LSBM303 - Commonwealth Trade in Digital World: COVID-19 & AfCFTA

This report examines Commonwealth trade in the context of a rapidly digitalizing world, with a particular focus on the impacts of the COVID-19 pandemic and the opportunities presented by the African Continental Free Trade Area (AfCFTA). It assesses the negative impacts of COVID-19 on global and intra-Commonwealth trade, highlighting the substantial losses incurred by member countries. The report then identifies potential advantages from Commonwealth trading, emphasizing sustainable development, international peace and security, access to essential resources, and the protection of human rights and the environment. Furthermore, it analyzes the importance of digital trade, exploring its trends, challenges, and opportunities within the Commonwealth, including the rise of new business models, easier access to global markets, and lower transaction costs. The report also discusses the significance of AfCFTA in promoting inclusive growth in Africa, while acknowledging the challenges of inequality and the exacerbating effects of the COVID-19 pandemic. Finally, it touches upon suggestions that can be made to bolster trade in the commonwealth.

Commonwealth Trade in a
Digital World

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Impacts of Covid-19 on commonwealth countries global and intra-commonwealth goods and
services exports............................................................................................................................3
Possible advantages from commonwealth trading.......................................................................4
TASK 2............................................................................................................................................5
Importance of digital trade, Analysing its trends, challenges and opportunities in
Commonwealth............................................................................................................................5
Significance of AfCFTA..............................................................................................................8
TASK 3............................................................................................................................................9
Elevator Pitch...............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business management is the coordination and organization of all the business activities.
In this portfolio the impacts of Covid 19 on the commonwealth trade between the countries has
been discussed. It provides an evaluation of the future growth that includes the ways in which
commonwealth can gain the advantage required. The importance of the digital trade and its
major trends will also be analysed for these opportunities in Commonwealth trade changes in
Africa. It will comment on the African Continental Free Trade Area (AfCFTA) and its
significance n transformative inclusion of women. In this project an elevator pitch is created

which the perspective of what suggestions can be made to the UK prime minister on the ways of
bolstering and boosting the trade in commonwealth.
MAIN BODY

