Economic Portfolio: Commonwealth Trade, Digital Africa, and COVID-19

This portfolio provides an overview of the impact of COVID-19 on Commonwealth countries' goods and services exports, highlighting the deep recession and collapse in GDP. It identifies technology and sustainability as key sources for future growth within the Commonwealth. The report further discusses the importance of digital trade, its trends, challenges, and opportunities, emphasizing its role in reducing transaction costs and improving market access. Finally, it comments on the African Continental Free Trade Area (AfCFTA), its significance, current state, and potential for transformative and inclusive growth, particularly for women.

Portfolio

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
Question 1: COVID-19 on Commonwealth countries.....................................................................3
a) Impact of Covid 19 on the Commonwealth countries goods and services exports.................3
b) Identify the sources of the future growth for the commonwealth advantage..........................4
Question 2: A report titled ‘Commonwealth trade, digital trade and change in Africa’ in response
to the following tasks.......................................................................................................................5
a). Importance of digital trade along with its trends challenges and opportunities.....................5
b). Comment on the African Continental Free Trade Area AFCFTA and its real significance,
the current state of play and how transformative and inclusive can it be, especially for women7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Portfolio can be defined as the collection of the academic work as this is considered as the
evidence for the education of the student. The main purpose of the portfolio is evaluation of the
coursework quality, learning progress as well as the academic achievement. These are used by
the working professionals, companies as well as the students for highlighting their best work as
well as displaying the accomplishments and the skills they have. Portfolio is considered as the
entire or the overall collection of the investments or the financial assets which includes the
stocks, bonds, real estate and many more.
The portfolios of the organization provides the skills and the best work which they have
done are highlighted. This report will discuss the impacts of the COVID-19 on the
commonwealth countries goods and services exports as well as the prospects for the trade
recovery. Along with this, the identification and the evaluation of the source for the future
growth. Further, it will discuss the importance of the digital trade with its main trends, challenges
as well as opportunities and the comment on the African Continental Free Trade Area.
MAIN BODY
Question 1: COVID-19 on Commonwealth countries
a) Impact of Covid 19 on the Commonwealth countries goods and services exports
With the emergence of the COVID-19, this has generated the global shock as this caused
the devastating effects on the international trade flows. Due to the lock-downs, travel restrictions,
international border as well as the port closures has resulted in the macroeconomic shock. This
pandemic has caused the large impacts on the 54 Commonwealth countries as by there happened
the deep recession in these commonwealth countries. The gross domestic products of this was
then collapsed by the US $1.45 Trillion in just single year. This then translated to the $345
billion of the members of the commonwealth countries global exports of the goods and the
services (Wright,2020). The effect of the COVID 19 may be acute for the commonwealth
countries as these largely depended on exporting the fuels, agricultural commodities as well as
the minerals.
The commonwealth countries is the diverse group of the 54 countries from the east coast
of the New Zealand to the western parts of the Caribbean as well as the South America. Among
this, the 6 commonwealth countries are developed and the other 48 countries are at the
developing stage of the economy. This pandemic has caused much large impacts on the economy

of the commonwealth countries as by this there was seen the economic crisis in the
commonwealth countries which leads to drop in the global trade flows (Daniel, 2020). The main
commodities of the commonwealth countries for the exports are the food products, mineral ores
as well as the metals and fuel. The Covid 19 has created the negative demand of these
commodities which resulted to the collapse in the prices of the commodities.
The prospects for the quick recovery of the trade flows has been improved as the
merchandise trade expansion. The value of the global trade for the goods and the services is
forecasted to reach the $6.6 trillion in the year 2021. There was seen the robust recovery in the
year 2021 as this was driven by the strong consumers who willing to spend more and are
interested in the investments (Anttiroiko, 2021). The recovery of the pandemic of Covid 19 has
created the high record in the first quarter of the 2021 as this was increased by the 10%. The
global trade of the commonwealth countries has recorded the fast recovery from the recession
which was caused by the pandemic.
b) Identify the sources of the future growth for the commonwealth advantage
Technology is the most important source for the growth of the commonwealth countries.
The technology has historically observed as the source of driving the globalization as this leads
to the rapid expansion in the global trade which helps in the sustainable development in across
the commonwealth (Edejer and et.al., 2020). The countries adopting the advance technology is

