Trade Tech: Delivering for People / DAVOS 2025

21 Jan 2025 08:45h - 09:15h

Trade Tech: Delivering for People / DAVOS 2025

Session at a Glance

Summary

This discussion focused on the role of customs and trade in facilitating humanitarian assistance and crisis response. Ian Clifton Saunders, Secretary General of the World Customs Organization, emphasized the critical role customs plays in managing cross-border movement of goods during crises. He highlighted the importance of technology, data sharing, and partnerships in enabling customs to efficiently collect revenue, facilitate legitimate trade, and prevent illegal goods.


Finnish Minister Ville Tavio discussed Finland’s approach to crisis preparedness and trade continuity. He stressed the importance of securing critical supplies and services, including digital infrastructure. Tavio highlighted Finland’s efforts to support Ukraine’s resilience through private sector investments and technological solutions.


Both speakers emphasized the significance of public-private partnerships and international cooperation in enhancing supply chain resilience and crisis response. They discussed the need for information sharing between governments and businesses to assess and manage supply chain risks effectively.


The discussion also touched on challenges faced by small and medium-sized enterprises in global trade, with suggestions for how customs can support their integration into global value chains. The speakers addressed the importance of trust and legal frameworks in enabling customs-to-customs information exchange.


Key themes throughout the discussion included the use of technology to streamline customs processes, the need for adaptability in customs operations, and the challenges posed by evolving trade patterns, such as the increase in small parcel shipments. The speakers concluded by emphasizing the ongoing need for investment in customs infrastructure and processes to keep pace with the changing global trade landscape and security challenges.


Keypoints

Major discussion points:


– The role of customs in facilitating humanitarian aid and trade, especially during crises


– The importance of technology, data sharing, and partnerships in enabling efficient customs processes


– Finland’s approach to trade facilitation and crisis preparedness, including public-private cooperation


– Challenges and opportunities for small and medium enterprises in global trade


– Managing sanctioned borders and detecting illicit goods


Overall purpose:


The discussion aimed to explore the intersection of trade, customs, and humanitarian assistance, highlighting how efficient trade facilitation and customs processes can support crisis response and economic resilience.


Tone:


The tone was primarily informative and collaborative. Speakers shared insights from their respective areas of expertise in a professional manner. There was an underlying sense of urgency regarding the need for continued improvement and adaptation in customs and trade processes to meet evolving global challenges. The tone remained consistent throughout, with both speakers emphasizing the importance of cooperation and technological advancement.


Speakers

– Macarena Torres


Role: Head of the Trade Facilitation Team at the World Economic Forum, Deputy Director for the Global Alliance for Trade Facilitation


Area of expertise: Trade facilitation, movement of goods across borders


– Ian Clifton Saunders


Role: Secretary General of the World Customs Organization


Area of expertise: Customs, border control, trade facilitation


– Ville Tavio


Role: Minister for Foreign Trade and Development, Ministry of Foreign Affairs of Finland


Area of expertise: International trade, development cooperation, crisis preparedness


– Audience


Role: Attendees asking questions


Additional speakers:


None identified


Full session report

The discussion, hosted by the Global Alliance for Trade Facilitation, focused on the critical role of customs and trade facilitation in humanitarian assistance and crisis response. It featured insights from Ian Clifton Saunders, Secretary General of the World Customs Organization (WCO), and Ville Tavio, Finland’s Minister for Foreign Trade and Development.


Introduction and Context


Macarena Torres introduced the Global Alliance for Trade Facilitation, highlighting its role in supporting developing and least developed countries in implementing the WTO Trade Facilitation Agreement. She emphasized the importance of customs in facilitating trade and humanitarian assistance during crises.


Secretary General Saunders’ Perspective


Saunders emphasized the multifaceted role of customs at borders, encompassing revenue collection, trade facilitation, and prevention of illegal goods. He highlighted customs’ crucial part in humanitarian assistance, as aid crossing borders must interact with customs processes. Saunders stressed the importance of technology in enabling customs to process large volumes of trade data and make quick decisions.


