Trade negotiation with US ongoing, trade policy may shift quickly: Scott Wang

In today’s world, global trade is being reshaped not just by tariffs or geopolitical tensions in several places but also by policy unpredictability. The uncertainties are hitting developing economies. India is not an exception. 

In this backdrop, DH’s Mrityunjay Bose spoke to Scott Wang, Vice President, Asia Pacific, World Trade Centers Association. 

Wang draws from his twenty years of expertise in business relations and trade in the United States, China and other Asian countries to lead WTCA’s efforts in developing business relations in the Asia Pacific region.

He holds a Masters of Pacific International Affairs (MPIA) degree from the Graduate School of International Relations and Pacific Studies (IR/PS) at University of California, San Diego (UCSD), in addition to MA and BA degrees from Hangzhou University (now Zhejiang University), China.

“The trade negotiation with the US is still ongoing and the US trade policy may shift quickly,” Wang says.

Following are the excerpts of the interview:

How do you look at the US unleashing tariffs and trade conflicts across the globe affecting the overall geopolitical situation?

While we have observed the significant impact of the current US tariff policy on global trade and investment, the WTCA is not in a position to comment on geopolitics as a non-political organisation.

In such an emerging global order, what role does the WTCA propose to play?

As one of the top international trade associations and networks covering 300+ major cities in nearly 100 countries and territories, the WTCA has been facilitating international trade and investment across the globe for over half a century. While the global order changes over time, the WTCA has never changed its commitment to free and fair trade, open market, and healthy competition through trade and people-to-people communication. WTCA’s role to promote international collaboration is even more significant and relevant as the world is getting increasingly divided today.

Does India’s geopolitical risks also continue to rise? What is your take on this?

Like most other countries, India has to adjust its foreign policy against the backdrop of shifting global landscape in order to maximise its national interests. Opportunities always come along with crisis and India is working to mitigate risks and re-balance its trade relations. WTCA helps members navigate risks through shared tools and knowledge. Most recently, we collaborated with the Hague Center for Strategic Studies (HCSS) and developed a great tool called the Geopolitical Annual Trade Risk Index (GATRI) to help our global membership and business communities assess geopolitical risk on trade via a straightforward annual index figure, which significantly simplifies the decision-making process for companies of all sizes with exposure to international business.

As for the US, India is the biggest trade partner, how does the Trump Tariff affect it.

Given the current US tariff rate on India, many of India’s export sectors will be affected. However, the impact on India’s overall growth is projected to be around 0.5 per cent since India’s dependence on external trade is relatively low compared to many other export-oriented countries in the Asia Pacific. On the other hand, the trade negotiation with the US is still ongoing and the US trade policy may shift quickly. Rather than speculating, WTCA encourages focusing on India’s inherent strengths: its demographics, growing markets, and resilient business networks which continue to drive opportunity.

A lot of layoffs are being seen as a possible fallout.

While companies and individuals will be going through ups and downs of economic circles, we believe India’s competitiveness and resilience will sustain it through the downward curve. Global trade and investment climates are dynamic, and businesses often adapt in ways that create new opportunities even amidst uncertainty.

In the days to come, AI and ML are going to play a lot of roles in international business - and will these impact global trade.

AI and ML are already transforming industries, from logistics to manufacturing to services. Like every major innovation, the key for businesses is to stay adaptive and seize the opportunities these technologies bring. WTCA helps members exchange knowledge and best practices so they can remain competitive in this evolving landscape.

What role WTCA is playing in building Tier II and III cities as global trade hubs in alignment with India’s ‘Make in India’ and National Logistics Policy.

As an international trade organisation dedicated to stimulating trade and investment opportunities, WTCA understands that the development of these Tier 2 and 3 cities is crucial to India’s further economic growth, infrastructure investment, inclusive development and regional disparity reduction. To this end, a key part of our India strategy has been to serve as a catalyst that will help these cities emerge as important economic hubs for India. Our global network has achieved astonishing expansion in the last decade and covers more than 30 cities in India, with a majority of them being these Tier 2 and 3 cities. We have been working with our members in India to provide state-of-the-art business facilities as critical infrastructure to support India’s “Make in India” and National Logistics Policy. From start-ups to well-established businesses, through our unique combination of global connectivity, professional business facility and integrated international services, the global WTCA network offers an unparalleled ecosystem for SMEs to thrive.

Please elaborate on successful case studies of industrial clusters built in Tier II and III cities.

Out WTCA members in India including WTC Mumbai, WTC Bhubaneswar, WTC Goa and WTC Jaipur have developed extensive trade services programs to assist local business communities, in particular SMEs. Some of the service offerings include trade facilitation programs such as workshops and seminars, trade skill development programs, trade information and databases, trade missions, as well as conferences and exhibitions. All of these programs offer packages of expertise and resources to nurture SMEs to get through the development hurdles. We have also been evaluating how our ecosystem can add value to FTZs, SEZs, Smart Cities, Industrial parks, logistic hubs, ports and airports, universities etc so our network can empower businesses in more industries and enable them in more international markets. We expect our efforts to expand our network both horizontally and vertically, and facilitate the success of many more businesses, which in turn will contribute to the regional economic development and prosperity by creating jobs, stimulating innovation and fostering competition.

Please elaborate on WTC Nashik and WTC Nhava Sheva.

WTC Thane, a mixed-use facility in Thane, Mumbai developed by Welspun One, announced earlier this year, is slated to be India's first and tallest Grade A platinum-rated urban distribution center, integrating warehousing, retail, office, F&B, and an experience center. With an estimated investment of Rs 800 crore, the project aims to meet the growing demand for just- in-time delivery and micro-fulfilment centers within the Mumbai Metropolitan Region. WTCA also recently signed an agreement with Welspun One, whereby the latter will develop India’s first port-based WTC Nhava Sheva in Maharashtra with an investment of over Rs 2700 crores. Both state-of-the-art projects will provide critical infrastructure support to the international trade development of the region and boost India’s overall connectivity with major trade partners.