TASK 1- Padlet
IMPACTS OF COVID-19 ON COMMONWEALTH
COUNTRIES GLOBAL AND INTRA-COMMONWEALTH
GOODS AND SERVICES EXPORTS
The commonwealth countries just like all the world had very negative impacts of the
Covid-19 pandemic. Due to this pandemic these commonwealth countries have estimated
to have lost up to $345 billion worth of trade only in the year of 2020 (Escaith and
Khorana, 2020). The intra-commonwealth trade also lost $60 billion in the commonwealth
trade. There were some nations which were still able to show a higher overall foreign
investment which would flow 2020 in comparison to the previous average. This pandemic
was the reason of stopping many developments which started before the pandemic period.
Due to this Covid-19 pandemic a heavy toll of global sustainability was impacted during
the commonwealth members of the economy which lead to $1.15 trillion in foregone gross
domestic product within a year. As per the pre-pandemic trend of growth the economy was
only able to reach its 10% capacity. Most of these countries were seen to experience a
significant decline in the overall FDI inflow in 2020 that resulted in the loss of $153 billion
(Abbott, 2020). As the role of FDI was very high in the cross border trade prospects this
resulted in the disruption which limited the trade between the commonwealth countries.
The economical fall which happened due to the Covid-19 varies due among the different
commonwealth regions. This is the drop which is considered to be higher in the developing
countries which had low export rates. The Asian economies where the ones which suffered
the most following to which was African and then came Caribbean and the pacific
members. It was noticed that the global exports shrank by almost 20% which was mainly
due to the impacts of the Covid-19 on the travel and tourism which were hit very hard in
this pandemic. The impact of the pandemic on the already vulnerable economies, society
and healthcare system was the most as they were failed to challenge the crisis according to
UN sustainable development goals. Due to this pandemic these countries involved their
time and finances heavily on the development of their own vaccination (Vickers and et.al.,
2020). This challenged their technology in the medical fields which impacts their existing
challenges for the challenges to achieve sustainable development in the country.
POSSIBLE ADVANTAGES FROM COMMONWEALTH
TRADING
It can be said that commonwealth countries have the potential of growth in the market of
UK exports. These countries which are known as the economic entity are the 17% of the
world GDP of purchasing power parity. They in total have 2.4 billion people out of the
7.5 billion people in total. There are 53 members in the commonwealth which bring five
continents. These economies are developing and emerging in the 21st century. Following
are the possible advantages for countries of commonwealth trade,
Sustainable Development :
This is a development which means to meet the needs that are present without the
compromise of the ability of the future generations for meeting their own needs.
Commonwealth as an agreement has given this opportunity to many developing
countries to increase their sustainable development through different possible trade
(Dilley, 2018). Especially for the developing countries having exports and import of
some essential technology it is very beneficial for their economy.
International Peace and security :
Due to the increase in the trade and practices of these commonwealth countries there has
been a commercial relationship between many countries. This has helped them to
establish peach and security in the entire world. Commonwealth games which have been
the outcome of this agreement has been a great influence on showing peace and security
between many of economical giants.
Access to health, education, food, shelter & gender equality :
Gathering of so many of these nations altogether is benefit for those countries which are
struggling in the fields of health, education, shelter & gender equality. It can be said that
commonwealth trade allows the countries to distribute technology, essential goods,
medicine and also culture across the globe through this treaty.
Human Rights :
This trade has been very effective in the development of the human rights that has
benefited the countries in many ways. Human Rights are needed to be maintained by the
commonwealth countries in order to ensure other countries to be involved in the trade
practices. This also helps in the development ethical laws and practices in the country
that helps in better understanding of the young people (Lee-Makiyama and Verschelde,
2017).
Protection of environment :
This commonwealth trade has some of its own rules which are also related to the
protection of the environment. This is the reason why the countries involved in the trade
have developed many rules and regulation for protecting the environment in their own

TASK 2-
COMMONWEALTH TRADE, DIGITAL TRADE AND CHANGE IN AFRICA
Importance of digital trade, Analysing its trends, challenges and opportunities in Commonwealth
Following are the importance of digital trade,
New Business Models :
Due to the increase of the digital trade in-between the commonwealth group of countries.
There has been rise of many new business models which has lead to the establishment of
multiple start-ups. These start-ups are very essential for the GDP of the country, and they also
provide job opportunities and eventually decreasing the unemployment.
Easy access of global market :
Digital trade allows the countries to have the access of the global market very easily. It
can be said that the management of the market place can help these countries in the development
of the commercial practices.
Lower transaction costs :
In comparison to the normal trade which involves the physical involvement of the two
business parties utilization of the digital trade is very hand as it is a very cost effective process.
With the help of digital trade the companies in the commonwealth countries are able to
understand the importance of the organizational operations (Abeliansky and Hilbert, 2017).
Access diverse goods :
Digital trade is the best kind of trade for the international business. This allows the
business from different countries gain the access of the products of different types and locations.
Commonwealth countries are able to understand the importance and the effectiveness of the
business practices towards new and innovative products.
The trends of the Digital trade in Commonwealth countries after the Covid-19 are,
Advance forward-looking trade agreements :
As a important first step towards moving forward the commonwealth countries after
Covid-19 have identified the following steps which helps business in the E-commerce initiative.
This involved progress in the digital trade through bilateral and regional trade agreements. These
agreements are considered to be the unity of the modernized trade commitments that address
challenges that are faced in the global digital economy.
Promotion of greater interoperability :

