Impact of COVID-19 on Commonwealth Countries' Global Trade and Future Growth Sources

The report discusses the impact of COVID-19 on Commonwealth countries' global and intra-Commonwealth goods and services exports, sources of future growth, and the importance of digital trade in the Commonwealth. It also evaluates the African Continental Free Trade Area (AfCFTA) and its potential to increase employment opportunities and economic expansion in African and other Commonwealth countries.

Critical issues in
Business Management

Table of Contents
TASK 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
What is the impact of COVID-19 on Commonwealth countries’ global and intra-
Commonwealth goods and services exports, and what are the prospects for trade recovery?1
Identify and evaluate the sources of future growth including from the Commonwealth
advantage................................................................................................................................3
CONCLUSION................................................................................................................................4
TASK 2............................................................................................................................................4
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Why is digital trade now more important than ever? What are its main trends, challenges and
opportunities in the Commonwealth including the effects of COVID-19?............................4
Comment on the African Continental Free Trade Area (AfCFTA).......................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.................................................................................................................8
Online.....................................................................................................................................8

TASK 1
INTRODUCTION
The covid-19 pandemic has been considered as the reason for unplanned global economic crisis.
The developing commonwealth countries have been badly impacted with the effects of COVID-
19 (Khorana, Martínez-Zarzoso and Ali, 2021). Global trade has been the profound change due
to the covid-19 as the technology changing, consumer behaviour, geopolitics, and climatic
changes has completely reshaped the trading all across the globe. In the world of digital
technology, the trade-tech or bundle of technologies and innovations that has allows it trading to
be more equitable and efficient. The present report discusses impact of covid-19 and
commonwealth countries globally and on the goods and services exports. Further there is the
identification and interpretation for the source of future growth including from the
commonwealth advantage.
MAIN BODY
What is the impact of COVID-19 on Commonwealth countries’ global and intra-Commonwealth
goods and services exports, and what are the prospects for trade recovery?
The global pandemic covid-19 has created a huge shock of unprecedented degree which
has also impacted the international trade flows. Due to the lockdown, trader restrictions, closure
of international borders and ports and other virus containment precautions there was huge
disruption in the economic activities which is resulted into macroeconomic thunderstorm. As per
the economic analysis in 2020 due to the covid-19 the global trade flows collapsed by average of
8 percent.
Due to the covid-19 large populations and heavy resilience on the goods and service
exports the similar deep recession in the major export markets has made the commonwealth
countries a suspect of financial contagion (Escaith and Khorana, 2021). Also in the low income
countries among which some of them are the commonwealth small states that a pre existing
structure when it was these are proven to be more impacted with the covid-19.
Around 70% of the commonwealth countries are involved in the exports and comprise
merchandise that has been impacted with bilateral merchandise trade and countries due to the
covid-19.
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As the commonwealth diverse and wide group of 54 countries from east coast of New
Zealand to the west part of the Caribbean and South America commonwealth countries are
developed and 48 are on various level of economic development. The global crisis created a
severe drop in the commonwealth global and intra commonwealth trade flows as and
commonwealth is contracted by 10% in 2020 (The Impact of COVID-19 on the Global and Intra-
Commonwealth Trade in Goods, 2021).
In 2020, commonwealth global and intra commonwealth trade manufactured goods and
commodities at the source of income but due to the covid-19 the economy is where hit
particularly hard when commodities price were dropped (TERRITORIES, 2020). The mean
comedies of commonwealth countries are fuel, food products, metals, minerals, ore, among all
these fuels was the most exported commodity which was completely dropped with the prices and
covid-19 negatively affected the demand for the fuel commodity in most of the countries.
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Thus, due to the global pandemic there is disproportionate impact on economics and trade
of the 54 commonwealth countries. In 2020 there is collapse of US $1.45 trillion due to the
induced recession in the 45 commonwealth economies and GDP. This further shifted to $345
billion forgone in member countries global exports and in intra commonwealth trade flows (The
Impact of COVID-19 on the Global and Intra- Commonwealth Trade in Goods, 2021).
