Digital frontiers in trade logistics: Connectivity for tomorrow’s economy (UNCTAD)
6 Dec 2023 10:00h - 11:30h UTC
Knowledge Graph of Debate
Session report
Full session report
Carlos Guevara
The World Trade Organization (WTO) and the Committee on Trade Facilitation are working together to integrate digitalization into the trade facilitation process. This positive development recognizes digitalization as an essential aspect of trade facilitation. The efforts made by the WTO and the Committee on Trade Facilitation demonstrate their commitment to leveraging technology to enhance trade processes.
The Trade Facilitation Agreement (TFA) has made significant contributions in promoting digital trade. Firstly, members conducted an exercise to categorise their provisions and requirements, gaining a better understanding of individual needs and challenges. Secondly, the Committee on Trade Facilitation established a platform for sharing experiences, facilitating knowledge transfer and best practices. Lastly, a matchmaking process was introduced to identify needs and provide appropriate support, ensuring resources are allocated efficiently.
Efforts are being made to streamline trade processes through digitalization. Members are developing single windows and implementing certifications, improving efficiency and reducing bureaucracy. Additionally, pre-arrival processing and expedited shipments are being prioritized, further enhancing trade processes. The positive sentiment towards these efforts signifies progress in digitalizing trade facilitation.
National Trade Facilitation Committees (NTFCs) play a crucial role in monitoring and implementing the Trade Facilitation Agreement. NTFCs allow for adjustments as circumstances change during implementation. Prioritization is key, as each member has different needs and challenges. Focusing resources on specific areas helps address these challenges effectively.
Efficient internal communication within NTFCs is important for identifying unique needs and challenges faced by each member. By reducing perception biases and ensuring robust internal analysis and communication, NTFCs can better understand their jurisdictions’ requirements. This enables them to provide effective support and assistance.
Strengthening ties between NTFCs and the Geneva mission is necessary to improve information dissemination. The WTO’s Committee on Trade Facilitation possesses a wealth of information that could benefit NTFCs. Enhancing communication between the two parties will foster greater cooperation and collaboration.
Building trust is a crucial factor in trade facilitation. Reliability plays a significant role in establishing trust, and adherence to harmonization and good practices fosters trust among trading partners. Prioritizing harmonization and following best practices creates a predictable and trustworthy trading environment.
In conclusion, integrating digitalization into trade facilitation processes has positive implications for enhancing efficiency and streamlining trade procedures. The Trade Facilitation Agreement, along with the efforts of the WTO, the Committee on Trade Facilitation, and National Trade Facilitation Committees, contribute significantly to digital trade. Enhancing ties between NTFCs and the Geneva mission and improving communication within NTFCs are essential for effective implementation. Trust is a vital component of trade facilitation, and adhering to harmonization and good practices fosters trust among trading partners.
Paul Donohoe
The postal industry has transitioned from being solely a communication support network to becoming a trade facilitation enabling network. This shift has brought numerous benefits to communities and micro, small, and medium enterprises (MSMEs). With over 660,000 post offices worldwide, the postal network plays a vital role in supporting these entities. The positive sentiment towards this transformation suggests that it has successfully met the needs of businesses and citizens, contributing to SDG 9: Industry, Innovation and Infrastructure.
In the realm of digital trade, the collection and sharing of data are of paramount importance. The Universal Postal Union (UPU) has implemented initiatives to enhance the performance and capability of the postal network, including seamless information exchange between operators and the introduction of a project for electronic advance data. This positive sentiment towards data collection and sharing highlights its critical role in promoting efficient and effective digital trade, aligned with SDG 17: Partnerships for the Goals.
The adoption of digital solutions in the postal industry has led to a remarkable 20% improvement in end-to-end delivery times over the past three years. This improvement can be attributed to the use of the UPU data sharing network, enabling real-time information sharing among postal operators. The successful adoption of digital solutions has undoubtedly streamlined processes and enhanced overall efficiency, contributing to SDG 9: Industry, Innovation and Infrastructure.
