Trans-Pacific Partnership: time for small businesses to think big

WE ARE sitting at a crossroads of change in global trade, one that is expected to usher in a golden era for Asia's small and medium enterprises (SMEs). The Trans-Pacific Partnership (TPP), initiated during the global economic downturn in 2009, finally concluded in October among12 Pacific Rim nations - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States - encompassing close to 40 per cent of the global economy and a third of the world's trade.

Although it has taken more than five years to complete, and is pending ratification by national parliaments, the free trade agreement is expected to open up new opportunities for both big and small companies looking beyond their home markets for growth. Special consideration has been placed on the SME sector, because they typically do not have the resources to navigate the complexities of trade regulations, or invest in physical distribution centres overseas, let alone break into dominant domestic business networks to get their product to market. All this is expected to change, with the TPP setting important policy foundations for supporting global production networks and e-commerce.

Did you know for example that today's preferred SME suppliers are no longer competing on price, but on responsiveness, lead time, on-time delivery, and the ability to collaborate with lead firms to manage supply chain risk and disruption? Did you know more than half of all Asia-based online shoppers would abandon their shopping carts if they were told their shipments would take more than 11 days to arrive? And that on average Asian online shoppers are only willing to wait four days for their shipments?