How digital trade corridors facilitate trade, build trust and security in trade? (UK institute of Export & International Trade)

Arguments

Innovation is critical and necessary for improving global trade amid increasing political complexities.

Supporting facts:

• Global trade is becoming more political and complex, which necessitates the need for innovation.

• Continuing with paper transactions and old methods would not cope up with the increasing complexity of trade.

• Keeping the flow of goods moving requires innovation.

Topics: Innovation, Global Trade, Political Complexities

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Interoperability in exchange of data and electronic transfer of records is imperative for improving trade.

Supporting facts:

• Projects focusing on interoperability is still quite novel.

• The Electronic Trade Document Act allows for interoperability in the transfer of title.

Topics: Interoperability, Data Exchange, Electronic Transfer of Records

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Trade is about partnerships and cannot be done individualistically

Supporting facts:

• Trade requires a number of partners to collaborate. Port of Rotterdam’s research showed that getting a container from somewhere in China to a client in Germany involves 28 different parties.

Topics: Trade, Partnerships, Collaboration

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Successful collaboration in trade requires mutual benefits and effective management.

Supporting facts:

• Everyone involved in the trade process must have something to gain from the collaboration, and it needs to be managed effectively to prevent creation of additional silos.

Topics: Collaboration, Trade, Management

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Successful digital trade and trade corridors hinge on the collaborative work of all actors in the supply chain

Supporting facts:

• Their work on Trade Trust with the Port of Singapore in 2019 focused on secure, hassle-free digital transfer of title of electronic bill of lading.

• They used blockchain technology to create a transferable token that represented a bill of lading.

• Implementation of the KeyConnect system for seamless roll-off, roll-on transport between the Netherlands and the UK could only be made possible through partnerships.

Topics: Digital trade, Trade corridors, Supply chain, Partnerships

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Report

In discussions about improving global trade, the importance of innovation and digitization is emphasized. It is argued that as global trade becomes more political and complex, traditional paper transactions and old methods are no longer sufficient. Innovation is seen as critical in ensuring the smooth flow of goods in the face of increasing complexities.

The importance of digitalization in global trade and cross-border operations is highlighted by Aliosa Bey, a strong advocate for digitization. Bey believes that the adoption of the Electronic Trade Document Act in the UK allows for a seamless transition to digital methods in trade.

Digitization is seen as necessary for achieving efficiency, compliance, and control within the supply chain. Interoperability in the exchange of data and electronic transfer of records is also considered imperative for trade improvement. It is noted that projects focusing on interoperability are still relatively new.

The Electronic Trade Document Act is highlighted as a key factor in achieving interoperability in the transfer of title. This interoperability is seen as crucial for facilitating trade and ensuring smooth transactions. Compliance with laws and regulations is another key aspect emphasized in global trade operations.

The speakers argue that strict compliance is necessary to verify claims made in trade, such as labour conditions. The new laws introduced in trade require traders to provide evidence to support their claims. This ensures transparency and accountability in trade operations.

Collaboration and partnerships are considered integral to the functioning of trade. It is noted that trade involves a number of partners who need to collaborate for successful transactions. The Port of Rotterdam’s research shows that there can be up to 28 different parties involved in transporting a container from China to a client in Germany.

The speakers strongly advocate for collaboration, emphasizing that partnerships are essential for optimizing trade flows. Successful collaboration requires mutual benefits and effective management to prevent the creation of additional silos. Digital trade and trade corridors are seen as reliant on the collaborative work of all actors in the supply chain.

The speakers highlight examples such as Trade Trust with the Port of Singapore, which focused on secure and hassle-free digital transfer of title of electronic bill of lading. Blockchain technology was used to create a transferable token representing a bill of lading.

Partnerships are also highlighted as essential for the implementation of systems like KeyConnect, which enables seamless transport between the Netherlands and the UK. Moreover, the importance of interoperability in digital trade is emphasized. It is argued that interoperability is crucial for minimizing technical issues and ensuring the efficient use of digital documents.

