Anniversary occasions are always a great opportunity to reflect on the past while looking toward the future. On Thursday, March 9th, FITT and our esteemed group of CITPs and CITP milestone anniversary celebrants did just that.  

During our 2023 CITP Milestone Anniversary Event, we celebrated CITPs marking their 5, 10, 15, 20 and 25-year anniversaries. The online fête included inspiring speeches by FITT President, CEO, and CITP Caroline Tompkins; The Honourable Perrin Beatty, PC, OC, Honourary CITP and President and CEO of The Canadian Chamber of Commerce; and Denise Amyot, Chair of FITT’s Board of Directors.  

The event also officially kicked-off festivities for the CITP designation’s 25th anniversary—a momentous achievement for FITT and all CITPs who have been part of the Certified International Trade Professional designation’s journey over the past quarter century.

Caroline Tompkins noted that those wishing to partake in the festivities are encouraged to use and check out the #CITPis25 hashtag to see all the online excitement happening to commemorate the occasion from now until June—the designation’s official anniversary month. 

CITPs reflect on their anniversaries

There were many event highlights to note, chief among them were touching quotes from notable milestone recipients. Caroline Tompkins shared these stories with the crowd, including the following sentiments from one of FITT’s first-ever CITPs, Bob Greaves—who celebrated his 25th anniversary this year. She noted that Bob said he’s “…been proud to represent himself as a CITP—it is the one designation he’s maintained over the years because of its relevancy and value.”  

Similarly, she shared a quote from Emiliano Introcaso—a CITP celebrating his 10-year anniversary—who said:

“…becoming a CITP makes it possible for me to practice and promote international trade in a way that is professional and ethical. The designation is a logical extension for people who truly want to crown their education and experience in global business and thrive in international markets.”

‘Now’s the time for vision’

In other speeches, the Honourable Perrin Beatty brought foresight and gravitas to the occasion, discussing the challenges and opportunities facing businesses working in a global market. He didn’t shy away from noting the realities of our current trade ecosystem impacted by COVID-19, geo-political conflicts, supply chain snarls, trade barriers and climate change—all of which have exposed “significant vulnerabilities in the global economy.”  

But, more than the challenges, Mr. Beatty highlighted the importance of trained trade professionals within this ecosystem. He encouraged CITPs to lead businesses trying to navigate these complexities, so they can see and take advantage of opportunities that are arising even during these disruptive times.

Canada, specifically, is rich with resources and commodities that the world wants, and it needs businesses led by knowledgeable trade professionals who can help open up these promising new trade markets.

“Now’s the time for vision,” he concluded, inspiring many in attendance to think about their role in the future of the world’s trade systems. 

Milestone recipients shine in the spotlight

In one of the most anticipated moments of the event, milestone celebrants were honoured with a rousing speech by Denise Amyot, Chair, FITT Board of Directors. She recognized the whopping 114 milestone recipients, all listed below: 

Capped off by a lively breakout networking session and a fun quiz, it’s safe to say that this year’s event was a success, garnering meaningful discussions and tributes for our milestone CITPs and the international trade community as a whole.

A huge congratulations to all those who celebrated their anniversaries, and a big thank you to all those who attended.  

Watch the entire event recap in the video below! 

People still want to know what’s keeping Stephen Poloz up at night. The ever-astute

Unsurprisingly, the book is a national bestseller, with many individuals seeking his word on what lies ahead—while others still want to know what’s keeping him awake at night.

So, what’s keeping him up at night?

This was a question Mr. Poloz was often asked during his tenure as the Governor of the Bank of Canada and was asked once more during FITT’s most recent fireside chat with him, hosted by FITT President, CEO and CITP Caroline Tompkins. As usual, his answer was in-depth and well thought-out, mainly focusing on political polarization and the concern that “politics somehow are going to get to a place where things really can’t get done.”  

But it isn’t just polarization that’s keeping him awake at night, it’s also the rising income inequality most countries are seeing, which, in his opinion, is fuelling the type of atmosphere where polarized political sides only seem to work together when crisis hits. This is a weakness that could lead to a trend of governments stumbling from one crisis to another to get things done, he thinks. If the past year’s events, from the global pandemic to the war in Ukraine, are any evidence of Mr. Poloz’s knack for nailing a prediction on the head, then he might have a second career as a clairvoyant (though he would disagree with this assessment). 

Despite the multiple looming risks discussed throughout the chat, Mr. Poloz also showed his famous sunny side, giving insightful solutions and strategies that businesses and everyday individuals can use to better prepare for uncertainty. These include things like empowering teams with values-based leadership and ensuring that companies have solid long-term forecasts. These forecasts should include strategies for managing tectonic changes like inflation, political polarization and an aging workforce. He also highlighted the openness of individuals in government to work together toward better solutions for the economy. 

Other interesting topics discussed during the chat include: 

• The exacerbation of inflation (which Mr. Poloz had predicted in his book over a year ago—but did not think would happen so quickly) 
• Canada’s slow trade growth and contributing factors such as low productivity hampered by logistical and regulatory inconsistencies that prevent businesses from growing 
• Canada’s strengths, which include a strong influx of immigrants who contribute to our workforce and productivity, our excellent education system and better handling of income inequality when compared to other countries. 

A rich and insightful 60 minutes, we’re grateful to have hosted Stephen Poloz for the second time and hope there will be many more opportunities in the future. 

Watch the event here:

By now, most international businesses have learned to adapt and remain flexible with the uncertain economic climate, supply chain struggles, and COVID-19 variant waves. Within this resiliency, they have found the ability to become comfortable with the fact that much of the international trade ecosystem’s future remains unpredictable.

To adapt, they’ve applied better risk mitigations strategies; found alternative shipping, manufacturing, and export providers; adopted digital marketplaces; and applied innovative financial or funding solutions.

As we are fully living in the “new normal,” the struggles have been visceral for many industries. Such as travel, tourism, leisure, and restaurants, but for others, opportunities have arisen. For instance, some technology businesses like Kognitive Spark, a software company based in New Brunswick, saw an increase in clients, applications, target market, and revenue because their augmented reality solution provided much needed remote maintenance solutions to onsite staff, stated to Bernadette Fernandez, in a panel discussion with FITT last year.

Similarly, Fernandez noted that: “I’m also not sure how many businesses want to get back to what we knew as normal… [before] everything was done in excess and we see a lot of things that we want to do differently or less of, like going into a workplace and having a more balanced life. I know a lot of companies now who are actually more successful because they are now able to offer an alternative to travel.”

Her points highlight how those who were able to adapt last year will, this year, now fully become immersed in their new normal. Innovating, becoming digitally savvy, and, yes, growing comfortable with the unknown along the way.

Bearing these notions in mind, we’ve got a list of 10 Global trade trends we’ll be watching in 2022, many of which prove that, as a whole, the international business community has accepted unpredictability as a norm that they can and must thrive in.

1. Moderate economic growth with regional and industry variability

According to the WTO, world merchandise trade volume growth could rise to 4.7% in 2022,” while Export Development Canada’s Global Economic Outlook—Autumn 2021 forecast predicts a 5.5% increase in world economic growth in 2022. These projections echo the Centre for Economics and Business Research’s (CEBR) estimate that the global economy is expected to grow by 4% in 2022.

While there is growth, most are noting that 2022 will be a year of decelerated growth when compared to 2021. COVID-19 variants, supply chain issues, and the tapering off of support programs all contribute to the slowdown.

Similar to last year, the economic progress will vary from region to region, with developed nations making gains more quickly than developing nations as a result of vaccine distribution,  economic policies, and political situations. The World Bank reports that EMDEs (emerging market and developing economies) “…are expected to suffer substantial scarring to output from the pandemic, with growth trajectories not strong enough to return investment or output to pre-pandemic trends over the forecast horizon of 2022-23.”

