Every two years, the World Trade Organization (WTO) convenes a ministerial meeting, and its 13th installment – Thirteenth WTO Ministerial Conference (MC13) commenced on the 26th of February in Abu Dhabi, United Arab Emirates.

With its dispute-resolution mechanism in disarray, the WTO faced an opportunity to demonstrate its ability to facilitate negotiated agreements. At stake, among various other issues, lay the future of a moratorium on tariffs on digital trade.

This moratorium essentially prohibits member states from imposing customs duties on electronic transmissions such as software, e-books, music, and other digital products.

Since its inception in 1998, the WTO e-commerce moratorium has been renewed every two years, serving as a cornerstone of the digital economy. It has facilitated the growth of cross-border digital trade, enabling businesses to reach global markets with greater ease and efficiency.

However, although the moratorium was renewed yet again in 2024, there is an expectation of a fiercer negotiation when the time for renewal comes in 2026. At least 3 major developing countries expressed their dissatisfaction with the moratorium.

Let’s delve into the challenges.

Challenges to renewal

With the 13th Ministerial Conference (MC13) having just taken place, the future of the e-commerce moratorium had become a timely and contentious topic of discussion. MC13 held the potential to shape the trajectory of international trade policies and the digital transformation of trade for years to come, making the fate of the moratorium a pressing concern for WTO members worldwide.

Despite its longstanding presence, the renewal of the e-commerce moratorium faced challenges from certain quarters. Two developing countries, in particular, express concerns about the perceived imbalance in the current digital trade landscape. In most cases, when member states are signaling to oppose the moratorium it’s usually a bluff in order to get concessions in other areas. But things looked rather dire this time around.

Let’s look at which countries opposed the moratorium and why:

India

According to Bloomberg, during the WTO’s 12th Ministerial Conference in 2022 in Geneva, India had adopted the same stance as now and propagated for an end to the digital trade tariffs moratorium along with several other South Asian countries like Sri Lanka, Pakistan etc. However, after a discussion between USTR and Indian Trade Minister Piyush Goyal, India took a swift u-turn and agreed to an extension of the moratorium.

The 2024 moratorium followed the same trajectory. Piyush Goyal made a strong case against the e-commerce moratorium, alleging that it refrains from imposing customs duties, favored big tech companies and undermined the prospects of competitors in developing countries.

However, on the final day of MC-13, India took yet another U-Turn. Goyal said he agreed to the renewal of the moratorium upon the request of the UAE trade minister, Dr Thani bin Ahmed Al Zeoudi, who is also the chair of the ministerial conference. “He is a friend, and out of friendship, I agreed,” Goyal told reporters.

Indonesia

The evolution of the digital economy has brought forth new challenges and complexities that were not envisaged when the moratorium was first introduced. Issues such as data privacy, cybersecurity, and intellectual property rights now occupy center stage, prompting calls for a comprehensive reevaluation of existing trade rules. Indonesia argued that renewing the moratorium without addressing these concerns would be premature and may exacerbate existing regulatory gaps.

“Indonesia also believes that governments need to be free to impose tariffs in response to rapid change in the digital world,” said Askolani, director general of customs and excise at the country’s Ministry of Finance.

According to the WTO, the potential tariff loss to developing countries is around $10 billion, further emphasizing the significant economic implications at stake in the debate surrounding the e-commerce moratorium.

Indonesia was one of India’s staunchest allies in opposition against WTO negotiations. However, they were completely unaware of India’s decision to drop the opposition to the e-commerce moratorium. It continued to oppose the moratorium till the final hours of the meeting, before eventually relenting under pressure as well.

Potential implications of WTO’s tariff moratorium expiration

Over the years the moratorium has its fair share of advocates and critics both. While some believe that it’s essential to have the moratorium in place, others think that it disproportionately benefits tech giants from advanced economies, exacerbating existing inequalities. However, allowing the e-commerce moratorium to expire could have profound implications for the digital trade landscape.