Examples are provided, such as Trade Trust’s interoperable token transfer between digital wallets and the daily use of KeyConnect for smooth transportation between the Netherlands and the UK. In conclusion, the speakers agree that innovation, collaboration, compliance, and interoperability are necessary for enhancing global trade.

The discussions highlight the need to adapt to the increasingly complex nature of trade and embrace digital solutions for improved efficiency and transparency. The examples presented provide practical evidence of how these factors can be effectively implemented in trade operations.

Arguments

Digital trade corridors enable data exchanges between stakeholders of importing and exporting countries

Supporting facts:

• They eliminate the need for duplication of submission of data and documents, enabling reuse of data and enhancing visibility of shipments.

• The technology used is predominantly blockchain as well as encryption to ensure immutability and trust.

Topics: International Trade, Digital Trade Corridors, Data Exchange

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The Trade Logistics and Information Pipeline (TLIP) is an example of a digital trade corridor.

Supporting facts:

• Its aim is to get as much as possible documents from source for data exchange.

• It has ambitious targets to reduce duplication, steps, costs and time in cargo clearance process.

Topics: TLIP, Digital Trade Corridors, Trade Logistics

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Implementation of the UK single window extends the trade relationship between Kenya and UK and improves current data exchanges

Supporting facts:

• The single window system comes in and reduces the number of documents required in the first place

• Single windows re-engineer their processes, simplify their processes, look at the data they’re exchanging, and do data harmonization

Topics: UK Single Window, Kenya-UK Trade Relation, Data Exchanges

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Report

Digital trade corridors have become an effective solution for facilitating data exchanges between stakeholders involved in the import and export processes of different countries. These corridors are designed to eliminate the unnecessary duplication of data and documents, enabling the reuse of information and enhancing the visibility of shipments.

The technology predominantly employed in digital trade corridors is blockchain, which ensures the immutability and trustworthiness of the exchanged data. Encryption techniques are also used to enhance security and protect sensitive information. One example of a digital trade corridor is the Trade Logistics and Information Pipeline (TLIP), which focuses on obtaining the necessary documents for data exchange directly from the source.

TLIP sets ambitious targets to reduce duplication, steps, costs, and time in the cargo clearance process, thereby improving efficiency and decreasing barriers to trade. Efficient data sharing facilitated by digital corridors makes TLIP a model for enhancing international trade processes.

Furthermore, digital trade corridors have the potential to eliminate the need for individual regional single-window systems. Establishing secure tunnels between nations using these corridors can facilitate efficient data sharing. This approach can streamline trade operations even further by leveraging modern technologies and systems like TLIP, which can serve as a reference for efficient data exchanges.

The implementation of a single-window system, such as the UK Single Window, has proven to extend trade relationships between countries and improve current data exchanges. By reducing the number of required documents and harmonising data, single-window systems simplify trading procedures, making them more efficient and less burdensome for stakeholders.

Overall, there is a positive sentiment towards the implementation of digital trade corridors and single-window systems. They bring unique features and advantages, such as simplified processes and improved efficiency in international trade. The ideal scenario for digital trade corridors is to have a single-window system at both ends, enabling a minimal exchange of data.

These advancements not only promote economic growth and industry development (SDG 8) but also contribute to improved infrastructure and innovation (SDG 9). In conclusion, digital trade corridors have emerged as a valuable tool for facilitating data exchanges between stakeholders involved in international trade.

These corridors eliminate duplication, enhance visibility, and guarantee the trustworthiness of data through the use of blockchain and encryption technologies. TLIP and the UK Single Window exemplify successful implementations of digital corridors and single-window systems, respectively. These initiatives promote efficiency, reduce costs, and improve trade relations between countries.

As governments and organizations continue to embrace digital trade corridors and single-window systems, they contribute to the achievement of sustainable development goals related to economic growth, industry, innovation, and infrastructure.