The existing digital trade rules in the Commonwealth were considered to be outdated
after the Covid-19 as they were complex and fragmented (Beaumont-Smith and Kim, 2020). The
cross-border digital payments which have to face divergent regulatory and technical standards
where the reason for increasing the interoperability of the policy-maker which allowed in the
establishment of the banking guidelines, agreeing on the payment licence from one country to
another.
Digitalization of trade documentation :
As there were restrictions in the physical movements thus the system involved with the
international trade needed to change their reliability on the paper heavy system (Rukanova and
et.al., 2018). The system required digitalization of the documentation for the international trade
between the commonwealth. Thus, the adaptation of policies recognizing and permitting
electronic signature, transactions and records was the growing trend in the digital trade world.
Development of trusted technologies :
As in the recent times the digital technologies have been able to reach more and more
people at lower costs this has resulted in the inefficiencies. This is due to the lack of digital trust
which was present by the human of the technology. Therefore, to stop the hacking and digital
trespassing the digital trend was to on starting to develop on trusted and more secure
technologies.
Following are the challenges which are faced by the digital trade in the commonwealth
countries,
Lack of E-commerce readiness :
There are many countries in the Commonwealth trade where the infrastructure is not
ready for the development of the digital trade or E-commerce. This consists of poor distribution
system and lack of proper technology for the maintaining the reliability in the digital trade.
Discriminatory & incompatible national policies :
In certain nations there are discriminatory and incompatible national policies which
impact the digital trade between two different countries. This impact is more or less direct and
happened generally due to the cultural differences between a developed and underdeveloped
countries like those in Africa.
Legal gaps in existing trade rules :

The trade rules which are established in the commonwealth were made on the basis of the
physical interaction before trade. As there has been changes in the ways of trading the digital
trade has been facing gaps in the rules and regulation which has often resulted in
misunderstanding.
Digital protectionism :
Digital trade in comparison to the physical trade is much more vulnerable to the eyes of
the world as there are risks of hacking and unethical loss of important data which has been a
huge challenge for commonwealth countries (B20 Recommendations on Digital Trade, 2017).
The opportunities which these countries have from the digital trade practices is that they
can capitalize of the upcoming trends which are discussed for better business and sustainability.
As there is more and more development in countries which over the last few years have been
underdeveloped like the countries in African Continent, has give rise to the idea of digital trade
expansion in new market (Sommer and MacLeod, 2019). Planning out new agreements, rules
and regulations regarding the digital trade challenges will in gaining new opportunities in the
commonwealth trade.
Significance of AfCFTA
AfCFTA that is African Continental Free Trade Area is free trade area which was
founded in 2018. This agreement involves 54 nations out of the total 55 African Union nations.
The establishment of AfCFTA was for the implementation of the free trade area. The
implementation of this agreement resulted in African countries enjoying inclusive growth. This
growth was the key for reducing the poverty which was present in these countries. However,
there was negative aspect to this development (Ijaiya, Ijaiya and Ijaiya, 2021). As there was
development of a society it increased inequality and other remaining nations which were not able
to benefit from this free trade area suffered a lack of inclusion and also a lot of inequality. In
addition to that the Covid-19 pandemic that exacerbated the inequalities and vulnerabilities of
the marginalized groups also resulted in addition of extreme levels of poverty in African nations.
Africa can ensure the success of AfCFTA through overcoming the following challenges,
 The impact of Covid-19 pandemic is huge challenge as it has the potential of throwing
the region out of their development progress. Mass Vaccination of the individuals can be
said to be one of the best ways in which African countries can overcome the pandemic
problems.

