Digitization of Cross Border Trade to Enhance Transparency and Predictability (WorldBank)

Arguments

Need for standardisation and guidelines

Supporting facts:

• If standards weren’t needed, the world would have moved beyond them already

Topics: Standardisation, Guidelines, ISO

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Need for proper experts contributing to standards

Supporting facts:

• To participate, one must pay to be a member of national ISO committee

• Many experts from academics and small-medium sized companies can’t afford to pay this amount

• Experts from developing countries have less possibilities to participate in in-person meetings

• Many developing countries only have observer rights because they don’t have full membership

Topics: ISO Standards, Expert Participation

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Participation in technical committees of ISO is dependent on the national bodies and the unique procedures they adopt.

Supporting facts:

• The ISO does not govern the process of how members or experts are chosen for participation in technical committees.

• The approach varies from country to country, and is managed at a national level, not by ISO.

Topics: ISO, Technical Committees

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ISO has an action plan for developing countries to ensure representation and participation.

Supporting facts:

• ISO’s department administers the APDC (Action Plan for Developing Countries).

• The APDC includes a Sponsorship Program to enable countries to participate based on their national needs.

• ISO provides training to developing countries to understand ISO’s system.

Topics: ISO, Developing Countries

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ISO is working on key international standards in areas of sustainability and circular economy.

Supporting facts:

• ISO has newly started committees for the SDGs, Biodiversity and Circular Economy.

• They provide additional support for experts from developing countries to participate in these committees.

Topics: ISO, Biodiversity, Circular Economy, SDGs

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ISO’s viewpoint is that the cost of standards is necessary to cover development costs and the system is not for profit.

Supporting facts:

• The cost associated with ISO standards is utilized to offset the cost of their development.

• ISO operates on a non-profit basis.

Topics: ISO, Cost of Standards

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Regulation is catching up with e-commerce, like it did with mobile money and cryptocurrencies, potentially complicating trade

Supporting facts:

• The example of mobile money being regulated across Africa

• Emergence and regulation of cryptocurrencies

• Increased interest in e-commerce regulation due to COVID-19

Topics: E-Commerce, Regulation, Trade, Mobile Money, Cryptocurrencies

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Small businesses might need support in understanding and adapting to increasingly complex trade regulations

Supporting facts:

• SMEs and MSMEs globally may struggle to understand new regulatory complexities

• The speaker mentions the potential difficulty for small businesses ‘sitting anywhere’

Topics: SMEs, MSMEs, Trade Regulations, Digitalization

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The consideration of fees and charges in cross-border trade regulatory environment

Supporting facts:

• Questioning the necessity of certain charges

• Necessity to conform to best practices and global rules

Topics: Cross-border trade, Regulations, Fees and charges

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National Trade Facilitation Committee’s role in information sharing

Supporting facts:

• Importance of the committee is being overlooked

Topics: National Trade Facilitation Committee, Information Sharing

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Continuously improving and looking at the best practices is key

Supporting facts:

• Discussion about the National Trade Facilitation Committee

Topics: Trade Facilitation, Improvement

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Report

The analysis emphasises the importance of standardisation and guidelines to ensure consistency on a global scale. It is argued that without the need for standards, the world would have already moved beyond their necessity. This highlights the role that standards play in facilitating trade and promoting harmonisation.

However, concerns are raised regarding the accessibility of experts to contribute to ISO standards. It is noted that experts need to pay for membership in the national ISO committee, creating a financial barrier for many small and medium-sized companies, academics, and researchers.

This particularly impacts experts from developing countries, who often cannot afford the membership fees and, as a result, have limited opportunities for participation in in-person meetings. These developing countries often have observer rights rather than full membership. A related concern is the disproportionate representation of experts from big companies in ISO committees, raising questions about inequalities.

The argument is made that participation in ISO groups requires payment, and big companies have better financial leverage to afford ISO membership. This creates a potential imbalance in the input and decision-making process, favouring big companies over smaller ones and perpetuating inequalities.

ISO itself recognises the importance of participation in its technical committees but acknowledges that the process of selecting members and experts varies from country to country. This means that participation is dependent on national bodies and the unique procedures they adopt.

This decentralised approach allows for flexibility but may also raise concerns about inconsistencies in the selection process. To address concerns regarding representation, ISO has an action plan for developing countries which includes the administration of the Action Plan for Developing Countries (APDC).

