With free trade increasingly challenged on several fronts in recent times and in the light of recent trends observed in U.S. trade policies (as well as in other countries), FIATA is speaking out to reconvene the benefits of the open, liberal, and global trading system which has been built in the last few decades and has ensured better living conditions to the vast majority of humanity.
      “Economic globalization has sadly become the scapegoat to justify many internal shortcomings,” FIATA said, noting, “but local and global problems are not caused by it.”

China Speaks Up

      China’s President Xi mentioned at this year’s World Economic Forum that unrestricted international commerce promotes a harmony of interests among nations, increases social welfare, leads to a more efficient allocation of resources, in particular if they are scarce, and spreads innovations across the globe.
      Fighting poverty and promoting trade liberalization are partners in development.

Open Markets Matter

      “As the OECD explains, open economies grow faster,” FIATA said.
      “Open markets matter as trade access can be tangibly measured in terms of economic growth, productivity, and a higher standard of living.  
      “Stronger institutions,” FIATA said, “better infrastructure, and even peace in the long run depend on well-functioning and unrestricted international trade.”

World Bank Numbers Count

      Recently The World Bank reported that per capita real income grew more than three times faster for developing countries that lowered trade barriers (5.0 percent per year) than other developing countries (1.4 percent per year) in the 1990s.
      “There are concerns,” FIATA points out, “that undoing free trade agreements may actually work in the opposite direction.
      “The development of an open, rule-based, predictable, non- discriminatory trading system is part of Millennium Development Goal 8, which seeks a global partnership for development.
      “Thus, free trade is an opportunity, not a risk, for all regions including developed, developing, landlocked developing, and least-developed countries.”

Getting Down To Business

      “FIATA Members take the view that free, facilitated international trade directly contributes to the achievement of the majority of the UN Sustainable Development Goals, in particular 1, 2, 3, 7, 8, 9, 10, 11, 12, 16 and 17.4.”

Forwarders Down On The Ground Get It

      “As principal trade facilitators, freight forwarders and logistic service providers are spurred by free trade and have a key role to play in increasing the sustainable, affordable development of our economies,” FIATA said.

How FIATA Forwarders Build World Trade

      Forwarders are able to think of supply and demand in a holistic manner, responsive to the fact that supply chains do not stop at national or regional borders and rarely use one mode of transport only.
      “The forwarding industry is constantly evolving and adapting in order to organize efficient, effective, and timely multi-modal door-to-door transportation and to help secure sufficiently large flows of freight by eyeing smart, seamless networks of interconnected corridors and hubs supporting advanced services.
      “Our services are the backbone of international trade and make it conceivable.”

Out Of The Box Innovation

      “Over the years the industry has learned to think out of the box and adapt to challenging forces that range from shifting demand patterns, more complex and global sourcing, changing relationships with shippers, telecommunication, and electronic data processing.”

Ease Regulations Not Tighten Them

      “Based on the industry’s resilience there is no requirement of additional regulation at international level, while the top intervention areas that would offer a development dividend for all countries are infrastructure policy, research, education, and awareness.
      “However, there is a precondition that must be present at all times; states and governments must firmly desire better conditions for their citizens, politicians should not use a short- sighted approach to decision making.
      “Losing faith in international cooperation leads to futile contemplation and sterile fire-fighting from one insurgence to another.
      “In the end, social unrest prevails and this could jeopardize peace.
      “The role of governments come to the fore in dealing with cutting red tape and creating facilitation opportunities, enhancing harmonization, implementing international agreements, investing in education, promoting skills creation and quality of study, updating, upgrading and maintaining infrastructure, promoting public and private investment in key infrastructure and seeking international coordination, not regional segregation.”

Logistics A Powerful Enabler All Around

      “With these elements, logistics becomes a powerful enabler of prosperity and the precious ally of good government in creating happier and more successful citizens.
      “More in detail, as we try also to promote the WTO Trade Facilitation Agreement, which is now coming into force, forwarders require better data management to provide end-to-end visibility of manufacturing capacity, inventory holdings, transport availability and all the necessary metrics on a global visibility scheme.
      “Thus, more cross border continuity and reliability within the supply chain is required through facilitation tools such a Single Window for Customs, which can be conceived as a strong enabler of better trade,” FIATA concluded.