One immediate consequence would be the imposition of tariffs on digital trade transactions, including the downloading of digital content on streaming services and other cross-border digital services. Such tariffs could lead to increased costs for consumers, stifling demand and hindering the growth of the digital economy.

The expiration of the moratorium could trigger a wave of regulatory fragmentation as countries rush to implement their own rules and tariffs on digital trade.

This fragmentation could create barriers to entry for small and medium-sized enterprises (SMEs), limiting their ability to compete globally. It could also escalate trade tensions between major trading partners, further complicating efforts to reach consensus on international trade agreements.

It could also create a climate where startups and small businesses struggle to navigate a patchwork of regulations and tariffs, diverting resources away from innovation and growth. Higher costs associated with tariffs on digital trade transactions may deter investment in new technologies and limit the ability of entrepreneurs to compete globally. This could particularly affect industries such as fintech, artificial intelligence, and digital healthcare, where cross-border collaboration and market access are crucial for advancement.

Alternative options for revenue through existing domestic consumption taxes

Exploring other options for revenue through existing domestic consumption taxes could provide a viable alternative to imposing tariffs on digital trade transactions. Governments could consider leveraging value-added taxes (VAT) or sales taxes on digital goods and services consumed domestically, thereby generating revenue while avoiding potential disruptions to cross-border trade.

By adapting existing tax frameworks to encompass digital transactions, authorities can ensure a level playing field for both domestic and international businesses operating in the digital space.

This approach not only offers a means to capture revenue from the growing digital economy but also aligns with efforts to modernize tax systems in response to changing consumption patterns. Moreover, focusing on domestic consumption taxes allows governments to address revenue needs without impeding the free flow of digital trade across borders, thereby supporting continued innovation and economic growth in the digital era.

The future of digital trade in a post-moratorium era

The renewal of the WTO e-commerce moratorium presents a critical juncture for the future of digital trade. With MC13 having just taken place, WTO members must navigate competing interests and forge a path forward that promotes inclusivity, innovation, and sustainable growth in the digital economy.

A proposal to make the moratorium permanent was also put forth in MC13 but was met with severe opposition and it is expected that things will be rockier in 2026 when MC14 is expected to be held in Cameroon. The decisions made in the next two years will not only shape the future of e-commerce but will also have far-reaching implications for global trade and economic development.

It is essential to strike a balance between fostering digital trade openness and addressing regulatory concerns to ensure that all nations can benefit from the opportunities presented by the digital economy. Efforts to promote transparency, interoperability, and fair competition will be essential in creating an environment conducive to sustainable digital trade growth.

With a recession being predicted to hit the U.S. economy in late 2023 and early 2024, the job market is slowing down as fears continue to mount. The tech industry in particular contributed to mass layoffs this year, driven by some of the biggest names in the world including Microsoft, Meta, Google, Yahoo, Amazon etc.

Google’s parent company Alphabet reduced their workforce by approximately 12,000 roles. CEO Sundar Pichai wrote in a letter to Google employees “we hired for a different economic reality than the one we face today.”

The global economy is slowly recovering from the aftereffects of the COVID-19 pandemic and grappling with situations like regional conflicts and disrupted trade routes. This also means that the international trade landscape is evolving drastically and so is job insecurity.

In such a dynamic job market, there are certain roles that are growing increasingly popular. The demand for skilled professionals in these job roles is skyrocketing.

So, if you’re looking for jobs with good scope and stability globally, consider exploring international trade. Let’s look at some of the fastest growing international trade jobs in 2023 globally and how you can break into these thriving sectors.

Marketing international trade jobs

The global marketing landscape is more diverse than ever before. A career in marketing usually involves good pay and quick growth. According to the U.S. Bureau of Labor Statistics there is expected to be a 10% employment growth rate for marketing managers from 2021 to 2031. Professionals who understand international markets and consumer behavior are in high demand. Here are some of the most in demand global trade jobs that in the  marketing sector.

