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The mammoth 2019 international trade pact between the European Union and the South American Mercosur bloc has stalled in its progress. Mercosur includes Brazil and Argentina, two of the biggest economies in Latin America. The future of the trade deal hinges on the result of Brazil’s October presidential election. This is because the EU insists that Brazil sign a separate commitment to protect the Amazon rainforest before it ratifies the Mercosur deal.

The election has come down to a runoff between a former president, the left-wing Luiz Inácio Lula da Silva, and the incumbent president, the right-wing Jair Bolsonaro. At the time of writing, the head-to-head vote has not yet occurred. Lula, as he is commonly known, leads in the polls, but Bolsonaro outperformed his polls in the first round of voting.

The Bolsonaro problem
Under Bolsonaro, Brazil has had strained relations with most EU leaders. Bolsonaro’s critics are many and he has done and said a lot to displease both Brazilians and foreign interests. The principal sticking point here is his failure to—or possibly his refusal to—rein in deforestation and support indigenous rights. The Eu is concerned its failure to complete trade deals undermines its credibility. This is particularly worrying in Latin America given the People’s Republic of China’s growing presence in the region.

Despite its desire to solidify some trade pacts fast, the EU cannot overlook certain practices under the Bolsonaro regime. That said, a Lula victory wouldn’t magically solve everything. While Lula is more favorable to the EU, he would likely want to renegotiate parts of the deal. And any changes would need to be agreed by the other Mercosur partners: Argentina, Uruguay, and Paraguay, as well as the 27 EU member states. A Lula administration would likely align with EU goals of strengthening provisions on climate and human rights.

Latin American resources
Latin America is a massive copper and lithium producer, making the region a key source of minerals vital for the EU’s green energy transition. But as bad as the EU wants a beneficial and environmentally sustainable deal with Mercosur, renegotiating this agreement that took years to negotiate in the first place would be a headache, to say the least. While a Lula victory would be preferable to many EU officials, there’s still a lot of hard work to do on the Mercosur deal, regardless of the outcome of Brazil’s elections.


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With online shopping increasingly evolving, the modern-day consumer expects to begin and complete their buying journey online. Worth noting is that online shopping growth has surpassed original predictions. eCommerce sales in the US are projected to exceed $1 trillion by the end of 2022, a breakthrough that experts have projected for 2024.

Monetization of B2B marketplaces is critical in this growth. Some reports suggest that industrial B2B marketplaces are the upcoming billion-dollar eCommerce startups. Still, numerous B2B marketplaces face various challenges. For instance, these marketplaces could be more advanced. Further, the level of user experience is substandard compared to B2C eCommerce. However, B2B marketplaces are a worthy investment regardless of the challenges because they are often more profitable than B2Cs. 

Understanding Marketplaces
Marketplaces are digital channels that link buyers and sellers, allowing them to execute business transactions in a centralized place. The concept is still evolving, but the relevance of marketplaces is more pronounced. For example, a few years ago, there were but a few B2B marketplaces in Europe.

Today, there are numerous marketplaces, and their growth is expected to continue. Predictions show that the global industrial B2B eCommerce marketplaces will hit $18.57 by 2026 from $7.35 in 2021. With the rising competition in the industry, B2B marketplaces are seeking ways to establish their brands, offer the ultimate value for vendors and buyers, and find a sustainable revenue model. 

Why B2B Marketplace is a Game Changer
The world has been preparing for industrial B2B marketplace selling for years. The purchase lifecycle within a B2B environment is ideal for marketplaces than the B2C concept. Many B2B purchases involve different decision-makers, back and forth between departments, and complex purchase paths.

Under this environment, smooth access to information, a wide range of options, and a seamless checkout process are critical. The purchase path for B2B buyers can be difficult to navigate. However, up to 89% of B2B customers begin their process from a search engine. Further, these buyers usually conduct multiple searches before engaging with a brand's site. 

Invest in B2B Marketplaces Now
As mentioned above, a successful B2B marketplace allows customers to find their preferred products straightforwardly and conveniently. Buyers want a centralized center for different complementary services and products. They want the liberty to analyze their options and customize the ideal solution for specific objectives.

As buyers seek flexibility and freedom, global sales on B2B platforms will rise, attracting nearly every sector. Experts say that the rising demand for industrial B2B marketplaces will continue to grow due to the unpredictable nature of the pandemic. Evidence of the rising demand for B2B marketplaces is from a study that established that 20% of purchasing executives spend more on B2B marketplaces. At the pandemic's peak, purchasing managers invested more in digital B2B marketplace purchases. 


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One of the side effects of the COVID pandemic for the air cargo industry was a fundamental shift away from long term contracted rates over to “spot booking”, as capacity shrunk and demand increased. According to air cargo industry experts, fixed rate bookings are not likely to make a comeback in the short term.

Spot Booking: an Advantage for Shippers, Forwarders and Air Cargo Carriers

“Spot booking” refers to freight shipments booked without a contract. In other words, each shipment is booked individually at its own price.
Smaller shipping businesses have historically relied on spot rates, but pandemic-related supply chain disruptions have made them increasingly important for frequent shippers, too.

Unpredictable freight rates, constrained belly capacity due to the reduction of passengers flights, shipment disruptions, and fluctuating demand have all made contract rates less reliable.

This context facilitated the surging of digital market places for air cargo bookings, that automate the booking process for the shippers, by providing instant quotes across several freight forwarders, but also for the freight forwarders, by providing quotes across several air cargo carriers.

Most of these platforms are converting inbound email quotation requests into instant quotes and deliver published rates, contract rates and allocations, as well as spot or promo rates.

These platforms were real game changers for the air cargo business, as they allow shippers and forwarders to save time and money by providing market visibility, a clear picture of price trends and transparency on the quotes, which can significantly increase business flexibility and mitigate procurement risks.


Thanks to the uptake of digitalization accelerated by the pandemic, air cargo carriers could also adapt to this changing business landscape and the use of market places introduced huge efficiencies for them too, making pricing quicker and more responsive and building resilience and future proofing against the next challenge.

For this reason, even if air cargo capacity increases, either through increased passenger flights or investment in freighters, air cargo carriers probably won’t return to fixed rates, at least in the short term.


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For successful e-commerce businesses, selling exclusively through an online website is no longer an option. Long-term growth depends on merchants' ability to reach their customers across multiple channels. Customers don't just make purchases 'online' or 'offline', there are a whole host of touchpoints in between where sales can be made. Companies must therefore adapt their strategy.

What is a multi-channel strategy?

Multichannel marketing makes it possible to develop contacts with customers through off and online channels. They are distribution channels (stores and websites) as well as relational channels (social media, newsletters) or transactional channels (vendors, vouchers). Multichannel marketing is therefore manifested by a set of marketing, commercial and relational actions, combining several channels: physical point of sale, interactive terminal, face-to-face salesperson, social media, mobile, website. The objective of a multi-channel marketing strategy is to optimize the impact of its actions by selecting the channels most in line with its target. Another objective is to allow the brand to occupy the ground at several levels, relational and transactional, anytime, anywhere and on any medium. For example, a customer might go to an e-commerce website to check the features and price of a product, but then decide to go to a physical store to make sure it's the right color or the right size.

A major asset for e-commerce and businesses in general.

The multichannel marketing strategy concerns not only the relational but also the transactional. People interact with brands online, through social media, mobile apps, emails and text messages. A multi-channel marketing strategy allows the business to offer conversion points through each of these channels, creating a synchronized customer experience that will drive more sales. Businesses that operate multiple sales channels see theirrevenue increase by 190% compared to businesses that only sell on one platform. A multi-channel approach radically increases the chances of making sales and building lasting relationships with customers. Offering personalized and relevant information to every interaction between the brand and the customer creates an overall more positive customer experience.

Only advantages?