FIATA The Global Trade Leader

      FIATA has been in the front line to promote the TFA both globally and at the national level.
      Today, freight forwarders stand for a trade policy that focuses on sustainable development and prosperity.
      Progress translates into investing in infrastructure and trade facilitation instruments, with a view to ensuring sustainable services with logistics connectivity and reduction of trade transaction costs, refuting protectionism as it endangers development.
      Roads, railways, ports, and airports deliver economic and social benefits by connecting agricultural, mining, and manufacturing producers to international, regional, and local markets.
      Long-term initiatives should focus on updating, upgrading, and maintaining infrastructure, as well as promoting infrastructure development as a means to end stagnation and promote growth and jobs in a sustainable manner.
      This must go hand in hand with trade facilitation measures taken in coordination with trade partners and bureaucracy simplification.
      Without the right policy settings, it is difficult for any country to harness the opportunities for local industries to participate in global value chains.
      Policies should experience a paradigm shift from control to trust-based regulation, a paradigm where freight forwarders are at shippers’ service with expertise, information, and organization, helping them to uphold compliance and sustainability, involving all the stakeholders in the supply chain. Supporting this paradigm shift, we note that FIATA alone stands together with its over 40,000 members, who are rooted in the tradition of free trade and open to the world economic order.
      FIATA declares that it looks forward to continuing the dialogue with all interested parties.
      We can only wonder: who will step up and carry the conversation forward?
Geoffrey

      Right now, much of air cargo’s attention is focused on a trade show taking place in Johannesburg, South Africa.
      Air cargo, we’ve noticed, always seems to meet either in Nairobi or South Africa.
      There is no doubt that both these locations are world class and offer a valuable wealth of information and opportunities to network. In a few short years, attendees have learned more about the dark continent than many of us had known in 70-plus years of air cargo.
      But we wonder, what about the over thirty other countries that make up the rest of Africa?
      With that in mind, we turned to an executive who has unparalleled, first-hand experience in African affairs. Aside from being a savvy businessman, he is a dreamer and doer and even served as a farmer in Africa.
      Issa Baluch may know as much about logistics as anybody you will ever meet.
      He possesses the chops and know-how gained over a career that spans 37-plus years, and he has used these things to gather some of his thoughts and put them down in black in white for all the rest of us to study and ponder.
      Best known as the founder of Dubai-based Swift Freight, which was a medium sized multi-national that he eventually sold to Barloworld, one of Issa’s lasting contributions is that he is the guy that launched sea-air in Dubai.
      Issa is now at Harvard in the U.S.A., where he is undoubtedly continuing to think big thoughts about logistics.
      Here, Issa sets the tone.

How To Read Change In Africa 2017

      In politics, just last month the ECOWAS region (made up of Western Africans) ejected the former dictator Yahya Jemma of Gambia when he refused to concede to Adam Barrow, who won the 2016 Presidential elections.
      This is a new “wind of change” in the thinking of African countries. Coup d’états are down by 90 percent as compared to the 80s and 90s, and now the message is ‘get used to the democratic processes - no room for dictators!’
      On the technological and business front, locally manufactured cars in various countries are gaining momentum and business is thriving. Automobile manufacturers such as Kantaka in Ghana, Innoson in Nigeria, Kiira in Uganda, Möbius in Kenya, and Willyscar in Tunisia are just some examples of local production developing roots in Africa.
      Rwanda launched the first national delivery service using drones in 2016. The drones deliver necessary medical materials such as blood to facilities with poor road access. Rwanda is the first country in the world to enact laws that govern the use of drones in commercial transportation with insurance and training facilitation.
      Africa is currently attracting garments manufacturing due to its abundance of land, water, and natural resources. For example, the world's largest zipper manufacturer—Japanese YKK—has relocated their manufacturing from China to Swaziland.

Opportunity At Every Turn

      All of the above impact air transportation in some form or another. With that trend continuing you will see more manufactured goods reaching the shores of North America.

Overlooked Markets

      As a continent, Africa is moving in the opposite direction of BREXIT. As a continent with a population of over a billion, there are 54 countries with roughly over 2,000 languages and over 200 boarder crossings. This makes intra-trade extremely difficult and is the reason why talk of AU passports and provisions about freedom of movement for goods, people, and currency is taking center stage in the African Union. Without too many hassles, intra-trade has been growing at a rate of 20 percent for the last 15 years. This is low compared to other regions, but has the potential to increase given the right backing.

Africa In Living Color

      Extremely expensive local borrowing curtails business growth. Only international businesses with financial stamina can grow their businesses. Expansion for local businesses is challenging despite existing opportunities.   
Issa Baluch/Geoffrey

Vol. 16 No. 17
The Emirates Difference Takes Hold
Chuckles for February 15, 2017
The Trump Effect: India Walks Softly, Carries A Big Stick