 Many countries in Africa are stuck in debt crisis which was already present before Covid-
19 pandemic crisis. These countries are needed to be helped by other African nations in
order to make this AfCFTA a deal a success (Abiahu and et.al., 2020).
 Rise in the digital trade has resulted in the rise of industrialized countries which has
resulted in the witnessing of partial unwinding of globalization. The African countries are
unable to compete with these countries that have cheaper products.
There are opportunities for AfCFTA which has the potential of increasing the success of
this free trade agreement,
Growth of market :
African continent is known for a faster growing middle class which is considered to be
the key to the market growth in the world. Due to the increase in the population and also
development in these small nations market scope for these countries have increased a lot. This
gives rise to start-ups and also potential start-ups in the continent. Investments made by foreign
companies has also increased due to the growth of their middle class and developed individuals.
Natural resources :
Africa is known for being the richest continent according to the availability of the natural
resources. This is a very essential feature to have as it allows the continent to develop on their
agricultural and extractive sectors. Due to having the 30% of the worlds mineral resources they
have huge scope of development due to large reserves of diamonds, platinum, gold and other
precious metals and minerals.
Tourism :
The biodiversity of this continent is also one of the largest in comparison to any other
continent. This has given rise to the tourism industry in these group of countries which is very
beneficial for them.
This agreement of AfCFTA which created one of the worlds the largest free trade areas
was responsible for the creation of new marketing of 1.3 billion people across Africa. As this
body has been the reason for the bailing out African nations from extreme poverty through
increasing the income of 68 million African which lived on less than $5.50 a day (Akokpari,
2021). These boosts in the economy resulted in the creation of new jobs, increased
industrialization and increase in the trade within Africa. In addition to this the Women in Africa
also benefited from this as it improved the access to trade opportunities and stimulate the wage

gains up to 10.5%. This was the reason for the Boosting the Women-Owned business which was
generally most common in the agricultural sector. The expansion of the agricultural market and
demand of the agricultural products in export widened the opportunities which were available for
women. The industrialization increased their benefits and resulted in their increased productivity
in the agricultural sector (Gender and The African Continental Free Trade Area Agreement,
2020). Skilled women also were able to access more jobs and became a crucial part of the value
chains. This resulted in the fall of the inequality which was previously present in the gender in
this area.
TASK 3
Elevator Pitch
I am a student and have researched about the common wealth trade and analysed that
since the Covid-19 pandemic it has experienced poor performance. From the analysation of the
report I have been able to understand that through digital trade commonwealth countries can
successfully improve their performance in the market. I wanted to talk to you about how
commonwealth trade can be boosted. I believe that both the Commonwealth and G7 are capable
of making changes which an influence growth in the global trade. Implementation of digital trade
will be one of the key solutions to the development of the trade in international business. As far
as the other strategies are concerned, I find trade facilitation, logistics and border management
crucial for the global value chain. There needs to be new amendments in the trade agreements
which will consists of all the technical details that has changed since its was initially planned
between the commonwealth countries. Due to the restriction caused by the Covid-19 pandemic
measures for digital trade needs to be taken in order to improve and keep the trade flowing in
between commonwealth countries. The role of G7 is considered to be a very important in the
development of the international trade. This is due to the large economic power which they share
in the organization. It can be said that due to the trade emphasis and competitiveness needs to be
the core of national development strategies which need to provide the aid of trade.
I would also like to recommend you that other actions which can improve the
international trade. Increasing the transparency of the existing regulations is essential for leading
an international effort which is very impactful for building the overall capacity of trade in
Commonwealth. Embracing the international standards can simplify the unnecessary regulatory
hurdles which can develop countries through the estimation of potential export earnings. The

regional regulatory convergence needs to be seen as the stepping stone of the global convergence
. This will be improving the regional development in the global trade and if all the countries in
G7 practice this there will be a definite boost in the global trade. There are countries which have
unnecessary rules and guidelines which impact their international trade practices and decreases
the overall efficiency of the global trade development. In order to develop the technical
corporation and capacity there needs to be an increase in countries compliance with the
regulatory requirements and reduction of procedural obstacles. In order to build good relations
between the different countries involved in the commonwealth there needs to be inclusion of
sports competition in-between the countries. This will be beneficial for the commonwealth to
improve the cultural imbalances in these countries trade.
CONCLUSION
With the help of this project it can be concluded that Commonwealth trade and AfCFTA
both are agreements which has been successful in the improving the trade in their areas. Both of
these agreements of trade were impact by Covid-19 which led to negative impacts on the
countries involved in it. This project was able to identify the ways in which the commonwealth
can be provided advantages. In this project the importance of digital trade, challenges and
opportunities which effect Covid-19 has been discussed. In this project recommendation has
been made in the form of an elevator pitch to Boris Johnson who is the chair to the
commonwealth president of G7 on how to boost the trade.