Identify and evaluate the sources of future growth including from the Commonwealth advantage.
Commonwealth is the association of the 54 independent countries which comprises of the
developed landlocked, small, large, Iceland economies. Due to the global pandemic there has
been profound changes taking place in the global trade landscape which includes e governance
technologies framework that support the trade in goods and services and other digital economy
(Abhayawansa, Adams and Neesham, 2021). ITI long term interest of the present 19 there are
some source of growth for the commonwealth countries includes of commonwealth advantage
that is trade, technology and governance (Strengthening the Commonwealth Advantage: Trade,
Technology, Governance,2018).
In terms of source of growth the commonwealth advantage is one of the essential factors
that can be harnessed at the commonwealth countries to provide tailwind that supports the
recovery from post and make special to the small states that are hardly hit. Some of the
commonwealth advantages for supporting small states are creating better trade opportunities,
public debt management, connectivity agenda, international trade policy and much more.
UK commonwealth trade is relative your growth prospect in the commonwealth countries.
UK export growth opportunity to the commonwealth countries is considered as the favourable is
backed especially if the free trade agreement is negotiated successfully (Rejeb, A and et. al.,
2020). Due to shared history and commonalities of language, law, business practices it is
estimated that commonwealth countries global trading with one another is experience does the
business cost lower than the similar dealing with the non commonwealth countries of
comparable GDP and size this is one of the most essential commonwealth advantage.
Many challenges due to the covid-19 2021 commonwealth trade review meeting has
identified the possible pathway as a source of growth to guide the commonwealth countries and
the policy makers towards sustainable inclusive and resilient recovery from the pandemic
through digital trade and technologies (US$345 billion loss in trade for Commonwealth countries
due to pandemic,2021).
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CONCLUSION
It is concluded that the Covid-19 has badly impacted the global commonwealth trading of
goods and services. There is high rate of negative impact on the economies of the countries of
common wealth. But on the other hand with the digital trade and technology there is sources of
growth and some common wealth advantages that must be utilized by the small vulnerable states
in order to recover their trading and economies.
TASK 2
INTRODUCTION
Commonwealth trading has been profound change in the global trading, what is the process
of a method of removing the barriers of reading between the countries of the members of the
Commonwealth of Nations. But because of the covid-19 there has been huge crisis in the global
trading between the commonwealth members. In which there is long-term impact created on the
commonwealth trading and to recover the issue the digital transformation in the form of digital
trading is the key commonwealth advantage (Escaith and et. al., 2020). Digital trade is basically
a process in which there is involvement of the digitally enabling technology in delivering the
goods and services either physically or through technology. The digitalization in the global trade
has increased the scope speed and the scale of trading as there is also the cost of international
trade. Also due to the exit of world's largest trading bloc of the EU by UK has opened the gates
of business in Africa with the (AfCFTA) African continental free trade area trading bloc. The
present report is discussion on the why does it incredibly important its main trends challenges
and opportunities in the commonwealth members. Further, there is a critical evaluation on the
African continental free trade area trading bloc.
MAIN BODY
Why is digital trade now more important than ever? What are its main trends, challenges and
opportunities in the Commonwealth including the effects of COVID-19?
Digital transformation in the field of trading is highly important than the previous error as
it is reduce the cost of involvement in the international trade also it has been important in
facilitating the coordination of global value chain. Use importance of digitalization on trading as
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it has impacted positively on the global trade in the commonwealth countries as it has helped in
diffusing the ideas and technology that not only connect businesses and consumers globally but
also interconnects the nations of commonwealth.
After the post covid-19 for the recovery in the resilience in the commonwealth the digital
trade has become highly important the covid-19 directly increase the E-Commerce which has
side in both B2B and B2C online sales especially in the field of household essentials, food
products, medical supplies and much more. Even in the developing commonwealth countries the
policymakers taking the priority for leveraging the digital trade in the economic recovery by
targeting the internet affordability (INTERNATIONAL TRADE WORKING PAPER Digital Trade
for Post-COVID Recovery and Resilience in the Commonwealth ,2021).
