The growth of cross-border e-commerce has generated enormous opportunities for countries, developing and promoting new growth drivers, modes of trade, consumer trends and jobs. Recognizing this context, the Institute for the Integration of Latin America and the Caribbean of the Bank for Integration and Development (IDB INTAL) decided to work collaboratively with the Latin American Internet Association (ALAI) to promote this type of exchange.
“Boosting cross-border e-commerce. Logistics and payment methods” This was the title of the dialogue organized by the IDB INTAL and ALAI, which took place on Wednesday (01.06.2022/XNUMX/XNUMX) in the organization's auditorium in Argentina, also broadcast via streaming.
On first block, Ana Inés Basco, Director of the IDB INTAL, highlighted in his opening remarks that the event was part of the institution's “Vision 2025” and noted that “its two axes, logistics and digital media, have to do with strengthening integration in Latin America and deepening the digital economy through the implementation of public policies.”
“There is a lot of work to be done,” said Ana Basco, adding that “a survey by the IDB and Latinobarómetro determined that only 23% of Latin Americans have made a purchase through the digital channel, meaning that there is still 77% who have not explored this exchange.”
However, the Director stated that "there are nuances between countries: Argentina, Brazil, Chile and Uruguay are in the lead with 55% of the population having made a purchase through that channel."
In light of this situation, he explained that the IDB and ALAI are promoting the “Digital Trade without Borders” project mainly between Argentina, Uruguay, Paraguay, Chile and Mexico.
Then, Raul Echeverria, Executive Director of ALAI, said that they have discovered the importance of expanding digital payment methods and financial tools for regional SMEs and MSMEs. “To this end, the project is expected to be a step towards a productive society to continue working on the development of the digital economy,” said the leader, widely respected in the field of Internet development and public policies.
El second block, in moderation Sebastian Cabello, CEO of SmC+, was dedicated to reflecting on the importance of electronic commerce for the development of the region.
About, Lucas Sotomayor, General Director of the Digital Signature and Electronic Commerce of the Ministry of Industry and Commerce in Paraguay, He said: “The importance of e-commerce lies mainly in offering an agile and effective tool to the company, its members and the market. Between 2019 and 2021, Paraguay had an annual growth of 48% to 59%. This was due to the training of companies and the business strategy that allowed SMEs to evolve in the domestic market, as well as generating greater confidence through specific e-commerce legislation.” And he suggested a regional plan to deepen integration, digitalization and exchange.
“Financial inclusion is key for local and cross-border e-commerce,” he said. Myriam Cosío Robles, representative of Clip, a Mexican company that operates a mobile transaction system that allows its users to process payments with credit cards, debit cards and food vouchers. “In Mexico there is a lot of informality: nearly 7 million businesses still do not accept electronic payments. So the opportunity for e-commerce is huge,” he said.
In that same line, Jacobo Cohen Imach, SVP General Counsel, Government Relations at Mercado Libre, highlighted the importance of e-commerce in the formalization of the economy and in inclusion. “Currently, there are one million SMEs that sell online through Mercado Libre and more than one million people who receive their income from companies that sell on our platform,” he said.
Meanwhile, Gastón Irigoyen, Co-founder and CEO of Pomelo, He reflected on Fintech. The expert, who is building the new financial services infrastructure in Latin America, said that “we are in a new era of embedded finance.” He explained: “In recent years, organizations have been changing to digital, we are seeing that technology works as an enabler. Now companies can generate an additional line of business.” And he gave as an example that a supermarket offers credit cards to consumers, and delivery companies try to be a bank for the delivery people.
Based on the consensus that e-commerce is increasingly important and has enormous potential, the panelists of the third block They discussed new means of payment and the use of new technologies in cross-border e-commerce, moderated by Valeria Rodríguez, Director of Lyra Argentina.
Ingrid Herrera, consultant at MF Economía who specializes in the analysis of the economic situation in Paraguay with a regional and global focus, highlighted, in this regard, the increase in cards that made purchases through electronic commerce in his country.
Likewise, Nadia Yavitz, from dLocal, He commented on the technology platform's experience in overcoming the main barriers facing the region. To do so, the company helps anyone reach customers, accept payments, send payments and settle funds globally. He explained that transfers from digital wallets increased by 230% between March 2020 and June 2021.
Meanwhile, Ignacio Carballo, professor and researcher of Crypto & Alternative Finance, referred to how synergy should be between countries to develop cross-border e-commerce payment methods. The specialist was blunt: “In a region where 8 out of 10 inhabitants pay in cash, the strategy must be holistic and comprehensive.”
El fourth panel, “Logistical barriers to trade”, was moderated by Lucas Barreiros, IDB Consultant, and featured the participation of José Anson, Former UPU International Consultant / CDSF Program Consultant; Fabian Villarroel Rios, Director of Regulatory Affairs for Central/South America, DHL Express, and Marcela Maron, Director of Postal Regulation, Secretariat of Public Innovation of Argentina.
In his speech, José Anson highlighted that the international nature of cross-border e-commerce requires that “the logistics process be more participatory in order to share data.”
Marcela Maron also outlined the institutional strategy of the Universal Postal Union (UPU) based on the digitalisation of the postal service and e-commerce in force since 2021. In this context, she referred to the recently renewed agreement between the UPU and the WCO aimed at working more closely on a series of cross-cutting issues. She stressed that “at the international level, there is a standardisation of the process that would facilitate the field for optimal e-commerce within the postal sector, so that States can implement the necessary public policies for all citizens.”
Finally, Fabián Villarroel pointed out that “e-commerce has opened an opportunity for micro, small and medium-sized businesses by providing them with better access to international trade.” He suggested working “collaboratively between all public and private sectors for the development of public policies.”
At the end of his speech, the customs expert said that “the use of information is important in electronic commerce to allow for early risk assessment” in the control and facilitation of trade. Thus, he highlighted the advance declaration and the single window for foreign trade as instruments for the flow of information.
The closing was in charge of Fabrizio Opertti. Manager of the IDB's Integration and Trade Sector who reiterated the bank's commitment, with more than half a century, to improve the existing commercial architecture by developing the digital economy throughout the region.
"If our Latin American and Caribbean countries manage to take advantage of the crisis as an opportunity, we will make a significant leap forward in prosperity and employment," he said.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