Innovation has played a crucial role in the postal industry’s development. The UPU organized an innovation event that brought together various stakeholders such as students, academia, and the private sector. Through the analysis of postal data, new possibilities for improving the supply chain have been discovered, demonstrating the positive sentiment towards innovative approaches and the industry’s commitment to leveraging data for continuous improvement, aligning with SDG 9: Industry, Innovation, and Infrastructure.
The use of artificial intelligence (AI) has emerged as a valuable tool for enhancing data quality, analysis, and predictability in digital trade. AI enables the identification of patterns and predicts future outcomes, promoting predictability in delivery times. This observation underscores the potential of AI in addressing challenges and enhancing the efficiency of digital trade processes, contributing to SDG 9: Industry, Innovation, and Infrastructure.
Investment in postal office infrastructure is crucial for developing nations, especially considering the lack of internet connectivity in over 100,000 post offices in impoverished regions. Addressing this issue is vital, as it hampers the ability of these nations to fully participate in the digital trade landscape, aligned with SDG 9: Industry, Innovation, and Infrastructure.
The adoption of available technology solutions and the creation of a conducive environment for their implementation are essential for the progress of the postal industry. While technology solutions themselves are not the problem, ensuring their effective adoption and creating an enabling environment play a significant role in leveraging their benefits fully.
Skills development for postal workers is crucial for enabling the interconnection of MSMEs and other stakeholders. Post offices serve as vital human contact points for small businesses, emphasizing the importance of improving the skills of postal workers to effectively support their needs, contributing to SDG 4: Quality Education.
Recognizing the need to address the lack of internet connectivity in many post offices, the UPU has launched a connectivity initiative. This initiative aims to connect all post offices to the internet, allowing them to take full advantage of the benefits of digital trade, contributing to SDG 9: Industry, Innovation, and Infrastructure.
Improving data quality tools, mobile technology, and automation is an area that requires attention. Emphasis on compliance and capacity-building programs is necessary to ensure accurate data submission. Additionally, the use of AI and advanced tools can enhance data quality and promote higher reliability. These observations further underscore the importance of continuous improvement in data-related aspects of the postal industry, aligned with SDG 9: Industry, Innovation, and Infrastructure.
Lastly, the goal of achieving automation and paperless trade through the implementation of systems is optimistic. The move towards automating processes and reducing paper usage aligns with the objective of responsible consumption and production, contributing to SDG 12: Responsible Consumption and Production.
In conclusion, the postal industry’s transformation into a trade facilitation enabling network has brought numerous benefits for communities and MSMEs. Data collection and sharing, adoption of digital solutions, innovation, AI utilization, investment in infrastructure, technology adoption, skills development, connectivity initiatives, data quality improvements, and automation are pivotal aspects driving the industry’s growth and evolution. The positive sentiment towards these developments demonstrates the industry’s commitment to enhancing efficiency, inclusivity, and sustainability in the digital trade landscape, aligning with multiple SDGs.
Adrian P. Swarres
The Zimbabwe Revenue Authority (ZIMRA) is actively pursuing digital transformation as part of its strategic plan for the period from 2021 to 2025. The main objectives of this transformation include strengthening the institutional image, maximizing revenue collection, and enhancing trade facilitation. ZIMRA has been working in partnership with the United Nations Conference on Trade and Development (UNCTAD) since 1991 to upgrade its systems, and they have planned the latest upgrade for 2024.
To support their digital transformation efforts, ZIMRA has developed several functional modules in collaboration with UNCTAD and through in-house developments. These modules have been instrumental in integrating various platforms to ensure seamless service to clients. One notable example is the integration of the Scudo World platform with the domestic taxes platform, electronic cargo tracking system, central bank, local banking system, and vehicle registration unit. This integration enables ZIMRA to provide more efficient and streamlined services to its clients.
The digital transformation of ZIMRA is an ongoing process and is considered crucial for efficient service delivery. Currently, the Authority has achieved about 90% automation in its customs clearance processes, eliminating the need for manual interventions and streamlining the clearance procedures. Efforts are also being made to move away from paper-based clearance methodologies, with a focus on digital solutions and technology-driven processes.