2. Continued supply chain struggles, but potential improvements dependent on COVID-19 restrictions

In 2021, supply chain struggles dominated the headlines. While many predicted shortages of certain supplies, most did not foresee the host of other issues that were in store for the global supply chain. From pallet and container shortages to major port closures and delays—to even the totally unexpected Suez Canal Crisis, the troubles were numerous. Many of these issues will continue into 2022—though, possibly, might not be as bad.

The WTO predicts that “Supply-side issues such as semiconductor scarcity and port backlogs may strain supply chains and weigh on trade in particular areas, but they are unlikely to have large impacts on global aggregates. The biggest downside risks come from the pandemic itself.”

While Export Development Canada notes, “We expect supply chain and shipping shortages—major issues at the moment—to improve through 2022. But our projections are far from risk-free: Failure to contain COVID-19 conclusively could result in further lockdowns. Inflation could lead to central banks tightening more than the economy can handle, putting the brakes on growth.”

Sarah Schiffling and Nikolaos Valantasis Kanellos noted in an article for Fast Company that the “bullwhip effect”—when changes in customer demands cause repercussions in other supply chain areas—could become a prominent issue in 2022. In 2021, there were already indications of this:

“A combination of the crash in demand for new cars and higher demand for devices like laptops and game consoles (for lockdown entertainment) contributed to the semiconductor-chip shortage,” they noted.

On the flip side, some companies might experience the opposite problem: having too much stock on their hands once consumer demands are fulfilled—requiring businesses to be precise and restrained with their planning.

Businesses and consumers will also have to contend with price increases due to supply problems, but as these become more commonplace, many hope that cooperation from governments and trade bodies will help ease the situation. Factor in COVID-19-related labour shortages within the supply chain force, and there may be quite a few bumps to overcome throughout the year.

3. Hybrid logistics strategies

With COVID-19 lockdowns and border and travel restrictions rising and falling throughout 2020 and 2021, many companies are re-thinking their logistic strategies this year, likely diversifying to create hybrid approaches to their plans.

Last year, some considered localizing supply chains while others diversified and expanded theirs. This year, those who don’t want to set all their eggs in one strategy basket will create a mix of local and expanded networks. This will ensure that if one supply avenue fails, another can take its place.

Similarly, companies that relied on just-in-time manufacturing—the practice of keeping a lean inventory to create products as they are needed (to reduce costs)—began adding just-in-case logistics to their planning. Because of current supply chain issues, many added elements of just-in-case approaches to their plans so they could store more inventory and materials to meet consumer demands during supply chain disruptions.

“Some companies will probably continue to improve their just-in-time with a sprinkle of just-in-case. Others will bring production of some products closer to home markets while also keeping offshore-production facilities to serve local markets,” noted Schiffling and Kanellos in their FastCompany article “Supply chain issues will continue well into 2022—with a twist.”

Learn about supply chain and logistic fundamentals with the FITTskills Global Value Chain online course!

4. Climate Change Disruptions

“Months’ worth of rainfall fell in the space of hours in China and parts of Europe saw severe flooding, leading to dozens of casualties and billions in economic losses. A second successive year of drought in sub-tropical South America reduced the flow of mighty river basins and hit agriculture, transport and energy production,” said WMO Secretary-General Prof. Petteri Taalas in a United Nations Report.

His words, echo the onslaught of climate change disasters and disruptions—including deadly, record-breaking heatwaves and floods across North America—that took place in 2021, and that are predicted to continue into 2022.  

Projections internationally for climate-related disruptions are more serious than ever, with U.K. government researchers recently reporting that next year will be one of the hottest on record, with average global temperatures about 1.96 degrees Fahrenheit over pre-industrial averages.

These forecasts are among the many climate change headlines that will continue to dominate the news in 2022. As climate change disruptions will create human, environmental, and economic disasters throughout the year, they will spur global governments to simultaneously tackle emissions reductions policies and regional planning for natural disasters and severe weather impacts.

5. Increased Climate-Change Policies and Initiatives

As climate change is becoming a more urgent focus globally, many governments, climate activist groups, and businesses are increasing their efforts to adopt circular economies and curb greenhouse gasses and carbon emissions. The recent COP26 summit, for example, garnered massive attention for its convergence of global powers who came together to work toward solutions to climate change. The summit concluded with nations agreeing to phased-down unabated coal production and sped-up timelines for their “nationally determined contributions” or NDCs.

In response to climate change effects, other nations like Canada are increasing carbon taxes. US President, Joe Biden, is pushing for a goal of reducing the US’s greenhouse gas emissions in half by 2030.

International businesses are also increasing their efforts to reduce their carbon footprint. Retailers like Patagonia are implementing a “No more virgin petroleum fibers by 2025” pledge. Alphabet, Google’s parent company, is pledging to become the first major company to run on carbon-free energy by 2030.

6. Political Sanctions

As 2021 wrapped up, there were signs of political strife between many of the world’s major nations. The US, Canada, Australia, and the UK are imposing a diplomatic boycott of the Beijing Winter Olympics over concerns about China’s human rights abuses, while, on the horizon, there could be potential conflicts with a Russian invasion of Ukraine, and China’s political moves with Taiwan and Hong Kong.

The US Commerce Department already is in the midst of blacklisting several Chinese technology companies. This is in response to their alleged high-tech surveillance of the Uighur people. China has already imposed sanctions against four members of the U.S. Commission on International Religious Freedom in 2022. Those looking ahead this year can expect more sanctions between countries, with trickledown effects for industries caught in the crosshairs.

7. Data Security Enhancements

Businesses were already increasing their reliance on technology prior to the start of the pandemic. But now, almost two years into the pandemic, they’ve accelerated their approaches and are now fully immersed in them.

As digital is the only way for many global businesses in 2022, efforts to improve data security will increase. Due to “not only the growth in the number of security breaches but also the rising costs associated with them. A single hack can be enough to severely affect an enterprise’s bottom line as well as reputation. Having the right precautions and business continuity processes in place is vital for long-term success and brand confidence,” notes Simon Waller in a The Fast Mode article.

Unsurprisingly, CNET agrees with these sentiments, noting that in 2022, “The expectation of a ramp-up in hacks, attacks and data theft comes after a massive jump in ransomware—takeovers of computer systems that remain locked down until a ransom is paid—that spilled into consumers’ lives in 2021. Cyberattacks that shut down oil transporter Colonial Pipeline and meat packer JBS USA contributed to temporary gas price increases and meat shortages in parts of the US.”

As a result, governments and businesses globally are increasing their efforts and budgets for data security. They are doing this by making server storage locations, database protection, and prevention plans their top priority this year.

8. Adoption of Artificial Intelligent and Automation

AI and automation technology adoption was already on the rise before COVID-19. Now, with many needing help due to dwindling workforces, remote workplace adoption, and the consumer demand for reduced in-person contact, these solutions are gaining more traction than ever before.

 “This pandemic has created a very strong incentive to automate the work of human beings,” says Daniel Susskind in an article for Time magazine, “Machines don’t fall ill, they don’t need to isolate to protect peers, they don’t need to take time off work.”

Companies globally have applied everything from chatbots for customer support to content-generating AI software to help with their increasing content demands or declining staff numbers. For example, MSN and its Microsoft News service now has AI that can scan and process content, while multiple banks have moved in-person services to online automated offerings to appease customers trying to limit in-person contact.

These offerings will only continue to grow and expand as 2022 moves on. Signaling a sea change for how consumers will do business even beyond COVID-19.

9.  Cold Chain Technology Advancements

Vaccines need strict temperature-controlled storage to remain effective, which is why cold chain technology is big news these days. Enhanced temperature control and reporting systems are being implemented for carriers for vaccines. For example, the Vaccine Freezer Monitor (VFM) system from Timestrip in Cambridge, UK:

“When preparing to transport a set of frozen vaccine vials, the user starts the VFM temperature indicator by pressing a button on the back. The monitor then goes inside the packaging along with the vaccine vials. If the temperature rises above -7°C at any time, the indicator shows an alert,” states an article in Inbound Logistics. Advancements like these will accelerate in 2022 to accommodate one of the world’s most important commodities.