The APDC aims to enable countries to participate based on their national needs and provides training to help them understand ISO’s system. This demonstrates ISO’s commitment to ensuring representation and participation from developing countries. In addition to representation, ISO is actively working on developing international standards in areas of sustainability and circular economy.

It has set up newly formed committees for the Sustainable Development Goals (SDGs), Biodiversity, and Circular Economy. Furthermore, ISO provides additional support for experts from developing countries to participate in these committees. This shows ISO’s efforts towards promoting sustainability and addressing global challenges.

One significant barrier highlighted in the analysis is the cost associated with ISO standards. The example given is a 50-page standard that costs $100, which can be a significant expense for many. This cost is utilised to cover the development costs of the standards, as ISO operates on a non-profit basis.

However, the cost can be prohibitive, especially for developing countries that may require forthcoming ISO standards on SDGs and the circular economy. Regulation in e-commerce, mobile money, and cryptocurrencies is identified as a potential complicating factor in trade. The example of mobile money being regulated across Africa and the emergence and regulation of cryptocurrencies demonstrates the increasing interest in regulating these areas.

The COVID-19 pandemic has also spurred greater interest in e-commerce regulation. The Trade Facilitation Agreement aims for harmonisation, standardisation, and simplification to facilitate trade. However, some argue that the focus on harmonisation and standardisation has overshadowed the goal of simplification, resulting in added regulatory complexity.

This perceived emphasis on regulatory complexity can hinder trade facilitation rather than promote it. Small businesses, particularly SMEs and MSMEs, may struggle to understand and adapt to the increasingly complex trade regulations. The analysis suggests that these small businesses require support in navigating these regulations.

This highlights the need for capacity-building initiatives and resources to assist small businesses in complying with trade regulations. Fees and charges in the cross-border trade regulatory environment are also considered. The necessity of certain charges is questioned, and it is emphasised that conformity to best practices and global rules is essential.

This reflects the importance of considering the economic implications and fairness of fees and charges in facilitating cross-border trade. The role of the National Trade Facilitation Committee in information sharing is highlighted as being often overlooked. The committee plays a vital role in coordinating and disseminating information related to trade facilitation initiatives.

Recognising and utilising the committee’s role in promoting information sharing can contribute to more effective trade facilitation efforts. Overall, the analysis reveals the complex and multifaceted nature of standardisation, regulation, and trade facilitation. It underscores the importance of addressing barriers to participation, ensuring representation from diverse stakeholders, and striking a balance between harmonisation and simplification.

The analysis also highlights the need to support small businesses and consider the economic implications of fees and charges in cross-border trade. These observations provide valuable insights for policymakers, industry professionals, and stakeholders involved in trade facilitation.

Arguments

Rapid digitization has not always delivered a lot of value to SMEs

Supporting facts:

• Many SMEs have reported increased complexity with more platforms to connect to, different standards and data requirements, and issues with electronic signatures

• Initiatives like digitizing non-customs formalities, cross-border digital exchanges, e-customs strategies, and resolution of e-signature problems have been noted during COVID time

Topics: Digitization, SMEs, Trade, Standardization

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The WTO Trade Facilitation Agreement (TFA) Article 10.3 encourages continuous dialogue on standardization

Supporting facts:

• Article 10.3 of the WTO TFA encourages the use of international standards for procedures and formalities and invites the Committee on Trade Facilitation at the WTO to hold an ongoing dialogue on standards

Topics: WTO, Trade Facilitation Agreement, Standardization

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The introduction of containerization massively disrupted work in harbors but also drove globalization and led to new trade opportunities.

Supporting facts:

• Containerization reduced the time to off-load a ship from a week to a day and a half.

• Containerization led to increased trade opportunities.

Topics: containerization, globalization, trade

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Knowledge about standards and contributions to setting them needs to be increased

Supporting facts:

• National trade facilitation committees should be trained in standards, standard setting, standards development

• The UNCEFAC body is an open development process, though it requires effort and learning

Topics: Standards, Trade Facilitation, Policy Making

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Public civil servants should embrace digitization

Supporting facts:

• Civil servants don’t need to be top digitization experts, but they should bring their needs in a way that experts can react

• The majority of people will have to face digitization

Topics: Digital Transformation, Government Policy

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Digitization doesn’t necessarily simplify processes or make them more useful

Supporting facts:

• Digitization of non-preferential certificate of origin doesn’t make it more useful

• Most customs administration still conduct their own verification regardless of the digital certificate’s format

Topics: Digitization, Trade Facilitation Agreement (TFA), Regulatory Framework

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We should move away from the centralised vision of standardisation in digitisation

Supporting facts:

• Standardisation is currently occurring within small sectors and business domains

Topics: Digitisation, Data Standardisation, Centralised Data Model

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Report

The analysis reveals that the rapid digitisation that has occurred has not always delivered significant value to SMEs (Small and Medium Enterprises). SMEs have reported facing challenges such as increased complexity in connecting to multiple platforms, different data requirements and standards, and problems with electronic signatures.

