The answer to new competition and new pressures
In addition to getting citizens the goods they want and need, businesses thrive when cross-border trade flows easily. And giving businesses easier access to a larger market is a crucial driver of economic growth.
However, the global trade landscape is changing, and countries that have traditionally enjoyed stable trade revenues are facing new pressures. Competition is increasing as central trade hubs shift; and as those shifts happen, customs and regulatory agencies quickly become bottlenecks in efficient supply chains as they’re unable to keep pace with change.
The result: traders change suppliers, seek new consumers and ultimately look for less costly places to conduct their cross-border business.
Feeling the effects of changing trade dynamics
Global trade hubs, and the governments they work with, are navigating an increasingly volatile global trade landscape—and losing traffic from cross-border trade to countries that are easier to do business with.
3 factors that impact global trade
Research reveals three powerful factors that continue to shape the trade landscape:
Growing market share in a volatile environment
Amidst this upheaval in the trade world, global trading hubs are increasingly pressured to secure market share of trade flows, and to make the ease of doing business and trading across its borders easier, less time consuming and cheaper.
These pressures are driving them to find new ways to attract and facilitate trade in order to boost their economy. For example, over the last decade, innovation has solidified Dubai’s status as a global trade hub. This helped achieve remarkable external trade growth in 2019, surging 6%, despite the first signs of a global economic downturn.4 Capitalizing on new innovations, alternate markets and trade paths will be essential to staying ahead of new regional competition, facilitating trade and protecting society.
That’s why the platform business model—used by some of the most successful and innovative companies in the world—could be the key to staying ahead of the curve.
Envisioning the cross-border trade platform
Platforms are the way forward for business—and when applied to the world of cross-border trade, the characteristics that contribute to their success can help trade hubs overcome current challenges while positioning them ahead of their competition.
Why aren’t single windows up to the task?
Traditionally, single windows that aggregate services from various government bodies provided the closest thing to a one-stop-shop for trade services.
However, single windows fell short in one crucial way: they were never designed for a whole ecosystem of services, instead limiting their focus to regulatory data submission and interaction with government agencies.
Since single windows can only come into play at a specific point in the overall process, they do not solve the issue of fragmented cross-border trade transactions that remain inefficient and costly.
Building a future-ready trading platform
Trade platforms aren’t built overnight. To start, trading hubs should ask themselves the following questions to start their journey to enabling a simple, effective way for traders to operate and comply with government regulations.
A catalyst for trade—and growth
A platform for trade can empower trading hubs to play an even bigger role in the global economy, paving the way for invisible borders and increasingly digital trade operations. By creating the true “one-stop-shop” for getting goods across the border, it will make trade easier and less costly for traders, help goods cost less for consumers, and make trading hubs, like Dubai, more desirable places to do business.
1Global trade growth is on its longest losing streak in a decade
2Britain could seal Asian trade deal by adopting a fresh attitude to palm oil
3 Cross border: The disruptive frontier
4Dubai’s non-oil foreign trade up 6% at Dhs1.37 trillion in ’19
5The Sharing Economy Is Still Growing, And Businesses Should Take Note
6 Five Ways to Win with Digital Platforms