helping in providing the competitive advantage as this helps in eliminating the lack of the
connectivity, distance, remoteness as well as the other limitation of the globalization if any.
Technology will help in securing the gain from the rapidly disruptive technologies such as the
pressure on the jobs, trade as well as the economic activities and all the other present challenges
of the commonwealth countries.
Commonwealth countries are already enjoying the trade costs advantage with this, there
are many other trade governance as well as the procedures which will provide the opportunity to
the economy and will strengthen the advantage of the commonwealth countries. The
commonwealth countries are growing as the combined GDP of the Commonwealth countries has
reached at the $13 trillion by the year 2020 (Kanwar and Daniel, 2020). This shows that the
commonwealth countries are growing as the commonwealth countries were designed to provide
the potential framework for solving the conflicts between the African members.
Sustainability is another source which will help in future growth of the organizations as
well as the commonwealth countries as well. This will provide the competitive advantage to the
organization and to the commonwealth countries as well. Sustainability is much important to be
adopted as this will be made compulsory in the upcoming years by the government as the
industries are harming much to the planet so for saving the planet from these the sustainability
has been promoted by the government. This source is much important for the future growth as
the companies who have adopted the sustainability has many chances of the future growth. The
commonwealth countries also ensure to adopt the sustainability as this will help them in future
growth as well as this will provide the competitive advantages to them.
It is very important for the commonwealth countries to adopt these sources of the growth as this
will help them in effectively grow in the future as well as provide them the advantage to lead in
the market (Hepburn and et.al., 2020).
Question 2: A report titled ‘Commonwealth trade, digital trade and change in
Africa’ in response to the following tasks
a). Importance of digital trade along with its trends challenges and opportunities
Digital trade helps in reducing the transaction costs, enables in participating in the global chain
values as well as it improves the market access and the reach of the organization. The business
adopting this offers them the significant efficient gains as well as the competitive advantages
(Froese, 2019). Digital trade is much broad concept that it not just considers the sale of the

consumers on the internet and the supply of the online services, along with this it also considers
the flow of the data which enables the global value chain. This allows the smart manufacturing
of the applications. The countries have many benefits from the digital trade as this will help them
in increasing the productivity growth of the companies for the specialization of the workers as
well as the job creation.
The importance of the digital trade has evolved much in the present era as compared to
the previous years. This is much important for the countries as it helps in to trade effectively with
the rest of the world and provides the wide range of the opportunities to the businesses as well as
the consumers. The digital trade enables the country to take or order digitally across the border
and make the digital transactions for the purchase and sell of the goods and the services. As the
technology is getting advanced, this has created the need for the digitalization of the trade. The
countries which has the high level of the internet penetration has the higher level of the trade
openness and has the opportunity to sell large amounts of the products in the more number of the
markets (Nakatomi, 2019).
The changing trends in the external environment has created the need for the adopting the
digital trade by the countries. The digital revolution has creating the transformation of the
participants in the trade, content of the trade as well as the trade transactions. This is helping the
companies to move the products and the services to move faster at the lower costs. The
consumers are also benefited by this as by this they are able to choose the product's and the
services from the wide variety without the interventions of the retail chains and the distributors.
The modern technology is offering the hope to the companies foe the future trade. The
digital revolution dos not only enable increasing the trade but also it helps in creating the
significant benefits for the development of the countries (Bergsen and et.al., 2022). The
evolution of the modern technology has made the digital trade much important in the present era
as this made much convenience for the business to trade with the rest of the world.
The digital trade will now grow with much speed as this has created the opportunity for the trade
in the digital era. The change in the consumer trends has also increased the opportunity for the
cross border sales of the digital goods and the services of the company as the people are
spending much time on the mobile phones.
In today, the entire world is increasing and developing where the digital transformation
helps the trade to be gone more simple and beneficial for the trading areas in all over the world.