These issues have hindered their ability to fully utilise the benefits of digitisation. The analysis argues for a reevaluation of the approach to digitisation and standardisation. It highlights concerns about the scalability of solutions and platforms, a focus on documentation rather than processes, and the prioritisation of feasibility over necessity in projects.

Additionally, there are indications that some digitisation initiatives have been unsustainable and costly. The analysis also addresses the role of the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO) in promoting standardisation. Article 10.3 of the TFA is specifically mentioned, as it encourages ongoing dialogue on standardisation.

However, there is a call for better integration of standardisation discussions with policy and operational processes. The impact of containerisation is acknowledged, as it has brought about significant disruptions in harbour work. While it has improved efficiency by reducing ship off-loading time, it has also driven globalisation and created new trade opportunities.

The analysis raises concerns about the effect of technological advancements on the workforce and underscores the need for capacity building and acquisition of new skills. It emphasises the importance for companies to consider the impact of technological solutions on their workforce and adapt accordingly.

Increased knowledge about standards and greater participation from developing countries in standard-setting forums are also advocated in the analysis. There is a push for a more inclusive and needs-driven approach to standardisation. The analysis underscores the importance of public civil servants embracing digitisation.

Civil servants are encouraged to communicate their needs in a manner that digital experts can effectively address. In addition, the analysis suggests more active utilisation of WTO Article 10.3 to foster the sharing of standardisation processes, not just the achievement of standards.

Although digitisation has the potential to bring benefits, the analysis notes that it alone does not necessarily simplify processes or make them more useful. A revision of the regulatory framework is proposed as a potentially more effective tool for achieving efficiency and simplification.

The analysis reveals that standardisation within the context of digitisation is currently occurring within small sectors and business domains. It calls for a move away from a centralised approach to standardisation and recommends regulatory oversight by organisations such as the World Customs Organization (WCO), International Organization for Standardization (ISO), and UN Centre for Trade Facilitation and Electronic Business (UN/CEFACT).

In conclusion, the analysis highlights the challenges faced by SMEs in fully utilising the benefits of rapid digitisation. It calls for a reconsideration of current approaches to digitisation and standardisation, better integration between standardisation discussions and policy and operational processes, and consideration of the workforce implications of technological advancements.

It also emphasises the need for increased knowledge and participation in standard-setting forums, as well as a revision of the regulatory framework. Furthermore, it underscores the importance of public civil servants embracing digitisation and advocates for more active implementation of WTO Article 10.3.

Arguments

Trade is both a part of the climate problem and its solution

Supporting facts:

• Countries need to produce diverse goods to cope with climate change, these goods are only manufactured in some countries necessitating trade

• WTO Director General launched trade policy toolkit on climate change

Topics: Climate change, Trade

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There has been a massive increase in non-tariff measures corresponding to the decrease in tariffs

Supporting facts:

• Over 1,180 energy efficient regulations have been notified to the WTO by approximately 70 members since 2009

• The technically complex and diverse nature of non-tariff measures are mentioned in WTO’s report

Topics: International Trade, Non-tariff measures

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International Standards Organisation is developing standards for a wide range like food safety, nanotechnology, artificial intelligence

Supporting facts:

• ISO has a global network of 169 members

• Three-quarters of ISO’s members are from developing countries

• ISO is working on making sure that all voices are heard in international standardization activities

Topics: International Standards Organisation, Artificial Intelligence, Food Safety

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Participation in technical committees decided by national bodies

Supporting facts:

• Participation in the technical committees is decided by national standards body and not governed at ISO level

• Different countries have different models and approaches when it comes to participation.

Topics: ISO Membership, ISO Standards, Developing countries, Academia, Technical committees

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ISO has action plan to include developing countries in standardization process

Supporting facts:

• ISO has an Action Plan for Developing Countries (APDC) administered by Keick’s department

• They provide training and sponsorship opportunities to developing countries to participate actively in the technical committees

• They support participation based on the respective country’s national priorities and needs.