He introduced the WCO data model, which provides a common language for trade data exchange, and discussed the Authorized Economic Operator concept, which allows for faster processing of trusted traders. Saunders emphasized the need for customs to engage with supply chain owners and logistics providers, as well as the critical nature of information exchange between customs, the private sector, and other agencies.


Minister Tavio’s Insights


Tavio concurred with Saunders on the critical role customs authorities play during global crises such as pandemics. He emphasized Finland’s approach to crisis preparedness, which aims to ensure the supply of critical goods and services under all circumstances. Tavio highlighted Finland’s tradition of collaboration between public, private, and third sectors for supply security, advocating for cooperation on risk assessments and policy responses.


He stressed how digital networks and infrastructure enhance country resilience, noting that Finnish businesses offer digitalized solutions for various stages of trade. Tavio also mentioned Finland’s support for Ukraine’s digital infrastructure and emphasized the importance of diversifying trade through new agreements to manage supply chain risks.


Q&A Session


The discussion addressed several challenges facing global trade:


1. Supporting small and medium-sized enterprises in integrating into global value chains.


2. Barriers to customs-to-customs information exchange, including trust issues and legal requirements.


3. Managing sanctioned borders, particularly the Finland-Russia border, and addressing sanctions circumvention.


4. The increasing challenge of detecting illegal substances in the growing flow of small parcels, especially from countries like China.


Saunders acknowledged the complexity of modern supply chains and increasing trade volumes as ongoing challenges for customs administrations. He stressed that investments in processes, infrastructure, and information systems are essential for daily trade management and crisis response.


Tavio elaborated on Finland’s crisis preparedness efforts, including its recent NATO membership and its focus on securing global interconnectivity to safeguard trade flows.


Conclusion


Both speakers emphasized the ongoing challenges in customs and humanitarian assistance. They stressed the importance of continued investment in technology, collaboration between public and private sectors, and adaptation of customs processes to meet evolving global challenges. The discussion highlighted the critical role of customs in facilitating efficient trade and crisis response, underlining the need for continuous improvement and international cooperation in this field.


Session Transcript

Macarena Torres: Good morning, everyone, and welcome to the Global Situation Space. My name is Macarena Torres, and I am the head of the Trade Facilitation Team here at the World Economic Forum, as well as the Deputy Director for the Global Alliance for Trade Facilitation, an initiative that supports the movement of goods across borders. We are here to have a very fantastic discussion about the movement of humanitarian goods and the support and the role that trade plays into that, and we have two fantastic speakers for this discussion. As a start, we have the Secretary General Ian Saunders from the World Customs Organization, and then it will be closely followed by the Minister for Foreign Trade and Development, Minister Tavio from the Ministry of Foreign Affairs on Finland. Secretary General, please. Thank you.