Arguments

Kenneth leads Customs and Business Transformation Office, a team involved in project management with a mandate of trade facilitation, border control, and revenue collection.

Supporting facts:

• His team works to ensure that goods that come across the borders are facilitated as much as possible and to make it difficult for unscrupulous traders to take advantage of any loopholes.

Topics: Customs, Trade Facilitation, Border Control, Revenue Collection

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Current challenges faced include misdeclaration and misclassification of goods that are imported, which leads to losing revenue for the government.

Supporting facts:

• Unscrupulous traders submit incorrect declarations with the sole purpose of evading taxes or restrictions.

Topics: Misdeclaration, Misclassification, Imports, Revenue Loss

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Traders also face multiple issues like unpredictability of border crossing due to the lack of advance notification, high administrative burden due to multiple documents.

Supporting facts:

• Traders require to produce a document to support their cargo at the point of entry, which affects the time it takes for goods to clear.

Topics: Trade Challenges, Border Crossing, Administrative Burden

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Solution adopted is the implementation of the Logistics Information Pipeline which increases interoperability, upgradability and data sharing trust.

Supporting facts:

• It is a digital data exchange framework that allows everyone to share and consume information with permission levels. Can get data from source, maintain legacy systems and extend data.

Topics: Logistics Information Pipeline, Interoperability, Information Sharing

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Private sector in Kenya plays a significant role in the digital trade corridor

Supporting facts:

• Kenya has a vibrant private sector that adopts new technologies

• Private sector entities like Kenya Association of Manufacturers, the shippers council, and agricultural exporters are involved in the implementation of the trade corridor

• Several meetings and conferences have been held with private sector entities, and their input is incorporated into the trade corridor process

Topics: Digital Trade Corridor, Private Sector, Kenya

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Report

Kenneth leads the Customs and Business Transformation Office, which focuses on trade facilitation, border control, and revenue collection. The team works to ensure that goods crossing the borders are facilitated as much as possible, while making it difficult for unscrupulous traders to exploit any loopholes.

However, they face challenges such as misdeclaration and misclassification of imported goods, which result in revenue losses for the government. Unscrupulous traders submit incorrect declarations to evade taxes or restrictions. Traders also encounter issues with unpredictable border crossings due to the lack of advance notification, as well as a high administrative burden caused by multiple required documents.

To address these challenges, a solution called the Logistics Information Pipeline has been implemented. This digital data exchange framework enhances interoperability, upgradability, and data sharing trust, allowing everyone involved to share and consume information with different permission levels. It can retrieve data from various sources, maintain legacy systems, and extend data.

Kenneth supports the implementation of the Logistics Information Pipeline, stating that it is functioning well in Kenya. It has already been successful in transporting horticultural products to the UK and Netherlands, and efforts are underway to scale it up for other products.

The private sector in Kenya, including entities like the Kenya Association of Manufacturers, the shippers council, and agricultural exporters, plays a significant role in the implementation of the digital trade corridor. The government actively collaborates with them, and international players such as Trademark Africa, the IOTA Foundation, and the Institute of Export are also involved.

This collaboration aligns with SDG 17: Partnerships for the Goals. In conclusion, Kenneth’s team focuses on trade facilitation, border control, and revenue collection. They address challenges such as misdeclaration and misclassification of goods, as well as administrative burdens and unpredictable border crossings, by implementing the Logistics Information Pipeline.

The private sector in Kenya, along with government and international players, plays a crucial role in the digital trade corridor. These efforts contribute to achieving SDG targets and advancing the economy.

Arguments

Kevin Shakespeare emphasizes on the importance of digital trade in reducing costs and time to trade.

Supporting facts:

• Kevin Shakespeare indicates that digital trade is a force for commercial and societal good.

• He mentions the need for tech systems and infrastructures to communicate effectively (interoperability) for successful digital trade.

• He refers to the example of Kenya and its digital trade and tax schemes.