Topics: Developing countries, ISO Standards, Action Plan

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The cost of ISO standards is to defray the cost of developing the standards, not for profit

Supporting facts:

• ISO system is not for profit

• Part of the cost is used for developing standards

Topics: ISO standards, Cost

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Public goods developed by international organizations often have costs attached

Topics: Public goods, International organizations, Cost

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ISO standards adopted by government agencies in developing countries are subject to the cost structure of that country

Supporting facts:

• ISO standards adopted by developing country members are part of the trade ministries of their countries

• If they adopt an ISO standard, it’s not subject to the ISO cost structure

Topics: ISO standards, Adoption, Government agencies, Developing countries, Cost structure

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Conformity assessment can pose a cost factor

Supporting facts:

• Conformity assessment costs can vary based on national standards of each country

• ISO doesn’t regulate this, but sets the procedures

Topics: Conformity assessment, Cost

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Inculcation of good regulatory practice to review and update technical regulations

Supporting facts:

• The Toolkit on Standards and Public Policy provides guidance on use of international standards for updating technical regulations regularly

• Standardization need not always be centralised, as it is happening in smaller sectors and business domains

Topics: National Trade Facilitation Committee, Trade Standards, Regulatory Practice

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Report

The International Standards Organisation (ISO) is playing a significant role in addressing a variety of global challenges, including climate change and non-tariff measures related to international trade. ISO is actively involved in developing standards for sectors such as food safety, nanotechnology, and artificial intelligence.

These standards are crucial for ensuring responsible consumption and production and promoting industry innovation and infrastructure. ISO is committed to inclusivity and actively involves diverse voices, particularly from developing countries, in its standardization activities. With a global network of 169 members, ISO recognizes the importance of hearing perspectives from different regions and backgrounds.

Initiatives like the Action Plan for Developing Countries provide training and sponsorship opportunities to encourage active participation in technical committees. One of the key arguments is that ISO standards offer a solution to the increase in non-tariff measures. The World Trade Organization’s (WTO) Technical Barriers to Trade Agreement encourages the use of international standards to regulate the movement of goods.

ISO’s Committee on Conformity Assessment (CASCO) plays a crucial role in developing international standards for laboratory testing, inspection, and certification. By adopting these standards, countries can overcome challenges posed by non-tariff measures and ensure smoother trade. ISO operates on a not-for-profit basis.

The cost associated with ISO standards primarily covers the expenses of developing and maintaining these standards, reflecting ISO’s commitment to providing high-quality standards without seeking financial gain. ISO also focuses on developing procedures that governments can utilize to prevent wasteful duplication of resources.

By encouraging governments to use ISO standards, duplication and resource waste can be minimized, promoting responsible consumption and production in line with Sustainable Development Goal 12. The need for good regulatory practice in reviewing and updating technical regulations is emphasized. ISO’s Toolkit on Standards and Public Policy provides guidance on using international standards to facilitate good regulatory practices, ensuring regulations are regularly updated and align with industry advancements.

Additionally, the digitization process presents an opportunity to centralize trade data models while recognizing the importance of measures happening beyond the border. ISO aims to drive industry innovation and infrastructure in line with Sustainable Development Goal 9, promoting sustainable economic growth.

In conclusion, the International Standards Organisation (ISO) plays a crucial role in addressing global challenges such as climate change, non-tariff measures, and international trade. By developing standards for various sectors, promoting inclusivity, encouraging good regulatory practices, and embracing digitization, ISO contributes to responsible consumption and production, industry innovation, and infrastructure development.

With its not-for-profit approach, ISO ensures the availability of high-quality standards while minimizing duplication and waste of resources.

Arguments

Digitization of cross-border trade has accelerated amidst COVID-19

Supporting facts:

• COVID-19 has led to a lot of reforms and digital solutions in cross-border trade

• UNCTAD survey demonstrates improvements in digital and sustainable trade facilitation during the pandemic

• Exponential growth in AI observed during COVID-19 pandemic

Topics: Trade facilitation, Digital reforms, COVID-19

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Digital trade facilitation does not compromise security

Supporting facts:

• Trade facilitation measures such as electronic payment, risk management, authorized economic operators and border agency cooperation have a high correlation with improved performance

• A balanced approach in trade facilitation can also provide security

Topics: Trade Facilitation Agreement (TFA), Port efficiency, Digital solutions

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Fear of job losses due to automation and digitization

Supporting facts:

• The process of automation and digitalization can make some manual jobs obsolete, such as collecting coins on the bus in Chile

• With the advancement of AI and robotics, there is a risk of fewer jobs in the future

Topics: Automation, Digitization, Employment

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Digitalization, similar to containerization, could have a significant impact on trade.