Overall, the journey towards digital transformation is seen as vital for ZIMRA to achieve its strategic objectives. The efforts made in upgrading systems, developing functional modules, and integrating platforms have positively impacted the Authority’s ability to provide efficient services to clients. With continued investment in digital technologies, ZIMRA aims to enhance revenue collection, facilitate trade, and improve its overall institutional image.
Shamika N. Sirimanne
The discussion focuses on the digital advancements in trade logistics, which have a positive impact on global trade and transport connectivity. These advancements aim to improve efficiency, transparency, and overall effectiveness in the movement of goods and information across the supply chain. The argument is that the digital frontiers, such as advancements in digital tools and connectivity, are shaping the future of transport and trade facilitation.
However, logistics remains the weakest link and the main difficulty in engaging in cross-border e-commerce. This is highlighted by the fact that out of 40 e-trade readiness assessments conducted by UNCTAD, logistics is identified as the main stumbling block. Issues related to logistics prevent cross-border e-commerce and result in missed opportunities in export markets. It is clear that addressing logistics challenges is crucial for the growth and development of e-commerce.
The importance of digital platforms and technology in enhancing global trade logistics is also emphasized. Emerging technologies like blockchain and artificial intelligence have transformed supply chains and are seen as catalysts for a more inclusive, sustainable, and interconnected global economy.
The role of postal services, especially in developing countries, is highlighted as crucial for e-commerce. In these countries, e-commerce often involves small parcels that can overwhelm post offices. The Universal Postal Union (UPU) is recognized as a vital partner in addressing this issue and facilitating e-commerce in developing countries.
The first global supply chain forum, organized jointly with the government of Barbados, aims to address supply chain challenges. These challenges include sustainable and resilient transport and logistics, digitalization, and transport connectivity. This forum is seen as an important platform to discuss and find solutions to these challenges.
The importance of trade facilitation and effective handling of logistics for e-commerce and the digital economy is emphasized. The panel discussion includes Carlos Guevara, the Chair of the WTO Committee on Trade Facilitation, and Stephen Pope of DHL Group, who has assisted countries with cross-border e-commerce. This highlights the recognition of the critical role logistics plays in ensuring smooth trade operations in the digital age.
Measurement of e-commerce and the digital economy is seen as important for policymaking. Currently, the size and impact of e-commerce and the digital economy are not fully understood due to a lack of concrete measurements. This lack of measurement creates difficulties in formulating effective policies and strategies.
The sharing of experiences and knowledge is considered crucial for a globally integrated digital economy and provides opportunities for trade. It is stressed that e-commerce measurements need to be shared across the world for better integration. Strong knowledge sharing can help everyone rise and open up opportunities for trade.
Connectivity and skills development are identified as key prerequisites for digital trade. It is noted that ICT infrastructure is no longer a luxury but a critical infrastructure for digital trade. However, many post offices in developing countries still lack internet connectivity, which hinders their participation in the digital world.
Overall, the analysis highlights the importance of digital advancements and effective logistics in shaping the future of global trade and transport connectivity. It underscores the challenges faced in cross-border e-commerce due to logistical issues and emphasizes the crucial role of postal services, especially in developing countries. The need for measurement and sharing of experiences in e-commerce and the digital economy is emphasized. Lastly, the significance of connectivity and skills development in enabling digital trade is acknowledged, while also recognizing the digital divide that can leave countries and continents behind.
Steven Pope
The World Chamber has developed a comprehensive strategy for the years 2023-2025, with a primary focus on narrowing the digital gap and promoting knowledge and learning in the field of e-commerce. This strategy aims to ensure that businesses across the globe can benefit from the opportunities that digitalization and online platforms offer. By narrowing the digital gap, the World Chamber is striving to create a level playing field where businesses of all sizes and from all regions can compete and thrive.