Topics: Digital Trade, E-commerce, Cost Reduction, Time Reduction

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Kevin Shakespeare discusses the benefits of digital technology in facilitating international trade

Supporting facts:

• Legitimate trade should benefit from the sharing of data

• Solutions discussed can reduce costs and time to trade, increase efficiency and compliance, provide transparency in the supply chain

• Importance of government assurance in the supply chain

Topics: Trade Facilitation, Digital Technology, Blockchain, Security

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The successful implementation of digital trade requires partnerships amongst all parties involved in the supply chain, not just technology companies.

Supporting facts:

• Port of Rotterdam research indicates an average of 28 parties involved in global trade from China to Germany.

Topics: Digital trade, Partnerships, Supply Chain

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Building interoperability in global trade is necessary and beneficial.

Supporting facts:

• Trade Trust was started in conjunction with the Port of Singapore in 2019 to aid in the digital transfer of documents securely. Blockchain technology is employed in this process.

• The Electronic Trade Documents Act, recently passed in the UK, is seen as an opportunity to establish this concept in global trade.

• KeyConnect is another example of interoperability in trade, implemented between the Netherlands and the UK.

• UK is developing a single trade window which, once operational, can connect with Kenya’s fully functioning single trade window for better trade efficiency

Topics: Trade Trust, Electronic Trade Documents Act, KeyConnect

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Implementation of the UK single window would improve the current data exchanges between Kenya and the UK and streamline international trade processes

Supporting facts:

• Single window systems re-engineer trade processes and lead to data harmonization

• A single window reduces the number of required trade documents

Topics: UK single window, Kenya-UK trade, Data exchange, International trade

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Digital trade should be seen as an opportunity and a source for good

Supporting facts:

• Digital trade is good for trade facilitation as per his opinion

• Legitimate and compliant business operations should benefit from digital trade

Topics: digital trade, trade facilitation

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Report

In a series of discussions, Kevin Shakespeare stresses the importance of digital trade in reducing costs and time to trade. He emphasizes the need for effective technology systems and infrastructure to ensure successful digital trade. Using Kenya as an example, he highlights the implementation of digital trade and tax schemes.

Shakespeare argues for the evolution of digital trade beyond single trade windows and authorized economic operator schemes. He believes that inclusivity is key, involving developing economies and focusing on environmental, social, and governance (ESG) factors, sustainability, small and medium-sized enterprises (SMEs), and women in trade.

This approach would create a more holistic and equitable digital trade ecosystem. The benefits of digital technology in facilitating international trade are also discussed. Sharing data to support legitimate trade and improve efficiency is emphasized. Digital solutions can reduce costs and time to trade, increase efficiency and compliance, and provide transparency in the supply chain.

Government assurance is highlighted as crucial for the security of digital trade and technology systems. Partnerships among all supply chain parties are seen as crucial for successful digital trade implementation. Collaboration and interoperability among technology companies, governments, and stakeholders are necessary for smooth digital trade.

Interoperability in global trade is viewed as necessary and beneficial. Examples include Trade Trust, a collaboration between the Port of Singapore and blockchain technology for secure document transfer. The Electronic Trade Documents Act in the UK is an opportunity to establish similar concepts in global trade.

KeyConnect, implemented between the Netherlands and the UK, is another example. The UK’s development of a single trade window that can connect with Kenya’s fully functioning single trade window is expected to improve trade efficiency between the two countries. African trade initiatives, such as the Pan-African Payment Settlement System (PAP) and the Guided Trading Initiative, are praised as good models for digital trade.

The East African Community Customs Regulations (EAC) is also highlighted. Implementation of a UK single window is seen as a way to improve data exchanges between Kenya and the UK, streamlining international trade processes. Digital trade corridors, with single window systems at both ends, are crucial for smooth international trade.

Promising initiatives include the Trade-Led Investment Policy (TLIP) and partnerships with Trademarks Africa and the IOTA Foundation, demonstrating collaboration and innovation in the digital trade space. Private sector involvement and the adoption of new technologies are vital for trade improvement.

