Re-defining "commercial diplomacy" (CD) in the 21st century

Re-defining "commercial diplomacy" (CD) in the 21st century

Commercial diplomacy (CD) is conducted with the view of promoting businesses between a home and a host country by interest (business) groups representing domestic industries or sectors. This is achieved through a series of business promotion, facilitation and direct-engagement activities. It mainly involves providing assistance to export promotion, foreign direct investment (FDI), and access to raw materials; however, the scope well exceeds, at times, depending on situational needs or opportunities that come up.

CD is a direct interface between public diplomacy exercised in the context of bilateral foreign relations between state representatives, and private or state-sponsored business transactions, in which mixed delegations composed of ministers, Foreign Service personnel, corporate executives or chambers of commerce play a leading role. In contrast to foreign economic policy, it results from pressures and participation of interest groups on national decision-makers, thereby impacting trade relations and foreign direct investment between states.  The

Caucasus-Asia Center works towards popularizing CD both in conceptual and practical areas. It promotes CD among different stakeholders in Asia, and especially in South Asia, whilst connecting them with countries in broad Caucasus region. It empowers its clientele partners, which include corporates, medium-and small-sized businesses and non-for-profit organizations, by sharing and facilitating contacts between them and others in its global network, liaising with trade missions and ministries on behalf of its partners and helping them resolve problems that they face during the market entry and expansion in a host country.

Advantages of "commercial diplomacy" (CD) 

Ø  CD brings into general application the tools of diplomacy, such as multi-party negotiations, international/bilateral agreements and economic diplomacy, to the removal of trade and investment barriers and building consensual resolution of policy conflicts that arise from globalization of the world economy. 

Ø  CD enhances national policy (especially trade related), productive, institutional, regulatory and human capacities in developing countries to enable them to trade and participate beneficially in the international trading system. (UNCTD)

Ø  CD builds capacity, offers investigation, builds capacity and promotes consensus and partnerships on trade and development, sustainable development, trade negotiations between countries and companies.


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