Other innovations, like temperature-controlled packaging and lithium battery alternatives, are moving the industry forward. These innovations are not only for vaccine transportation but also for the food and medical industries. The push to keep this pace going likely will only ramp up as 2022 rolls along.

10. Remote workforce growth and adoption

A survey by the Business Development Bank of Canada (BDC) noted that 74%of businesses plan to offer employees remote work after the pandemic while 55% of employees stated that they want to work remotely as much or more than they do now.

When COVID-19 outlooks improved in some countries in 2021, some companies did eventually require return-to-work scenarios. Though their efforts proved to be short-lived in the face of new COVID-19 variants. Also due to a general cultural shift to demand remote working scenarios regardless of health situations.

Indeed, “the great resignation”—a term coined after businesses saw an influx of employee resignations in the face of return-to-work mandates—has become a common phrase throughout 2021, and in 2022, will likely continue to be talked about so long as employees enjoy their work-from-home (WFH) situations.

According to new 2022 stats, “4.5 million people voluntarily left their positions in November—an ‘all-time high,’ according to the agency responsible for collecting the data,” states an article in The Conversation. These stats aren’t surprising, as life for many employees has changed drastically over the past months. These changes require a reprioritization of personal goals, values, and needs. In 2022, companies will be taking note of this remote work desire and will come up with more options. Such as partial work-from-home scenarios to accommodate the current shift.

2022 will be full of shifts and changes, some foreseen and others unexpected. It’s clear now that we cannot predict our global situation with any certainty with the pandemic still in full force. Those who are embracing this fact are moving forward with ingenuity and innovation. In doing so, they’ll make gains and solutions that could move international business into a new era of resilience and progress—and that’s something that everyone can look forward to.

[Updated May, 2024]

In July 2021, Mary Ng, Canadian Minister of Small Business, Export Promotion, and International Trade, along with Tatiana Clouthier, Mexico’s Secretary of Economy, and Katherine Tai, United States Trade Representative, marked the one-year anniversary of CUSMA, also known as the Canada-United States-Mexico Agreement. This historic all-female gathering took place in Mexico and saw all three women converge, in person, to mark “their commitment to North American supply chains and economic competitiveness, which have created significant economic growth and benefits for people and workers in all three countries,” according to the official Trilateral Joint Statement.  

New 2023 Trilateral Joint Statement

For many, the acronym CUSMA is still not second nature—even prompting some to refer to it as the “New NAFTA” (the North American Free Trade Agreement) or “NAFTA 2.0,”—and there are many reasons for this. For starters, the countries that are part of CUSMA each refer to it differently, with the U.S. calling it “USMCA” and Mexico often calling it “T-MEC.” Beyond the name, the details surrounding CUSMA aren’t as clear-cut as they were with NAFTA (which came into effect January 1st 1994), prompting many questions about the trade agreement that have yet to be answered to this day.  

To understand what CUSMA is, the history leading up to its enactment, and where it stands today, read on below: 

What is the Canada, United States, Mexico Free Trade Agreement (CUSMA)?

Many refer to CUSMA as the “New NAFTA” or “NAFTA 2.0” because it is largely a revised version of NAFTA. Similar to NAFTA, it is a free trade agreement between Canada, the United States and Mexico that defines the National Treatment and Market Access for Goods between the countries, determining rules and regulations on tariffs, rules of origin, customs administration, trade facilitation, and many other trade-related matters.

The CUSMA trade agreement covers a long list of items, from agriculture and textiles to regulatory matters such as government procurement, macroeconomic policies, Intellectual Property (IP) rights, and rules for Small and Medium-Sized Enterprises (SMEs). 

The tumultuous history of CUSMA 

CUSMA was created at the insistence of former U.S. President Donald Trump. He was outspoken about his dislike of NAFTA during his presidential campaign and pushed for a new trade agreement that favoured American interests—even going so far as to threaten to terminate the agreement altogether if the other countries did not acquiesce to a new agreement. Unsurprisingly, the negotiations for many of these changes were tense, and leading up to the signing, the U.S. increased the tariffs on specific imports from Canada to the U.S., causing Canada to do the same in retaliation. Mexico also had criticisms of the trade deal agreement in many areas.  

Eventually, CUSMA was ratified on March 13, 2020, with Canada being the last country to ratify. Following this, the agreement officially came into effect on July 1, 2020. In a State of the Union Address, former President Donald Trump said of the agreement, “The USMCA will create nearly 100,000 new high-paying American auto jobs, and massively boost exports for our farmers, ranchers, and factory workers. It will also bring trade with Mexico and Canada to a much higher degree, but also to a much greater level of fairness and reciprocity.” Meanwhile, critics noted that Canada, in particular, was consistently treated as an “enemy” instead of a partner throughout the negotiations. 

What were the main changes in CUSMA? 

To ensure that the new trade agreement was beneficial for all, the participating countries used the new trade agreement as an opportunity to revise items from NAFTA, adding new sections on digital trade, labour, the environment, and small and medium-sized businesses.

Additionally, there were increased incentives for automobile production in the United States, a higher duty-free limit for Canadians who buy goods from the U.S. online, and greater access to the Canadian dairy market from the U.S.—a move which has had large financial repercussions on the Canadian dairy industry. However, many see the provision on labour, especially for workers’ rights in Mexico, as largely positive and progressive. 

How is CUSMA doing today? 

The views on CUSMA’s impact in North America one year after it came into effect are varied. Many, especially those with U.S. interests, view it as a success, while critics say that other countries were forced to make unfavourable agreements. Currently, there are disputes in several areas including labour rights violations in Mexico and a USMCA dispute panel has been initiated over dairy tariff rate quotas (TRQs) applied by Canada. 

Learn more about trade tariffs and quotas in our FITTskills course, Feasibility of International Trade.

To complicate the matter, COVID-19 delayed the implementation of many CUSMA measures, with all countries focusing their efforts on pandemic relief. As such, much of the impact of CUSMA remains to be seen, though, initial predictions found the economic impact to be modest, with Global Affairs Canada projecting that Canada would benefit from CUSMA by 0.249 percent of GDP by 2025 when compared to a scenario without NAFTA in play. 

In a news release on the Government of Canada website, there were noted next steps for CUSMA, including the following: 

“As our countries continue to combat the COVID-19 pandemic and continue our shared recovery from an economic downturn that has disproportionally impacted SMEs and underrepresented communities, we recognize that the CUSMA has an important role to play in revitalizing our region. As we continue implementing the CUSMA and ensuring that this Agreement benefits those that have historically been left behind by trade agreements, the Parties have agreed to continue to hold engagement meetings with underserved communities and to hold a Trade Deputies meeting before the end of this year to assess progress on the areas highlighted today and identify ongoing opportunities for future engagement.” 

CUSMA and SMEs 

CUSMA’s chapter on small- and medium-sized commercial goods businesses could be very beneficial for these businesses. The CUSMA additions for SMEs are moving forward with items like establishing a committee that will study how small businesses engage in trade and determining how SMEs in all countries can benefit from the agreement.

This is especially important now, as many SMEs have suffered great financial losses due to the pandemic. 

Perhaps on future anniversaries of the agreement, SMEs in all three countries may conclude that the true legacy of CUSMA  is that it serves as a catalyst for equitable growth, a model for competitiveness, and a stoke for innovation while also protecting the shared environment in North America.

Decision No. 5 of the FTC of the CUSMA, T-MEC, and USMCA

In February 2023, the Free Trade Commission (FTC) sought to enhance coordination and consultation to support the region’s trade flows in times of emergency, acknowledging how such situations can harm North America’s domestic economies. As such, the FTC required the participating countries to identify relevant agencies or maintain domestic committees to ensure that trade isn’t disrupted, or at least only minimally affected, by emergency situations.

In such events, the United States, Canada, and Mexico must also proactively consult and coordinate with relevant industries and non-governmental stakeholders (including workers) who may be involved, and inform them promptly of important mechanisms on a free and public website for transparency.