A company that decides to build a multi-channel marketing policy must remain vigilant, because the use of this strategy involves several constraints. The problem may be that the individual sales channels are generally not connected, so the experience tends to be different from channel to channel and without a consistent customer journey. The channels chosen should therefore ideally be complementary; it is always necessary to ensure that these different channels used are not directly placed in fierce competition; the message and commercial policy must remain consistent from one channel to another; the history of contacts obtained via the various channels must be centralized; front office staff must be fully trained to all these issues. These constraints mean that an effective multi-channel strategy is not within the reach of all e-tailers and that its use must be the subject of in-depth strategic reflection.

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SMEs individual environmental footprints may appear relatively small. However, their combined environmental impact is estimated to be more significant than big corporations.
In the EU only, there are about 25 million SMEs, a figure which clearly reflects the relevance they can have on the economy - and cumulative environmental impact.

Regardless several initiatives in place from the EU to support SMEs in the green transition, becoming “greener” is no easy feat for SMEs, as they are extremely diverse and often less well-resourced than larger businesses.

While most SMEs recognize they can - and should do - more to reduce their environmental impact, owners and managers often struggle to find the time and money to invest in initiatives – or simply don’t know where to begin. Here are three essential rules to start with.

1. Include Sustainability in the Supply Chains Procurement Process

Traditional supply chain management practices have generally focused on cost, service and quality. But as an SME you are often at a pivotal point in the supply chain – where there is a growing requirement to manage carbon emissions as well.

Today, it is essential to work strategically with supply partners to both measure and monitor carbon emissions in your operations. A great starting point is to explore your supply chain process to identify areas where you can improve efficiency.

This could be as simple as reducing demand for materials and cutting down waste streams, using renewable materials, or minimizing transport and fuel use – all of which are good for business and the environment.

2. Embrace the Three ‘RS’

Increasingly, businesses are operating to the 3Rs of the waste hierarchy – a framework that was introduced as a guide for businesses to manage waste streams and work towards preventing waste in the first place.

In order of importance, as an SME you should “Reduce, Recycle and Recover”, giving priority to preparing waste for reuse, then recycling, then to other recovery methods. Disposal, therefore, would becomes the last resort.

3.Embed Sustainability into your Company Culture – and Communicate your Achievements

Any progress you make on your environmental goals is worth communicating to all the company’s stakeholders. A 2020 study by the British periodical Circular revealed that 80% of consumers are ‘planning to purchase goods and services from businesses they know have made a concerted effort to be environmentally friendly.’

This extends to other important audiences, too, such as employees, investors and supply partners who are increasingly looking for evidence of commitment towards sustainability and good ESG practice from businesses.

However, be careful to avoid greenwashing at all costs and be authentically credible in the sustainable efforts which you publicize. Sustainability is not just saying you are green because you use a recyclable product: it is ensuring from cradle to grave that the materials and processes you use for your SME business have the lowest possible environmental and social impact.


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A letter of credit is a three-party agreement. The parties are the buyer, the financial institution (like a bank), and the seller. In the agreement, the financial institution or bank will guarantee the seller that they will receive money due from the buyer. If the buyer doesn't pay, the financial institution will bear the cost or balance of what is owed.

The letter of credit eliminates many risks and smoothes international trade. It's an essential instrument in international trade because it caters to its biggest risk: the buyer doesn't receive the goods, and the seller doesn't receive payment. Remember that the buyer and seller are usually far apart geographically, are in different jurisdictions, and may not have physically met, among other concerns.

A letter of credit is a service that financial institutions provide, so it comes at a fee. Banks typically charge a small percentage of the guarantee as their fee, typically less than one per cent. The different types of letters of credit are:

• Commercial Letter of Credit, wherein the bank pays directly to the beneficiary.
• Revolving Letter of Credit which enables the customer to draw from it within a total dollar limit and period.
• Traveller's Letter of Credit guarantees withdrawals from certain foreign banks.
• Confirmed Letter of Credit which has a second bank to guarantee payment to the seller.

The different types of letters of credit offer protections and limitations for each type. The letter of credit that will work for you will depend on your circumstances and your relationships with the customer and bank.

How a letter of credit works

When a buyer and seller agree on a sale, they will need a letter of credit. The seller will ask the buyer to get a letter of credit from a financial institution.

The buyer must go through a similar process to applying for a loan. Usually, the buyer will need to hand in the purchase contract, a copy of the purchase order or export contract, and a few other documents the financial institution requires. The financial institution will do its due diligence to ensure it doesn't take on too much risk.

If the financial institution approves the letter of credit, the buyer will have a guarantee for the transaction amount. The guarantee establishes trust between the buyer and seller. Although letters of credit feature prominently in international trade, trading parties can also use them for domestic trade.

How the money moves

The money behind the guarantee can come from an upfront payment by the buyer to the financial institution, frozen funds held at the financial institution, or a line of credit.

The seller must deliver to the agreed-upon location, like a ship, port, or factory. To prove delivery, the seller will need to provide documents to the financial institution, such as bills of lading, commercial invoice, certificate of origin, or analysis reports. The financial institution will only release the funds to the seller upon delivery of the goods.

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Europe is facing an unprecedented energy crisis due to several factors. The main factor is the war between Russia and Ukraine which raises the spectre of a difficult winter on the continent due to the economic repercussions of the energy crisis. Faced with this situation, Europe is managing to stand ready.

A common response to the crisis

The leaders of the European Union agreed on a "roadmap" aimed at putting in place, in the coming weeks, measures intended to stem the rise in energy prices. The war in Ukraine and the sanctions imposed on Russia have caused a shock to oil, gas and electricity prices. The main goals of the EU's response to the energy crisis are to ensure affordable and competitive energy for EU consumers, increase the EU's energy security and preparedness in the event of emergencies and strengthen the energy resilience and autonomy of EU countries. According to French President Emmanuel Macron, the mechanisms envisaged could be implemented "by the end of October, beginning of November".

According to the French President, EU leaders have "sent a very clear signal to the markets of their determination and their unity."

First target gas

"The 27" have agreed to promote joint purchases of gas at the EU level, with the idea that they remain "voluntary" but cover at least a "compulsory" target level of 15% EU stock fill targets for the winter of 2023. They also called for accelerating negotiations with reliable producing countries, such as Norway and the United States, to take advantage of the aggregate economic weight of the EU rather than competing on the global market at the risk of fueling the price spike. In addition to a wholesale price control measure in natural gas transactions, the European leaders are also asking for a specific plan for a temporary mechanism to cap the price of gas used to produce electricity, a system already in place in Spain and Portugal and which France demanded to be extended to the whole of the EU.

An energy crisis that already has an exorbitant cost

The current inflationary surge, which dates from the end of the year 2021 and which has been accelerated by the war in Ukraine, has led the countries of Europe to take a panoply of measures to guarantee purchasing power. Multiplication of checks, blocking of gas and electricity prices, and discounts when going to the pump. According to a study by the Brussels-based Bruegel Institute, the Member States of the European Union devoted a total of 450 billion euros to it between September 2021 and September 2022. Despite everything, the bill continues to climb, and the protective measures put in place during the year 2022 in solidarity by the various member countries of the union will be really evaluated in the months to come. But no doubt that the note will be more than salty. The war in Ukraine should therefore end as soon as possible. Otherwise, the year 2023 will be catastrophic for Europe, already brought to its knees by the COVID outbreak.

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Paving the way for enhanced trade between the Gulf Cooperation Council (GCC) countries and Southeast Asia, the United Arab Emirates and Indonesia recently entered into a comprehensive economic partnership agreement (CEPA).

The pact, which is the first between any Gulf Country and Indonesia, and vice versa, was signed by Indonesia’s Trade Minister Zulfikli Hasan and the Minister of the UAE Ministry of Economy Abdullah bin Touq Al-Marri in the presence of UAE President Sheikh Mohamed bin Zayed Al-Nahyan and his Indonesian counterpart Joko Widodo.

