International Commerce Struggles: Unraveling Essential Patterns
In the ever-evolving world of global trade and defense, European defense companies are facing a new challenge: ensuring their suppliers have the capacity to keep pace with increased production as defense becomes a priority on the European agenda. The focus is shifting towards assisting clients within Europe.
The future of trade and defense lies in the coexistence of established platforms like KomGo with bank portals enhanced with added value solutions and AI. This is according to Michela Cicenia and Guillaume Genet, Co-Heads of Global Trade at a Corporate & Investment Banking website, who are offering dedicated green products such as the Green Deposit Offer and decommissioning guarantee on their platform.
Traders are tasked with addressing complexities and implementing solutions to restore supply chain disruptions, particularly in the commodity space. The implementation of tariffs by the Trump administration, the geopolitical context, including the situations in Ukraine and the Middle East, are creating additional challenges to the business climate.
The COVID-19 pandemic has taught valuable lessons that can help enhance adaptability capacity. Agility and optionality will be key to success in 2025 for both clients and banks.
In the global trade environment, which is increasingly complex due to trade tariffs and geopolitical instability, certain players are potentially strengthened. The renewed direct economic cooperation between the United States and Russia could create significant growth opportunities, while Europe and the UK might face marginalization. South Korea and Japan could capture more export flows to the US, while the Middle East could emerge as a trading and manufacturing hub.
The transition to clean energy is tied to energy security in Europe. In the US, there is a trend towards coupling energy transition with energy addition. A recent example is the successful raise of $2.5 billion by Invenergy, a clean energy platform.
Germany is investing significantly, partly in defense and infrastructure. The implementation of the Model Law on Electronic Transferable Records (MLETR) is being supported by banks and the French Ministry of Finance, aiming to facilitate cross-border trade.
Corporates with an existing US domestic presence may expand their industrial activities and try to minimize reliance on imports for their US operations. This could lead to increased competition in the US market.
Defense industries are likely to receive strong backing from their respective governments, adding another layer of complexity to the global trade landscape. The lessons learned from the pandemic and the ongoing geopolitical instability will undoubtedly shape the future of global trade and defense in the coming years.