Supporting facts:

• Containerization had a disruptive impact on work in harbors, reducing cargo offloading time drastically.

• Containerization led to the creation of many trade opportunities and drove globalization.

Topics: Digitalization, Global Trade

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Report

The COVID-19 pandemic has had a profound impact on cross-border trade, leading to significant reforms and the accelerated adoption of digital solutions. These reforms and digital solutions have been instrumental in ensuring the smooth flow of trade amidst the global crisis.

A survey conducted by the United Nations Conference on Trade and Development (UNCTAD) demonstrates the positive improvements in digital and sustainable trade facilitation during the pandemic. Moreover, there has been remarkable exponential growth in the use of artificial intelligence (AI) in the trade sector, further contributing to the digitisation of cross-border transactions.

One of the key arguments put forth is that the digitisation of trade facilitation does not compromise security. In fact, trade facilitation measures such as electronic payment systems and risk management have been found to have a high correlation with improved performance.

These measures, alongside other initiatives like authorised economic operators and border agency cooperation, have helped enhance the efficiency and security of cross-border trade. It is evident that a balanced approach to trade facilitation can provide both economic benefits and ensure a safe and secure trading environment.

Another important aspect highlighted is the importance of continuous improvement in trade facilitation. This is emphasised in Article 10.1 of the Trade Facilitation Agreement (TFA), which calls for the continuous review and reduction of trade restrictions. The TFA provides a framework for countries to enhance their trade facilitation efforts and ensure a more seamless movement of goods across borders.

The continuous improvement of trade facilitation is seen as crucial in enabling businesses to adapt to rapidly changing global trade dynamics. However, there are concerns about the potential job losses resulting from automation and digitisation. As automation and digitisation progress, certain manual jobs may become obsolete.

For example, in Chile, the process of automation and digitisation has eliminated the need for manual coin collection on buses. With the advancements in AI and robotics, there is a legitimate fear that fewer jobs may be available in the future.

Despite this concern, there is uncertainty about whether automation and digitisation will ultimately create more jobs in the long run. Historical examples, such as the transition from agriculture to other sectors during the industrialisation process, have led to increased food production with fewer people.

Whether AI and robotics will follow a similar pattern is yet to be seen. Digitalisation is expected to have a significant impact on trade, similar to how containerisation revolutionised the industry and drove globalisation. The disruptive impact of containerisation on work in harbours, with the drastic reduction in cargo offloading time, led to the creation of numerous trade opportunities.

Likewise, digitalisation has the potential to reshape trade norms and processes, opening up new avenues for trade expansion and efficiency gains. To ensure the success of private sector initiatives like digitalisation, global standards are crucial. This has been observed in the case of containerisation, where the impact was magnified once standardised sizes and global standards were put in place.

The development of the container by truck driver McLean and the subsequent adoption of standardised sizes greatly facilitated the smooth movement of goods across borders and contributed to the growth of global trade. Similarly, establishing global standards in the digitalisation era will be instrumental in enabling trade facilitation and unlocking the full potential of this transformation in the trade sector.

In conclusion, the COVID-19 pandemic has driven the acceleration of digitalisation in cross-border trade, leading to significant reforms and the adoption of digital solutions. The UNCTAD survey highlights the positive improvements in digital and sustainable trade facilitation during this challenging time.

Although concerns about job losses due to automation and digitisation exist, there is uncertainty about whether these advancements will ultimately create more jobs in the long run. Nonetheless, it is widely acknowledged that digitalisation has the potential to profoundly impact trade, similar to the disruptive influence of containerisation on the industry.

To fully realise the benefits of digitalisation, global standards are crucial to ensure a harmonised and efficient trading environment.