Elimination of trade barriers

Though the exact contours of the comprehensive deal are not available as the procedure takes time, the accord will largely bolster the prospects of Indonesian businesses in the Middle East, as a new route will be carved out for them to enter the UAE, besides eliminating tariffs and boosting investment between the two countries. It also covers tourism, intellectual property rights, and mutual recognition of each country’s halal certification, digital trade, customs procedures, small and medium-sized enterprises and origin of goods provisions among others.

The UAE Ministry of Economy said Indonesian palm oil, food products, fashion wear and Emirati petrochemicals, rubber products, plastics and steel would benefit from reduced or eliminated tariffs.

“The signing of the Comprehensive Economic Partnership Agreement between the UAE and Indonesia, in the presence of President Joko Widodo, builds on the long-standing ties between our two nations and heralds the beginning of a new era of increased trade, investment, and economic cooperation,” President Sheikh Mohamed said on Twitter.”

Growing bilateral commerce

Indonesia, Southeast Asia's largest economy, currently exports palm oil, jewelry, precious metals, cellular phone equipment, television apparatus, and motor vehicles among others to the UAE. The UAE exports petroleum gases, iron and non‑alloy steel, and non‑crude oils to Indonesia. The bilateral trade in goods between Indonesia and the UAE reached $4 billion in 2021, according to Indonesian trade ministry data. Indonesia’s main exports to the UAE are palm oil, jewelry and precious metals, while Emirati exports to Indonesia are mostly petroleum gases and non-crude oils, iron, and non-alloy steel, according to the Observatory of Economic Complexity.

The Economy Minister has said the deal with Indonesia could increase bilateral non-oil trade to $10 billion within five years, up from around $3 billion last year. To double its economy to $816 billion by the end of the decade, the UAE this year forged closer trade ties with India and Israel too by signing similar free trade agreements with them.

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We've all heard about NAFTA, the North America Free Trade Agreement. It's a big deal, so we'll break it down into five pros and cons.

Pros

1. NAFTA Reduced Costs
Proponents of free trade typically cite lower prices for consumer items as one of the critical advantages that reduced tariffs can offer Americans. NAFTA supporters claim that as a result of cheaper prices, the typical American has benefited. The American economy benefited from lower prices, which also increased spending power.

2. Small Businesses Flourished
As a result of NAFTA, small businesses have flourished in North America. Companies can import goods from Mexico and Canada duty-free and export goods to them duty-free as well. Small businesses in the United States can compete more effectively against larger companies with lower overhead costs.

3. NAFTA Helped the GDP
According to the Council on Foreign Relations (CFR), following implementation, NAFTA increased the U.S. GDP by 0.5%, or roughly $80 billion. That translates to an annual GDP increase of a few billion dollars. The allocation of those additional billions may have drawn criticism from opponents, but when the U.S. economy is considered as a whole, NAFTA appears to have boosted it.

4. NAFTA Benefited Foreign relations
One justification frequently used to support free trade and NAFTA is improved diplomatic ties between nations. In other words, the hypothesis holds that countries with more economic ties are less likely to engage in diplomatic or armed confrontation. It is asserted that NAFTA led to more frequent meetings and a larger value placed on diplomatic relations between the United States, Canada, and Mexico heads of state.

5. NAFTA Boosts Exports
NAFTA caused some U.S. economic sectors to suffer (more on that later), but it also helped others. The CFR estimates that NAFTA helped create roughly 200,000 export-related jobs each year. These positions pay 15% to 20% higher than the manufacturing positions that left the United States after NAFTA. Even in the industrial sector, NAFTA encouraged cooperation between nations, giving rise to new, regional businesses in which various parts are produced in the different signatory countries. According to some observers, this has helped North America compete with Asian industrial powerhouses.

Cons

1. Loss of Manufacturing Jobs
NAFTA critics and those who oppose future trade agreements point to the loss of manufacturing employment in the United States as evidence for their arguments. According to the CFR, the U.S. car industry shed almost 350,000 jobs between 1994 and 2016. Many of those positions were filled by employees in Mexico, where the automotive sector added over 400,000 employees during the same period.

2. Suppressed Economic Growth of Mexican Small-scale Farmers and Entrepreneurs
Other critics of NAFTA focus on how it affected Mexico's small farmers, many of whom found it difficult to compete with bigger agribusinesses after the agreement. Farmers from some of the nation's family-run farms moved to work in factories instead, where, according to detractors, they were paid less, had less freedom, and had worse working conditions.

3. Cutdown Some American Employee Salaries
The U.S. economy's manufacturing sector had the greatest employment losses due to NAFTA, but salaries fell across many industries where a college degree is not required. The competition from Mexican employees, whose earnings are generally lower than those of American workers, also has a low impact on U.S. wages.

4. Stringent Environmental and Labor Requirements
When the United States negotiates trade agreements with middle- or low-income nations, American negotiators frequently demand stronger labor, environmental, and intellectual property standards than those previously enforced. However, detractors of NAFTA claim that the United States missed an opportunity to advance the pro-labor and pro-environment agendas by failing to press hard enough for strict protections for employees and the environment during the deal-making process.

5. Immigration Concerns
Opponents of NAFTA have argued that it has led to immigration concerns, particularly in Mexico, where pay drops mean workers have to leave the country in search of greener pastures.

Conclusion

Regardless of your opinion on NAFTA, it has pros and cons. As part of an economic trade program, it's necessary to fix these problems to facilitate better economic trade between Mexico, Canada, and the United States.

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On Thursday, the European Union expressed concern that a new United States tax credit which is aimed at Americans to encourage them to buy electric vehicles. The European Union fears that such encouragement would not only break the rules of the World Trade Organization but also discriminate against the producers in Europe.

The US writes the Inflation Reduction Act

According to the Inflation Reduction Act which is approaching its final approval in the U.S. Congress, to lower the cost of an electric vehicle tax credit can be given up to $7,500. In order for a consumer to qualify for the tax credit, the Inflation Reduction Act states that it is required for the battery of the electric car to have been made within North America using minerals which were either mined or recycled on the North American continent.
Miriam Garcia Ferrer, a spokeswoman for the European Commission, stated that the European Union is deeply concern about the new, potential barrier with regards to the trans-Atlantic trade. She further stated that the European Union believe that the requirements for the electric car tax credit is discriminatory because it discriminates against the foreign producers with regards to the producers in the U.S.

EVs tax credit hurts foreign automakers

The tax credit would remove the eligibility for foreign automakers such as Toyota, Mercedes, and Hyundai. Before the tax credit was proposed, subsidy was available for those who were purchasing foreign cars.
In South Korea, the EV tax credit proposal has raised major concern. After US President Joe Biden’s visit to Seoul, the electric vehicles manufactured by Hyundai in South Korea will not have access to the credits which they were led to believe they would have earlier this year.
The European commissioner for competition, Margrethe Vestager, have said that the tax credit should not be placed against friends as a matter of principle. However, Vestager does not believe that the electric vehicle tax credit should not mean the WTO gets involved. Meanwhile, Bruno Le Marie, the French Minister of Finance, suggested that the European manufacturers could get new subsidies.
The Japanese Trade Minister Yasutoshi Nishimura commented that friendly nations have been working together to make the supply chain stronger. The EV tax credit goes against the work many friendly nations are trying to do today.

Senator argues against labor union requirement

According to the Treasury Secretary Janet Yellen, there have been meetings with various different parties in order to properly draft the tax credit regulations which specify the exact requirements companies need to have in order to qualify for the electric vehicle tax credit.
The electric vehicle tax credit is being created and push because the Democrats wants to make the EV sector grow dramatically in order to serve climate change mitigation goals. President Joe Biden has set the target for half of all new sales of vehicles to be EV vehicles by the beginning of 2030.
Jointly, Biden is creating a “made in America” economic agenda which will see to create more domestic manufacturing in order to support jobs in the U.S. The other purpose of the agenda is to lower China’s dominance in the EV supply chain and across the EV sector.
It was proposed that the EV tax credit have a union-labor-only requirement which was later negotiated out by Senator Joe Manchin (D-WV). Sen. Manchin argued that against further subsidizing EVs and that he would not sign the bill if the U.S.’s energy and transportation system for EVs are dependent on supply chains that are foreign rather than domestic.
The current legislative product has addressed Sen. Manchin’s concerns for beyond the requirement for the final assembly. The current law now have provisions included that is designed to create more domestic production of batteries for EVs by restricting eligibility for the EV tax credit to electric vehicles which has battery products that meet the requirements for both the sourcing and processing of mineral inputs.