The FTC also set to establish a Trilateral Coordination Sub-Committee on Emergency Response to handle the delivery of information and the coordination of activities related to matters affecting trade during an emergency. Each country must designate a contact point for the Sub-Committee, which shall be endorsed to the other countries, and provide information on domestic procedures for emergency responses. The Sub-Committee must then reconvene annually to discuss comprehensive risk management as they see appropriate.

The FTC also directed the North American Competitiveness Committee, through its Sub-Committee, to develop a proposal on procedures for coordination and consultation during specific emergency events. It was also tasked to establish a trilateral Working Group to share each country’s approach to defining and protecting critical infrastructure under CUSMA and to reconvene periodically to update reviews and reports and to make any modifications as appropriate.

In all this, the FTC emphasized the importance of labour rights and worker health and safety, especially in emergency situations. The Sub-Committee must ensure the protection of these while maintaining trade flows.

The Latest on CUSMA in 2023

Three years after CUSMA entered into force, North America has felt the effects of the agreement. These were discussed in the third meeting of the T-MEC/USMCA/CUSMA (Agreement) FTC on July 7, 2023, in Cancun, Mexico.

The last two years have seen aggressive steps towards increasing dynamism and competitiveness in the region, particularly through trilateral workforce development events held in all three participating countries. These gatherings are expected to continue as they present an opportunity for each country to exchange best economic practices and explore solutions to regional and national challenges.

SMEs continue to be a hot topic, as organizations push these businesses (primarily indigenous organizations) to actively participate in international trade, as facilitated by CUSMA.

Workers’ rights are also increasingly emphasized as the agreement highlights a commitment to uphold these, including freedom of association and collective bargaining rights. In relation, CUSMA leaders are taking steps to ban the importation of goods produced by forced labour consistently, and to give labour stakeholders (particularly those in Mexico) a voice in trade policies.

CUSMA plays an important role in empowering North American economies, and with occasional reviews and assessments, it’s expected to continue to bring benefits and opportunities to the United States, Canada, and Mexico.

In a recent press release, The WTO (World Trade Organization) predicted that world trade was set for a strong but “uneven recovery” in the aftermath of COVID-19, with the volume of global merchandise trade expected to increase by 8.0% in 2021 after having dropped 5.3% in 2020.

They were also cautious to note: “The relatively positive short-term outlook for global trade is marred by regional disparities, continued weakness in services trade, and lagging vaccination timetables, particularly in poor countries.”

Considering the simultaneous feeling of optimism and uncertainty in the current economic climate, FITT recently hosted an online panel discussion as part of our Challenge and Change series of events to discuss the next phase of business as vaccinations begin to roll out across the world.

For some, there is a light at the end of the tunnel, while others feel they are still very much in the woods, so we turned to a panel of international business experts to draw up useful insights and strategies that businesses could use to move forward in the current climate.

The event, From Reactivity to Adaptability—Advice and Resources for Businesses on the Rebound, explored

• How various industries were faring
• Shipping and supply chain trends
• Risk mitigation strategy for the coming months
• Available businesses support resources, networks, and organizations
• And much, much more.

See what some of the speakers had to say below:

Watch the full event including a LIVE Q&A with the panel below

SME and industry insights, the new normal and innovation in tech

Bernadette Fernandes – Founder & CEO, The Varanda Network

Bernadette’s global business career began in 1986 and has spanned several sectors. She has spent the last 10 years consulting her Varanda Network clients all over the world. She is passionate about helping SMEs develop their export readiness and connect them to business opportunities in markets worldwide.

As circumstances are changing, and many are looking forward to getting back to normal, what type of approach do you think a business can take for preparing for a more normalized market?

Bernadette:

With the exception of travel…we now see a lot of things that we want to do differently or less of, like not having to go into a workplace and, instead, having a more balanced life.

I know some technology companies that are actually now more successful because they are able to offer alternatives to travel. I look at Kognitive Spark, a software company based in New Brunswick where I live, and they’ve seen an increase in clients, applications, target market and revenue because they offer an augmented reality solution with the Microsoft hololens that provides things like maintenance support remotely to onsite staff instead of sending a technician from wherever that expertise happens to be.

Having said that, I do believe that there are many businesses that want to establish some semblance of normal, even if it’s not the normal we were used to. So there are things that businesses are doing or can do to prepare themselves for this new normal—most of which seems to be around digital transformation. To establish or grow an online presence, pivoting and transformation seem to be the things within our control these days, so instead of sending salespeople to tradeshows or to client premises, we’re now relying on e-commerce or social media sales.

Risk mitigation strategy and how to best prepare your business for market changes

Enrique Sobalvarro: CITP, Director-at-Large, The GoldMind Project

Enrique is an international trade professional, connector, entrepreneur, strategist, and expert advisor with over 20 years of experience. He is now working as the Director-at-Large for The GoldMind Project. He is also a member of the Advisory Board of the Small Business Initiative at Calgary Catholic Immigration Society and, recently, contributed to Calgary’s post-pandemic recovery as a Business Mentor the Bounceback YYC (a Mount Royal University and the City of Calgary initiative) helping hundreds of entrepreneurs to launch their businesses.

Rahim Mohtaram – Ph.D., Professor at Saskatchewan Polytechnic

Rahim has been working in global supply chains for 15 years and has negotiated and executed more than 155 international contracts in sales, purchasing, agencies and distributors in 25 countries. He is also a CIFFA certified instructor and provides consultation on cost reduction strategies.

The last time we were together on a panel, we talked about smart cost-saving logistics strategies that businesses were employing during the pandemic. Have you seen these strategies change at all in 2021?

Smart finance options to carry your business through all conditions, plus the importance of having a documented business plan.

Amesika Baeta, CITP – Senior Account Manager, Export Development Canada (EDC)

As a senior account manager at Export Development Canada, Amesika works with companies of all sizes, of all industries, helping them take their business abroad providing them with trade finance, knowledge and risk mitigation strategies. She has worked in international trade for over 10 years.

Amesika Baeta:

Finances are always top of mind for a lot of SMEs. Though many are looking forward to a normal economy, the truth is that we’re not out of the woods yet. What are some insights you can share with those looking to tread this uneven scenario?

For many, we’re still trying to find ways to access working capital to support their needs. Over the last year, the support for SMEs has quickly changed to adapt to the needs that we see that they need. The reality is that this current economic climate has come, and EDC is one of those agencies where we had to really pivot to figure out how we serve our exporters. Now, in March of last year, the Government of Canada expanded EDC’s mandate to specifically help Canadian companies take on the risk of doing international business. But in times like this, the Canadian government said, no, we need to stretch beyond your mandate to help non-exporting Canadian companies face the financial challenges that they’re experiencing due to the pandemic. As a result, we had to make the necessary changes to adapt and extend some of our focus and our solutions to support needs like this, literally overnight.

We went into problem-solving mode to figure out how does EDC fit into this and what can we do? What are the mechanisms that we have to change to really grow and meet the demands of Canadian companies? So, our goal was to minimize the impact of this pandemic on all businesses—all Canadian businesses. One of the things that we did is create a business credit accessibility program, or what’s most know as the BCAP guarantee program, which is a stepping stone off of another financial guarantee program that we have at EDC that is traditionally for commercial bank clients. So this guarantee program was created in partnership between EDC and Canadian financial institutions to help businesses of all sizes and sectors and all across Canada to address the financial impacts that COVID-19 was having on companies. So, qualified applicants could be quickly approved to help meet their cash flow needs through their bank or credit unions to help manage their day-to-day expenses.

This guarantee is being served through your financial institutions and it is specifically done in new operating lines or term loans, if that’s what your bank has determined in order to really help sustain your operations. So, to pay rent, to pay employees salaries, to, you know, keep the lights on, and to keep operations moving. That program is there to try and help bring the cash into the economy to help companies survive and really, it’s been a program that has been very successful for companies of all sizes and shapes. It’s still available today, so, if you’re not speaking to your bank about it, I would highly recommend going and speaking to them to see whether you qualify.