Digital trade is the concept where it capture not the sale and consumer products but also use the
internet and online services of supply which helps the consumers to get their products without
going outside of the premises and can enable the global values chain and smart manufacturing
which will deliver the effective results and outcome (Singh, 2018). It is important to be
considered and adopt in the G7 countries as it reduces the transaction cost and facilitates the
participation in the global surround and market value chain and enhances the market research
and reach and provides the beneficial results more than the competitions.
Commonwealth countries generally includes the OECD where in the covid19 times also
the digital trade has been utilised to deliver the consumer goods and services conducted over the
computer network which is especially design for the purpose of receiving or replacing the orders
where trade involves international transactions in the electronic format and increasing the usage
of the digital trade in commonwealth countries in speedy manner. However, the commonwealth
countries get the challenges and difficulties in the recent pandemic Covid19 to use the digital
trading where it has increases the data privacy risk, intellectual property related issues and risk of
cyber crime and can leads the information to be leaked (Chowaniak, Gródek-Szostak,
Kotulewicz-Wisińska, and et.al., 2021). Where, the commonwealth countries have put their
efforts in overcoming the challenges and getting the new opportunities from the issues and
barriers where it delivers the effective and beneficial results and outcome.

b). Comment on the African Continental Free Trade Area AFCFTA and its real significance, the
current state of play and how transformative and inclusive can it be, especially for women
In general, it has been known that trading is the one of the economic source of the common
wealth countries where they can increase their economic and financial growth and development
in the appropriate manner. The country Africa, the trade is important for this country because
Africans were able to enhance and increase the shares of the world trade from 2-3 percent where
$70 billion of additional income annually for Africa and getting the development of the economy
in better manner. Africa is known as the game changer in regard to trading areas where AFCFTA
which means African Continental Free Trade Area which was founded in 2018 with trade
commencing. The main reason and purpose of this concept is to accelerate the intra-African trade
and can easily boost up the Africa trading in the global market which will help and support them
to get strengthen where African common voice and policy in global trading areas can be
negotiate (Khorana, Martínez-Zarzoso, and Ali, 2021).
At the initial stage of starting the AFCFTA Africans get difficulty’s and issues and faced
many challenges and obstacles where they had a fear of significant tariff revenues loses and
uneven distribution of the cost and benefits. The arrival of the pandemic Covid19 has rapidly
reshaped the many countries, societies and local communities with regard response to the social,
political change sand creates a new social norm. Thus, on the 1st January 2018 the AFCFTA
becomes an excited game changer where Africa accounts for 2% of the global trade and 17% of
the African exports are inter-continental with the comparison 59% of Asia and 68% of Europe.
This trade is connecting almost 1.3 bn people across the 54African countries where this
agreement aims to create a single market for goods and services in order to detail the economic
integration of Africa. However, the AFCFTA is reducing the tariffs among members and covers
the policies are where it facilitates the trade and services and regulates the sanitary standards and
technical barriers to trade. The potential for transformation across the Africa is important or
significant as it will create the largest free trade area in the world which is measured by the
numerous countries participating.
The AFCFTA will significantly reduce the poverty
As per the report, which has been gathered and collected by the World Bank, it will
boost up the regional income by 7% or $450 billion to speed up the age growth of the women
from which they can easily lift 30 million of the people out of the extreme poverty by the 2035

