The commitments affirmed by Asia and Europe to lasting peace, security and stability, sustained economic growth, shared prosperity, and social development are conducive to strong and resilient regions. The resilience shown by both blocs, which had been benefitting from the technological paradigm shift into the 4IR, is apparent in their abilities to cope with the constant technological advancements and innovation as well as the rapidly expanding global value and supply chain. However, despite the highly lucrative trade volume between both blocs, the world is currently enduring the looming effects of the post-COVID-19 recovery with economic disruptions seemingly persistent.

The global economy is forecasted to accelerate by 3.8% in 2022 (World Bank, 2021); nevertheless, countries have gravely experienced self-inflicted damages to their economies, which only contributed to make the matter worse, after having seen an alarming shrink at one of the fastest paces in decades. It is apparent, therefore, that countries will need to surmount many new challenges from 2021 onwards. The global value and supply chain are heavily disrupted and a new normal for conducting trades is beginning to surface with contactless delivery, nearshoring, intra-regional transactions, localization, inter alia, becoming common suggestions for the post COVID-19 world – what Asia and Europe shall look forward to in order to ensure growth in this new shift in the dynamics of the world trades.

Despite the effects of the COVID-19 pandemic, trade will continue, and along with the 4IR, multilateralism has also been proven to be essential to both regions, especially its important role in further promoting economic growth and social development through the establishment of various modern and comprehensive free trade agreements whether bilateral and/or regional, which have risen from only 70 in 1990 to more than 300 in the recent years, according to the World Trade Report of the World Trade Organization (2011). Trade and tourism sectors, highly expected to be revived as the world cast its glimpse toward a post COVID-19 era, will serve to regain their roles as important sources of employment and incomes as well as women’s purchasing power. This will definitely act as a stimulus to social welfare and the economic recovery. Nonetheless, all aspects of trade now have to factor in the ramification of the effects of the COVID-19.

It is important to recognize that while the rapid change in technology brings both regions many new and exciting opportunities; due to the different levels of development across the regions, many developing countries have not been able to adapt and maximize the potentials of these benefits. Moreover, many existing challenges remain in terms of the development and discrepancies of the laws and regulations between both regions, which need to be acknowledged and heeded – specifically when participating in the establishment of free trade agreements. The world now must make real and extensive adjustments to the way trade is handled across regions due to the economic downturn in the aftermath of the COVID-19-pandemic. In this context, it is indispensable to both blocs to inclusively expedite the economic recovery through necessary mechanisms, including but not limited to safe and effective COVID-19 vaccine distribution, trade liberalization, red tape reduction for export growth, the fostering of electronic commerce via digitalization, and the provision of preferential treatment to developing countries.

In order to address the above dynamics as well as the effects of the COVID-19 pandemic on trade and investment, the Ministry of Commerce of the Kingdom of Cambodia is excited to host the 1st Asia-Europe Economic and Business Forum, with supports from the Council for the Development of Cambodia (CDC), the Asia-Europe Foundation(ASEF) and other partners, under the theme “Transitioning to a New Normal: Leveraging Global Value Chains, Multilateralism and the 4IR”, in order to bring forth policy makers, academics, industry experts, well versed in the operations, logistics and economics of the 4IR value/supply chain to discuss and reflect on the relevance of best practices.
The event will be held virtually on 24 November 2021 as one of the major side events of the ASEM13. This forum will be participated by world leaders, policymakers, academics, businessmen and other development partners from both Asia and Europe with the aim to engage in-depth discussions among all stakeholders on a variety of topics. The AEEBF1 comprises 2 presentations and 3 panel discussions, one of which will be prepared and hosted in partnership with Bruegel, a Brussels-based economic think-tank, in honour of the rich tradition of the Asia-Europe Economic Forum (AEEF), a significant flagship program organized by Bruegel, which has been one amongst instrumental inspirations toward the establishment of the AEEBF1.