I must preface that EDC’s program has set parameters and how each bank or credit union applies those parameters differs. So, again, I highly recommend that you and speak to your financial institution and see whether the BCAP guarantee program is a good fit for your cash flow needs. Now, there’s been other things EDC has done. We’ve taken on more credit appetites when it comes to insurance. We’ve made special accommodations to consider if companies had to pivot their business models to sell PPE or start manufacturing PPE and other types of things during the pandemic. So, we’ve made a lot of adjustments to our own regular programs that we provide in order to try to help companies through this pandemic. I welcome people to come to EDC either through the website or online or contact me directly, and I can put you in touch with the appropriate colleagues in the organization to talk through any of those programs to see whether they’re the right fit for your needs right now.

There’s a number of other programs that have been created through our sister crown corporation. Business Development Bank of Canada, there’s provincial programs, federal programs, some municipal programs have all been done to try and help companies survive this pandemic. We’re not out of it yet, so don’t be too proud to go out and ask for what help is out there because that’s the only way that we’re going survive. I also really recommend that you don’t make assumptions as to what you think you are eligible for. Just go and ask an expert to see whether your business could be eligible for these programs. The skilled team at EDC can also answer any kind of trade-related questions that you might have.

If you’re interested in specific COVID-related programs, there are a number of different resources that you can leverage. Virtual tradeshows that you can attend or industry reports or the Canada Export program—that’s run through the Trade Commissioner Service.

In terms of things that I’ve been seeing in my role as an account manager specifically in the GTA region, I’ve seen how important it is for companies to really have a good sense of where they are financially. So, as Enrique mentioned, the importance of having a business plan that addresses what the current needs are—not from when you wrote it, five, 10, or 20 years ago. You may have revamped it for today, and there has never been a time where it has been so needed for companies to make sure they take the time to stop and re-evaluate and readjust themselves as well. And, when it comes to working capital, that is extremely important because your bank is going to be asking for that organization. Any financial institution is asking to see a business plan. One, they want to understand how did you survive the pandemic, what do you do when you had a bad year and because you lost a few clients, that’s ok, but what did you do to pivot? What did you do to counteract that dip in sales? Are things starting to turn around in 2021? Have you had to start selling a different product? Did you move your product online?

We want to know that story as to what your business had to go through, so it’s important that you are building comprehensive financial statements, that you’re keeping interim statements up-to-date and your sales projections. The more organized, the more prepared you are to answer these questions, we’ll only ever be more in your favour and allow you to have more productive conversations with your financial institution.

On Monday, March 29th, ships stuck behind the colossal Ever Given vessel in the Suez Canal heard the echo of blaring boat horns and triumphant chanting. These were the sounds of celebration and hope, for the Ever Given, a 400m-long, 200,000-tonne (or 1,312-foot, 220,000 ton) ship carrying 18,300 containers, finally showed signs of movement. The ship had been wedged between the canal shores since Tuesday, March 23rd, causing a delay in an estimated $9.6 billion USD of trade goods per day, and an estimated $95 million in toll revenue for the canal, according to data firm Refinitiv—all in just under one week.

Image by kees torn – EVER GIVEN, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=89201715

A tenacious and exhausted team had been working to unblock the canal and managed to free the ship’s stern on Sunday. The next morning, they liberated its mammoth bow deeply embedded into the canal’s eastern bank. This set in motion the final stages for the ship’s full re-floatation and, later, the canal’s reopening at 6 pm local time.

All the manpower in the area wasn’t enough to complete the task, however. Truly, the strong rising and falling full-moon tides played a significant role in the operation—giving crews and other personnel a small window of time in which to take advantage of the gravitational gift, along with the team of tugboats that had presumably pulled and pushed one of the heaviest loads they’ve ever moved, with the Ever Given being one of the world’s largest and longest container ships.

At first, what seemed to be a comical social media meme quickly turned to panic as the crisis revealed a much-overlooked reality within the international trade community: Most businesses and consumers take the world’s shipping routes for granted, vastly underestimating their fragility and vulnerability to accidents and delays—weaknesses that can breakdown supply chains in the blink of an eye.

With the Ever Given now freed and traffic in the canal slowly moving again, it’s a good time to reflect on the lessons learned from the 6-day ordeal, giving international trade and business professionals much to think about in the aftermath. Here are some of the most prominent international trade lessons from the Suez Canal obstruction:

1. Contingency and risk mitigation planning make crises manageable

It’s cliché, but always expect the unexpected. The most prudent businesses perform thorough commercial risk assessments that cover all areas prone to hazard, allowing them to identify weaknesses in their business strategy (such as international shipping risks).

This allows them to create contingency plans that involve having the proper financial resources, inventory, supplies and supply-chain alternatives in times of crisis or delay.

Many risk mitigation and contingency strategies include proactive contract negotiations at the start of trading relationships that clearly define accountability for unforeseen shipping delays, as seen in the image below:

FITTskills Lite: Analyzing and Mitigating Commercial Risk, copyright © 2017,2019,2020 FITT

Interested in this topic? Get our FREE FITTskills Lite Download here:

2. Know your Incoterms® and who is responsible for shipping delays in your contracts and negotiations.

Incoterms® are integral for creating bullet-proof contracts that clearly define who pays for shipping charges and when. Businesses engaging in international trade use The International Chamber of Commerce Incoterms^® rules in contracts to clearly communicate the obligations, costs and risks associated with the transportation and delivery of goods, providing clarity for sellers and buyers.

Businesses who know their Incoterms® well, carefully use them to ensure there are no areas of risk or uncertainty between the seller and buyer in the contract—and specifically, with shipping, no questionability as to whom is responsible for shipments and costs in the various stages of transport. They are essential for avoiding costly disputes between both parties.

Incoterms® also make it easier for the buyer and sellers to

• outline their individual obligations in the trade transaction
• determine when risk moves from the seller to the buyer under each specific rule
• define the buyer and seller costs and responsibilities.

Last year, Incoterms 2020® was released with updates and changes from their previous version. Those seeking to create advantageous contracts should make sure their knowledge or credentials are up-to-date, especially in light of recent events.

3. Option just-in-case supply chains

In recent years, “just-in-time” supply chains—supply chains that transport items to factories on an as-needed basis for manufacturing—have been popular. But with the glaring effects of the Suez Canal playing out in real-time, experts are predicting that some companies will move toward “just-in-case” supply chains that focus less on predicting the right amount of demand and goods in the moment, and more on having goods in stock and ready at all times—just in case delays occur.

“We are moving towards a just-in-case supply chain, not just-in-time,” noted Søren Skou, CEO of shipping firm Moller-Maersk, in an interview with The Financial Times on Monday, adding “It’s great when it [just-in-time supply chains] works, but when it doesn’t you lose sales. There’s no just-in-time cost savings that can outweigh the negative of losing sales.”

4. Think about more than one supplier

It’s not uncommon for international businesses to have more than one supplier because of scenarios like the Suez Canal incident. Even before the blockage, many businesses around the world were already in the midst of diversifying their supply chains and suppliers because of COVID-19-related shipping delays and restrictions.

The Suez Canal obstruction only served to amplify this need even more, serving as a sober reminder of the importance of planning for anything and everything that can go wrong when it comes to international shipping and international trade.

In a Forbes article, Mark Dohnalek, President and CEO of Pivot International, a global manufacturing, engineering, technology, product development company, also suggested another way for companies to avoid unpleasant surprises: “… have multiple sourcing options in place, as we learned during the pandemic. Another element of this recommendation would be to do business with one preferred vendor that has multiple operations across many regions of the world. This will avoid the massive impact a single location event would have on their business. This is by far the key toward mitigating exposure to these types of events in the future.”

*Main image contains modified Copernicus Sentinel data [2021], processed by Pierre Markuse – Container Ship ‘Ever Given’ stuck in the Suez Canal, Egypt – March 24th, 2021, CC BY 2.0. https://commons.wikimedia.org/w/index.php?curid=102400564

This week we’re celebrating International Women’s Day and trail-blazing women in business. FITT is proud to provide business training for the next generation of female leaders.