. With covid-19 as a physical movement of the goods and people were restricted the digital
trade has played a crucial role in keeping the slope reading from cross borders E-Commerce and
digital payments. Also with the digital trade there is a core teleconferencing between the
business partners all across the world which has replaced the requirement of physical test in
intention with electronic records making it more resilient and then we need as human connection
in creativity has been modernised through digital trade therefore the digitally enable transactions
in the goods and services commonly known as a digital trade is highly important than ever.
Main trends of digital trade in Commonwealth
According to the WTO organisation of economic cooperation and development and
International monetary fund and the trade is defined as the form of trading internationally and
produced goods and services that has been ordered or other delivered digitally (Kumari and
Bharti, 2021). Digital trends of digitals trading in commonwealth are mentioned below: ICT goods and digital goods such as computers, communication equipment, software’s
and videogames are the key trends of such goods and commodities. Does there is increase
of 16.5% trading of ICT from 2010 to 2019 that commonwealth in global is increasing
trend for the ICT goods (INTERNATIONAL TRADE WORKING PAPER Digital Trade
for Post-COVID Recovery and Resilience in the Commonwealth ,2021).
 The another digital trade trend in the commonwealth is regarding the digital services such
as cloud computing data processing and digital delivery available export services such as
the National business, health and education service and much more.
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 The E-Commerce that is ordering the apparels or any other commodities services or
goods online through E-Commerce platforms is one of the biggest trend of the digital
trading in the commonwealth.
Challenges and opportunities of the digital trade in commonwealth
Digital innovation and digital trade a transforming the global economy as there is the
massive decline in the social and information cost rapid growth in the new products in market
include experts from commonwealth countries. At the same time the emergence of digital
technology into the trading that is the budget with trade is threatening privacy security
worldwide by the developing countries of the commonwealth that lacks the tools to compete in
the new digital environment and the challenge of being left behind. The section will identify the
challenges and opportunities posed by digital grading to the commonwealth countries:
 Trading the commonwealth countries as a great opportunity to reshape their global
economy through more than services that supports the E-Commerce business (Sovacool,
Del Rio and Griffiths, 2020). Because the more cross border trade is not digital in nature
and it is the key trend to continue in the future. Because many studies have represented
that it lower cost for the online trading success E-Commerce are lower than the offline
trading which means it is highly efficient for the logistics and reducing the cost of
communication with the use of digital technology like block chain (adtera_e.pdf,2021).
 Even though digital trade has made easy for the commonwealth to engage in the
international trade thereby reducing the cost but their adoption of new business model has
increased the complexities in the international trade policies and transaction arising the
challenges related to the regulatory issues faced by the government (adtera_e.pdf,2021).
Also there's a challenge of managing with the arising digital destruction related to the
privacy and security. There is one more challenge for the commonwealth countries that
are not well adapted with the convergence of digital technology will not be trapped could
not make a rapid advancement in their global trading.
Comment on the African Continental Free Trade Area (AfCFTA).
The African continental free trade area (AfCFTA) is it trading block that it provides a
major opportunity for the developing and small, large African countries to bring 30 million
people out of the body they were raising the income of 68 million others who has livelihood of
less than $5.50 per day (Abrego and et. al., 2020). The African continental free trade area
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agreement in terms of digital trading has created at largest free trade area in the world that can be
measured by the different members of commonwealth. The scope of AfCFTA is huge as the real
significance of the agreement is to reduce the tariff barriers among the commonwealth member
countries and cover the policy areas such as services and trade facilitation, regulatory measures
suggest technical barriers to trade etc. Basically the implementation of AfCFTA has a aim to
bolster and boost the trading in the services manufacturing and the natural resources sector.
