Leveraging technologies for paperless trade in Least Developed Countries: Insights from Asia-Pacific (UNCITRAL)
6 Dec 2023 09:00h - 10:00h UTC
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Soo Hyun Kim
Developing countries in Asia and the Pacific are facing significant challenges when it comes to incorporating paperless systems in their customs operations. This is primarily due to the use of traditional paper documents and the absence of legal infrastructure for cross-border electronic exchange of trade data. The reliance on paper documents hinders the efficiency and effectiveness of customs operations in these countries, leading to delays, errors, and increased costs.
Feasibility studies have highlighted several proposed steps towards embracing e-trade in the Asia-Pacific region. One key recommendation is the establishment and enhancement of national single windows, which serve as a digital platform for the exchange of trade-related information between government agencies and stakeholders. Through the implementation of national single windows, countries can streamline and automate trade processes, reducing the need for paper-based documentation and facilitating faster and more secure cross-border trade.
Another important aspect mentioned in the feasibility studies is the utilization of emerging technologies. Pilot projects can be initiated as a testing ground to assess the effectiveness of these technologies in simplifying trade procedures and eliminating the reliance on paper documents. Once successful automation processes are completed, the integration of advanced technologies such as blockchain, artificial intelligence, and machine learning can further enhance the efficiency and transparency of e-trade in Asia and the Pacific.
While there is a strong willingness among these countries to adopt e-trade, significant gaps exist in terms of capacity and infrastructure. Although they have the desire to embrace digital solutions for trade facilitation, limitations in technology infrastructure, digital literacy, and human resources hinder their progress. Capacity-building efforts are necessary to bridge these gaps and provide the necessary support to ensure the successful implementation and adoption of paperless trade systems.
In a positive development, the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific has been established. This agreement signifies the collective efforts of countries in the region to work towards the facilitation of cross-border paperless trade. Currently, 12 parties from Asia-Pacific have joined this framework agreement, indicating a commitment to addressing the challenges and promoting the adoption of digital solutions in trade operations.
In conclusion, developing countries in Asia and the Pacific are encountering obstacles in transitioning to paperless systems in their customs operations, primarily due to the continued use of paper documents and a lack of legal infrastructure. Feasibility studies propose various steps, such as the establishment of national single windows and the utilization of emerging technologies, to promote e-trade in the region. However, significant gaps in capacity and infrastructure must be addressed to effectively implement and adopt paperless trade systems. The establishment of the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific demonstrates progress and collaboration among countries in the region, fostering the facilitation of cross-border paperless trade.
Hang Tran
Countries recognise the potential benefits of embracing emerging technologies, such as automated cross-border clearance and blockchain, in reducing trade costs and streamlining bureaucratic processes. To facilitate the smooth adoption and implementation of these technologies, countries actively create and adopt new regulations and standards. This proactive approach ensures a level playing field for all parties involved in cross-border trade.
Governmental interoperability is considered vital, as it brings all agencies together within a unified government system. This promotes coordination, cooperation, and efficiency, minimizing delays and complications in cross-border transactions. Harmonising legislation and standards with global regulations further strengthens the effectiveness and impact of cross-border trade.
Technical assistance and capacity building offered by institutions like EAF, UNESCO, BUSCAN, and the Trade Facilitation Agreement facilities are instrumental in advancing cross-border paperless and digitalisation efforts. Leveraging this support, countries can optimise their digital transformation processes, leading to enhanced trade facilitation and economic growth.
Overall, the adoption of emerging technologies, coupled with the creation of regulations and focus on governmental interoperability, has the potential to significantly reduce trade costs, improve efficiency, and promote sustainable economic growth. The provision of technical assistance and capacity building further strengthens countries’ ability to embrace and harness the potential of these technologies. Countries are actively taking measures to position themselves to thrive in the digital and interconnected world of cross-border trade.
Ryan Temate
Tuvalu, a small island nation heavily reliant on imports, recognizes the significance of digital trade in shaping its future. However, it faces several challenges in its journey towards digitisation. These challenges include slow legal development, limited ICT infrastructure, and the need for capacity building. Despite these obstacles, Tuvalu is making efforts to overcome them.
One key strategy being pursued by Tuvalu is the development of a digital platform. Tuvalu’s ICT department is currently involved in this endeavour, aiming to provide a foundation for digital trade and related activities. Additionally, a legal policy for ICT is under review and awaiting cabinet approval. This indicates the government’s commitment to creating a legal framework that supports and regulates digital trade.
Furthermore, Tuvalu has formulated a trade strategy that places strong emphasis on e-commerce. This strategy has been developed based on Biantet’s rapid e-trade readiness assessment and is awaiting cabinet endorsement. Integral to this strategy is the implementation of the WTO Trade Facilitation Agreement and the UNESCAP paperless trade agreements. Over the next five years, Tuvalu aims to prioritise the development of e-commerce, with the goal of reducing costs and enhancing trade efficiency.
