The emergence of cross-border e-commerce has profoundly transformed global trade dynamics. For micro, small, and medium-sized enterprises (MSMEs) in Peru, leveraging this opportunity to expand their businesses and achieve international growth has become a critical priority. On October 31, 2023, Peru’s National Customs and Tax Administration (SUNAT), with support from the World Customs Organization (WCO), hosted an online forum aimed at helping Peruvian MSMEs better engage in cross-border e-commerce and enhance their competitiveness in the global value chain. This article provides an in-depth analysis of the forum’s background, content, outcomes, and potential impact on Peruvian MSMEs, while exploring the broader opportunities and challenges cross-border e-commerce presents for Peru’s economic development.
Forum Background and Objectives
SUNAT has long been committed to supporting the growth of domestic MSMEs through initiatives like its flagship program, “Emprender Exportando” (Entrepreneurial Exporting), which provides guidance and resources to help these businesses improve competitiveness, expand operations, and access new markets. Cross-border e-commerce, as an innovative trade model, offers MSMEs broader market access and more efficient trade channels. However, many Peruvian MSMEs face significant challenges due to limited experience, resources, and information. To address these barriers, SUNAT partnered with the WCO to organize this virtual forum.
The forum’s key objectives included:
- Enhancing awareness: Educating MSMEs about the latest trends, challenges, and opportunities in cross-border e-commerce.
- Sharing best practices: Featuring insights from international experts to provide actionable strategies for Peruvian businesses.
- Fostering collaboration: Creating a platform for dialogue between public institutions and private sector stakeholders to align support mechanisms.
- Inspiring internationalization: Showcasing success stories from Peruvian MSMEs to encourage broader participation in global trade.
Key Discussions and Highlights
The forum brought together over 160 participants, including MSME representatives, government officials, international organization delegates, and industry experts. Discussions spanned international trends, logistical hurdles, regulatory frameworks, and case studies.
Global Trends and Challenges
Representatives from the United Nations Conference on Trade and Development (UNCTAD) outlined the primary obstacles MSMEs face in cross-border e-commerce:
- High logistics costs: Cross-border shipping expenses often disadvantage smaller businesses competing with larger corporations.
- Complex customs procedures: Varying international regulations require significant time and expertise to navigate.
- Payment risks: Fraud and currency fluctuations pose financial vulnerabilities.
- Cultural and linguistic barriers: Effective communication with overseas customers demands localized strategies.
Best Practices and Case Studies
Officials from U.S. Customs and Border Protection (CBP) and Chile’s Customs Administration emphasized:
- Digitalization: Automating customs processes to reduce delays.
- Risk management: Implementing systems to identify and mitigate trade risks.
- Public-private coordination: Strengthening partnerships to streamline cross-border trade.
Peruvian MSMEs Joyeros Artesanal Yamanik and Warmipura y Compañía shared their success in using platforms like Amazon to reach global audiences, highlighting:
- Strategic platform selection tailored to target markets.
- Investment in product quality and customer service.
- Active participation in promotional campaigns to boost visibility.
Government Support Programs
Peru’s Export and Tourism Promotion Agency (PROMPERÚ) outlined initiatives such as:
- Training workshops on e-commerce logistics and marketing.
- Financial grants for digital infrastructure development.
- Sponsorship for international trade fairs.
Outcomes and Implications
The forum achieved measurable results:
- Increased MSME understanding of cross-border e-commerce mechanics.
- Stronger networks between businesses and policymakers.
- Renewed momentum for MSMEs to explore global markets.
For Peruvian MSMEs, cross-border e-commerce offers:
- Access to larger consumer bases and revenue streams.
- Opportunities to benchmark against international standards.
- Reduced overhead costs through digital platforms.
- Job creation in logistics, marketing, and customer support.
Broader Economic Impact
While cross-border e-commerce presents significant opportunities for Peru’s economy, challenges remain:
Opportunities
- Economic growth through increased exports and foreign exchange earnings.
- Employment generation in e-commerce-adjacent sectors.
- Enhanced competitiveness of Peruvian products globally.
- Greater consumer choice and lower prices for domestic buyers.
Challenges
- Inadequate logistics infrastructure to handle growing e-commerce volumes.
- Unclear regulatory frameworks for digital trade.
- Shortages of skilled professionals in international e-commerce.
- Cybersecurity threats and intellectual property risks.
Conclusion
The SUNAT-WCO forum marked a pivotal step in empowering Peruvian MSMEs to harness cross-border e-commerce. As internet penetration deepens and global trade evolves, digital platforms will increasingly drive Peru’s economic growth. To capitalize on this trend, Peru must prioritize infrastructure upgrades, regulatory clarity, and workforce training. The WCO commended SUNAT’s leadership through the SECO-WCO Global Trade Facilitation Program, affirming such initiatives as vital springboards for MSMEs in emerging economies.