This year’s International Women’s Day theme was #ChooseToChallenge, a mantra that suggests a “challenged world is an alert world,” according to the official website. The words are apt, considering that this past year has created immense challenges for women in the workforce as a result of COVID-19.

A report by McKinsey & Company found that over the course of the pandemic women have been more likely to have been laid off or furloughed while mothers have had the brunt of parenting responsibilities while working through mass childcare closures.

Unsurprisingly, this has led to an increase in many females stepping away from their career advancements, either temporarily or permanently, setting back the progress that they and the broader collective of women have made in the past years.

The pandemic was also top of mind for UNWomen.org, whose theme for International Women’s Day was “Women in leadership: Achieving an equal future in a COVID-19 world.” Their focus for 2021 was on “the tremendous efforts by women and girls around the world in shaping a more equal future and recovery from the COVID-19 pandemic and highlight[ing] the gaps that remain.”

Clearly, especially now, there is still much work to be done for women and the fight for equality, but there is also much to celebrate as progress is slowly blooming from tackling these issues. During the pandemic, for example, many governments around the world created funding, resources, grants, loans and initiatives to support female entrepreneurs with business recovery. The general public also saw the clear gains that all citizens make when women are supported, empowered and in positions of leadership—as was the case with New Zealand’s COVID-19 recovery efforts led by their female Prime Minister, Jacinda Ardern.

In fact, UNWomen.org reports that women-led countries have collectively fared better with their pandemic responses than male-run countries overall. These types of milestones are great cause for celebration.

Bearing this information in mind, we’ve got a few more stats about female leadership and women in business to keep you inspired for the road ahead. Here they are:

1. 41% of active Certified International Trade Professionals (CITP®|FIBP®) are women.

2. Prior to the pandemic, being a leader was an attainable professional goal for a majority of women, according to a study by KPMG. Specifically, in their report, they found that “six in 10 women (64%) aspired to be a senior leader of a company or organization in the future, and more than half (56%) of women aspired to be on the board of a company or organization.”

3. In the same study, they found that women who were encouraged to be leaders were more likely to become senior leaders than those who were not (26% vs. 15%).

4. 67% of women in the KPMG research also said they had learned the most important lessons about leadership from other women.

5. 82% percent of professional working women in the same study believed that access to and networking with female leaders would help them advance in their career.

6. According to the Canadian Women’s Foundation, “as of 2015, 35% of Canadian women had a university certificate or degree, compared to 30% of men.”

7. The same foundation also found that “women and men also tend to have nearly equivalent job tenure. In a national study, both women and men report having worked for their current employer for an average of just under eight years.”

8. According to the International Women’s Day website, “Over 87% of companies are highly committed to gender equality—a huge increase from 56% in 2012. A commitment to equality often comes from senior leaders, management and male employees.”

9. According to The International Labor Organization, in Jordan, Saint Lucia, Botswana, Honduras and the Philippines, females are more likely to be bosses than men. Jordan, specifically, found that 62 percent of their managerial positions were filled by women.

10. A report by McKinsey & Company found that, at the start of 2020, representation for women in corporate America was trending upward, particularly with senior management positions: “between January 2015 and January 2020, representation of women in senior-vice-president positions grew from 23 to 28 percent, and representation in the C-suite grew from 17 to 21 percent.”

11. KPMG  asked women what advice they’d give to future female generations and found that “more than two-thirds of respondents indicated confidence—being confident in their capabilities (75%) and confidence to ask for what they deserve (67%)—[was] the key advice they would pass along.”

12. FITT’s senior leadership positions are all held by women, with the CEO and President, Caroline Thompkins, celebrating her 25th anniversary this year.

With much work to do and many women and men pushing for greater gender parity in the workforce, we salute those who keep pushing the needle in the right direction.

It’s an understatement to say that 2020 was an unpredictable year. But, with it done and businesses around the world adjusting to the new normal, there are many silver linings to be found. Namely, we’ve seen that with unpredictability, companies have become more resilient and adaptable, pivoting in record-breaking time to ensure their viability from now and into the future. 

Bearing this in mind, our global trade trends for 2021 all focus on the theme of adaptability—each showcasing the innovative solutions that businesses and trade professionals are adopting to innovate with the ever-changing circumstances.

Of course, the pandemic remains a top concern in all regards, but this year is less about reacting to the unexpected and more about coming up with solutions that push us into flexible, future-forward planning.

With that said, here are 10 global trade trends that we’ll be keeping our eye on throughout the coming months.

1. Virtual trade missions (VTMs)

Before COVID-19, trade missions saw government officials and businesspeople travel from one country to another to promote trade between the two. A hands-on, in-person social affair, these missions explored a multitude of business and networking opportunities that solidified key contacts, suppliers and government networks.

Of course, with today’s travel restrictions, in-person trade missions have mostly been postponed, and virtual trade missions (VTMs) are now taking their place.

What does this mean?

For starters, virtual missions focus on video chat and virtual conference meetings that cover the fundamental topics of interest, such as trade, markets, import and export opportunities, contact introductions, Q & A sessions and more. With zero travel and all networking and mission business occurring in a virtual environment, VTMs provide a practical solution for those seeking to keep their trade missions moving and active.

Bernadette Fernandes, Founder & CEO of The Varanda Network, in FITT’s Save Money & Recover Faster webinar saw these VTMs in action, stating:

I’m seeing a lot of virtual trade missions and site visits that we weren’t seeing before. And in some cases, when physical site visits are absolutely necessary to visit a supplier or a buyer, I’m seeing a lot of temporary outsourcing. An example of temporary outsourcing, as I call it, would be contracting local boots on the ground to visit and gather the decision-making criteria that you need.”—Bernadette Fernandes, Founder & CEO of The Varanda Network

Of course, there are some caveats to VTMs. Elements like meet and greets over meals and general cultural exposure cannot accurately be accomplished through virtual settings—but many businesses are working within the confines of the limits to ensure that the most important details are conveyed through online discussions and presentations. 

As more countries get used to executing VTMs, we expect an onslaught of new formats to evolve—from schedule planning and the order of events all the way to the individual meetings and how they are conducted to maximize time. Specifically, with VTMs, participants will have to be mindful of time zone differences, virtual chat/conferencing fatigue and technical snags.

While most believe VTMs to be an interim solution to the current pandemic restrictions, they do have benefits. Such as lower costs (no hotels, airfare or food expenses) and new approaches to international business in an online setting. 

2. Increased cross-industry collaboration

As experienced in the latter half of 2020, many businesses will branch out to other industries to stay afloat. Dr. Halia M. Valladares, panellist in FITT’s TradeElite chat last year said of this trend:

“It is a great time to find new partnerships; by collaborating you can share the costs and reduce your risks, plus increase your reach.”—Dr. Halia M. Valladares, CITP and Chair of Internationa Business, Entrepreneurship, NPRO and Aviation

Dr. Valladares’s sentiments have been seen in action too. Many innovative cross-industry collaborations and partnerships between companies around the world have made waves over the past few months. A report by Deloitte, for instance, showcased how OpenTable, a restaurant reservation platform, “entered into new partnerships with a variety of supermarket chains and other essential businesses to turn a visit to grocery and other retail stores into a reservable event.” 

In other cases, companies pivoted and collaborated across industries to provide essential products to consumers during COVID-19. Cosmetics giant LVMH, for example, switched its perfume manufacturing for Christian Dior, Guerlain and Givenchy to hand sanitizer production. Working with the French health authorities, this sanitizer was offered for free to help prevent the spread of COVID-19. 

Similarly, governments also reached out to other industries to provide support for SMEs. The Government of Canada partnered with Shopify to create Go Digital Canada, a central resource hub for Canadian entrepreneurs to help their businesses get online and grow with Shopify resources and tools.  

How these collaborations will transform in the post-pandemic era remains to be seen, but the same Deloitte survey found that

78% of executives said that they “would retain the new partnerships to some extent after the pandemic—the highest of all business model changes.”—Deloitte report, Fusion: Organizations can better help the people they serve by creating innovative experiences through cross-industry fusions.