(Baena-Rojas, and Herrero-Olarte, 2020). These wages has to be given for both skilled and
unskilled workers or labours where it will boost and foster by 10.3% for unskilled workers and
9.8% for skilled workers respectively. This is also increasing and highlighting the significant
commitment of the American Union to reduce the poverty through the trading areas from where
it will provide the wider and better economic opportunities to grow and develop accordingly.
The positive economic outcomes and results will be varied
The diversification of the exports and fostering the growth competitively integrating into
the global economy where the foreign investment and increase of the employment opportunities
and incomes takes place in the wider manner and broadening economic inclusion for getting out
the positive results from the AFCFTA. Thus, it has been estimated that the agreement will
enhance and improve the Africa exports by $560 billion and mostly in manufacturing where
inter-continental exports will be increase up by the 81%.
Women stand to gain
Also, the AFCFTA is also keep their focus on making the women lives better where there is
a risk of the economic gains made by the women through the trading of the products and goods
reversed by the covid19 crisis. As per the Economic Commission of the Africa, women account
for the 70% of informal cross-border traders in Africa where women can vulnerable for the
harassment, violence and such more (Banga, and Velde, 2020). The tariff reductions under the
AFCFTA will allow and enable the informal women trader to operate via formal channels,
bringing better protect ions and also can get the growing manufacturing sector by providing the
new job or employment opportunities especially in regard to women. Thus, the free trade area
union by the African plays an important and significant role and fostering the world economy to
be at better position and can obtain the beneficial results and outcome through the trade areas.
CONCLUSION
The above mentioned report has summarised the concept and detail about the trade areas in
commonwealth countries where it is significant to be understand and adopt in effective manner.
It has included the impact of Covid19 on commonwealth countries global and intra
commonwealth goods and services exports and prospects for trade recovery. Also, evaluate the
sources of future growth including the commonwealth advantages. In addition, it has mentioned
the importance of digital trade and challenges and opportunities in the commonwealth countries
including the affects of Covid19. Thus, it has also performed the elevator pitch which is

suggesting the president of G7 countries to adopt the sustainability which can benefit the entre
G7 country in effective manner.

REFERENCES
Books and journals
Anttiroiko, A.V., 2021. Successful government responses to the pandemic: Contextualizing
national and urban responses to the COVID-19 outbreak in east and west. International
Journal of E-Planning Research (IJEPR), 10(2), pp.1-17.
Baena-Rojas, J.J. and Herrero-Olarte, S., 2020. From Preferential Trade Arrangements to Free
Trade Agreements: One of the Downturns of Cooperation in International
Relations?. Social Sciences, 9(8), p.139.
Banga, K. and Velde, D.W., 2020. Cambodia, COVID-19 and inclusive digital transformation: a
seven-point plan. Supporting Economic Transformation.
Bergsen, P., and et.al., 2022. Digital trade and digital technical standards.
Chowaniak, M., Gródek-Szostak, Z., Kotulewicz-Wisińska, and et.al., 2021. The RES in the
Countries of the Commonwealth of Independent States: Potential and Production from
2015 to 2019. Energies, 14(7), p.1856.
Daniel, S.J., 2020. Education and the COVID-19 pandemic. Prospects, 49(1), pp.91-96.
Edejer, T.T.T., and et.al., 2020. Projected health-care resource needs for an effective response to
COVID-19 in 73 low-income and middle-income countries: a modelling study. The
Lancet Global Health, 8(11), pp.e1372-e1379.
Froese, M.D., 2019. Digital Trade and Dispute Settlement in RTAs: An Evolving Standard?.
Journal of World Trade, 53(5).
Hepburn, C., and et.al., 2020. Will COVID-19 fiscal recovery packages accelerate or retard
progress on climate change?. Oxford Review of Economic Policy, 36(Supplement_1),
pp.S359-S381.
Kanwar, A. and Daniel, J., 2020. Report to Commonwealth education ministers: From response
to resilience.
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.

Nakatomi, M., 2019. Cross-border digital trade, e-commerce governance, and necessary actions
ahead. In Developing the Digital Economy in ASEAN (pp. 31-55). London: Routledge.
Singh, P.J., 2018. Digital industrialisation in developing countries. Commonwealth Secretariat.
Wright, C., 2020. Local government fighting Covid-19. The round table, 109(3), pp.338-339.