1.    Global Growth Manager

As an increasing number of businesses continue to expand globally, the demand for multifaceted professionals who can identify and capitalize on opportunities for expanding businesses internationally is greater than ever. Forbes talks about hiring the right leaders as one of the keys to getting global expansion right. Here is where Global Growth Managers come into the picture. They meticulously research market dynamics, consumer behavior, and emerging trends to formulate strategic plans for global expansion. By leveraging data-driven insights to navigate international business landscapes, they are indispensable assets in the quest for sustained global growth.

2.    International Business Development Executive

International Business Development Executives are instrumental in fostering global growth for companies operating in today’s interconnected world. Their job role involves nurturing strategic partnerships, collaborations, and alliances with businesses and organizations worldwide. With a deep understanding of international markets and the skills needed to identify new business opportunities in various regions and industries, these executives are at the forefront of forging international connections and creating synergies in the global marketplace.

E-commerce international trade jobs

E-commerce has become a cornerstone of international trade. With global e-commerce expected to show an annual growth rate of 11.17% from 2023 till 2027, it’s safe to say that it’s a thriving industry. Hence, it’s no surprise that the demand for skilled professionals to fill e-commerce jobs is at an all-time high right now. So, let’s explore some jobs that are increasingly growing in demand in e-commerce.

3.    E-commerce Operations Manager

At a time when e-commerce is thriving, E-commerce Operations Managers act as the driving force behind the seamless functioning of online businesses across borders. The U.S. Bureau of Labor Statistics reports that approximately 2,300 new jobs will be added for general and operations managers in e-commerce between 2016 and 2026. E-commerce Operations Managers are responsible for orchestrating and optimizing the day-to-day operations of e-commerce platforms, ensuring efficient order processing, inventory management, and timely delivery to customers around the world.

4.    E-commerce Business Analyst

Analytics is taking the world by storm and more businesses are recognizing the importance of leveraging big data in their expansion strategies. According to the World DataScience Initiative, about 80% of global enterprises are investing in a data analytics division, creating a great demand for analysts. E-commerce platforms collect a wealth of data and here is where E-commerce Business Analysts come into the picture. They are responsible for deciphering and decoding data and transforming it into actionable insights that drive strategic decisions. They are the analytical minds behind the success of international online businesses.

5.    E-commerce Project Manager

Project Managers are a crucial part of every organization and industry and e-commerce is no exception. The Project Management Institute’s ‘Project Management Job Growth and Talent Gap 2017–2027’ report predicts that by 2027, employers will need nearly 88 million individuals in project management-oriented roles. E-commerce Project Managers take on the responsibility of planning, executing, and overseeing critical e-commerce initiatives. Their role is pivotal in delivering projects on time and within budget, which is a necessity in today’s rapidly evolving e-commerce landscape.

International supply chain jobs

The supply chain sector is the backbone of international trade – transactions within global supply chains account for 76% of world trade. This is why it comes as no surprise that in today’s rapidly evolving global marketplace, supply chain professionals are at the forefront of ensuring that businesses can adapt, grow, and remain competitive. Here’s an in-depth look at the top supply chain jobs that are growing in prominence.

6.    Director of Procurement

Procurement is an essential aspect of the supply chain and the role of Director of Procurement is a crucial one. These individuals are responsible for securing the necessary materials and resources for businesses to operate on an international scale. This includes sourcing products globally, negotiating contracts, and managing supplier relationships.

7.    Supply Chain Analyst

Several predictions highlight that the demand for supply chain graduates will go through the roof in the next two years due to the fragility of global supply chains. Those will the skills of a Supply Chain Analyst should have no trouble landing a position. Supply Chain Analysts are experts who gather and analyze data on inventory, transportation, and production to identify bottlenecks and inefficiencies. They use this data to make informed decisions that enhance the supply chain’s efficiency and responsiveness to market changes.

8.    Process Improvement Manager

Process Improvement Manager is a relatively new job role but one that is rapidly growing in popularity. Their key responsibility is to find ways to enhance the overall efficiency of supply chain operations. They do this by identifying opportunities for streamlining processes, reducing waste, and improving the overall productivity of the supply chain. By implementing Lean and Six Sigma principles, they strive to drive continuous improvement, in an effort to make supply chains more agile and cost-effective.