3. Localization

Localization was a hot topic in 2020 in response to COVID-19 related travel and trade restrictions. But it was on the rise even prior to the pandemic, with growing nationalism in many countries and grass-roots movements to “buy local” and keep supply chains local.

The trend continues to gain steam in 2021. Supply chains are still feeling the strain of restricted travel, resources and suppliers. However, many see this not as a restriction on using international supply chains, but more of a modification. One that keeps chains open to specific regions that can provide reliable trade support during challenging times.

In an IMD article Carlos Cordon, Professor of Strategy and Supply Chain Management, noted this. Stating that “Global trade is going to become much more regional than before. Companies realized the risk of having either a single supplier or suppliers that are located in the same region or country.”

However, some experts, such as Pierre-Olivier Bédard-Maltais, an Economist who contributed to the BDC blog, argue that international business and exporting in particular, will benefit in the long run by keeping their trade relations international: “Businesses that export have higher sales, grow faster and are more resilient in an economic downturn.”

Sonia Galat, Co-Founder and Managing Director of Africa Business Venture echoes these sentiments. In our last webinar, she suggested that now is actually a great time for new markets:

“Especially now, this is the period where everybody’s at home, everybody’s more open to discussion, so this is a very good time for SMEs to position themselves in a market they may have never previously considered.”—Sonia Galat, Co-Founder and Managing Director of Africa Business Venture

4. Agility

For many businesses, agility in 2021 will come from becoming virtually nimble. From bringing brick-and-mortar sales online to turning in-house teams into remote teams to transitioning from travel-based events, negotiations and missions to virtual equivalents, companies who are succeeding at being agile will continue to innovate in the online arena. 

Companies will have to look outside their traditional business plans to re-think their customer bases and consumer needs. The pandemic has drastically shifted the commodity demand, whether it be for online learning, masks, sanitizer and beyond.

5. Market diversification

While some believe in the benefits of localization, others feel market diversification is the best route to success in 2021. According to Beiling Yan, Senior Research Economist at Export Development Canada, “Exporters tend to perform better than non-exporters for several reasons: They specialize their production and enjoy economies of scale; they interact with, and learn from, foreign consumers and suppliers; and they face stronger competitive pressure that prompts them to make investments and improve their business practices.”

And while many may instinctively want to reduce their exports in a time of financial duress and travel restrictions, experts are warning that limiting your market to one country or region may reduce your sales, especially if your base market is a small portion of the global market.

“Diversify your markets geographically,” advises the Business Development Bank of Canada (BDC) in their blog, “Don’t abandon a market in which protectionist sentiment is on the rise if it’s still a viable market. On the other hand, it is worthwhile to consider other markets or contemplate expanding into other Canadian provinces.”

They also point out that the Canada-European Union Comprehensive Economic and Trade Agreement is creating new opportunities for Canadian exporters who can benefit from the elimination of tariffs.

6. Supply chain as a service (SCaaS) 

Adequately managing and executing all your supply chain tasks in-person, in-house and with only one team isn’t easy. Especially in our current times. Many companies are outsourcing these tasks to outside vendors who provide this support as an on-demand service.

Taking a cue from the SaaS acronym, SCaaS, or supply chain as a service, provides supply chain services on-demand. Both through innovative software integrations and external support systems. Some areas where these systems are prominent include logistics, accounting, transportation management and distribution services.

In light of travel restrictions, many are relying on these outsourced services. They ensure that people are on the ground to assist with in-person tasks in place of their own teams. Providing convenience and peace of mind, many believe that even after the pandemic these SCaaS relationships will remain strong. Being that they make managing a supply chain easier overall.

7. Supply chain risk mitigation

Business supply chains were hit hard by the pandemic in 2020. In our article “How COVID-19 delays could affect your supply chain from contracts to insurance and customs clearance,” Rahim Mohtaram, Professor of Business and Supply Chain Management at Saskatchewan Polytechnic, pointed out the many difficulties, such as

– The delay and non-delivery of goods and services

– Factory shutdowns 

– Production with low capacity 

– Governmental prohibitions and restrictions on export and import 

– Drastically increased prices for certain goods 

– Transportation and logistics companies’ limitations

– Order cancellations by the customers

In order to mitigate these risks moving forward in 2021, businesses are reassessing their supply chain strategies and developing innovative solutions, such as focusing on only the products that have the highest returns, developing stronger contract stipulations and reaching out to government trade agencies, legal, trade, finance compliance teams, insurance companies, transport and shipping companies, banks and financial institutions to discuss the changes to operations and systems in the current climate. By reaching out to these contacts, companies can better understand where their supply chain deficiencies exist. And furthermore, how they can work with stakeholders to find solutions.

8. Elastic logistics

Much like the name suggests, elastic logistics is all about flexibility. In 2021, some businesses will pivot away from a lean and streamlined approach to logistics that reduces costs and improves profit. They, instead, will diversify their activities and investments so they can compete with a rapidly changing global economy. This could mean the integration of new technology like transportation management systems (TMS) or branching out to international partnerships and outsourced support in other countries. 

The focus here is to have the nimble ability to scale at the drop of a hat. As well as having systems that can assist with tasks that were hampered by travel restrictions, economic downfalls or emergencies. A larger up-front investment might be hard to hand out in these times. Although many argue that the short-term costs provide monumental long-term returns.

Having enhanced technological insights and capabilities, better global partnerships and an expanded reach all make the elastic approach compelling and attractive.

9. Exporting rebound 

EDC’s Global Export Forecast-Autumn 2020 predicted a moderate improvement in the overall conditions for 2021. Specifically, they saw exports rising by 9%.

Meanwhile, a more recent BDC blog found that “Canada’s 2021 economic outlook is similar to that of other developed countries: After the largest economic contraction since 1945 (a dip we estimate at 5.5% of GDP), the economy should grow sufficiently to largely offset the losses of 2020.”

Of course, experts warn that these forecasts are not set in stone and heavily rely on the current pandemic situations. Especially the vaccine roll-outs and case rates.

Luckily, government support initiatives have helped consumers keep spending throughout the pandemic. However, the postponement of business investments across the board by cautious companies means a slow recovery overall.

10. Transparent messaging and sustainability

It’s hard to emphasize the importance of your business when the pandemic is really at centre stage. Businesses want to sell their products and services but they don’t want to appear insensitive to the real struggles of the public during COVID-19. Unsurprisingly, this awareness has changed the way businesses approach communications in 2021. Not only are companies are making it clear that they are prioritizing health and safety during business operations, but they are being transparent about their business struggles, letting customers know about supply delays, transportation setbacks and product or service delivery modifications.

Businesses are also noting how consumers, who are spending more time outdoors, want more involvement from brands on sustainable initiatives, whether it’s through waste reduction or better manufacturing practices.

The changes we see in 2021 will pave the way for new forms of international trade, business and communication. Proving that not only are international businesses resilient in the face of adversity, but they are innovative too. That’s one point of consistency that we can always rely on, no matter the global situation.

At the Forum for International Trade Training (FITT), we have many examples of great leadership, but no one outshines our President and CEO, Caroline Tompkins, who has helmed and transformed FITT into a Canadian and international success over the past 25 years. Today, we celebrate her story and remarkable achievements.

With a background in professional development, Caroline joined the FITT team in 1996, progressing the company forward with notable achievements right away. In her first year, she helped introduce the Prior Learning Assessment and Recognition (PLAR) program which allowed individuals to use their previous education and work experience toward FITTskills credits. This program broadened the international trade community and created fair standards for global business professionals across the board.

Not long after, she led the development and launch of the Certified International Trade Professional (CITP) designation in 1998. The first designation of its kind in the world, it is now in its twenty-third year and is comprised of designation holders from more than 20 countries—solidifying FITT and the CITP®|FIBP® as the global standard for international trade training.