The private sector plays a key role in driving trade improvement, proven effective in trade corridor implementations. Embracing the opportunities and benefits of digital trade ensures that legitimate and compliant businesses can benefit from advancements in digital technology. Kevin Shakespeare’s discussions emphasize the significance of digital trade in reducing costs and time to trade, emphasizing the need for effective technology systems, infrastructure, and partnerships.

Digital trade’s potential to drive inclusive and sustainable economic growth is highlighted, focusing on developing economies, ESG factors, women in trade, and SMEs.

Arguments

Clear Border was created to help businesses move goods across borders, especially in light of Brexit.

Supporting facts:

• The company provides consulting, training and insights to businesses, helping them navigate the challenges of supply chain and data exchange.

• Clear Border works with technology companies and consulting firms to help governments understand and address these challenges.

Topics: Clear Border, Brexit, Business, Trade

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The company participated in the Trustpilot ecosystem project, which aimed to streamline and secure cross-border trade.

Supporting facts:

• The pilot project was led by technology company Palantir.

• The goal of the project was to make trade easier, maintain a secure border, and provide a flexible and future-proof solution for the government.

Topics: Trustpilot, Trade, Cross-border commerce

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A digital goods passport was created in the pilot project, providing a single point of data submission for traders and a unified view for government authorities.

Supporting facts:

• This system allows various parties in the supply chain to submit data, corroborates it with external sources, and presents different views to traders and government bodies.

• The passport is designed to be secure, low-cost, trust-building, and internationally interoperable.

Topics: Digital goods passport, Trade, Government

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Simple, flexible solutions do not inherently compromise security in digital trade operations

Supporting facts:

• The easy submission of information does not compromise security but instead likely improves accuracy

• Data ownership is distributed, reducing burden on individual traders

• Government departments can share data amongst themselves securely

Topics: Digital Goods Passport, Blockchain, Digital technology, Security

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Report

Clear Border is a company that provides consultancy, training, and insights to businesses, helping them navigate the challenges of supply chain and data exchange. With a specific focus on Brexit-related issues, Clear Border supports businesses in moving goods across borders.

They work closely with technology companies and consulting firms to assist governments in understanding and addressing these challenges. In another project, led by technology company Palantir, the Trustpilot ecosystem was created with the aim of streamlining and securing cross-border trade.

This project sought to make trade easier, maintain a secure border, and offer a flexible and future-proof solution for the government. Palantir played a significant role in the development of this project. One of the notable outcomes of the Trustpilot ecosystem project was the creation of a digital goods passport.

This innovative system allows various parties in the supply chain to submit data, which is then corroborated with external sources. The passport provides a unified view for government authorities, simplifying the process and ensuring a single point of data submission for traders.

The digital goods passport is designed to be secure, low-cost, trust-building, and internationally interoperable. The use of digital technologies in streamlining and securing cross-border trade is strongly supported. The success of the digital goods passport in testing, covering 379 ports, 120 months of data, and half a million consignments, is highlighted as evidence of its effectiveness.

It is believed that such a system can provide advanced data to governments, reduce consignment rejections, and eliminate duplicate submissions. Importantly, it is emphasized that simple and flexible solutions do not compromise the security of digital trade operations. On the contrary, easy submission of information is suggested to improve accuracy.

Furthermore, data ownership is distributed, alleviating the burden on individual traders. Government departments can securely share data among themselves, ensuring efficient information flow. Simplifying the process of information submission is seen as a key factor in increasing adherence to correct procedures by traders.

Making it easy for traders to understand what to submit encourages better compliance. The premise of a single trade window allows for data submission just once, reducing the likelihood of errors and increasing overall efficiency. Overall, the findings from the analysis highlight the importance of digital technologies in addressing the challenges of cross-border trade.

The use of innovative systems, such as the digital goods passport, demonstrates the potential to streamline operations, enhance security, and improve efficiency in global commerce.