To achieve this goal, the International Chamber of Commerce (ICC) has taken up the task of standardising data in the supply chain through its Digital Standards Initiative. This initiative, based in Singapore and supported by the government of Singapore and the Asian Development Bank, aims to establish a set of standardised data protocols that can be accessible to all players in the supply chain. By ensuring that data is standardised and available for the right purposes, the ICC aims to streamline international trade and eliminate potential barriers caused by different data formats and systems.
In order to enhance the digital skills of small and medium-sized enterprises (SMEs) in the ASEAN region, the ICC, International Trade Centre (ITC), and Google have joined forces to provide a learning journey for approximately 1,000 SMEs. This partnership recognises the increasing importance of digital skills in accessing and expanding into the global market. With 75% of companies in the region requiring training on how to navigate the digital landscape, this initiative can help bridge the skills gap and empower SMEs to leverage e-commerce opportunities effectively.
DHL, the world’s largest logistics company, has introduced GoTrade to facilitate trade, particularly in developing and least developed economies, during the COVID-19 pandemic. GoTrade has two primary focuses: trade advocacy and knowledge management. By advocating for trade and promoting knowledge sharing, DHL aims to support economic growth and recovery in countries that have been heavily affected by the pandemic. The wide reach and presence of DHL across the globe make it a valuable facilitator of international trade.
Furthermore, DHL offers extensive training programmes for SMEs to equip them with the necessary knowledge and skills to capitalise on global market opportunities. Over the course of three years, more than 5,000 SMEs worldwide have benefited from these programmes, which cover crucial areas like customs, borders, compliance, and understanding market dynamics. This training is designed to empower SMEs and enable them to expand their reach and compete effectively on the international stage.
Additionally, DHL runs a fellowship programme in collaboration with business schools, where MBA students provide assistance to SMEs in running their businesses. This unique initiative allows MBA students to apply their theoretical learning in a practical environment, while SMEs gain access to expertise and insights they may not typically have the resources to afford. The programme fosters long-term relationships between the MBA students and SMEs, often extending beyond the initial year of the fellowship.
DHL also aims to automate and promote paperless trade through its platforms. By embracing automation and advocating for paperless trade, DHL envisions a more efficient and environmentally friendly global trade system. Through the GoTrade DHL platform, along with the support of global business schools, interested parties can easily get involved in these initiatives by contacting regional CEOs and senior leaders.
In conclusion, the various initiatives and partnerships undertaken by the World Chamber, ICC, ITC, Google, and DHL highlight the importance of closing the digital gap, standardising data, and equipping SMEs with the necessary skills and knowledge to thrive in the digital economy. These efforts have the potential to promote inclusive economic growth, enhance global trade, and foster sustainable development. The engagement of various stakeholders, including governments, businesses, and educational institutions, is crucial for the successful implementation of these initiatives. As the world becomes increasingly interconnected, it is imperative to ensure that all businesses have equal access to opportunities and resources in the digital age.
Eiman bin Habbas Al-Mutairi
Saudi Arabia has invested a substantial $25 billion in digital infrastructure over six years, demonstrating its commitment to developing its digital economy. This investment has focused on building large-scale data centers and cloud infrastructure to support the private sector. The positive sentiment surrounding these investments highlights Saudi Arabia’s dedication to enhancing its digital capabilities. These efforts are aligned with Vision 2030, the country’s development plan, which aims to transform sectors including digital and e-commerce, create 300,000 jobs, and diversify the economy away from oil and gas. However, measurement and consensus on e-commerce and digital economy definitions are needed for effective management and assessment. Eiman bin Habbas Al-Mutairi emphasizes the importance of broader strategies for the digital economy, including regulatory frameworks and skill development. Efforts in logistics and customs clearances have facilitated e-commerce growth, while international collaboration and private sector involvement are seen as crucial for progress. Effective data analysis and management are key for operational efficiency. Saudi Arabia’s ambition to diversify its economy towards IT, digital economy, and artificial intelligence is backed by strong leadership and training programs. The country aims to be a leader in the digital field by leveraging its digital infrastructure and fostering international cooperation.
