Global trade faces its biggest transformation in decades. Businesses must adapt.

The nature of what is being bought and sold, and how it is being traded, is changing too. In the future, container ships will continue to sail, filled with goods acquired over e-commerce platforms in one continent, by customers in another. But there will also be a big proportional shift towards trade in services. The value of global trade is estimated to be in the region of $32 trillion, of which a fifth is comprised of services. Over the next decade, services are expected to account for a substantial share of all new international trade, with the bulk of this being in digitally delivered services.

WTO meeting delegates will have a challenge knowing where to begin, and while we will no doubt see useful developments, it will as ever be incumbent on businesses themselves to navigate this complex terrain with agility and foresight.

First, businesses need to understand how their market, and markets relevant to them, are evolving. To improve resiliency, many are already seeking new suppliers closer to home – so-called near-shoring. Others are forging entirely new supplier networks within nascent industry segments as they seek tools necessary to transition to net zero. Airlines for example, are facing steep learning curves identifying and working with the most promising producers of sustainable aviation fuels.

Second, putting in place the right financial infrastructure can create agile, borderless businesses able to react quickly to change. Exploiting simple cross-border payment and trade tracking apps, and making investments in partnerships and platforms to facilitate global collaboration across real and virtual platforms, will be key.

HSBC is well-positioned as we often sit on both sides of a transaction, providing us with unique insights into the needs of buyers and sellers, together with that of the wider industry. Through the bank’s extensive investment into experienced people and processes, we are also driving forward automation and digitisation in trade finance.

For those willing to adapt, innovate, and collaborate, the potential rewards are significant. The key lies in a strategic, forward-looking, approach. This will include embracing complexity, leveraging technology and building on the strengths of global interconnectedness and good governance.