Foreign trade is not just about importing and exporting goods; it’s about building long-lasting partnerships, opening markets, and engaging in a global dialogue, Marie Antonia von Schönburg, Chief Delegate of the Delegation of German Industry and Commerce in Sri Lanka said in Colombo Last week.She said so while speaking at the Global CEO Forum Sri Lanka held at Galadari Colombo, on 21st of September 2023.

“As we navigate the intricate web of international relations, economic challenges, and geopolitical uncertainties, it becomes increasingly evident that strong and visionary leadership is vital to ensure the prosperity and stability of our nations”, she said.

Speaking further she noted: “Turbulent times are not a new phenomenon. History has witnessed countless crises, conflicts, and economic upheavals. Yet, the challenges we face today are uniquely complex due to our interconnected global economy and the rapid pace of technological advancement. In such times, only leaders who understand the intricacies of foreign trade will make a significant impact.”

“First and foremost, leaders must recognize the crucial role that foreign trade plays in our economies. In today’s world, no nation can prosper in isolation. Trade is the lifeblood of modern economies, fueling growth, creating jobs, and stimulating innovation. Foreign trade is not just about importing and exporting goods; it’s about building long-lasting partnerships, opening markets, and engaging in a global dialogue.”

“However, foreign trade is not without its challenges, and more so in turbulent times. Trade tensions, protectionist policies, and geopolitical conflicts can disrupt the flow of goods and capital. To lead effectively in such an environment, leaders must show a deep understanding of these dynamics and the ability to navigate them skillfully. As a starter, leaders must be ethical and responsible. These attributes serve as the foundation of trust and credibility on the global stage. Ethical leadership involves upholding moral principles, especially when faced with challenging decisions.”

“Responsible leaders understand that their choices impact the well-being of both present and future generations. In a VUCA environment (Volatility, Uncertainty, Complexity, and Ambiguity) adaptability is the key. Turbulent times demand never-changing flexibility in response to ever-changing circumstances. Leaders must be ready to pivot and adjust their trade strategies in the face of constantly evolving challenges. This means having the foresight to anticipate disruptions and the agility to respond swiftly.”

“Promoting transparency and fairness is another critical aspect in foreign trade. Resorting to protectionism or engaging in unfair trade practices have long-lasting negative consequences. True leadership means upholding the principles of free and fair trade, ensuring a level playing field for everyone, and working towards a rules-based international trading system.”

“A highly skilled and adaptable workforce is a key requirement to be competitive in the global marketplace. Likewise, modern infrastructure is essential for the efficient movement of goods and services. When leaders prioritize these investments, they not only stimulate economic growth but also enhance their nation’s ability to compete on the world stage.”

“Moreover, leaders should harness the power of technology to facilitate trade. E-commerce, digital platforms, and data analytics are revolutionizing the way we conduct international business. Forward-thinking leaders must embrace these innovations and create an environment that fosters digital trade and cross-border cooperation.”

“In turbulent times, leaders must not forget about the environmental and social dimensions of foreign trade. Climate change and social inequalities are global challenges that cannot be ignored. Forward-looking leaders need to align their trade policies with sustainability goals, promoting responsible production and consumption patterns while addressing social injustices. A growing demand of consumers and investors to be socially and environmentally responsible is making this a strategic imperative.”

“Effective leadership in foreign trade requires collaboration and partnership on a global scale. No nation can address the challenges of our time by themselves. Leaders must actively engage in international forums – like Global CEO Forum -, support multilateral organizations, and work towards global solutions. By doing so, they strengthen their nation’s position and contribute to a more stable and prosperous world.”

“Leadership in turbulent times, especially from a foreign trade perspective, demands a unique set of skills and attributes. It requires responsibility, adaptability, transparency, and a commitment to fairness. It calls for investments in human capital and infrastructure, the embrace of technology, and a keen awareness of environmental and social concerns. Most importantly, it requires a global mindset that recognizes the interconnectedness of our world.”

“In the realm of foreign trade, our leaders have a profound responsibility to navigate us through turbulent waters, ensuring that our nations continue to thrive and that our world becomes a more prosperous and harmonious place for all,” she said.