The GDC Blog
Great article this week (http://www.bernama.com.my/bernama/v7/wn/newsworld.php?id=1013570) regarding the effort by LATAM’s open economics to create a trading bloc to not just firm their cross-border economic ties but to begin building commerce efforts with Asia. The alliance specifically takes the view that economic growth will occur by focusing outwardly versus inwardly for global trade and commerce growth. The Pacific Alliance consists of Mexico, Columbia, Peru and Chile. This creates a market of almost 210 million people and a combined total of about 35% of GDP output for LATAM and the Caribbean. While the alliance is meant to reduce governmental barriers such as tariffs and regulations, it also will serve to create pricing and trade leverage for negotiations with Asian nations. Trade with Asia will enhance the dynamic export sectors on both ends of the Pacific. It is a natural outgrowth of existing population migration paths with large communities of Japanese, Koreans and Chinese establishing themselves throughout the LATAM community. More direct trade flows are also being stimulated by the growth of LATAM and by Asian e-commerce vendors beginning to focus on external growth—rather than a singular focus on internal growth. As vendors such as Rakuten, Alibaba and Mercado Libre extend their reach, there will be an enhanced need to strengthen their abilities to manage Identity of their prospective customers, validate the delivery location of the customer, and last, collect the payment in locally accepted payment vehicles. International customer data management is not one size fits all, but deployment of the right combination of technology can yield great results at a reasonable cost. Trade accords reduce the friction between global economies and technology solutions reduce the friction of managing customer transactions globally. Both have their challenges, but both also lead to growth and progress.