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Costa Rica Seeks Entry to Trans-Pacific Trade Block

At a time when world trade is undergoing profound change, alliances are being forged all over the world. New blocks are being formed to better face the new challenges of international trade. It is in this context that Costa Rica is rethinking its trade alliances.

A formal request on the table

A month after applying to join the Pacific Alliance of Latin American countries, Costa Rica formally applied to join the Comprehensive Trans-Pacific Partnership Agreement (CPTPP).

The country wants to promote trade relations with Asian economies, its president Rodrigo Chaves told a press conference last July. President Chaves said that his country wants to join the Pacific Alliance and be among the four Latin American countries of Mexico, Colombia, Peru and Chile to be part of it. "Joining the CPTPP will help our country attract investment and promote ties between small and medium-sized Costa Rican businesses and those of the CPTPP, a vast free trade zone that represents 17% of the world's GDP," Rodrigo Chaves pointed out. "the purpose is to bring our products to the part of the world that is growing faster, which is Asia. The world is becoming increasingly connected. We are suffering some issues now with the logistics, but the future is to trade openly," added President Chaves.

Costa Rica's application highlights the growing interest of Latin American governments to use the CPTPP as a mechanism to strengthen their linkages with the Asia-Pacific, a strategy that would reduce their reliance on a single trading partner and diversify/grow their exports and sources of investment.

About CPTPP

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada and ten other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP entered into force on December 30, 2018, in the first six countries that ratified the Agreement: Canada, Australia, Japan, Mexico, New Zealand and Singapore. On January 14, 2019, the Agreement entered into force in Vietnam and on September 19, 2021, in Peru. It will enter into force on November 29, 2022, in Malaysia. The Agreement removes 95% of customs duties between its members and, according to the website of the Chilean Ministry of Foreign Affairs, is one of the most relevant economic integration schemes in Asia-Pacific, covering 498 million people who represent 12% of the global economy.

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At the World Trade Organization's (WTO) 12th Ministerial Conference (MC12) held in June 2022, trade ministers agreed on two outcomes on trade and food security as part of the "Geneva package." They exempted food from export restrictions when bought for humanitarian use by the World Food Programme (WFP) and a joint Ministerial Declaration on the Emergency Response to Food Insecurity.

Currently, there is a reduced food supply to world markets resulting from Russia's war against Ukraine and the blockage of Ukraine's grain exports. WTO members have committed to avoiding unjustified export restrictions on food and improving transparency on any export restrictions.

Members' declaration of food security shows that the global organization is ready to react to the exceptional circumstances created by the Russian war. But, the big question remains, how can the WTO deliver on food security?

Negotiations and dialogues

WTO members are currently negotiating agricultural trade policy reforms. These talks began in early 2000 under the original mandate of the Agriculture Agreement and became a significant part of the MCs. Monumental decisions made by trade ministers during these negotiations include the elimination of agricultural export subsidies declaration of emergency response on food security, among others.

Also, the WTO organizes a series of "Trade dialogues on food," focusing on the role of international trade in food security. These negotiations and dialogues are platforms where WTO members discuss how to achieve food security. As an extension, these decisions can become an international public policy platform for tackling food security, one negotiation at a time.

Upholding removal of agricultural export subsidies

Export subsidies are given to traders to cover the difference between local and world market prices. At the Nairobi Ministerial Conference in 2015, trade ministers adopted a historic decision abolishing agricultural export subsidies and setting new rules for other forms of farm export support.

Despite the agreement to end agricultural export subsidies and promote regional and continental trade, some member states did not uphold this decision. WTO should compel members to support agricultural subsidy removal and focus on ramping up local production of these products to meet domestic demand. This will improve the respective country's food security.

Improve market information

Local farmers cannot access information that will help them boost soil fertility and enhance crop yield. This creates a massive gap in food security, especially in Africa. Hence, the WTO can fund projects that will make information free-flowing for local farmers on agriculture and food.

The WTO and other international organizations participate in the Agricultural Market Information System (AMIS). The AMIS was set up by G20 agriculture ministers to enhance market transparency and promote policy dialogue in the wake of the global food price hikes in 2007-08 and 2010. We can replicate this framework in middle-income countries to boost the market and product access and reduce food crises.

Fostering Collaboration

The WTO has 159 countries as members. These countries need to collaborate to improve trade relations and the same works for tackling food insecurity. The collaboration of WTO members and upholding its policies will go a long way to help achieve food security worldwide.

When there is a collaboration among members, it is easier to build an infrastructure that will promote the global supply chain, reduce food insecurity and promote trade. The partnership can also involve working closely with other organizations to ensure that trade contributes to improving food security.

The WTO has a platform for constantly planning agricultural and food policies for world countries but can do better with its policy implementation strategies.

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After wrestling control of the White House and Congress, the Democratic party is determined to push its climate reform packages. It wants to invest in clean technology and incentivize businesses and customers to adopt renewables. One industry that needs an overhaul is the motoring industry, and Democrats hope that an electric vehicle (EV) tax credit will motivate consumers to buy more of it.

To clean up the auto industry, the US proposed legislation giving a $12 500 tax credit to electric vehicles made in the US. The credit would include $4 500 for union-made electric cars. The legislation also has provisions that prevent using battery components or critical minerals derived from China, part of a more significant trade battle between the two leading economies. The tax credit is part of a vast tax, climate, and health care package from President Joe Biden's administration called the Inflation Reduction Act.

The EV tax credit causes friction

Car manufacturing and trade are significant under USCMA. It is also a politically charged industry in all three nations. Employees of automakers have substantial political clout in the North American countries. Canada and Mexico fear that the tax credit will undermine their auto industries.

Mexico was open to filing an appeal with an international panel over the tax incentives by the US. Mexico says the incentives are discriminatory and go against the principles of free trade, including the United States-Mexico-Canada Agreement (USMCA) trade pact.

Canadian Deputy Prime Minister Chrystia Freeland went as far as writing a letter to US Senate leaders threatening to impose tariffs on US goods and suspend the USMCA if the tax credit went into effect.

Legislation has passed but is still controversial

To quail concerns from its neighboring countries, the US made a slight but significant change to the tax credit. The Biden administration expanded the tax credit to apply to vehicle manufacturing in North America. With that inclusion, Canada and Mexico dropped their objections and embraced it as a critical incentive to secure regional supply chains. But the electric vehicle tax credit continues to draw criticism from other trading partners, such as the EU and South Korea. They believe the tax credits may discriminate against foreign-made vehicles and breach World Trade Organization (WTO) rules.

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Blockchain and data warehouses might sound complex to many entrepreneurs, but the basic concept around these technologies revolve around how information is collected, stored, and shared in order to facilitate the movement of goods between suppliers, warehouses, and distributors.

Centralized data warehouses

In a data warehouse, a manager or administrator is in charge of the warehouse data and chooses who to share that data with. It could be on his computer or drive and backed up wherever they choose.

In situations where delicate information needs to be protected, this is a reasonable approach. However it can slow down warehouse operations if staff or outside collaborators need access to make quick decisions on shipping and distribution. Data warehouses are more common but there’s growing investment in cryptographic warehouse tech.

Decentralized blockchain warehouses

A blockchain warehouse operates using a transparent, immutable, and distributed ledger where every actor has access. When one party adds information and the transaction is approved, it cannot be changed without every party’s approval.

In a decentralized blockchain warehouse staff have easy access to information about storage, temperature, and expiration dates at the click of a button. Suppliers and distributors on the network know exactly what the warehouse needs and use the information in planning.