Arguments

Digitization is essential for moving huge volumes of goods across borders in a time-definite manner

Supporting facts:

• DHL operates in over 220 countries and territories with over 3 million customers and clears over 200 million-plus shipments annually

• Many of DHL’s customers are SMEs

• DHL offers a service for submitting all trade-related documents in electronic form, known as paperless trade

Topics: Digitization, Trade, Cross-Border Movement

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Trade Facilitation Agreement (TFA) provisions must be implemented correctly for businesses to operate effectively

Supporting facts:

• The TFA provisions like Article 7.8 on expedited shipments and Article 7.1 on advanced lodging for pre-arrival processing are important for DHL’s business

• DHL has the status of an AEO accredited company in many countries which makes it be in line with all the legal requirements

Topics: Trade Facilitation Agreement, Customs, Regulations

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Submitting accurate data is important for smooth global trade

Supporting facts:

• DHL has a data flow where the shippers provide data, which is then input into a customs declaration form and submitted to customs

Topics: Data Submission, Global Trade

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Efficient and inclusive National Trade Facilitation Committees can improve cross-border trade.

Supporting facts:

• In some countries, National Trade Facilitation Committees (NTFCs) are more effective due to comprehensive organizational structure and active participation from private sector.

• Some NTFCs adopt a practical approach by troubleshooting issues at the borders one by one.

• Private sector companies can participate in NTFCs either individually or through an association.

Topics: National Trade Facilitation Committees, Cross-border trade, Public and Private sector partnership

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Joint training programs like GoTrade strengthen public and private sector collaboration and can provide expertise for trade.

Supporting facts:

• GoTrade program is an example where expertise of private sector is combined with public sector.

Topics: GoTrade program, Training programs, Public and private sector collaboration

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Tools empowering first-time shippers can boost trade.

Supporting facts:

• MyGTS tool is an example, but more such tools can be developed.

Topics: First-time shippers, Trade boost, MyGTS tool

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Mutually beneficial incentives can facilitate and reward compliant SMEs (Small and Medium Enterprises).

Supporting facts:

• SMEs that are working compliantly and maintain a good error-free trading record could be rewarded with faster clearance times or facilitation in getting an AO accreditation.

Topics: SMEs, Incentives, Compliance

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Report

The analysis highlights key points from various sources related to DHL and trade facilitation. DHL is a global company that operates in over 220 countries and territories, serving over 3 million customers. Many of DHL’s customers are small and medium-sized enterprises (SMEs), highlighting the company’s focus on supporting these businesses.

Digitisation is identified as a crucial factor for efficient cross-border trade. DHL recognises this and offers paperless trade services, allowing customers to submit all trade-related documents in electronic form. This not only reduces the reliance on physical paperwork but also enables the movement of huge volumes of goods across borders in a time-definite manner.

The correct implementation of the Trade Facilitation Agreement (TFA) provisions is emphasised as essential for businesses to operate effectively. DHL, being an AEO accredited company in many countries, ensures compliance with all legal requirements related to trade facilitation. DHL’s commitment to supporting SMEs is evident through initiatives such as the GO-TREAT program.

This program aims to assist SMEs and trade facilitation in developing and least-developed countries by providing training to approximately 5000 SMEs over the past three years. Additionally, DHL offers tools like MyGlobalTradeServices, which help SMEs identify the cost of trading and customs requirements, empowering them to navigate the international trade landscape.

Submitting accurate data is highlighted as crucial for smooth global trade, and DHL has established a data flow system where shippers provide data that is then input into a customs declaration form and submitted to customs authorities. Efficient National Trade Facilitation Committees (NTFCs) are identified as key in improving cross-border trade.

In some countries, NTFCs with comprehensive organisational structures and active private sector participation are more effective. Troubleshooting issues at the borders one by one is a practical approach adopted by some NTFCs. Private sector companies can participate in NTFCs either individually or through associations, further fostering collaboration between the public and private sectors.

Collaboration between the public and private sectors is emphasised as necessary to increase trade efficiency. The joint efforts of these sectors can create solutions addressing border issues and lead to the development of programmes like GoTrade and tools like MyGlobalTradeServices.

These collaborative initiatives strengthen expertise, provide training opportunities and offer a range of solutions aimed at streamlining trade processes. Notably, the analysis also highlights the potential for mutually beneficial incentives to facilitate and reward compliant SMEs. SMEs that maintain good trading records and comply with regulations could be eligible for faster clearance times or facilitation in obtaining an AEO accreditation.

In conclusion, the analysis underscores the importance of digitisation, the correct implementation of TFA provisions, support for SMEs, accurate data submission, efficient NTFCs, joint training programmes, tools empowering first-time shippers, and collaboration between the public and private sectors in enhancing trade facilitation.

