No doubt that the current U.S. trade policy rollout is changing the global trade landscape. But is it the beginning of a new normal in trade – or a continuation of ongoing international trade and supply chain shifts? I believe the year 2022 marked the beginning of the “next normal” in global trade. The signs were there: Once the pandemic began to loosen its grip, the global economy was still left grappling with strained supply chains, the war in Ukraine, inflationary pressures, and geopolitical fragmentation.
Yet, if there’s one constant in global trade, it is disruption. It’s a fallacy to think that there won’t be any more. There will always be disruptions or, better said, transformations. Preparing for those transformations is what we need to continue to do. Remember: During the pandemic, Miami didn’t just hold steady – it delivered record performance. Miami will always rise to the occasion – and thrive.
As highlighted by Wally Adeyemo and Joshua Zoffer in The Economist, the global trading system needs new rules. From the McKinsey Global Institute to Boston Consulting Group, and from the U.S. Census Bureau to the U.S. Bureau of Economic Analysis, the world of available data reveals that supply chains are becoming more regionalized, digitized, and fragmented, with countries and companies seeking new partners and reduced risk. (Expect to hear more about nearshoring and reshoring.)
We should recognize these shifts, address challenges, and stress the need for improved trade facilitation in a comprehensive and strategic manner – not through fragmented efforts. This means focusing on core issues like market access, actively and efficiently reducing trade barriers, and enforcing trade rules to ensure that bad actors are not permitted to engage in unfair practices with impunity.
Digital and services trade were not part of the international trade conversation when the World Trade Organization was established in 1995. Yet today, they are a vital part of how, what, and why we trade. There will be more transformations to come as AI will likely reshape international trade even further.
In some ways, service exports are the invisible trade engine because they are not tangible, like athletic shoes or smartphones. If you can’t make it, mine it, or grow it, it’s a service, and services are the mark of an advanced economy with high-wage jobs. The U.S. is the largest services exporter in the world, having consistently maintained a trade surplus in this sector since 1992.
And while services trade is notoriously hard to measure and often undercounted, we do know that services include logistics, finance, education, health services, software development, and consulting. Crucially, you can’t export a product without services – in many cases, the services involved in producing, shipping, and supporting a product are actually more valuable than the product itself.
As Petyr “Littlefinger” Baelish wisely said in Game of Thrones, “Chaos isn’t a pit. Chaos is a ladder.” Miami is that ladder – a city that transforms disruption into opportunity and uncertainty into success. In a world where trade rules are being rewritten and supply chains are being reimagined, Miami, which has long been a global nexus of commerce, is increasingly evolving into a high-wage, highly educated service economy, offering the strategic advantages that businesses need.
From traditional goods to digital services, from hemispheric trade to global geopolitics, Miami is the future for those who understand that in global trade, resilience, adaptability, and connection mean everything.
At World Trade Center Miami, we believe that every successful trade journey begins with a conversation. By cultivating networks, promoting regional collaboration, and investing in both infrastructure and knowledge, we empower businesses to break down barriers and seize new opportunities. Those opportunities have arrived.
