Supply Chain Managers Confront Post TPP fallout

When President Trump fulfilled his campaign promise to pull the U.S. out of the proposed Transpacific Trade Partnership (TPP) last month, many trade analysts expressed stronger support of existing ASEAN relationships.

“There certainly needs to be more bi-lateral cooperation in the Asia Pacific without TPP,” says Jonathan Gold, vice president, supply chain and customs policy for the National Retail Federation.

“This is not only true for retailers, but also agricultural shippers and light manufacturers.”

Rosemary Coates, president of Blue Silk Consulting, says that it is very likely that China will step in to fill the void, while influencing and accelerating its own transport development across Asia.

“That makes ASEAN much more critical to our national interests,” she says. “We must also help these nations with their ‘digital' transport infrastructure.”

Coates recently led a process design workshop in Singapore for all the member ASEAN countries. Their government representatives had been working for several years on the technical software specifications of the ASEAN “Single Windows” project undertaken to establish technical standards to facilitate importing and exporting between the countries.

“They had just begun to design the standardized physical processes to complement the technology,” she recalls, “and I was surprised at how difficult it was to broker agreement on any standards.”

According to Coates, ASEAN members are still at different stages in development and sophistication of logistical systems.

“Singapore, for example, is developed with modern ports and a high level of computerization in trade management,” she says. “ Myanmar is on the other side of the spectrum, and just beginning to develop fundamental infrastructure and computer systems.”

Outside influence and funding from the United States Agency for International Development, and other organizations is also important to continue this trade standardization work and stabilize this region,” concludes Coates.

“ But it is very unlikely now with the U.S. backing away from new and existing trade agreements.”

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