While the term “globalization” is not much in vogue these days, the US industry and its supply-chain operators can hardly detach themselves from the enmeshed world’s economies and markets, highlighting the interdependence of the world economies and markets, and the importance of international networking.
Global networking was at the heart of the World Trade Centers Association (WTCA) forum held New York from Oct. 27-29; the event was attended by US and foreign delegates.
Moving towards the 500-member goal, the WTCA says that it is embracing its commitment to “adapt to the changing times, foster the next generation of leadership and concentrate on initiatives to remain at the forefront of local and global economic developments”.
In an interview with the American Journal of Transportation, John E. Drew, WTCA’s Chair/Board of Directors, highlighted the WTCA’s revitalized brand and the innovative tools that empower its members. Drew said that the event aimed to equip the WTCA members with the requisite tools to navigate an “ever-evolving international landscape” and unite the collective members of the international WTCA family to shape the organization’s future.
The forum also emphasized the importance of Artificial Intelligence (AI) for global trade, addressing generational difference in the workplace, practical skills’ development and revenue generation strategies for member companies.
When asked to comment on the sentiments prevalent in the SME circle about the prospect of import tariffs, Drew said he thought the sentiments were not “in favor” of tariffs. He also pointed out that US products attracted similar tariffs from other countries, citing the example of soybeans exports which had declined. He said that tariffs, if imposed, needed to be constantly monitored and reviewed. They may have a short-term solution but the long-term ramifications for the export trade would not be beneficial.
Trade Promotion
Drew also spoke about the important role which the so-called ‘business clubs’, and trade education, can play in promoting trade. “Yes, one push I am keen to make is towards creating business clubs. A World Trade Center business club can be a social environment, a restaurant, for example, where besides the good food, it can serve to discuss thematic … we can talk about trade, expert speakers can be invited to talk about trade with members … we would find speakers who could be paid to go to, say, Manila or Saudi Arabia or Boston … we can put in a circuit of speakers whom we can bring in with some good knowledge of international trade which we can provide, the economy, trade, etc. So, we would create that from the headquarters and give that to the member running the club.
Drew said that that the WTC plays an important role in world trade. “… many of our members are good at that, providing support in trade and such matters … they can get information from lawyers, but I can get that kind of information support from my team … the other thing is that when our members reach out to other members (to) find out what the conditions are in their country, they provide good information about the conditions in their country, the information is shared with our members … so, I think we play an important role in world trade.”
Drew said that such clubs would be established anywhere in the world. “New York would be great for such a club since New York – and the USA – can provide abundant information.”
Trade education could be provided to club members by organizing seminars and the like. This could mean calling speakers from institutions to speak at seminars and other venues.
India’s Economy Growing Fast
Drew said that he was impressed by India’s expansion program. East Europe and Latin America were other promising regions. “India is developing rapidly. I am an admirer of how fast its economy is growing. The WTC brand is well-known there.” That country was making rapid growth in terms of science, pharmaceuticals, technology, etc. “We have discussion about India’s future cities … the Indian government has not named the future cities … I would like to build the prestige of our members in India. They become spokesmen for the (WTC) brand. They (Indians) are investing heavily in the brand.”
The WTC representative from Sarajevo, East Europe, was also present at the WTCA Forum. The region was in an interesting phase and “it is a different process”.
Latin America would like to develop and follow the Indian example. But the economies still need to develop.
WTC representatives from Asia – India, the Philippines, Vietnam, Taiwan and others - attended the New York forum.
Y. Varaprasad Reddy, WTC’s chairman in Shamshabad in the southern-central Indian state of Telangana, spoke about Telangana’s “strong economic fundaments”.
“Telangana is projected to be one of India’s fastest growing states, with a continuing growth trajectory … Telangana, as experts say, could become a $ 1 trillion economy by 2036,” he said. The state’s current economy is estimated to be nearly $ 200 billion.
According to Reddy, Telangana’s strength lies in pharmaceuticals, life sciences, IT, agriculture, aerospace, etc. The fast pace at which the state was developing its infrastructure, its policy reforms, and investment opportunities position it as a key player in India’s economic growth trajectory and as a hub for foreign direct investment.
Telangana, according to Reddy, attracts foreign companies also because of its easy access to Gangavaram Port, a deep-sea port with water depth of up to 21 meters, and capable of handling fully-laden Super Cape size vessels of up to 200,000 DWT. Gangavaram Port has become the gateway port for a hinterland spread over 8 states across Eastern, Western, Southern and Central India. Its ability to handle larger vessels efficiently has resulted in substantial savings to port users. Gangavaram Port provides efficient cargo handling services for a variety of bulk and breakbulk cargo groups including coal, iron ore, fertilizer, limestone, bauxite, raw sugar, project cargo, alumina, steel products, etc.
Speaking to AJOT, Simon Wang, President/CEO, Taipei World Trade Center (TWTC), an associate of the Taiwan External Trade Development Council (TAITRA), said that some of the issues of priority for Taiwan were developing AI technology and its application for SMEs, manpower, sustainability/reducing carbon emission, etc.
“92% of the world’s chip manufacturing is done by Taiwan. We have about 50% of the world’s market share … we work with multinational companies, including big names such as META, Google, etc. Chip industry is capital and technology intensive. Our strength lies in manufacturing chips, but we need to catch up in terms of software,” Wang said.
Taiwan enjoys a large trade volume and occupies the 17th position among the world’s top 20 exporters. The island’s trade touched $780 billion in 2023. “We account for over 90% of the AI services,” he said, adding that Taiwan had received special citation for supporting its SMEs.