These factors contribute to smoother cross-border trade operations, increased efficiency and improved global trade relations.

Arguments

Digitization of cross-border trade to enhance transparency and predictability is the main theme of the session.

Supporting facts:

• The session was organized by UNCTAD

• The session aims to explore digital solutions for improving efficiency in cross-border processes

Topics: Trade facilitation, Border manageament, Digitization, Transparency, Predictability

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The forum brings together practitioners experienced in trade facilitation.

Supporting facts:

• Panel of experts on trade facilitation are present

Topics: Trade facilitation, Practitioners

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Standards don’t trade goods, people do, primarily the private sector and facilitators

Supporting facts:

• Standards do guide and ensure conformity, but it’s the people and the private sector businesses moving goods across borders.

Topics: International Standards, Trade, Private sector

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The voice and perspectives of the private sector are important because they are moving goods across the borders

Supporting facts:

• Expressed the need for considering the views of the private sector in matters of trade and conformity to international standards.

Topics: Private sector, Trade

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Importance of complying with international standards, laws, and regulations in moving goods across borders

Supporting facts:

• While the private sector moves goods, they still have to conform to international standards and trade facilitation agreement laws and regulations.

Topics: Trade, International Standards, Regulations

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Public-private partnership is essential for effective trade facilitation

Supporting facts:

• The Trade Facilitation Agreement promotes the inclusivity of both the public and private sector

• DHL Express has shown that public-private collaboration can indeed facilitate trade, especially for SMEs

Topics: Trade Facilitation Agreement, Public-Private Partnership, Private sector engagement

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Challenges of digitalization for least-developed countries in the face of global crises

Topics: Digitalization, Least-developed countries, Global crisis

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There has always been a balance of job increase to offset job decrease in the wake of technological changes.

Supporting facts:

• Historically, whenever a technological change has occurred, it has always been offset by an increase in jobs

• Despite automation, AI, blockchain and digitalization, there’s a need for a considered response, which implies the creation of new jobs

Topics: Automation, Digitalization, AI, Blockchain

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Importance of standardization

Supporting facts:

• Container had a bigger impact on global trade globalization than trade liberalization

• Private sector initiative only works once you have global standards in place

Topics: Global trade, Private sector initiative

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Digitization is not simply uploading a PDF and it should be used in a multi-faceted way.

Supporting facts:

• Digitisation was initially just uploading a PDF.

• Digitisation must be able to convert things to data elements.

Topics: Digitization, Automation

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The National Trade Facilitation Committee should be prioritized and improved continuously

Supporting facts:

• The committee is discussed at the WTO in Geneva

• It’s considered important in improving and looking at best practices

Topics: National Trade Facilitation Committee, WTO, Trade Information Sharing

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William Gain shows interest in the data provided by Carlos and emphasizes the need for more detailed study.

Supporting facts:

• Carlos presented data indicating a mixed picture in cross-border trade facilitation.

• William considered it necessary to wait for the 2023 stats for clearer insight on the situation.

Topics: Cross-Border Trade, International Shipping, Trade Barriers

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Report

The session, organized by the United Nations Conference on Trade and Development (UNCTAD), focused on exploring digital solutions to improve efficiency in cross-border trade. The main theme of the session was the digitisation of cross-border trade to enhance transparency and predictability.

The objective was to discuss how technology can streamline cross-border processes and provide greater visibility into trade operations, while also acknowledging the challenges faced by least-developed countries in adopting digital solutions. A key highlight of the session was the emphasis on the importance of public-private partnerships in facilitating trade.

Successful partnerships that have facilitated trade, particularly for SMEs, were showcased as examples. The session also highlighted the need for increased transparency and predictability in trade for all traders, with a particular focus on women-owned firms who often have limited access to trading information and opportunities.

Inclusivity and equal opportunities for underrepresented groups in National Trade Facilitation Committees were emphasized. The potential benefits of digitisation in enhancing trade efficiency and promoting economic growth were discussed, as well as the need for careful implementation to avoid strengthening regulatory burdens.

Compliance with international standards, laws, and regulations in facilitating cross-border trade was underlined as essential. Overall, the session provided insights into the potential of digital solutions, the importance of public-private partnerships, and the need for increased transparency and predictability in cross-border trade.

Challenges and opportunities associated with digitization were addressed, along with the importance of inclusivity, compliance with international standards, and continuous improvement in trade facilitation practices.