International trade finance jobs

The finance sector in international trade has grown leaps and bounds over the past decade, with professionals playing a pivotal role in both financial management and technological adaptation. Diverse job opportunities and the integration of technology into financial practices means that the finance sector offers a promising career path for those seeking to navigate the financial frontier of international trade. Let’s look at some roles gaining more attention.

9.    Financial Risk Analyst

According to the Association for Financial Professionals Risk Survey, financial risks were among the top four risks having the greatest impact on earnings in the next three years. Financial risks can often make or break a business and this is where the role of Financial Risk Analysts becomes crucial. These professionals identify and manage the financial risks associated with international trade, including currency fluctuations, credit risk, and market volatility. They also curate risk management strategies to protect businesses from adverse financial events and help them navigate the complexities of international markets.

10.    Fintech Consultant

With the global fintech market being expected to reach a market value of $326 billion by 2026, the need to leverage this innovative technology in international trade is becoming imperative. Fintech Consultants help businesses achieve this by advising them on how to harness financial technology (fintech) solutions to improve their international trade operations. They help companies adopt digital payment systems, blockchain, and AI-powered financial tools to enhance efficiency and reduce costs.

Navigating the fast-growing world of international trade jobs

International trade is flourishing and so are opportunities for those equipped with the right skills and knowledge. If you have the right training and credentials, you’re one step closer to landing one of these lucrative jobs. Invest in specialized education, such as degrees in supply chain management or finance, to get the foundational knowledge needed to excel in these fields.

In addition to that, credentials that show you have knowledge and skills in key competency areas of international trade will give you a competitive advantage in this job market.

Staying informed about the latest industry trends and global market developments is also crucial. Follow trade organizations on social media (we recommend connecting with FITT’s growing LinkedIn community), sign up for industry newsletters, and look for networking events in your area.

Lastly, hone your language skills, especially if you want to land import and export jobs, as proficiency in multiple languages can enhance your appeal to global employers. Once you have developed the skills to grow your global trade career, the world of international trade jobs is yours to explore.

With the Teamsters union reaching a tentative contract deal with UPS management just days short of the July 31 deadline, what is said to be the largest strike in a century against any U.S. employer, has been narrowly dodged.

Since UPS is responsible for almost a quarter of all U.S. deliveries, the strike would’ve been devastating on the U.S. economy. According to a study conducted by the consulting firm Anderson Economic Group, a 10-day UPS strike would stand as the costliest strike in at least a century, inflicting a staggering $7 billion economic impact on the U.S. economy.

UPS delivers more than 24.3 million packages everyday and its competitors like FedEX and DHL would not have been able to bear that kind of backlog had the strike taken place. “In the event of a market disruption, no carrier can absorb all UPS volume,” FedEx executives wrote earlier this month.

These disruptions have far-reaching implications for U.S. imports and exports, as delays and bottlenecks in key ports can ripple through the entire supply chain, affecting businesses across the continent.

And as we talk about supply chain disruptions, the impact of the Canadian BC port strike adds further challenges to North American shipping. Canadian National Railway Co., the country’s largest railway, predicts it will take two months to recover from the B.C. port strike. The recent two-week strike at B.C. ports halted freight flows through West Coast terminals, leading to a minor impact on earnings this quarter.

Projected impacts on North American shipping

The strikes have triggered considerable supply chain disruptions across North America. Additionally, freight forwarding and shipping services are under pressure due to increased demand amid global trade uncertainties. These disruptions have led to delays, congestion at ports, and challenges in meeting delivery timelines.

“I expect we’ll see shortages of inputs, higher shipping prices, which will ultimately be passed on to consumers, and longer lead times for deliveries if the strike takes place,” Bart De Muynck, chief industry officer at project44, a supply-chain data company told Bloomberg in an email.

According to survey results released by the Canadian Federation of Independent Business 53% of business owners believed that the strike will affect their operations.