Audience
The analysis covers a range of topics, including automating governmental systems through a single window approach, trade facilitation, regional collaboration, and technological advancement. The speakers express a positive sentiment towards the vision of automating governmental systems through a single window, with the Secretary-General promising to open this window. They also discuss the importance of data accuracy and timely availability in end-to-end delivery, highlighting the transition of postal networks into trade facilitators. The significance of collaboration between Saudi Arabia and other MENA region countries is emphasised, with a call for Saudi Arabia to not develop in isolation. The audience agrees with Saudi Arabia’s leapfrogging in technological advancement, and Peter Major commends the panel and the quality of information shared. Overall, the analysis underscores the importance of innovation, collaboration, and effective data management in driving progress in various sectors.
Pedro Manuel Moreno
The emergence of ground-breaking technologies such as blockchain, automated customs systems, digital platforms, and artificial intelligence has brought about a seismic shift in the way supply chains operate. These technologies have revolutionised supply chains by introducing unprecedented levels of efficiency, transparency, and interconnectedness.
UNCTAD, the United Nations Conference on Trade and Development, has played a pivotal role in harnessing the power of these emerging technologies to transform supply chain processes. Their largest technical assistance programme, known as ASICUDA, offers digital solutions that automate customs procedures. By leveraging cutting-edge technology, UNCTAD aims to streamline customs processes and reduce bureaucratic inefficiencies.
Furthermore, UNCTAD has embarked on a groundbreaking project that utilises blockchain technology to simplify import, export, and transit procedures. Blockchain, with its decentralised and immutable nature, enables secure and tamper-proof recording of transactions. By implementing blockchain in supply chain operations, UNCTAD seeks to facilitate faster and more secure movement of goods across borders.
In addition to these technological advancements, the need for a collaborative platform to address various challenges faced by supply chains has become apparent. The first global supply chain forum, set to take place in Barbados in May 2024, aims to facilitate meaningful discussions and collaborations among industry experts, policymakers, and stakeholders. The forum is financially supported by the government of Saudi Arabia, highlighting the global recognition of the importance of addressing supply chain challenges.
The forum will focus on key areas such as sustainable and resilient transport and logistics, trade facilitation, digitalisation, transport connectivity, and transport costs. Moreover, it will also address critical issues surrounding food security, climate change adaptation and mitigation, and preparing developing countries for the energy transition in international transport. By bringing together diverse perspectives and expertise, the forum aims to find comprehensive and sustainable solutions to these pressing challenges.
In conclusion, the rapid progression of emerging technologies has transformed supply chains by enhancing efficiency, transparency, and interconnectedness. UNCTAD’s efforts in adopting these technologies, through programmes like ASICUDA and the implementation of blockchain, demonstrate their commitment to revolutionising supply chain processes. Additionally, the upcoming global supply chain forum in Barbados signifies the recognition of the need for collaboration and comprehensive solutions to address the challenges faced by supply chains. By harnessing the power of technology and fostering international cooperation, the future of supply chains looks promising.
Speakers
AP
Adrian P. Swarres
Speech speed
144 words per minute
Speech length
957 words
Speech time
398 secs
A
Audience
Speech speed
218 words per minute
Speech length
366 words
Speech time
101 secs
CG
Carlos Guevara
Speech speed
214 words per minute
Speech length
1421 words
Speech time
399 secs
EB
Eiman bin Habbas Al-Mutairi
Speech speed
242 words per minute
Speech length
4301 words
Speech time
1067 secs
PD
Paul Donohoe
Speech speed
160 words per minute
Speech length
1586 words
Speech time
594 secs
PM
Pedro Manuel Moreno
Speech speed
152 words per minute
Speech length
578 words
Speech time
228 secs
SN
Shamika N. Sirimanne
Speech speed
167 words per minute
Speech length
3012 words
Speech time
1080 secs
SP
Steven Pope
Speech speed
225 words per minute
Speech length
2692 words
Speech time
718 secs
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