The end of year period is always a time for reflection and there is a lot for the international trade community to look back on from 2024.
Over half of the global population voted in democratic elections and the results of these votes could shape the direction of trade policy for years to come – most notably, Donald Trump’s victory in the US.
It’s also been another year of rapid regulatory change, including the continued roll-out of the Border Target Operating Model in the UK and the introduction of the Carbon Border Adjustment Mechanism (CBAM) in the EU, to name but two.
Navigating change has been a constant theme of the last half-decade since I joined the Chartered Institute of Export & International Trade. As I approach my fifth anniversary of becoming the Chartered Institute’s director general, it’s incredible to think just how much change traders have been through.
From the pandemic to the increasing number of international conflicts, the growing impact of climate change, as well as various supply chain crises, from the Red Sea to the Panama Canal, businesses have had to be alert and agile while steering through choppy waters in the global economic environment.
Trade has never been so important
What has been clear throughout 2024 – and the 2020s more broadly – is that the importance of supporting businesses to export and import has never been so great.
Research has repeatedly shown that businesses that trade internationally are more resilient, more sustainable, employ more people and are more profitable. A recent report from the E-Commerce Trade Commission, which the Chartered Institute chairs, also showed that encouraging the 70,000 small businesses that don’t currently trade overseas to start doing so, using online platforms, could boost the UK economy by £9.3bn GVA.
It’s been clear, throughout all the conversations I’ve had with ministers and policymakers within the new government in the UK, that trade has to play a central role in its broader mission to boost economic growth. We were therefore heartened when Labour confirmed that it will be publishing a new trade strategy that will align with its industrial and small business strategies.
The Chartered Institute, on behalf of and in coordination with its members and the wider trader community, will continue to feed into these strategies.
An historic moment
It was, indeed, a pivotal year for the Institute as it gained Chartered status earlier this year, becoming one of the first organisations to be bestowed this honour by the new monarch, HM King Charles III. Receiving the Royal Charter was a significant mark of the trust that’s been placed in the Chartered Institute, its members and its staff to continue making the case for trade as we enter 2025.
In becoming the Chartered Institute in July, we reconfirmed our dedication to empowering the global economy by equipping organisations and individuals with the expertise needed for compliant, sustainable and effective trade. We did so in the continued firm belief that trade is a force for good in the world, lifting people out of poverty, driving economic prosperity, and facilitating the continued sharing of information and values across borders.
But becoming Chartered was not the end of the road. It was a milestone passed and another landmark on our journey is about to arrive. As we end 2024, we are already looking forward to another year of celebration in 2025, when we will celebrate our 90th anniversary.
When we were formed in 1935, by the leading figures in commerce of the day, we began with a mission to advocate for the value of international trade against a backdrop of growing protectionism and rising geopolitical tensions. As we turn 90, we must again advocate for the value of global trade in an increasingly fractious and uncertain world.
A new model is needed
What is clear, as we enter another pivotal year for the world, is that the free trade model as we have known it is in need of change. Global inequality in wealth, health and education is a red flag sign that the current trade model isn’t working.
And yet there are opportunities. Technological advancements continue at pace and should pave the way for the long overdue digitalisation of supply chains and cross-border trade. There is more information about how to enter new markets than ever before through the internet. There are more channels through which businesses can reach international customers – from e-commerce to social media. AI continues to create new opportunities to streamline business operations, including around trade.
Governments and industry need to work together to harness these opportunities to rebuild trust in trade. By doing so, we can create more transparency, traceability and systems interoperability, empowering a risk-based and streamlined approach to cross-border trade management.
Rebuilding trust in TRADE
At the Chartered Institute’s recent Import Export Show – one of my highlights of the year – I made a clarion call for delegates to work together to advocate for the value of trade.
I also gave the following mnemonic for the role that the Chartered Institute has to play in this endeavour: TRADE.
· Trust – to be a reliable voice for our community
· Reach – to make our argument heard as widely as possible
· Advocacy – to represent our community and make the argument for trade
· Develop – to innovate new solutions that drive trade efficiency and transparency
· Expertise – to raise professional standards and knowledge in global cross-border trade
Together, with our members, graduates and students, stakeholders and partners, we must remain committed and dedicated to this mission of rebuilding trust in trade.
Rest and recharge
For now, I hope you too have a moment to pause to reflect on the year gone by and the year ahead, and also to rest, recover and enjoy the Christmas break with friends and family.
We look forward to working with you again in 2025 to rebuild trust and to empower global trade.
