The impact of geopolitics on supply chains, and the pace at which trade and investmentflows have shifted over the past two years are topics that will be keenly discussed at the World Trade Organization’s (WTO) ministerial meeting in Abu Dhabi this week.

Whilst shipping challenges caused by tensions in the Red Sea and the drought in the Panama Canal are making trade conditions more difficult in the near-term, businesses must also prepare for more fundamental transformations afoot.

These transformations are being driven by digitisation of key processes, a strategic pivot towards more resilient and sustainable supply chains, and the emergence of new business models. This poses both challenges and opportunities for businesses.

The nature of what is being bought and sold and how it is being traded is changing too.In the future, container ships will continue to sail, filled with goods acquired from e-commerce platforms in one continent, by customers in another. But there will also be a big proportional shift towards trade in services. The value of global trade is estimated to be in the region of USD 32 tn, of which a fifth is comprised of services. Over the next decade, services are expected to account for a substantial share of all new international trade, with the bulk of this being in digitally delivered services.

WTO meeting delegates will have a challenge knowing where to begin, and while we will no doubt see useful developments, it will as ever be incumbent on businesses themselves to navigate this complex terrain with agility and foresight.

First, businesses need to understand how their market, and markets relevant to them, are evolving. To improve resiliency, many are already seeking new suppliers closer to home — so-called near-shoring. Others are forging entirely new supplier networks within nascent industry segments as they seek the tools necessary to transition to net zero. Airlines for example, are facing steep learning curves identifying and working with the most promising producers of sustainable aviation fuels.

Second, putting in place the right financial infrastructure can create agile, borderless businesses able to react quickly to change. Exploiting simple cross-border payment and trade tracking apps, and making investments in partnerships and platforms to facilitate global collaboration across real and virtual platforms, will be key.

HSBC is well-positioned as we often sit on both sides of a transaction, providing us with unique insights into the needs of buyers and sellers, together with that of the wider industry. Through the bank’s extensive investment into experienced people and processes, we are also driving forward automation and digitisation in trade finance.

For those willing to adapt, innovate, and collaborate, the potential rewards are significant. The key lies in a strategic and forward-looking approach. This will include embracing complexity, leveraging technology, and building on the strengths of global interconnectedness and good governance.

Vivek Ramachandran is head of global trade and receivables finance at HSBC.

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