A Dubai initiative to boost South-South trade was launched on Wednesday at the World Economic Forum in Davos.
The World Logistics Passport (WLP) was inaugurated in the presence of government leaders and heads of major corporations from Asia, Latin America and Africa, according to a statement released by the Government of Dubai Media Office.
The WLP links the Customs World, the DP World and the Emirates Group to enhance connectivity through Dubai and through expertise sharing and process development directly between partner countries, it said.
A pilot project operational since July 2019 has already increased trade by participants by 10 per cent, the statement said.
The World Logistics Passport has been designed to overcome non-tariff trade barriers such as logistics inefficiency that currently limit the growth of trade between developing markets.
South-South trade is worth an estimated USD 4.28 trillion annually, more than half of total developing countries' exports in 2018, according to the WTO.
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However, many countries in Asia, Latin America and Africa have much smaller market shares in key export products in each other's markets compared to their shares in developed countries, indicating the potential for further substantial growth, boosting prosperity.
Designed as a points loyalty scheme, the initiative has been set up to incentivise companies and traders to use Dubai's world-leading logistics facilities in return for cost and time savings and enhanced customs clearances.
Not only will this increase the ease of moving goods in Dubai, it will also foster more optimal direct trade routes between Latin America, Africa and Asia.
Globally, the World Logistics Passport will enable partner countries to leverage the expertise of Dubai's institutions, such as DP World's existing global logistics network of ports and economic parks, Emirates Group's worldwide Dnata and SkyCargo network, and Dubai's expertise in Customs and trade governance.
As a result, these partner countries will be able to improve their own processes and capability to improve security, transparency and ease of moving goods, thus transforming them into global trade hubs.
Attending the WEF, Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Airline and Group, said: "Through this strategy, we will offer many privileges and services that will help connect international markets by mobilising Dubai's resources and infrastructure."
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