Climate change, AI and the Russia-Ukraine war are changing global commerce. AFP
Climate change, AI and the Russia-Ukraine war are changing global commerce. AFP
Climate change, AI and the Russia-Ukraine war are changing global commerce. AFP
Climate change, AI and the Russia-Ukraine war are changing global commerce. AFP

How the $32tn global trade is headed for a 'great reset'


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In Morocco, lorries from a Connecticut logistics company ferry car parts and clothing across the Strait of Gibraltar. In Japan, a new ­semiconductor plant transforms a once-quiet farm town. In France, a battery plant’s staff learns to supervise new colleagues: robots.

These moments, which might seem unrelated, ­represent a transformation in world trade. US-China tension and Russia’s invasion of Ukraine are leading companies to bring supply chains closer to home. A shift from fossil fuels is spurring demand for materials essential for electrification.

Artificial intelligence is forcing employees to learn new skills so they will not be replaced by computers.

Long before these trends are reflected in government data, they are already changing global commerce, which amounts to $32 trillion a year in goods and services, according to the World Trade Organisation.

Local trade routes are stretched thin

On a good day, Shelby Alamillo crosses the Rio Grande eight times. He drives along the World Trade Bridge, whose eight lanes of dusty roadway connect Mexico’s industrial heartland and South Texas.

A lorry driver for a company called Super Transporte Internacional SA de CV, Mr Alamillo, 39, is hauling – or, as he says, moving – car parts to and from the US and Mexico.

“It’s very impressive, all the trailers that cross per day,” he says. “The first move that I made, wow, I was in shock.”

Port Laredo, as it is called, includes an airport, one rail and four vehicle bridges. No other US land, sea or air crossing has been handling a higher dollar value of goods each day. Avocados, furniture and cars make their way north from Mexico. Car parts, corn and petrol head south from the US.

For now, Mr Alamillo says, traversing the bridge can take as little as 10 minutes, though about once a week, he runs into backups of three to four hours. The Texas Department of Transportation predicts that by 2050, its average crossing time could reach eight hours and 47 minutes.

This year, South Korea’s Kia and Austin-based Tesla announced plans for new electric-vehicle production in the Mexican border state of Nuevo Leon, where foreign investment is booming.

Traffic is surging as the US tries to source more supplies from Mexico because of the trade war with China.

Maeva Cousin, a Bloomberg economist, calculates that US imports of tariffed goods from China are down about $150 billion from where they would otherwise be. Mexico is filling much of the gap.

The port of entry is situated in Laredo, a city of Spanish colonial buildings and a quarter million residents. Nearby, developers are building millions of square feet of warehouse and industrial space because of the surge in international trade.

Local officials are pushing for federal approval to expand the bridge to 10 lanes, as well as add an eight-lane crossing alongside – ­at a cost of at least $40 million for both.

“We’re probably a few years behind where we need to be,” says Gene Lindgren, chief executive of the Laredo Economic Development. “But we have a plan to catch up.”

Innovators need incubators

Tucked in the rolling green hills of County Kerry in western Ireland, a start-up is conducting an experiment that could shake up global manufacturing. The company, Wazp, makes hand and face mannequins for Ikea that are used in interior design and retail displays.

The Swedish retailer, known for its cheap prices, would typically look to low-cost countries such as China for manufacturing. But Wazp can offer Ikea an alternative: 3D printing.

A Wazp employee uses the boxy white printer, roughly the size of the office Xeroxes of yore, to make a life-size mesh hand.

With a keystroke from a computer, the machine makes one in minutes out of plastic resin, and employees then brush off excess powder as if it were snow from a windscreen.

For co-founders Shane Hassett and Mariana Kobal, it is the next frontier: manufacturing on demand. Mr Hassett and Ms Kobal spent a year at a local university incubator developing a business plan.

The Irish government is helping fund the business – until, ideally, the company attracts more private capital. Mr Hassett says profitability is within sight. The company has already expanded into making the outsoles of Vivobarefoot shoes.

Until recently, 3D printing has been used for making prototypes, not for mass production. Mr Hassett says it will not be long before it supplants labour-intensive factories, bringing manufacturers closer to customers and reducing waste and carbon emissions.

SPECS

Toyota land Cruiser 2020 5.7L VXR

Engine: 5.7-litre V8

Transmission: eight-speed automatic

Power: 362hp

Torque: 530Nm

Price: Dh329,000 (base model 4.0L EXR Dh215,900)

Places to go for free coffee
  • Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day. 
  • La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
  • Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
  • Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
Match info

Uefa Champions League Group B

Barcelona v Tottenham Hotspur, midnight

The currency conundrum

Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. “The US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China’s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.”

Most countries now actively want a weak currency to make their exports more competitive. “China seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support," says Mr Mould.

This is a race to the bottom, and everybody wants to be a winner.

Why are you, you?

Why are you, you?
From this question, a new beginning.
From this question, a new destiny.
For you are a world, and a meeting of worlds.
Our dream is to unite that which has been
separated by history.
To return the many to the one.
A great story unites us all,
beyond colour and creed and gender.
The lightning flash of art
And the music of the heart.
We reflect all cultures, all ways.
We are a twenty first century wonder.
Universal ideals, visions of art and truth.
Now is the turning point of cultures and hopes.
Come with questions, leave with visions.
We are the link between the past and the future.
Here, through art, new possibilities are born. And
new answers are given wings.

Why are you, you?
Because we are mirrors of each other.
Because together we create new worlds.
Together we are more powerful than we know.
We connect, we inspire, we multiply illuminations
with the unique light of art.

 Ben Okri,

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The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Normcore explained

Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

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MATCH INFO

Real Madrid 2 (Benzema 13', Kroos 28')
Barcelona 1 (Mingueza 60')

Red card: Casemiro (Real Madrid)

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Gothia Cup 2025

4,872 matches 

1,942 teams

116 pitches

76 nations

26 UAE teams

15 Lebanese teams

2 Kuwaiti teams

Trippier bio

Date of birth September 19, 1990

Place of birth Bury, United Kingdom

Age 26

Height 1.74 metres

Nationality England

Position Right-back

Foot Right

FA Cup quarter-final draw

The matches will be played across the weekend of 21 and 22 March

Sheffield United v Arsenal

Newcastle v Manchester City

Norwich v Derby/Manchester United

Leicester City v Chelsea

TALE OF THE TAPE

Manny Pacquiao
Record: 59-6-2 (38 KOs)
Age: 38
Weight: 146lbs
Height: 166cm
Reach: 170cm

Jeff Horn
Record: 16-0-1 (11 KOs)
Age: 29
Weight: 146.2lbs
Height: 175cm
Reach: 173cm

Updated: August 03, 2023, 3:30 AM`