REFERENCES
Books and Journals
Abbott, M., 2020. A long-term view of the United Kingdom’s economic relations with the
Commonwealth. The Round Table. 109(3). pp.258-276.
Abeliansky, A.L. and Hilbert, M., 2017. Digital technology and international trade: Is it the
quantity of subscriptions or the quality of data speed that matters?. Telecommunications
Policy. 41(1). pp.35-48.
Abiahu, M.F.C., and et.al., 2020. Maximising the Benefits of Free Trade Agreements among
Nations: Lessons for Nigeria. Akintoye, RI, Oyedele, T., Oyebamiji, TA, Ganiyu, YO,
Awogbade, A. & Abiahu. Maximising the Benefits of Free Trade Agreements Among
Nations: Lessons for Nigeria. Lagos: Chartered Institute of Taxation of Nigeria.
Akokpari, J., 2021. The African Continental Free Trade Agreement and its implications for
Africa-EU trade relations. In Revisiting EU-Africa Relations in a Changing World.
Edward Elgar Publishing.
Beaumont-Smith, G. and Kim, A.B., 2020. The Coronavirus Pandemic Highlights the Critical
Importance of Digital Trade. The Heritage Foundation, Backgrounder. (3505). p.2020.
Dilley, A., 2018. Un-Imagining Markets: Chambers of Commerce, Globalisation and the
Political Economy of the Commonwealth of Nations, 1945–1975. In Imagining Britain’s
Economic Future, c. 1800–1975 (pp. 253-277). Palgrave Macmillan, Cham.
Escaith, H. and Khorana, S., 2020. Mapping the Commonwealth Countries’ Participation in
Global Value Chains. Escaith, H. and S. Khorana (2020)'Mapping the Commonwealth
Countries Participation in Global Value Chains.
Ijaiya, T.A., Ijaiya, G.T. and Ijaiya, M.A., 2021. AFRICAN CONTINENTAL FREE TRADE
AREA (AfCFTA) AND POVERTY REDUCTION IN NIGERIA: AN EXPLORATION
OF THE POSSIBILITIES.
Lee-Makiyama, H. and Verschelde, B., 2017. Retraction note to: OECD BEPS: reconciling
global trade, taxation principles and the digital economy. In The Challenge of the
Digital Economy (pp. E1-E1). Palgrave Macmillan, Cham.
Rukanova, B., and et.al., 2018. Digital trade infrastructures: a framework for analysis. Complex
Systems Informatics and Modeling Quarterly. (14). pp.1-21.
Sommer, L. and MacLeod, J., 2019. How important is special and differential treatment for an
inclusive AfCFTA?. In Inclusive Trade in Africa (pp. 69-86). Routledge.
Vickers, B., and et.al., 2020. Impacts of the COVID-19 Pandemic on Food Trade in the
Commonwealth. Commonwealth Secretariat.
Online
B20 Recommendations on Digital Trade, 2017[Online]. Available through:
<https://unctad.org/system/files/non-official-document/dtl_eWeek2017p39_Stormy-
AnnikaMildner_en.pdf>
Gender and The African Continental Free Trade Area Agreement, 2020. [Online]. Available
through: <https://borgenproject.org/african-continental-free-trade/#:~:text=Overall%2C
%20AfCFTA%20aims%20to%20completely,gains%20by%20up%20about
%2010.5%25.>