Even though a tentative resolution has been met in both cases, the surge in freight forwarding demand will likely cause prolonged delays in the supply chain. This situation can lead to increased costs, reduced profitability, and potential damage to business reputations. As U.S. and Canadian imports and exports are affected, industries relying heavily on timely shipments, such as retail and manufacturing, may face significant challenges in meeting customer demands.

7 ways businesses can mitigate the unforeseen

As the shipping industry grapples with ongoing disruptions, businesses must consider mitigating actions to protect against further crises.

1.    Diversify shipping routes

To mitigate the impact of port strikes and disruptions, businesses should adopt a proactive approach and work to diversify their shipping routes. It is crucial to collaborate with reliable freight forwarders who can assist in identifying alternative routes that can be utilized during times of disruption.

By exploring and establishing contingency plans for various shipping options, they can ensure smoother operations and minimize the adverse effects of potential disruptions on their supply chains.

2.    Leverage multiple carriers

Relying solely on a single carrier at any point along a shipping route can leave businesses vulnerable to delays and bottlenecks when a strike occurs.

Experienced freight forwarders and logistics experts can help you plan for back-up carriers, both domestic and international, to spread the shipment load and minimize dependency on one provider.

This strategy not only minimizes the impact of major disruptions but also enhances flexibility and adaptability in the face of even minor challenges, allowing for the best service available.

3.    Optimize technology and tracking

Businesses can utilize advanced tracking systems and technology to monitor shipments in real-time. These systems enhance visibility and enable more proactive responses to potential delays or rerouting. This enhanced visibility provides businesses with crucial data and insights, allowing them to stay informed about the location, status, and potential challenges their shipments might face.

With real-time tracking, companies can  identify any potential delays or deviations from the planned routes sooner, enabling them to take immediate actions to address these issues.

4.    Re-evaluate contracts

Having full clarity on liability and compensation terms within shipping contracts and freight forwarding agreements is essential to navigate through periods of uncertainty. Are the correct Incoterms identified throughout the contract? Seeking professional legal advice during contract negotiations can help businesses to identify potential gaps or loopholes that could leave them vulnerable during crises.

By renegotiating contracts to include specific clauses that address issues related to labour disruptions, force majeure events, and supply chain delays, they can establish a solid framework for handling unforeseen challenges.

5.    Proactive communication

When faced with potential delays or disruptions, it is essential to keep customers informed in a timely and honest manner. Openly sharing information about the challenges being faced and the steps being taken to address them fosters trust and confidence in the business relationship.

By providing regular updates on the status of shipments and any possible delays, businesses can manage customer expectations and allow them to plan accordingly.

6.    Identify opportunities for flexibility

Another important thing businesses can do to is assess their logistics operations and identifying areas where they can be flexible. This involves recognizing parts of the supply chain where slower delivery or alternative transportation methods can be accommodated without compromising overall operations.

By identifying areas of flexibility, businesses can proactively communicate with suppliers, freight forwarders, and customers to set appropriate expectations and develop contingency plans.

7.    Invest in risk management

Investing in risk management is crucial for businesses seeking to enhance their supply chain resilience. By developing robust risk management strategies, companies can proactively address potential disruptions before they escalate into significant challenges.

A comprehensive risk management approach involves carefully analyzing the supply chain from end to end, identifying vulnerabilities, and understanding how various scenarios could impact operations.

What does the future look like for businesses impacted by the North American shipping strikes?

In the face of ongoing challenges, businesses must prepare for a future that prioritizes resilience and adaptability.

The recent strikes and disruptions have highlighted the need for diversified shipping routes, efficient risk management strategies, and transparent communication with customers.

Embracing advanced tracking technology and collaborating with reliable freight forwarders will become essential components of successful supply chain management.

Looking ahead, the future of shipping in North America will likely witness a growing emphasis on optimizing imports and exports through robust and flexible logistics networks. By proactively addressing potential disruptions and investing in innovative solutions, businesses can position themselves to thrive in an evolving and dynamic shipping environment, where the new normal is to expect the unexpected.