From there, she had many more milestones, with the following being just a handful of her many:

1998 – The first FITT National Conference

FITT’s first annual National Conference was held in 1998, creating quality professional development and networking for CITPs, FITT members, international trade professionals and students. 

1999 – The launch of FITTskills Online 

Expanding outside the classroom, FITTskills Online made international trade training available to everyone, everywhere, including professionals outside of Canada.

2001 – FITT begins accrediting international trade programs

FITT began accrediting academic institutions and organizations that provided international business courses, giving students more options for attaining the educational requirements of the CITP designation.

2002 – The launch of the FITT Educational Awards 

The FITT Educational Awards were created to recognize individual students for their outstanding performance in the study of international business.

2007 – Recognition from the World Trade Centers Association

The World Trade Centers Association (WTCA) recognized the CITP designation as a standard of excellence for its staff and clientele involved in international commerce.

2013 – FITT completes its International Trade HR Sector Study

FITT completed its International Trade HR Sector Study, a report providing an innovative analysis of workforce barriers to Canada’s success in international trade and offering a national strategy for overcoming those barriers.

2015 – International Competency Standards (ICS) Project

Nearly 120 international business professionals from across Canada and the globe gathered to take part in focus groups and validation sessions that helped FITT create world-class industry standards for global trade—defining exactly what it takes to outperform the competition.

2016 – Competency Framework developed

As the first of its kind ever created for international trade, the Framework reflects current and future practices and contains standards for multiple international trade occupations. The competencies within the framework describe the fusion of knowledge, skills and abilities required to be successful in the evolving integrative trade business environment.

2016 – CITP Competency Profile 3rd edition launched

The 2016 Certified International Trade Competency Profile reflects the skills and knowledge individuals need to obtain the CITP®|FIBP® designation and to use in their work worldwide. 

2017– FITT’s 25th anniversary and Your Future 2017 Conference

FITT celebrated its 25th anniversary with several events throughout the year, including a global conference featuring international trade’s brightest minds, and culminated in a formalized partnership between Export Development Canada (EDC) and FITT to deliver enhanced trade education to businesses and trade professionals.

2017 –The launch of FITTskills 7th edition

The 7th edition of the FITTskills courses was the most significant update to the course material in several years. Designed by business for business, the 7th edition is a leading-edge, practical program designed to teach all the most important skills and knowledge industry professionals needed to achieve global business success.

2018 – Launch of EDC-FITT International Trade Learning Centre

Export Development Canada (EDC) and FITT launched their collaborative online learning platform, a powerful initiative to support the next generation of trade leaders in 2018. The EDC-FITT International Trade Learning Centre serves as a digital platform that offers courses, workshops and other knowledge-based resources for international business professionals who want to deepen their expertise.

2018 – 20th anniversary of CITP

The CITP®|FIBP® designation continues to accelerate both in international reputation and standards. With active graduates in over 20 countries around the world and an expansive network of pioneering trade professionals gaining from its body of knowledge, it continues to impress as the global standard for international trade training and excellence.

Passion above all else.

To be truly good at what you do, you must have passion for your work. Caroline exemplifies her passion for international trade through a wealth of education, volunteer and work experience. She is a CITP, Certified Association Executive (CAE) and serves as a Director for the National Association of International Trade Educators (NASBITE) in the United States. She has also worked for numerous international bodies, including the United Nations in Bosnia-Herzegovina during 1994-1995.

In an interview with the Trade Commissioner Service (TCS), she explained her love for her work and, specifically, the CITP designation by noting that it “represents FITT’s leadership role in the evolution, maturation and growth of international trade as a profession. We are so proud that Canada was the first country in the world to start looking at international trade not just as a business transaction.”

With each milestone and achievement in FITT’s growth, she’s never lost sight of its true vision, though:

“What has never changed is our core purpose: building competence in international trade. Our make‑or‑break position—the one thing we have to do exceptionally well to meet our core purpose—is to ensure that we have reliable, credible and current know-how on how to do business internationally.”

Notable to many.

Caroline’s roots within the international trade and export community are deep and respected. Her impact has been felt and recognized with many awards and accolades, including the Peter Bentley Scholarship for the University of British Columbia’s Residential Programme for Executive Development, recognition as one of Chatelaine’s notable women in the Who’s Who of Canadian Women in 1999-2000, and the Queen Elizabeth II Diamond Jubilee Medal for her outstanding contribution to Canada’s trade community in 2012.

Strong leaders build strong teams.

The best leaders are only as strong as their team, and in recognizing this, they build respect among their peers. Sometimes the best way to see how well they are really doing is to listen to what others have to say about them—and there is no shortage of admiration for Caroline from colleagues and members of the board. FITT’s founding father, Dieter Hollweck says of Caroline:

“Caroline, you are part of every part of FITT as you were there from its inception, early development, production, national to international development, and marketing and sales—all through thick and thin ice. Your guidance, wisdom and dedicated professional management with your team has made FITT  the brand leader in international trade training and standards that it is today. It means so much to so many in Canada, as well as to others in the world.

He adds, “BRAVO, Caroline and much success with FITT and to you and your team in the future. My song choice to represent you is Nancy Sinatra’s “These Boots Are Made for Walking ” and that is what you did Caroline, during every step of that very, very long road!”

John  Treleaven, CITP, former FITT Director and Current Board Director had similar sentiments, noting:

“Many talented and motivated people have contributed to the success of this organization. When the history of FITT is written two names will be given special attention: Dieter Hollweck, on whose idea we have all been working since the beginning, and Caroline Tompkins, whose talents and commitment to the organization and the cause are responsible for where we are today.

He continues, “This is not an appraisal report, Caroline, rather it is an opportunity for me, and many others, to thank you for all you have done to make FITT into what it has become. The twenty-five years we all celebrate today saw many challenges, barriers, failures of logic, head fakes, commitment lapses, policy changes, competition (often from the least likely of sources), crisis in the Canadian and global economies. Through all of this you guided, motivated and inspired the FITT Team, stakeholders and partners. Thank you. For me, there is also a song in the 1960s version of “My Fair Lady” that sums up my feelings and I am sure those of my colleagues about Caroline and FITT. It’s called, “You did it!”

Silvia Baptista, FITT’s Vice President echoes the sentiments, stating: “I have been working with Caroline for almost 16 years. Although it is important to love your job, which I do, I truly feel that it is equally—if not more important —to like the people you work with. I feel very grateful to work with Caroline, and can speak for the rest of the FITT team when I say that she is respected and valued by her team, she inspires and challenges us on the daily, she takes accountability, and she has created a supportive and unified environment. Caroline, I know you are proud of your team, but we are just as proud to work with you. On behalf of all FITT employees, thank you for being our fearless leader!”

Similarly, Alberto Quiroz, FITT Chair of the Board of Directors has glowing accolades: “I met Caroline around 1997 when I got my first diploma in International Trade, when I started my involvement with FITT. The thought of becoming the Chair of the Board of Directors never crossed my mind at the time. As I reflect on my involvement at FITT, it was thanks to Caroline’s invitation to collaborate. Once involved, I witnessed her passion in making FITT the best organization it can be. We are where we are thanks to her hard work and dedication. Thank you, Caroline and congratulations on your anniversary!”

Angela Kraus, Vice President of Marketing and Membership Development at Saskatchewan Trade and Export Partnership and FITT Board Director, agrees, stating: “Saskatchewan Trade & Export Partnership has been a longstanding supporter of FITT and Caroline’s work. Her contribution to FITT has been immense and her enthusiasm for the organization is inspiring.  I want to thank Caroline for her dedication and congratulate her on 25 years!”

Duane McMullen, Director General of Trade Operations at the Trade Commissioner Service of Global Affairs Canada kept the compliments going, saying: “Through FITT, Caroline can look with pride and satisfaction at the impact her leadership has had on many thousands of professionals around the world.”

Always one to take initiative and tackle challenges head-on while fostering and growing those around her, Caroline is admired and appreciated by those at FITT and beyond. We wish her a happy anniversary and hope for many more years of inspirational work to come!

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