By Alicia Nicholls
This past week, I had the privilege of attending the inaugural Global Supply Chain Forum (GSCF) jointly hosted by the Government of Barbados and United Nations Trade and Development (UNCTAD) in Bridgetown, Barbados, from May 21-24, 2024. As an international trade specialist and researcher at the Shridath Ramphal Centre for International Trade Law, Policy and Services (SRC) at The University of the West Indies – Cave Hill, I found this four-day event to be a timely and invaluable forum, coinciding with UNCTAD’s upcoming 60th anniversary. It offered opportunities for knowledge exchange and discussions on the critical challenges confronting global supply chains, especially for Small Island Developing States (SIDS). I share my main takeaways from the Forum in this SRC Trading Thoughts.
Global Supply Chain Issues from a SIDS perspective
Simply put, global supply chains describe the process, or more accurately the network, of getting a product from production to the consumer. Globalization has made global supply chains more complex as companies offshore or outsource manufacturing processes and source raw materials and intermediate inputs from distant locations. This geographical distance, as well as the trend of lean production practices, makes global supply chains more susceptible to disruptions from economic, environmental, and geopolitical factors.
The GSCF was initiated by a request from Barbados’ Prime Minister Mia Amor Mottley, the current President of UNCTAD during its Fifteenth Quadrennial Conference (UNCTAD 15) held in Barbados in 2021. Barbados’ hosting of the GSCF is historic as it is the first international UN conference on global supply chain issues. The GSCF highlights the challenges faced by SIDS and places these issues squarely at the forefront of the global policy agenda, particularly amidst rising shipping costs caused by climate and geopolitical disruptions. The Forum’s urgency is further underscored by the COVID-19 pandemic, which had exposed severe supply chain and procurement difficulties for SIDS, especially in obtaining vaccines and personal protective equipment (PPE). Prime Minister Mottley has repeatedly described the market for these products as “the wild wild west.”
It is, therefore, no surprise that climate change, food security, procurement and regional integration were recurring themes throughout the four days. Shipping accounts for nearly 3% of global greenhouse gas (GHG) emissions, according to statistics from UN Trade and Development. International trade via sea currently accounts for about 80% of global trade and this percentage is even higher for many SIDS which are highly dependent on maritime transportation due to their geographic isolation. For this reason, decarbonizing and greening maritime transport is crucial to combatting the climate crisis, to which SIDS are especially vulnerable.
Due to their high dependence on international trade, SIDS are disproportionately impacted by climate- and geopolitical-related supply chain disruptions and shocks. Historically low water levels in the Panama Canal due to a prolonged drought has impacted both the volume and size of the ships which could transit the Canal, a major node in the global maritime transportation network and with knock-on effects on shipping costs, times and emissions. Longer shipping times and higher costs adversely impact the price and availability of products for the average consumer, especially those living in import-dependent SIDS. UNCTAD Secretary General (SG) Ms. Grynspan, who visited the Canal on her way to the Forum, also touched on this theme during her address at the Opening Ceremony. Global supply chain challenges are further compounded by the disruptions in the Black Sea and the Red Sea due to geopolitical conflicts – Russia/Ukraine war and the Israel/Palestine conflict, respectively, which have forced ships to find alternative routes. This increases shipping times and costs, placing added strain on other shipping channels, like the already stressed Panama Canal.
My Key Takeaways
Delegates of the Forum were treated to a mix of plenary and parallel sessions with discussions on climate change adaptation and resilience building, responsible business conduct, regional connectivity, services, and gender equality. I will just highlight a couple panels which I found particularly stimulating.
The High-Level SIDS Ministerial Panel, moderated by Ambassador Matthew Wilson, Permanent Representative of Barbados to the United Nations (UN) and other international organisations in Geneva, highlighted both the shared challenges and the innovative solutions being implemented by SIDS globally. The Ministers, which hailed from Barbados, Curacao, Fiji, Guyana, the Marshall Islands, Martinique, Seychelles and Tuvalu, all indicated the significant challenges the COVID-19 pandemic had wrought on their countries or territories, how they met those challenges and some of the on-going initiatives to boost trade facilitation.