With automation and artificial intelligence it’s also possible to synchronize processes by having machines and products share information with each other securely and rapidly through the blockchain.

A decentralized blockchain warehouse has the advantage of binding agreements being locked into the system through smart contracts where consensus about labor, delivery, prices, revenue, and investments can be registered.

Private blockchain for limited access

Warehouses can operate a hybrid system that incorporates blockchain, but in this case restricted to a limited number of staff or partners. This gives access only to trusted parties and provides a level of security.

Different options for different needs

The key element in how a warehouse uses and stores information depends on their needs and scope. Data and blockchain warehouses provide options to serve SMEs in different capacities.

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You’d think considering that the global economy is on the brink of a recession, warehouse demand would be low. But it’s not. It’s red hot.

The reason is digitization. Since the beginning of the pandemic, warehouse owners have been able to expand their footprint and raise their rates in many U.S. markets. That’s especially because of the massive increase in e-commerce.

E-commerce pushes warehouse demand

The increased demand has led to rising rents. Warehouse rent has grown an average of nearly three percent a quarter nationally since mid-2020. In a handful of markets such as Silicon Valley, Los Angeles, and Long Island, N.Y., rents are particularly high.

Increasing online purchases have fueled that growth. E-commerce sales expanded 30 percent in 2020 and rose an additional 23 percent in 2021‌‌.

E-commerce sales will likely keep growing as younger people have become accustomed to ordering goods via mobile devices. And they are becoming a greater percentage of the population.

Another trend is that retailers and tenants abandon “just in time” methods to keep inventories slim. Because of the supply chain disruptions and longer waiting times, retailers are now pursuing a “just in case” strategy, resulting in larger inventories and more warehouse demand.

Headwinds from economic slowdown and automation

Headwinds are coming from an economic slowdown. If consumers stop spending because of high gas and food prices, that will inevitably become visible in warehouse demand.

A slowdown in demand could be compounded by an uptick in warehouse construction, as this business has become more profitable recently. However, market rates are still at a record high in many places, such as California, New Jersey, New York, and other states.

Another more long-term trend is warehouse automation. As warehouses use more robotics and digital tools, they become more efficient. That means shipping becomes faster, there are fewer mistakes, and fewer people are required. That again reduces the space needed.

Also, AI makes it easier to forecast where goods will get ordered. That enables logistics companies to plan more efficiently, again reducing warehouse demand.

But that’s the future. In the short and medium term, warehouse demand will likely stay elevated.

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International trade involves the trade and movement of goods between two or more countries to earn foreign exchange. The international trade process comprises of connecting seller to buyer, deciding on the trade volume, payment method, negotiation of contracts, delivery channels, and other logistics elements that satisfy both parties in the transaction.

There are risks associated to trade, and one of the biggest risks in international trade for centuries is the payment method, although it has evolved through trading periods history. A look at payment methods revealed that there are five common methods of payment in international trade: and they are cash in advance, letter of credit, documentary collection or draft, open account, and consignment. Let’s unwrap each of them briefly.

Cash in advance

This payment method favors exporters because it is the safest for them and allows them to secure payment for their goods before it is shipped and ownership is transferred. Payments are usually made by wire transfers or credit cards.

The cash-in-advance method is typically used for small purchases or when goods are made to order from e-commerce platforms that do international shipping. This payment method is the least desirable method for importers as it exposes them to multiple risks, one of which is goods not getting shipped. Also, some money managers believe it is not favorable for business cash flow.

Letter of credit or documentary credit

This is one of the most secure methods of payment for both parties. A letter of credit is a contractual agreement wherein the issuing bank (importer's bank), acting on behalf of its customer (the importer or buyer), promises to make payment to the beneficiary or exporter against the receipt of complying stipulated documents.

The issuing bank will use intermediary banks to facilitate the transaction and make payments to the exporter. This payment method is used if the importer has not established credit with the exporter, but the exporter is comfortable with the importer's bank.

Documentary collection or draft

A documentary collection is when the exporter instructs their bank to forward documents related to the sale to the importer's bank with a request to present the documents to the buyer for payment.

The importer can only take possession of the goods if the importer has the shipping documents. This means they only release the documents to the buyer or importer after they have made the payment.

Open account

An open account is a payment method in which the goods are shipped and delivered before payment is due within 30, 60, or 90 days. This is helpful to the importer and puts the exporter at a higher risk.

Consignment and Trade Finance

Consignment is like an open account, except that payment is sent to the exporter only after the goods have been sold by the importer and distributed to the last customer. The exporter keeps ownership of the goods until they are sold. This is a very risky payment method since it does not guarantee the exporter any payment.

Getting paid is the hallmark of international trade. Hence, it is in the importer and exporter's best interest to choose a payment method that puts their business at a lesser risk.

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This is a brutal expansion for the crypto market, and a difficult time for cryptocurrency investors to control their emotions, but there is a need to focus on the “long-term”, Deepak Chopra, co-founder of the Chopra Center for Wellbeing and founder of the Chopra Foundation, told CNBC on Gary Vanerchuk’s Vicon.

“The crypto world is in crisis, losing trillions of dollars. We’re in the bear market,” Chopra was quoted saying.

Who is Deepak?

Deepak Chopra, a cultural figure recognized for his work in emotions and well-being, has been in news for his recent forays into the NFT field, said that he believes investors should be able to look beyond the current crypto market drop.

Terra USD, one of the most popular US dollar-pegged stable coins, triggered the market's most dramatic decline, almost overnight. Resultantly, Bitcoin and Ethereum have witnessed huge price drops from their recent bull market highs as well.

Chopra was quoted saying, Now is the time to think long term about this financial market, including crypto. I think the emergence will come when you have the most diversity of people hanging out creatively, appreciating each other’s strengths, and having a kind of spiritual and emotional ecosystem where they can help each other. This is happening in the crypto community right now.”

More about crypto:

There are approximately 19,000 cryptocurrencies and hundreds of blockchain networks, the underlying technology that produces cryptocurrencies, in the market. Experts predict that not all of those stand chance of survival in the current times and that creative destruction is expected to prune the grounds and sweep out many participants.

Earlier participations:

Earlier, the Chopra Foundation collaborated with the crypto crowdfunding site EarthFund to establish a collection of NFT tokens targeted at assisting individuals in achieving mental and emotional wellness. In a statement issued in March 2022, the foundation stated that the token holders may obtain incentives that allow them to "finance a treasury crowdfunding and determine as a community that any mental health initiatives receive the funds, they need to make an impact.

The Chopra Foundation is also a part of SameYou NFT charity, which was founded in November 2021 by Hollywood actress Emilia Clarke and promises to provide better therapy for patients recuperating from brain stroke and trauma.

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The US, Canada, and Mexico have agreed to revise NAFTA. The new proposed trade deal is called the US-Mexico-Canada Agreement, or USMCA. Let’s explore the economic impacts of the revised agreement.

1. Benefits for American Workers, Farmers, and Businesses

Because the US is the world's largest importer of agricultural products, fair trade agreements with its trading partners are critical to the country's economy. The USMCA includes strong labor standards that will help ensure that workers in all three countries are treated fairly by their employers and have equal access to job opportunities.

2. More Manufacturing Jobs in the US

The USMCA incentivizes manufacturers to invest in North America by strengthening rules of origin requirements on cars. The new deal will require 75% of auto content to be made in the US, Canada, or Mexico, starting with 2023 models — up from 62% under NAFTA. It also requires 30% of auto content to be made by workers earning at least $16 per hour — which will benefit workers in both countries, especially those in Mexico, where they earn much less than US auto workers.

3. Boosts US Agricultural Exports to Canada and Mexico

The new agreement will open up opportunities for US agricultural exports to Mexico and Canada as well. It will eliminate non-tariff barriers on agricultural goods and create new rules of origin to ensure that products sold as "Made in North America" are genuinely made in North America.

