The recent visit by the UN Trade and Development Secretary-General to the Panama Canal has highlighted the significant impact of climate change on global trade routes. During the visit on 18 and 19 May, the Secretary-General observed firsthand how climate-related challenges are exacerbating existing geopolitical issues, further straining global trade and supply chains.
The Panama Canal, a vital trade artery connecting the Atlantic and Pacific oceans, is currently facing low water levels due to below-normal rainfall driven by the “El Niño” climate phenomenon. This situation has resulted in a dramatic decline in canal transits, with a 49% drop in January and a 42% drop by April 2024, compared to the peak in December 2021, according to UN Trade and Development estimates.
“Global value chains start here with maritime transport,” the Secretary-General remarked during the visit. “Efficient maritime transport and manageable transaction costs are essential for the functioning of global value chains.”
The Secretary-General’s visit precedes the first-ever Global Supply Chain Forum, hosted by UN Trade and Development and the Government of Barbados in Bridgetown from 21 to 24 May. This forum will feature over 60 sessions and will bring together government ministers, international organizations, academia, and business leaders across the sectors of transport, trade, logistics, and supply chain management.
Key issues to be discussed at the forum include financing, trade facilitation, transport connectivity, digitalization and technology, climate change adaptation and mitigation, and disaster risk reduction. The event marks 60 years since the inception of UN Trade and Development, which has been a dedicated advocate for developing economies on the global stage.
Resilience and sustainability will be at the forefront of the forum’s agenda, particularly in light of the geopolitical and climate-related challenges that are increasingly altering trade patterns and reconfiguring supply chains. The forum aims to address the unique challenges faced by small island developing states and landlocked developing countries, which are especially vulnerable to supply chain disruptions.
Participants will explore opportunities and challenges for climate change adaptation in transport and trade logistics, with a special focus on seaports, which facilitate over 80% of global merchandise trade. Additionally, the forum will highlight emerging digital technologies such as blockchain, artificial intelligence, and the Internet of Things, examining how these innovations can streamline cross-border trade processes, enhance efficiency, and improve regulatory compliance.
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