Protectionism to hinder cross-border ecommerce development

Thursday 15 January 2015 00:35 CET | News

International ecommerce is expected to be the biggest change in ecommerce generally.

According to data from the Global Express Association (GEA), the trade body representing DHL, FedEx, TNT and UPS, the global ecommerce industry is set to grow from a USD 1.4 trillion turnover to USD 2.3 trillion by 2017.

However, the same source mentions that a return to protectionism could hinder expected growth in cross-border ecommerce. The introduction of protectionism may be the result of national governments trying to bring in trade restrictions to protect domestic businesses.

The report unveils that G20 countries have introduced more than 1,500 new non-tariff trade restrictions since 2014. In addition, the need for customs reforms is also holding back international ecommerce. Research also noted that the expected increase in international ecommerce will be dependent on well-functioning express delivery services, particularly with SMEs unlikely to set up their own supply chains.

Despite the global financial crisis, the GEA report said that international express delivery volumes have grown by 7% on average over the past five years, with strongest growth outside Europe and North America.

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Keywords: cross-border ecommerce, protectionism, trade
Categories: Payments & Commerce
Countries: World
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