As per the current state of play this agreement has huge potential to increase the employment
opportunities and economic thereby helping the expansion of African and other commonwealth
countries. In case of women's of the Africa the AFCFTA agreement is proven to be highly
inclusive and transformative increased the large scale use of online E-Commerce platform for
the women's to participate know the to benefit women's business owners. In Africa there is used
in equality of gender but with the African continental free trade agreement there is a larger wages
for the women than the men (Maliszewska and Ruta, 2020)
.
CONCLUSION
It is concluded from the above report that the digital trade has been the future of the trading
as this has been the useful in reshaping and recovering from the economy. Also the digital trade
in commonwealth countries has uplifted the economies and minimised the gap between the small
and large states. The digital trade is bringing the trend of automation, robotics in the
commonwealth and also some challenges regarding the structure and policy. Thus, the AfCFTA
is the trading bloc agreement useful for the commonwealth countries and UK trading after the
exit of UK from EU. It is also highly useful to the women to gain job growth and income
opportunity in the countries like Africa through E-commerce.
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REFERENCES
Books and Journals
Abhayawansa, S., Adams, C.A. and Neesham, C., 2021. Accountability and governance in
pursuit of Sustainable Development Goals: conceptualising how governments create
value. Accounting, Auditing & Accountability Journal.
Abrego, M.L and et. al., 2020. The African Continental Free Trade Area: Potential Economic
Impact and Challenges. International Monetary Fund.
Escaith, H and et. al., 2020. The potential impact of COVID-19 on Commonwealth trade,
recovery and resilience. Trade Hot Topics, (161).
Escaith, H. and Khorana, S., 2021. Commonwealth Countries and the COVID-19 Pandemic:
Impact Analysis on Merchandise Trade. Published as Escaith, H and S Khorana
(2021),‘The Impact of the COVID-19 Pandemic on Merchandise Trade in
Commonwealth Countries’, International Trade Working Paper, 2.
Khorana, S., Martínez-Zarzoso, I. and Ali, S., 2021. The Impact of COVID-19 on the Global and
Intra-Commonwealth Trade in Goods. International Trade Working Paper 2021/08.
London: Commonwealth Secretariat.
Kumari, M. and Bharti, N., 2021. Estimating the impact of COVID-19 on South Asia's exports:
does trade facilitation matter now more than ever?. Transnational Corporations Review,
pp.1-16.
Maliszewska, M. and Ruta, M., 2020. The African Continental Free Trade Area: Economic and
Distributional Effects. World Bank Group.
Rejeb, A and et. al., 2020. Blockchain technology in the food industry: A review of potentials,
challenges and future research directions. Logistics, 4(4), p.27.
Sovacool, B.K., Del Rio, D.F. and Griffiths, S., 2020. Contextualizing the Covid-19 pandemic
for a carbon-constrained world: Insights for sustainability transitions, energy justice, and
research methodology. Energy Research & Social Science, 68, p.101701.
TERRITORIES, A.E., 2020. The Commonwealth. Organization.
Online
The Impact of COVID-19 on the Global and Intra- Commonwealth Trade in Goods, 2021,
[Online], Available Through:
https://thecommonwealth.org/sites/default/files/inline/ITWP_2021-08_UPDF.pdf
US$345 billion loss in trade for Commonwealth countries due to pandemic,2021,[online],
Available through: https://thecommonwealth.org/media/news/us345-billion-loss-trade-
commonwealth-countries-due-pandemic
Strengthening the Commonwealth Advantage: Trade, Technology, Governance,2018, ,[online],
Available through:
https://thecommonwealth.org/sites/default/files/inline/Strengthening_the_Commonwealth_97818
49291798_UPDF.pdf
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adtera_e.pdf,2021,[Online], Available through: <
https://www.wto.org/english/res_e/booksp_e/adtera_e.pdf>
INTERNATIONAL TRADE WORKING PAPER: Digital Trade for Post-COVID Recovery and
Resilience in the
INTERNATIONAL TRADE WORKING PAPER Digital Trade for Post-COVID Recovery and
Resilience in the Commonwealth ,2021,[Online],Available through:
https://thecommonwealth.org/sites/default/files/inline/ITWP%202021_04_UPDF.pdf
9