Ian Clifton Saunders: Thank you, Macarena, for the opportunity to be here and to offer a customs perspective on this important topic. You may be wondering, what does customs have to do with humanitarian assistance? And the short answer is, it has a lot to do with humanitarian assistance. It does because whenever assistance comes from another country and has to cross a border, customs is present. And where customs is present, it performs three functions. It collects appropriate revenue. It facilitates legitimate trade, and it prevents the entry of harmful and illegal goods. So if we’re looking at a humanitarian crisis where medicines need to arrive in country, customs is responsible for making decisions regarding the entry of those. But customs, when doing its job well, also coordinates with the health ministry that wants to know how many vaccines they’re entering, what quality are they from, how are they provided, and where are they moving so they can later be administered within the country. If we’re looking at construction equipment in the context of a natural disaster, moving that across borders very quickly is also within the remit of customs. But in saying this and sharing what customs does, part of the message for me this morning to share with you is that technology is an important enabler for what customs does. The volumes that cross borders every day, not just during crisis situations, but the amounts that cross the borders every day can only do so with technology enabling decision making by customs. We’re talking about digital solutions that allow customs to collect data about incoming shipments in order to make determinations about what should enter and what poses what level of risk. We’re talking about non-intrusive inspection equipment so that when there’s a shipment that we think may have some risk or introduces an anomaly, we have the ability to check that shipment quickly as opposed to devanning or unloading a 40-foot container. We can do it much more quickly with the assistance of non-intrusive inspection technology. But also underpinning the use of this technology is the use of data. And part of what the WCO does is it’s developed what’s called the data model. It’s the common language of data elements and messages that allow the trade community, government authorities, including customs, and others to interact with one another so there is no misunderstanding about what’s in a shipment. The information that’s needed to enable a border-related decision is all there. And there’s consistent treatment across many customs administrations, every customs administration that’s implemented the WCO data model. But talking about humanitarian crises is only one piece of the puzzle because the investments in process, the investments in infrastructure, the investment in information are what enable trade every day. So while a humanitarian crisis presents an external time pressure, a certain sensitivity because there may be lives and livelihoods at stake, the fact of the matter is the management of trade every day relies on this technology, these processes, this information that enable customs to make informed decisions at the border. So it’s collecting the appropriate revenue. It’s facilitating the trade that warrants facilitation, and it’s preventing the entry of dangerous and illegal goods. That’s really the contribution that customs makes to this. It’s something that the World Customs Organization and its 186 members are committed to. Another part that we are focused on is the use of partnerships because customs cannot make these determinations alone. There are other agencies, health ministries that I mentioned, environmental agencies, other agencies with border-related competence that have to contribute to the decision and have to contribute quickly if what you see as the trade community is a quick release of a shipment. But we also communicate closely with the private sector, knowing who the partners are in the private sector, understanding what risk they pose, and mitigating that risk also allows us to facilitate their shipments. So what does customs have to do with delivering for people? It has to do quite a bit. Not just during emergencies, but every day. We’re collecting the revenue, we’re facilitating trade, we’re protecting society, and we’re using technology, processes, and partnerships as the enablers to fulfill those missions. Thanks very much for the opportunity to be here, and I’d love to pass the word on to Minister Tavio to offer us a perspective from the trade.


