From global to regional

Anwar Zibaoui

General Coordinator of the Association of Chambers of Commerce and Industry of the Mediterranean - ASCAME

The coronavirus continues to influence the pace of individuals, companies and governments, keeping us inevitably connected, and also promoting us to rethink logistics, free trade and globalization. In this new normal, it is necessary to value the establishment of shorter and more flexible supply chains, and the creation of commercial flows that do not depend on destinations that are too far away.

Globalization has shown its weakness and economic interdependence, even affecting the public health. However, it is possible to combat its negative effects and the inequalities created. We have reached the point of no return, witnessing the globalization of data, education, knowledge, talent and ideas.

This health crisis makes it evident that companies must design their supply chains in terms of risk competitiveness, insread of just the cost. CEO of the Renault Group, Luca de Meo said, “It makes no sense to open a battery plant thousands of kilometers away from the car production line.”

As new technologies and consumer demand patterns have gradually evolved, the global provision model that once prevailed in value chains driven by low-cost products has declined .

Globalization has not recovered this year, but there is a must to take stock and change the direction, which inevitably discusses the existence of the current model of supply chains and trade flows around the world. Regionalization emerges as an immense source of opportunities, especially when it reduces comercial barriers and risks, offering speed and profitability. Regionalized trade flows will be essential. For this reason, it is suitable to strengthen regional trade blocs with a new design of goods and end-to-end logistics services.

The economic models in force have been discouraged by the speed which has brought numerous changes. In consequence, it is necessary to give new answers.