To facilitate ongoing e-commerce development, Tuvalu requires continued support from organisations such as UNESCAP. UNESCAP has already been assisting Tuvalu with its e-commerce trade development, demonstrating the importance of partnerships and collaboration in driving progress. The support of international organisations like UNESCAP is crucial for the sustainable growth of e-commerce in Tuvalu.
In conclusion, Tuvalu recognises the immense significance of digital trade in its economic development. Despite the challenges it faces, the nation is actively working on different fronts to overcome them. Efforts include developing a digital platform, reviewing legal policy for ICT, and implementing a trade strategy that prioritises e-commerce. Ongoing support from organisations like UNESCAP is essential to ensure the continued growth and success of e-commerce in Tuvalu.
Audience
Leveraging digital trade and cross-border paperless trade can significantly enhance the agility and responsiveness of trading environments, contributing to the overall resilience of economies. This approach empowers countries to navigate global trade challenges and capitalise on new opportunities. By embracing digital technologies and eliminating reliance on traditional paper-based processes, countries can streamline their trade processes, reduce costs, and enhance efficiency.
However, successful implementation of paperless trade requires careful planning, infrastructure development, and capacity building. Governments and stakeholders must collaborate to establish legal frameworks and develop robust infrastructure to support the digital trade ecosystem. Additionally, investments in digital literacy and cyber security are essential for secure and smooth transitions to paperless trade.
Addressing issues such as digital literacy, cyber security, and legal frameworks is crucial for effective implementation of digital and paperless trade. Governments and educational institutions should work together to enhance digital literacy skills and ensure full participation in the digital economy. Strengthening cyber security measures is necessary to protect sensitive trade data. Clear legal frameworks should be established to address aspects like data protection and intellectual property rights.
Trade-related technical assistance and support for adopting digital technologies are crucial in the transition to paperless trade. Capacity-building programs can equip individuals and organizations with the necessary skills. Governments and international bodies should provide technical assistance to countries in need to bridge the digital divide and ensure a smooth transition.
In conclusion, embracing and investing in digital trade and cross-border paperless trade have positive effects on industry, innovation, and infrastructure. These advancements create a more agile and responsive trading environment, contributing to the overall resilience of economies. However, successful implementation requires careful planning, infrastructure development, capacity building, and addressing issues such as digital literacy, cyber security, and legal frameworks. Trade-related technical assistance and support for adopting digital technologies are crucial elements in facilitating the transition to paperless trade. By committing to these efforts, countries can advance economic growth and contribute towards achieving global goals of sustainable development.
Kinley Yangzom
Bhutan, as a landlocked country, faces numerous challenges in promoting trade. Limited access to ports results in longer transportation routes and increased transit times. This not only leads to delays but also causes higher transportation costs for goods. Furthermore, Bhutan heavily relies on India as its largest trading partner, which makes the country vulnerable to external shocks and changes in India’s policies. These challenges create obstacles for Bhutan’s economic growth and development.
However, digital trade presents a potential solution to some of these challenges. It has the ability to reduce transaction and transportation costs, offering a more cost-effective and efficient way of conducting trade. Digital trade also enables faster clearance processes and reduced transit times, allowing for smoother and timely movement of goods. Additionally, it provides a gateway for connectivity with a broader range of international partners, allowing Bhutan to diversify its trade relationships and reduce dependence on a single partner.
Despite the potential benefits, there are still challenges that need to be addressed for effective digital trade in Bhutan. The country faces difficulties in terms of human resource capability, with limited expertise in digital trade and related areas. Additionally, Bhutan’s IT infrastructure and automation capabilities are limited, hindering the smooth implementation of digital trade practices. There is also a lack of adequate legal instruments to govern paperless trade, which is crucial in facilitating cross-border digital transactions. Furthermore, existing systems in Bhutan are isolated and owned by different agencies, highlighting the need for strong integration of these systems to ensure effective digital trade operations.
However, by embracing digital trade and cross-border paperless trade, Bhutan has the opportunity to enhance its overall economy. Digital trade provides a platform that incorporates advanced security measures, ensuring the safety of online transactions. This facilitates e-commerce, enabling small and medium-sized enterprises (SMEs) in Bhutan to participate in global trade and reach a wider customer base. Moreover, digital trade can improve trade finance by facilitating digital payments, making transactions more efficient and reducing reliance on traditional banking systems. In addition to these advantages, digital trade also fosters data-driven decision-making, enabling Bhutan to make informed choices for its trade policies and strategies.
In conclusion, Bhutan’s status as a landlocked country presents certain challenges to its trade promotion efforts. However, digital trade offers potential solutions to overcome these challenges by reducing costs, enabling faster clearance, and facilitating trade diversification. To fully tap into the benefits of digital trade, Bhutan needs to address obstacles related to HR capability, IT infrastructure, and legal instruments governing paperless trade. By doing so, Bhutan can enhance its overall economy through improved connectivity, increased SME participation in trade, enhanced trade finance, and data-driven decision-making capabilities.