Ville Tavio: Thank you for the insightful intervention, General Secretary Saunders. We appreciate the close collaboration between the World Customs Organization and Finnish Customs. And listening to you, it really concretizes how vital the role of customs is, especially in times of crisis and times that we are now facing. Ladies and gentlemen, Finland is an open economy and highly integrated in the global economy, and therefore dependent on trade, both on imports and exports. When thinking about crisis preparedness, we also think of securing our ability to trade in all circumstances. It’s our aim to ensure the supply of critical goods and services, even at a time of crisis. A lot of the work is done within the context of the European Union, as well as NATO. Improving resilience at home and abroad is at the forefront of their agendas. We contribute to their work actively, as together we are stronger. When thinking of critical supplies at times of crisis, one tends to think of food, water, and medical supplies. But we also need to think about the functioning of communications, financial services, or other critical services in various fields. For example, Russia’s war of aggression has caused significant damage to Ukraine’s telecom and energy infrastructure. Thousands of base stations and tens of thousands of fiber-optic lines have been lost. Russia has also launched devastating attacks on Ukraine’s electricity production plants and grid. This has affected the supply of power. Ukraine has to restore and strengthen their communication links to keep their economy online. Our companies like Nokia have been supporting Ukraine in these efforts. We believe modern digital networks make Ukraine more resilient. They also support a productivity leap in sectors such as energy, manufacturing, and transport. The Ukrainian and Finnish authorities collaborate to advance digitalization and to build crisis-resilient infrastructure in Ukraine. Finland promotes private sector investments in Ukraine. The implementation is in the hands of Ukrainian and Finnish companies. They have the know-how on cutting-edge digital infrastructure and innovative technologies. Ladies and gentlemen, trade and supply chain continuity are important also for humanitarian assistance. If, for example, Ukraine’s private sector cannot source supplies from the global markets, the humanitarian needs of people may not be sufficiently satisfied. Humanitarian organizations too purchase equipment and assistant material from the private sector. If they cannot move surgical material from country to country, they cannot support local hospitals treating wounded people. Humanitarian actors also deliver cash to people so they can buy what they need the most, and this supports local markets as well. Ladies and gentlemen, the events in recent years have made us look at supply chains and global trade in a new light. The importance of technology is greater than ever. In Finland, we make best use of the advantages of digital trade data processing. At the same time, we prepare ourselves for any electronic system disruptions. The availability of critical goods must not be hindered by any system failure. The EU is also reforming its custom practices by leveraging new technological solutions in order to facilitate trade. The Finnish businesses are driven by the ambition to provide digitalized solutions to help the various stages of trade. Their solutions help reduce waste and enable safe and efficient handling of cargo at the ports. Efficient supply chains all the way from the country of production to the retailers and the consumers improve the security of supply. Finland has a long tradition of collaboration between the public sector, private sector and the third sector in ensuring supply security at all times. There is a strong joint commitment to look after our collective security. To be even better equipped to manage risk in the future, the public and private sectors should work together to access any risk in critical supply chains. Information sharing between the two is of key importance and can be very beneficial on both sides. Companies have a granular understanding of their own supply chains, while governments can collect such information from several companies to paint a full picture. Both sides have unique insights on the probability of different risks. With the help of comprehensive joint risk assessments, it is possible to design the necessary policies to manage risks. The public and private sectors should also cooperate in designing and implementing the policy response. There are many policy tools available to manage supply chain risk, ranging from stockpiling to diversifying trade with new trade agreements. We aim to trade with as many countries as possible so that the shock due to a natural catastrophe, pandemic or other type of crisis in one part of the world would not cut us off from critical supplies. Ladies and gentlemen, the COVID-19 pandemic made some of the vulnerabilities visible. And like the rest of the world, also Finland is now better prepared should we find ourselves in crisis again. Let me highlight two lessons especially. First, the role of custom authorities is critical at a time of global pandemic. Our customs proved their ability to adapt to unpredictable changes in global trade. Thanks to the situation awareness of the customs, we know how the supply chains and global logistics evolved in those circumstances. Second, the pandemic showed how important international connections between the custom authorities are. Good working relations can help to solve practical challenges. Some of the lessons learned from the pandemic are now put into use to support Ukraine. The Finnish customs do their best to facilitate the flow of critical supplies to Ukraine. Russia’s war of aggression against Ukraine has security implications for Europe as a whole. We must reinvest into global security of supply in times of crisis. Finland can help other countries and businesses to ensure that they stay connected to the global economy through the seas, land, air and space with our technological solutions. Securing global interconnectivity through international and public-private cooperation is paramount for safeguarding trade flows in all circumstances. Finland and its companies are ready to do their part to prepare as well as to respond to the crisis across the globe. Thank you.


Macarena Torres: Thank you very much Minister for your insights and thank you very much Secretary General for your information. Maybe I just wanted to take a second because I know we have some time to take some questions, but maybe just some sort of reflection. Secretary General, any sort of insights from the intervention from the Minister, especially when it comes to the point about the public-private international sort of like organizations, how can we all work together and cooperate to make this flow better?