4. Improved Food Safety and Transparency in Supply Chains

USMCA requires that each country commits to applying its laws regarding the safety and labeling of food products. The agreement also prohibits using unapproved genetically modified products currently used in some Mexican fields and requires labeling if they are present.

5. Increases Intellectual Property Standards to Protect Innovation

The new agreement will strengthen intellectual property protections for US innovators by extending patent protections for biologics to 10 years, which is essential for US pharmaceutical companies that invest billions of dollars in research and development in finding cures for cancer, diabetes, and other serious illnesses. It also includes new protections for US technology used in autonomous vehicles that will help keep American automobile manufacturers competitive with their European counterparts, who are also developing self-driving cars that could be sold globally.

The USMCA preserves much of its predecessor's core. Most provisions are either unchanged or only slightly altered. While it's too early to conclude the economic impacts, it seems clear that the new agreement will not be as disruptive as some have described. It is more likely that this trade deal will positively impact all three countries over time – provided, of course, that it is implemented and enforced.

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Turkiye and Saudi Arabia have been at odds over a murder that occurred in the Saudi embassy in Istanbul. The Turkish president blamed the crown prince, Mohammed bin Salman, for ordering the murder of Saudi journalist Jamal Khashoggi. Furthermore, the Erdogan administration has been lending support to the Muslim Brothers movement, a Muslim group that Saudi Arabia opposes. As a result of these two criminal and political issues, Saudi Arabia began imposing an embargo on Turkish products and severing ties.

Although there is no explicit embargo, Saudi imports from Turkiye fell dramatically from $221 million to $16 million in 2021. In one month, the price dropped by 92%. In addition, Turkiye received investment funds from Saudi investors, resulting in a precipitous drop. Given that the Turkish economy requires funds to survive the recent deep economic crisis, this embargo resulted in a significant loss for Turkiye. For a few years, Erdogan insisted on blaming the prince in charge, but the economic difficulties Turkiye is currently facing forced his management to change its policy toward Saudi Arabia, and a deal has been sought with Mohammed bin Salman. Erdogan paid him a visit in Riyadh and hosted him in Ankara to ease tensions with Saudi Arabia.

Benefits of Improving Trade between Turkiye and Saudi Arabia

Saudi Arabia is one of the richest countries in the world, despite having industrial production problems. The main reason for this is that Saudi Arabia is a country rich in natural resources, and Saudi Arabian culture has not promoted industrial production sufficiently to compete in the international trade arena. The climate is not conducive to healthy agricultural production. As a result, Saudi Arabia is one of the world's largest importers. Saudi Arabia has announced a reform program to reshape the national economy and increase productivity. It employs two strategies: transferring technologies from developed countries and sending students to universities in developed countries to learn technology.

In terms of industrial production and technology, Turkiye is a more developed country than Saudi Arabia. Although Turkiye has not had a good year, the Turkish labor force is well-developed, and if the necessary conditions are provided for Turkish engineers, Turkiye has the potential to compete with developed countries. Given the large number of Turkish professionals living and working in other countries such as the UK, Germany, and the US, Turkiye will always have a chance to make a big jump in the short term with the right economic and human resource policies. The capital, however, has always been an essential missing component for Turkiye. Turkiye has a significant weakness: national savings have never been sufficient to support economic development.

Given the facts about Saudi Arabia and Turkey, fruitful cooperation between the two countries is possible. The capital is in Saudi Arabia, while Turkiye has a well-developed labor force. Turkiye can also supply agricultural products to Saudi Arabia at more competitive prices. Saudi Arabian investors can turn a profit in Turkiye, and Turkiye can boost its economic development.

Supporting SMEs Might Be Important for the Cooperation

Many students from Saudi Arabia and Turkey attend universities in Western countries. They are learning about modern technology and looking for work in other countries. If the necessary conditions for startup businesses as new SMEs in Turkey and Saudi Arabia are met, these young students can easily be transformed into entrepreneurs producing for their countries. Given Turkiye's technological and industrial infrastructure and setup for supporting new technology SMEs, providing funds for new entrepreneurship opportunities would make both countries more productive and enjoy higher levels of productivity.

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Companies in international trade are taking increasing risks in order to maintain a satisfactory level of turnover. As a result, they must become more creative in order to find solutions to secure operations. However, traditional solutions, such as credit insurers or forfeiters, are frequently becoming increasingly uncertain. Banks are the preferred actors in such circumstances.

Frequent Risks in International Trade

Country risk is one of the main risks that companies must manage when they go outside their domestic borders. It encompasses the various political, economic, and social factors that may result in a loss during a transaction with a foreign country. It is unrelated to the specific characteristics of the business partner but is related to the business environment in which the transaction occurs. It is a difficult risk to assess, even though certain indicators such as political, social, and economic insecurity, a shaky banking system, stringent legal constraints, almost non-existent or archaic rights, rampant corruption, or protectionism can help.

Besides the country risk, which is both an economic and political risk, there are risks of a purely economic nature such as the risk of non-payment and the currency risk. When it comes to international trade, the risk of non-payment is almost doubled. It occurs when the customers of exporting companies do not fulfill their obligations, in whole or in part. This risk arises when a lapse of time separates the execution of the obligations of the different parties: the seller bears the costs as the product is manufactured, while the buyer pays only after delivery with a certain term of payment. As for the currency risk, it generally concerns debts and receivables from contracts in progress or to be carried out soon. As the rate of foreign currencies is constantly fluctuating, the company may be forced to convert sums from its international activities under less favorable conditions than initially budgeted.

Banks to the Rescue of International Trade Actors

For each of the risks mentioned above, banks offer appropriate services. A letter of credit is one of the banking solutions against the risk of non-payment. It is a conditional payment commitment issued by the bank. By means of this letter, the institution undertakes to pay a determined amount to the supplier of a product or service in exchange for the delivery, within a fixed period, of the documents proving that the goods have been sent or that the service has been rendered. The letter of credit protects both the seller and the buyer during a transaction.

As for currency risk, foreign currency advances are also a banking service valued by regular exporters and importers. The company borrows an amount in foreign currency equal to the amount of the claim to be received on the foreign currency market and immediately resells these currencies on the spot market to obtain national currency. That company will repay the loan with the currencies received from its client, plus foreign currency interest. There are several other banking services available to businesses operating at the international level.

Regarding country risk, banks do not really have any services per se. But they provide exporters and importers with comprehensive studies about the countries and their level of risk so that these companies can better choose their partners and make the best business decisions.

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After years of prominence as a prototyping method for designers and engineers, Additive Manufacturing (AM), also known as 3D printing, is growing as a means of manufacturing end-use parts at scale. Its potential across the automotive, aerospace, and medical sectors is also increasing.

According to the 3D Printing Trend Report 2022, the year 2021 was challenging for the industry because of the economic slowdown caused by the COVID-19 pandemic. However, there are signs that the industry is recovering and is returning on track to meet pre-pandemic growth levels.

What Are the Top Trends?

The report, conducted in February 2022, includes insights from a survey of several hundred engineering businesses and systemic reviews of industry news and market analysis reports. Below is a summary of the top 3D printing trends in 2022:

Industry Growth

More engineers are using 3D printing than in previous years. 68% of respondents used 3D printing more in 2021 than in 2020. According to the report, the market grew by roughly 19.8% in 2021, with over $15.1 billion in revenue.

This is further strengthened by the year-on-year growth of 19.8% in 2021 compared to the projected market growth of 19%. The report also estimates that the market will increase by 21% this year.

Another clear sign of growth is that the AM industry's compound annual growth rate (CAGR) is forecast to be 24% over the next five years. This is significantly higher than the 19% CAGR provided in the 2021 report.

Driving Sustainability

While the pandemic was a challenge for the AM industry, it also presented a unique opportunity. 3D printing was pivotal in producing PPEs after global supply chain problems limited the ability of conventional manufacturing to respond.

