December 2021, British Columbia, Canada. International Trade expert and CMX Partnerships Director Mr. Juan Navarro has written an article for TradeReady that highlights how to build more resilient, flexible and sustainable global supply chains (GVCs).
Navarro highlights that while the ongoing discussions on GVCs have produced worthwhile conversations by creating more awareness and a better understanding of their relevance, we cannot deny that these discussions are not enough to remedy future disruptions that might happen as a consequence of new contingencies; nor can they support efforts to build more resilient value chains after COVID-19. He adds that the ongoing discussions that have occurred over the last two years are promising, but tangible actions are missing.
Navarro emphasizes that in order to minimize or avoid future disruptions, input and coordinated efforts are needed from all the participants. Stakeholders of GVCs need to put all their expertise and knowledge on the ground, starting with the implementation of stress tests, followed by the use of the results to define risk management strategies and provide financial and technical assistance for GVCs participants.
Here is an excerpt of the piece:
“Resilience building will give better results if actions are implemented and harmonized across countries. Governments need to utilize collective forums to turn ideas into concrete policies, rules, and/or programs. They also need to take advantage of their participation and memberships in regional and multilateral organizations and in trade agreements. Cooperation must be promoted on an ongoing basis under fundamental principles such as prosperity for all, non-discrimination, inclusiveness, transparency, equity, predictability, and sustainability.”