapid economic growth.
Fatima also addressed the obstacles faced by micro, small, and medium-sized enterprises (MSMEs) from developing countries in international trade. These obstacles include internal challenges related to managerial skills, workforce capacity, and technology adoption. Additionally, MSMEs face financial constraints and struggle with limited access to foreign distribution networks and complex border regulations. Fatima highlighted the marginalization of LDCs, LLDCs, and SIDS in the organic food sector, with North America and Europe dominating the market share.
To address these issues, Fatima proposed a set of measures for the international trade community to support and implement:
1. Build trade capacity at a massive scale by developing infrastructure, enhancing connectivity, streamlining customs procedures, and promoting regional integration. It is important to empower marginalized nations and create an inclusive business environment that supports women-led businesses.
2. Support the development of a digital ecosystem by establishing essential digital infrastructure, promoting fintech and mobile banking, and formulating transparent and equitable regulations for digital trade and e-commerce.
3. Utilize the Aid for Trade initiative to boost climate-resilient trade capacity and infrastructure, enabling nations to embrace a green economy and stimulate organic production.
4. Facilitate technology transfer by providing affordable access to modern technologies, especially renewable technologies, in line with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
5. Provide technical assistance to help countries meet organic standards in international markets and actively participate in standard-setting bodies through assistance under the Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) Agreements.
6. Engage the private sector in collaboration with governments and development partners to drive economic growth, create employment opportunities, and promote inclusive and sustainable trade.
By implementing these measures and actively supporting marginalized countries, the international trade community can help them achieve rapid economic growth and sustainable development.
(Source: Trade Finance Global)
