Enabling Trade: From Valuation to Action
In the 2013 report, Enabling Trade: Valuing Growth Opportunities, the World Economic Forum and Bain & Company found that reducing supply chain barriers could increase the world’s gross domestic product (GDP) by over US$ 2.5 trillion. Building on the momentum of both this finding and the WTO’s recent trade facilitation agreement, the 2014 report, Enabling Trade: From Valuation to Action, looks at how to accelerate reform. It concentrates on sectoral, regional and functional areas where the positive impacts of supply chain facilitation could be greatest, or where momentum for change is building. The four sections comprising the report are:
- Enabling Trade: From Farm to Fork. Supply chain inefficiency contributes significantly to the 30% of food that is lost or wasted between harvest and consumption. The three case studies in this report highlight promising ways for government and business to work together to smooth food’s journey from farm to fork.
- Enabling Automotive Trade. Responding to a request for input by the WTO, automotive executives have overcome deep competitive differences to align around the trade priority of faster and simpler border crossing. According to the report, roughly US$ 6 billion is spent each year by the automotive industry on inventory-carrying costs at borders.
- Enabling Trade in the Pacific Alliance. The Pacific Alliance member states – Chile, Colombia, Mexico, and Peru – are prioritizing deeper economic integration and supply chain facilitation at the presidential level. This survey of private companies in the region informs prioritization of barriers to be tackled through public/private cooperation.
- Enabling Smart Borders. Improved border management, a primary focus of recent negotiations at the World Trade Organization’s Ministerial Conference in Bali, is emphasized in this report’s call for accelerated co-development of e-logistics and smart customs systems.