Mursheda Zaman
Bangladesh has demonstrated a strong commitment to embracing digital technology and trade. This commitment is evident in the election manifesto, which prioritized the creation of a digital Bangladesh. The country’s GDP has experienced significant growth, from $92 billion in 2008 to $460 billion in 2022, attributed in part to the adoption of digital technology and its positive impact on various sectors, including digital trade.
In addition to its economic achievements, Bangladesh has successfully embraced sustainable digitalization. The country has met all the criteria for graduation from the Least Developed Country (LDC) category in two consecutive triennial reviews conducted by the United Nations Committee for Development Policy (UNCDP) in 2018 and 2021. To support its preparation for graduation, Bangladesh has entered into a framework agreement. This agreement aims to compensate for any impact caused by the loss of preferential trade benefits and provide support during the transitional period.
Bangladesh is also actively exploring the benefits of cross-border paperless trade. The country is currently assessing its position and preparing a roadmap for the implementation of an agreement that aims to streamline trade procedures and reduce transaction time and costs. The implementation of cross-border paperless trade is seen as a catalyst for economic development, facilitating smoother and more efficient cross-border trade.
However, cross-border paperless trade does face challenges that need to be overcome. Legal reform is required to establish the necessary framework to support this form of trade. Additionally, infrastructure development is necessary to automate border agencies. Developing the required technology, technical knowledge, and human resources is also a challenge in implementing cross-border paperless trade.
Nevertheless, Bangladesh remains committed to overcoming these challenges and expediting the implementation of trade facilitation agreements. The country has taken various steps to support this goal, such as modifying the Customs Act to include a national single system for the establishment of the Bangladesh Single Window. Furthermore, the enactment of the ICT Act, ICT policy, national digital commerce policy, government e-policy, and digital commerce guidelines demonstrates Bangladesh’s determination to support the implementation of cross-border paperless trade. The Ministry of Commerce has also initiated efforts to establish a Digital Trade Authority to coordinate and regulate digital trade.
In summary, Bangladesh’s commitment to digital technology and trade is evident through its election manifesto, GDP growth, and successful sustainable digitalization. The country is actively preparing for graduation from the LDC category with the support of a framework agreement. Bangladesh recognizes the potential of cross-border paperless trade to stimulate economic development, despite the challenges it faces. The country is undertaking various initiatives and reforms to overcome these challenges and expedite the implementation of trade facilitation agreements.
Luca Castellani
During the discussion, the speakers emphasised the importance of adopting legislation that supports electronic transactions and signatures to facilitate trade effectively. They highlighted that many countries in the Asia Pacific region have already implemented legislation based on ancestral monologues and treaties, which has proven to be future-proof. This legislation has provided a solid foundation for countries to engage in electronic trade and has enabled them to keep pace with advancements in technology.
Furthermore, the speakers noted that existing laws can accommodate the use of new technologies such as automation and blockchain. They explained that the legislation is robust and allows for the incorporation of these innovative tools. Specifically, the laws can accommodate the use of blockchain technology, which provides a secure and transparent platform for conducting transactions. Additionally, the legislation can also accommodate the use of automation, enabling efficient and streamlined business-to-business (B2B) exchanges and business-to-government (B2G) exchanges.
The speakers also encouraged countries to actively participate in United Nations Conference on Trade and Development (UNCTAD) meetings. They stressed that participating in these meetings allows countries to familiarise themselves with the process and the output of UNCTAD. It also provides an opportunity for countries to reflect their unique views and challenges. By actively engaging in UNCTAD meetings, countries can contribute to shaping international policies and initiatives that align with their interests and priorities.
In conclusion, the discussion highlighted the necessity for countries to adopt legislation supporting electronic transactions and signatures for effective trade facilitation. The implementation of such legislation, which is based on ancestral monologues and treaties, has proven to be future-proof and widely implemented in many countries. Additionally, existing laws are adaptable and can accommodate the use of new technologies like automation and blockchain. To stay informed and contribute to international trade discussions, it is recommended that countries actively participate in UNCTAD meetings. This will allow them to understand the process, reflect their unique views, and address their specific challenges in the global trade arena.
Speakers
A
Audience
Speech speed
130 words per minute
Speech length
173 words
Speech time
80 secs
HT
Hang Tran
Speech speed
125 words per minute
Speech length
1037 words
Speech time
500 secs
KY
Kinley Yangzom
Speech speed
138 words per minute
Speech length
1069 words
Speech time
465 secs
LC
Luca Castellani
Speech speed
154 words per minute
Speech length
864 words
Speech time
336 secs
MZ
Mursheda Zaman
Speech speed
116 words per minute
Speech length
1038 words
Speech time
536 secs
RT
Ryan Temate
Speech speed
104 words per minute
Speech length
518 words
Speech time
299 secs
SH
Soo Hyun Kim
Speech speed
131 words per minute
Speech length
1665 words
Speech time
762 secs
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