Due to its ability to improve supply chain disruptions in manufacturing and maximize material use during production, awareness of 3D printing is increasing and is expected to continue.

The potential of 3D printing for manufacturing at scale is also an advantage in driving sustainability in manufacturing. Many manufacturers consider environmental goals a pressing concern as consumers feel brands should take a stand on issues such as climate change.

The Era of Production

3D printing is transitioning from a prototyping tool to production technology for high-quality end-use parts. In 2021, nearly 30% of respondents expect to use this technology primarily for aesthetic or end-use part production, up from 21% in 2020.

The trend report suggests that 3D printing for production is a fast-growing trend. Among the respondents using the technology for aesthetic or production applications, 56% specialized in custom-made parts, while 36% used the technology for repeat production. 49% of survey respondents printed over ten parts in production runs, compared to 36% in 2021.

This clearly shows that production applications of 3D printing are a trend to look out for.

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With the UAE's focus on creating a digital economy through the adoption of cutting-edge latest technologies, blockchain has emerged as the most preferred instrument to create safer financial systems, reduce overall expenditure, and exponentially grow the country's GDP.

The federal government has joined a growing number of nations that are realizing blockchain’s immense potential not only to create a secure environment for the growth of burgeoning eCommerce but also to make reliable systems to create happier societies. The latest study by PricewaterhouseCoopers has revealed that blockchain has the potential to boost the global GDP by $1.76 trillion in the next 10 years.

The Increasing Popularity of Blockchain

Previously thought to be limited to cryptocurrencies, blockchain technology is now being used by governments and businesses alike for community engagement, increasing efficiency in product and delivery services, making payments and financial services more reliable by reducing online fraud and identity theft, and so on. Blockchain provides a digital database containing information, such as financial transaction records, that can be used and shared simultaneously within a large decentralized, publicly accessible network.

The UAE has launched the Emirates Blockchain Strategy 2021, which aims to move 50% of all government transactions to the blockchain platform by 2021. The Dubai Blockchain Strategy seeks to make the Emirate the first to be fully powered by cutting-edge technology. As part of the strategy, Dubai established the Global Blockchain Council, which is comprised of government entities, international companies, banks, free zones, and international blockchain technology firms. In addition, Dubai recently hosted the World Blockchain Summit, which drew over 1,500 global cryptocurrency and blockchain influencers, investors, and policymakers, among others, to advance its tech agenda.

Furthermore, the UAE's Roads and Transport Authority (RTA) is developing a blockchain-based system to increase transparency and trust in vehicle transactions, prevent disputes, and reduce service costs. It tracks ownership, sale, and accident history in order to create smarter and more efficient supply chain systems. Dubai CommerCity, an $870 million free trade zone dedicated solely to e-commerce, also makes use of blockchain technology to promote Dubai's position as a leading platform for international e-commerce, as well as to support economic diversification and smart transformation strategies.

This goes on to show that the UAE has a clear roadmap to make the most of the latest technological innovations, including blockchain, to usher in a new wave of economic development and digital societies, and become the global leader in the smart economy. The Emirates, especially Dubai, is poised to unleash the power of blockchain to help local businesses attain greater output in the global context, giving entrepreneurship and the eCommerce ecosystem a huge fillip.

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For several years, "digitalization" has been the leading subject in IDC's industrial coverage. It recently released a study titled "Investing in a Business Outcomes-Driven Digital Infrastructure," which was based in part on its North America Future Enterprise Best in Future of Digital Infrastructure Award program. Although the winners' names are not mentioned, their experiences have been included in IDC's list of best practices for the digital transformation of US manufacturing.

What Is Digital Manufacturing?

It is the use of computers in manufacturing services, supply chains, products, and processes to make them more efficient and effective. All aspects of production, from product conception to delivery, can be handled as one unit by digital manufacturing technologies, which connect disparate systems and processes.

Characters of Leaders in Digital Manufacturing

Per the IDC, leaders in the digital manufacturing space exhibit a "willingness to challenge the existing quo by aggressively dismantling operational silos and concentrating on business-centric KPIs."

However, the IDC stated there's typically a "lack of knowledge on the side of business leaders regarding the contribution that digital infrastructure brings to business outcomes, such as guaranteeing digital business resiliency, allowing operational agility, and driving deeper levels of consumer engagement."

A Key Approach to Adoption

According to the IDC, firms that successfully link digital infrastructure investments with business goals take these steps:

- Use excellence centers or collaborative decision-making, as this allows for strategic planning and decision-making;
- Identify the right number of business outcome-focused KPIs as "guiding lights." Each digital infrastructure team can then structure KPIs against those top-line business outcomes;
- Break digital infrastructure transformation projects into phases that generate business results.

The IDC believes organizations must also redefine how they fund and prioritize digital infrastructure by:

- Promoting trust and collaboration among IT, LOB, and DevOps;
- Business objectives and KPIs;
- Data-driven decision-making with continuous inspection and progress tracking;
- Documenting operating policies and automating enforcement where possible;
- Emphasizing platform-centric infrastructures and autonomous processes as enablers of digital business scalability, speed, and reliability;
- Using consumption-driven sourcing and payment mechanisms to expand investments and boost usage as business needs grow.

Digital manufacturing has thrown us some curve balls, but device and enterprise integration are finally starting to come together. And that should be good news for manufacturers who want to make their operations as efficient and effective as possible.

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Turkey is strategically located between oil-producing countries and countries in need of oil and petroleum products. In other words, Turkey serves as a strategic route for both oil exporters and importers. Because of logistical advantages, Middle Eastern countries and Russia prefer to ship their oil products through Turkey. In addition, the Turkish government has backed pipeline projects that transport natural gas from exporters to importers. At the same time, Tupras, Habas, and Socar, which have all ranked among the top ten exporters in Turkey, have oil refinement and other oil product manufacturing facilities in Turkey, such as LPG production and storage services, as well as ports and highway connections. Although Turkey lacks natural resources, it has a large capacity to process oil and transport a large amount of oil and oil products to importing countries.

A New Situation after the Armed Conflict in Ukraine

The Russian invasion of Ukraine has sent shockwaves throughout the global oil industry. Russia is a significant natural gas producer and supplier to EU member countries and Turkey. As a result, Russia has attempted to use this advantage against NATO member countries in Europe, as receiving natural gas from Russia is easier and less expensive for European countries than other alternatives. After Russia decided to punish NATO member countries and other European countries that supported Ukraine, Europeans are less interested in importing Russian gas. This situation elevates Turkey's contribution to the supply of oil, oil products, and natural gas.

Energy Prices and Entrepreneurship as the Engines of Economic Development

Small and medium-sized enterprises (SMEs) are the engines that propel every country's economic development. SMEs generate the most important development tool for national economies: enterprises. In other words, they help transform local advantages into products that provide competitive advantages in global markets. However, SMEs may be vulnerable to external shocks such as rising energy prices. They require a good environment for improving their productivity and creativity in order for the national economy to be healthy, and local governments can better assist them by creating a suitable development environment for them and protecting them from external shocks.

Rising energy prices are threatening the economic development of European economies, affecting not only households that use natural gas to heat their homes. Access to affordable energy resources is critical for European SMEs. This increases the value of Turkey for European countries as Turkey is an important alternative energy route.

The value of Turkish energy companies will thus increase in the short and medium term. Investing in Turkey's energy industry appears to be a good investment opportunity for most investors at the moment.

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Cryptocurrencies are a highly volatile asset class. Intraday price fluctuations of more than 20 percent happen frequently. But even for a highly volatile asset class, the downward spiral cryptocurrencies have been in for the past six months is concerning.

Bitcoin, the largest cryptocurrency by market capitalization, hit an all-time high of roughly $69,000 in November 2021. It has lost more than 70 percent of its value in just seven months. As most other cryptocurrencies are highly correlated with Bitcoin, they have lost value as well. The entire crypto market has lost around two trillion dollars in market cap since the end of last year.

