3Ws and the Global Economy that’s Heating-Up
The World Trade Organization (WTO), World Trade Centers Association (WTCA), and the World Packaging Organization (WPO) are three inter-related world institutions that have become the barometers of how the global economy is doing and has been doing through the years.
Source: WTC Website
WTO states that world trade will be in a resurgent mode and with its track record of resiliency, it will be able to successfully overcome continuing headwinds. WTO, through the World Economic Forum, “estimates that world trade in merchandise, or goods, will grow 8% in volume in 2021”.
“The value of world trade in manufactured goods was 6% higher in the fourth quarter of 2020 compared to the same period in 2019…. trade in agricultural products was up by a similar amount over the same period”, WTO continued, where “in the second quarter of 2020, North America and Europe saw sharp year-on-year falls in export volumes, down 25.8% and 20.4% respectively… although these recovered to YOY declines of only 3% and 2.4% by Q4 of 2020.”
While Asian exports fell 7.2% in Q2 of 2020, they went up to 7.7% from the previous year.
WTO’s role in globalization has led to closer integration of countries and people. Countries have upped the number of memberships in WTO despite arbitrary perceptions of free trade and globalization; after all, “growth in merchandise trade in 2021 was accompanied by a 5.8% increase in world GDP…well above the 3.0% average rate for 2010-19…with world trade growing around 1.7 times faster than world GDP in 2021”.
WTCA – a Global Force in Integrated Trade Services
Aligned with the WTO is the World Trade Centers Association (WTCA) of 300 businesses and organization members in 92 countries. WTCA’s main outreach is to similarly promote and facilitate trade and investment opportunities on a global scale through its network of 325 cities, representing more than 35% of global gross domestic product and 1.24 billion people.
Both WTO and WTCA are intrinsically connected to trade. Both facilitate export and import trade, allowing countries around the world to obtain any resource they may want to obtain.
WTO states that it deals with the global regulations of trade between nations while seeking to liberalize trade and engage governments to negotiate trade agreements and settle disputes.
WTCA, on the other hand, promotes international business relationships by stimulating global commerce through a unique B2B networking opportunity especially among investors, traders, producers, economic development agencies, commercial property developers, international businesses and communities worldwide.
A look into the contribution of a WTCA member – WTC Gibraltar – it is said to have contributed GBP65,000,000 per annum to the Gibraltar economy. Cities with a WTCA member on the average draw FDI per capita at twice the rate of their country and export goods at 1.55 times the national level, per capita with a 1.5%higher workforce participation with USD1B in annual FDIs.
Apolitical WTCA, offers WTC services and facilities globally – meeting/club/videoconferencing facilities, trade info and education, exhibit/office spaces, secretarial/translation services.
WPO – A Productive WTO/WTCA Collaboration
The 3RDW - World Packaging Organization (WPO), has had a continuing relationship with WTCA – availing of WTC’s services and facilities worldwide through the years.
Packaging is at the core of global trade. It is the reality of WTO’s work when it comes to dealing with the rules of trade between nations – on free trade and tariff issues, thereby “helping producers of goods and services, as well as exporters and importers, protect and manage their businesses” (Investopedia). WTCA, meantime, promotes packaging technology and processing machines, materials usage, logistics, supply chain management and environmental sustainability – a prime concern.
WPO President Pierre Pienaar told reporters at the PROPAK PH 2023 conference, World Trade Center Metro Manila (WTCMM), that the continuation of a circular economy is assured when packaging is collected and recycled.
One of the Philippine packaging industry’s yearly event is held at the WTCMM: PROPAK PHILIPPINES. PROPAK PH is the leading international processing and packaging trade event. PROPAK is noted as the “perfect platform for market trends, investments and industry networking through product exchange and a variety of conferences, seminars and technical workshops offering sustainable solutions for the country’s enterprises”.
The latest PROPAK PHILIPPINES event was held at WTCMM last Feb. 1 to 3, 2023 (with the next scheduled on Jan. 31 to Feb. 4, 2024) with an international array of speakers from the Philippines - Mr. Stefano Paolo Buñag, Board Member of the Packaging Institute of the Philippines to Southeast Asia - Mr. Darrell Chung, Sustainable Packaging Manager, South Asia Downstream of Milliken Asia.
Previous PROPAK events were held in Indonesia, Myanmar, Thailand and Vietnam which connected over 3000 exhibitors to more than 100,000 buyers and specifiers across the region.
Source: Propak Website
Packaging is a component of practically all industries – from consumer and retail packaging to industrial packaging. A variety of packaging categories range from the product involved and its application, to materials and manufacturing processes. The global
packaging market value is approximately USD1,015B and is forecast to grow by USD223.96B from 2022 to 2027.
Packaging is involved in export and domestic trade like, in the case of industrial packaging, heavy protection, shipping and storage. Bulk packaging goes through ports and customs and are cleared through government regulations (subject to levy of tariffs) here and abroad – if exported.
Regions have created free trade agreements (FTAs) like that of the Regional Comprehensive Economic Partnership (RCEP) of ten member states of the Association of Southeast Asian Nations (ASEAN) plus FTA partners – Australia, China, Japan, New Zealand and Korea. This agreement, the largest in the world, will facilitate the expansion of regional trade and investment.
Global PROPAK and PLASPAK packaging exhibitions and conferences, as well as other events held at WTCA’s member sites, boost other industries like automation and digitalization, food processing associations like MAFBEX and LIVESTOCK ASIA and the automotive industry among others.
Global exhibition has become a mainstay industry of world trade and investments. Valued at USD57.40B in 2018 and is expected to grow to USD84.84B by 2026, the global exhibition market was prominent in five regions: North America, Europe, Asia Pacific, Latin America and the Middle East and Africa.
Africa as a major global exhibition market destination is the site of WTCA’s 53rd General Assembly at ACCRA, Ghana on April 23 -28. This event will help bring continental Africa’s trade and investment opportunities to the global economy. Oil, natural gas, various metals and precious materials such as gems and solar energy make Africa important in the world economy. South Africa produces industrial diamonds and diamonds for jewelry with the presumption, as well, of having half of the world’s supply of gold and being rich in platinum, chromium and manganese.
Trade’s percentage of the world GDP of USD96.51 trillion was reported at 56.54% in 2021 according to the World Bank. WTO’s contribution to the expansion of trade has resulted in the growth of merchandise volumes to 17% YOY in Q2 2022.
WTO, WTCA, WPO – A Model Global Ecosystem
Clearly, international organizations have contributed to the growth of the global economy by boosting trade and investments with WTO creating the right conditions for bilateral relations and their smooth trade flows.
WTCA supports member cities/stakeholders, where their WTCA facilities are located and in the process, have shown resilience as their different industries continue to thrive.
Allied industries facilitating the success of WTCA’s activities such as the services, manufacturing, hospitality, travel/tourism, MSME sectors are benefitted also through income and jobs generated.