While most companies and industry groups involved in international trade are understandably anxious about President-elect Donald Trump’s anti-trade rhetoric, it’s important to recognize that, even if the United States does opt out of the Trans-Pacific Partnership and other market-opening agreements, there is still a lot that can be done to smooth global commerce for US companies.
Nowhere is this more evident than in the world of e-commerce. Today, global business-to-consumer (B2C), e-commerce sales exceed $1.5 trillion annually, and they are expected to grow by at least 20 percent a year going forward. Companies of all sizes, and across all industries, that have mastered e-commerce are booming.
But at the same time, governments seem stuck in old ways of thinking. While raising legitimate concerns about illicit goods, undervaluation, product safety, and other problems, some governments still regard international e-commerce as a subset of traditional cross-border trade, rather than a new phenomenon requiring new ways of doing things. We need to avoid putting up unnecessary roadblocks.
Too often, e-commerce is viewed through the lens of who is handling the shipments, rather than what is being shipped. This is worrisome. By defining e-commerce only as a small package below a certain value, we limit the ability of producers and buyers from realizing the sector’s full potential. E-commerce should not be defined simply by a dollar limit or method of shipment across borders for a physical product. Rather, we should take note of urgency and focus on the trade-execution that has been achieved thus far in the express shipping industry.
Finally, the business community has a lot of expertise to lend to customs authorities worldwide. Governments should not be afraid to tap this know-how in seeking to lower barriers to e-commerce.