The Terra-Luna Collapse

Bitcoin started to lose value when the stock market started its sell-off cycle. Similar to tech stocks, Bitcoin also trades as a risk asset. That means in times of uncertainty, when investors need to take risks off their portfolios, they start to sell the riskiest and most liquid assets first. Bitcoin meets that definition.

What further amplified Bitcoin’s collapse was the crash of a stablecoin called TerraUSD in early May 2022. The stablecoin, which was supposed to be pegged to the US dollar, lost its peg and dropped to zero. As stablecoins are an anchor of trust and stability in the otherwise volatile crypto ecosystem, the collapse of TerraUSD caused a loss of trust and capital outflows.

Celsius Network Withheld Deposits

As the Terra-Luna collapse brought down crypto prices, crypto firms started to struggle. For example, the crypto lender Celsius network faced a liquidity crunch as depositors started to take capital off the platform. As a result, the Celsius network had to hold all deposit withdrawals from their platform in mid-June.

As other platforms also started to struggle, investors panicked and sold off more of their crypto assets. That added to the pressure and market prices started to fall further. Today, Bitcoin trades at around $20,000, and risks in the ecosystem remain high. Some expect a renewed crypto winter, while others think Bitcoin will surge again. But the truth is, nobody knows at this point.

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An essential feature of international trade is determining the national source of imported goods. Technically, we refer to this as the rules of origin - a critical criterion for implementing preferential trade policies among nations. Imagine having to determine the origin of many raw materials shipped to manufacturing plants across the globe.

Tracking products back to their national origin is not simple. Yet, they are essential because trade restrictions and import duties largely depend upon the source of imports.

Why Are Rules of Origin Essential for Trade?

"Rules of Origin (RoO) are legal provisions used to determine the nationality of a product in the context of international trade." The framework specifies the conditions under which parties within a preferential trade area, such as the AfCFTA, the EU trading confederation, the Latin-American and Caribbean trade union, and others, can claim and benefit from the trade agreement.

Although the rules of origin as a feature of global trade have universal recognition, there's a wide variation in how governments choose to practice them, because in 1981, when GATT prepared a paper on rules of origin, it had no specific rules governing the determination of the country of origin of goods. Instead, it left each country to determine ‌its law in accordance with the purpose.

According to the World Trade Organization, rules of origin are used to implement measures and instruments of commercial policy, such as anti-dumping duties and safeguard measures. They help determine whether imported products shall receive most-favored-nation (MFN) treatment or preferential treatment, trade statistics, labeling and marking requirements, and government procurement.

As a result, for manufacturers, importers, and exporters to move goods across borders under a preferential trade agreement, the source of the products is tracked and verified to claim such preference. This is where blockchain can do its magic.

How Can Blockchain Technology Integrate Trade and Process of Origin?

According to Kerstin Braun, president of Stenn Group, a cross-border transaction on average requires the exchange of 36 documents and 240 copies. One of such documents is the certificate of origin, which proves the origin of a product.

However, according to Tradelens, exchanging paper documents reduces potential international trade by 15%. Therefore, the digitization and modernization of customs and logistics processes could restore that 15%, which would imply a $5.2 trillion per year globally up to 2050.

The need to digitize these processes shows a gap that blockchain can fill. It will allow smart contracts to reduce the industry's reliance on paper documents.

Blockchain also has the potential to improve and facilitate the trade of goods imported under preferential schemes. Applying this technology to certify the origin of goods will lead to greater security and more guarantees. It will also provide reliable data to help streamline tracking the source of each product, increasing trade within the regions and the rest of the world.

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Malaysia is the world's second-largest producer of palm oil. Palm oil is a common ingredient in a wide variety of food products, from packaged noodles and margarine to cookies and in non-edible products, too, such as lipstick. At the beginning of May 2022, Malaysia publicly stated its ambition to leverage the global edible oil shortage and chaos caused by Russia’s invasion of Ukraine to regain market share after buyers have shunned the commodity in recent years because of environmental concerns.

Palm Oil and International Trade

Indonesia is the world’s largest producer of palm oil. Together, Indonesia and Malaysia produce a whopping 85% of the world’s palm oil output, and both have faced boycotts because of the environmental damage caused by palm oil cultivation. Both nations have been accused of encouraging or turning a blind eye toward the clearcutting of rainforests and exploitation of migrant workers for the rapid expansion of palm plantations.

Both countries are home to critical and unique ecosystems teeming with biodiversity. The slash and burn techniques associated with palm oil cultivation both limit the habitats of these creatures and create terrible air quality all over Southeast Asia. One noteworthy victim of the negative effects of palm oil is the critically endangered orangutan.

In response, some companies have introduced "palm oil-free" alternative products. The European Union (EU)—which is currently the world's third-biggest palm buyer—has gone as far as to pledge to phase out palm oil-based biofuels by 2030.

Never Waste a Good Crisis

Some retailers have had to reintroduce palm oil into their products due to a global edible oil shortage caused by Russia’s invasion of Ukraine, which has greatly disrupted agricultural exports from both nations, specifically sunflower oil. Furthermore, Indonesia has restricted palm oil exports while drought has impeded the output of soy oil in South America.

It's against this backdrop that Zuraida Kamaruddin, the Malaysian Minister for Plantation Industries and Commodities, said the Malaysian government "[W]ill not want to waste a good crisis." While Kamaruddin’s comments may seem distasteful—and it’s perhaps not unrelated that she is now the outgoing Minister for Plantation Industries and Commodities—her words are standard practice in both politics and business.

Malaysia has a chance to reestablish the flagging market for its palm oil despite the environmental concerns of consumers across the world. For businesses, from international conglomerations to small and medium-sized enterprises (SMEs), a tough decision looms. Should they switch back to Malaysian palm oil as the cheapest edible oil option for their food products, or should they try to meet their consumers’ demands for environmentally stable ingredients and charge them even more in an already inflation-damaged market?

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When goods and services cross borders, they become part of a global value chain (GVC), which eventually reaches people all over the world. Trade is being driven even more by international strategies of companies that use foreign outsourcing and direct investment and do their work wherever they can find the skills and materials they require at a competitive price and quality.

As trade policy changes, here are some of the most vital impacts on GVCs:

The Transformation of World Trade

Trade officials must assess the reality of GVCs. Over the past two decades, there has been a significant shift in international trade. Due to the changing structure and trade patterns, traditional trade policy objectives have been re-evaluated.

Current Trade Comprises Capital and Intermediate Products

When we consider global trade, the conventional assumption is that each country exports its manufactured goods to customers in another country—this sort of trade accounts for only one-fourth of total trade in commodities and services. Today, three-quarters of global trade consists of enterprises purchasing production inputs and investment commodities or services.

Protection against these imports raise production costs and make it harder for a country to compete in export markets and take part in GVCs. Also, currency interventions that try to give exporters a competitive edge by making their currency cheaper lose their point because the cost of more expensive imported inputs, capital goods, or services cancels out at least some of the export value generated from a cost-effective currency.

Increased Globalization of Trade

Aside from preferential trade agreements, which have become more common since 1995, businesses have increased their use of imports from emerging economies, increasing the share of extra-regional value added to exports from the world's four major continents. Only in the European Union (EU) does intra-regional value-added outnumber extra-regional value-added.

Elimination of Border Tariffs

After more than 50 years of trade liberalization, most manufactured goods in developed economies have low nominal tariffs, and the general trend in developing countries has also been toward lower tariffs. However, in a world [url=https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.cepr.org%2Factive%2Fpublications%2Fdiscussion_papers%2Fdp.php%3Fdpno%3D11044;h=repec:cpr:ceprdp:11044]dominated by GVC[/url]s, things are not straightforward: tariffs and other border protection measures accumulate when intermediate inputs cross borders several times.

Trade policy is not like waving a magic wand when it comes to economic policy. Other policies are needed to benefit from GVCs for employment and income growth for everyone. A successful integration strategy must take into account the specificities of each country's economy and the challenges faced by businesses and workers as GVC participation rises.

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