The need for deeper regional integration was a constant theme emerging from the sessions. I really enjoyed the panel on Regional Connectivity and Services and the data shared by both main speakers, Anthony Ali, CEO of Goddard Enterprises Ltd. and Garvin Medera, CEO of Caribbean Airlines (CAL) on regional connectivity, levels of regional trade and where some of the opportunities exist. It was also a timely reminder that despite on-going renovations, Caribbean countries still have far to go to improve the competitiveness of their port infrastructure but also that Jamaica is a best practice in the region for the upgrades it has made in its quest to become a logistics hub. The frank and open discussion which followed their presentations highlighted the missing political will needed for solving these problems.
The third panel which really stood out for me was the plenary panel on Day 4 on gender equality in supply chains. According to Director General of the International Labour Organisation (ILO), Gilbert Houngbo, women now comprise a large percentage of the supply chain workforce, but still represent a small percentage in the maritime sector and in higher-level jobs. Women in supply chain jobs also face several challenges, such as discrimination and the stigma of being seen as weaker than men and less capable to hold certain positions in the sector. Other challenges include lack of decent working conditions, high levels of insecurity, financing challenges and sexual harassment and violence. The esteemed panelists also highlighted some of the interventions their organisations are making in addressing these issues, including special programmes to encourage women’s involvement in this sector.
The UWI played a significant role as a key partner of the Forum. Several UWI academics, including the SRC’s Director Dr. Jan Yves Remy, participated as panelists in the Forum. The UWI and UNCTAD co-hosted a side event on The UWI’s Cave Hill campus featuring UNCTAD SG Rebeca Grynspan as the key speaker. During the ninety-minute session, she shared insights with UWI students on her career and UNCTAD’s efforts to address many of the challenges being discussed. Additionally, UWI / SRC also co-organized a panel on the role of young people in supply chains. A special shout-out must go out to the hard working volunteers, which included current and former UWI students.
For me, one of the most rewarding aspects of the Forum was the chance to network with fellow trade professionals from across the world. An additional treat was the Technical Visit to the Port of Bridgetown, which afforded us a close-up view of some of the upgrades currently underway to expand the port’s capacity and efficiency, facilitate trade and improve our competitiveness.
The Way Forward
While many of the topics discussed were familiar, the depth and richness of the discussions offered much food for thought. I end this piece with three suggestions.
Policy action: First, the solutions proffered should be incorporated into policy discourse and action at national, regional, and international levels. The SIDS Ministerial Declaration on Transport adopted at the Forum will be a critical input for the upcoming Fourth International Conference on Small Island Developing States (SIDS 4), which I am attending in Antigua.
Best practices database: Second, the sessions focused on global best practices for implementing ASYCUDA, electronic single windows (ESWs), national trade facilitation committees (NTFCs), efficient port management, border agency cooperation, and greening global supply chains. I hope an online database will be created, if not already available, for countries and stakeholders to share and learn from these best practices.
Partnership: Third, the GSCF showcased the immense potential of collaboration among international organizations, academia, governments, and the private sector. I’m encouraged by the MOU signed by The UWI and UNCTAD, formalizing their longstanding relationship, and look forward to the benefits of these strengthened partnerships.
As a Barbadian, it fills my heart with pride to see my country and by extension, the Caribbean, host yet another impactful international event, again writing our name on history’s page and being craftsmen of our fate. I close by extending my heartfelt congratulations to Carlos Wharton, Ambassador Matthew Wilson, and all the other members of Team Barbados, the UNCTAD team, and to anyone else who made this Forum a resounding success. I eagerly look forward to the next Forum in Saudi Arabia in 2026!
Alicia Nicholls, B.Sc., M.Sc., LL.B. is the Junior Research Fellow of the Shridath Ramphal Centre of The University of the West Indies, Cave Hill. Learn more about the SRC at www.shridathramphalcentre.com.