Ian Clifton Saunders: Great, thank you Macarena. The point about public-private partnership, I can’t say enough about it. When we’re talking about resiliency of supply chains, when we’re talking about the level of security and confidence that we can have as a customs administration about what’s trying to enter the country, we need to engage with the owners of the supply chain. We need to understand and have good relationships with logistics providers, the manufacturers, the exporters, the importers of record. Those that have knowledge and insight and have a connection to a transaction need to be engaged with us because one, they need to understand our requirements. And two, we need to understand what level of risk they pose or not. And the lower the level of risk, the greater level of facilitation we can offer. And that’s particularly important in time-sensitive situations like humanitarian crises. Another takeaway that I took from the Minister’s intervention was the importance of information exchange and the possibilities that exist when customs administrations work with one another. We have an initiative in the WCO called Globally Networked Customs and what the concept involves is enabling real-time information exchange between customs administrations so that what country A knows, country B can benefit from and inform their decisions in a risk-based fashion and provide facilitation where it’s due. Information exchange, customs to customs, information exchange and interactions between customs and the private sector, information exchange between customs and other government agencies, that network is all critical to making timely, reliable and safe decisions at the border. And I was very thankful that the Minister had made those points in his intervention and that Finland’s experience bears out these concepts.


Macarena Torres: Thank you, Secretary General. Maybe now I would like to open the floor for questions. Yes, please.


Audience: Hello. Hello, I have a question for Mr. Saunders. Thank you so much for that very informative speech. I am curious to know, how do you see the evolving global trade environment impacting small and medium-sized enterprises and what measures can governments take to support their integration into global value chains?


Ian Clifton Saunders: Great, thank you for that question. Increasing the activity of small and medium-sized enterprises is something that the World Customs Organization and its members are looking at. And one of the ways it can be most helpful is engaging these companies, making sure that we as customs are making them aware of requirements so they can move from being trade-interested to trade-ready. Part of that is understanding what the requirements are of being a trade actor and making sure there’s transparency around that. But another tool that we have in the World Customs Organization is a concept called the Authorized Economic Operator. An Authorized Economic Operator is a company of various types who work with customs and with whom we have a relationship with that gives us a sense of confidence in their operations, a sense of their supply chain security, and a sense that they pose a lower risk. And where they pose a lower risk, they have less likelihood of being stopped at the border. And where they’re not being stopped at the border, their costs go down. So when we talk about the limited resources of a small or medium-sized enterprise that doesn’t have the resources to build a huge compliance department, making trading as easy as possible for them is what customs can do to help. And that’s something that we can do with the Authorized Economic Operator concept, making sure that the standards of those programs are set up, that they’re friendly to smaller, medium-sized enterprises that want to participate in trade, but also at a basic level making sure that we’re being transparent about what we need of trade actors so they can configure their business models and their operations to be compliant at the front end and not penalized at the back end.


Macarena Torres: Actions or any feedback you’d like to provide on that to the question?


Ville Tavio: Well, thank you. First of all, it’s very important. I mean, it’s interesting to hear the customs aspect to all this. On my business, we usually more focus on the trade agreement side. But my advice to the SMEs is generally that once they are open to the globe, they usually get more diversification. And lots of people are quite afraid of the diversification of these times, because there has been a problem with Russia attacking Ukraine. So a very bad example for many companies, of course, losing investments in Russia. So now they’re a little bit worried whether they’ll make new investments. So I usually tell them that this is also a diversification of their trade and their supply. It’s a shared risk, so less risk, obviously. So this is my input to this, and I always encourage companies to work more globally. Thank you.


Macarena Torres: Thank you so much. I see we have another question over there, please.


Audience: Yeah, I just have a question for each of you. of the panelists, just for Mr. Saunders, so you talk about country A, or country B, benefiting from what country A knows, and so moving information across borders. What are the things that are slowing that down, or snarling those information flows up? Is it technology? Is it regulation? What are some things that we need to think about? Some barriers we need to think about removing in order to make that information flow more easily? I’d just be really interested. Thank you.


Ian Clifton Saunders: Thank you for that question. There are a number of things that slow down customs-to-customs information exchange. Part of it is having similarity in data sets, and that’s something that the WCO data model actually provides, that common language, so we are using the same data elements, we’re using them the same way, so that we genuinely understand the information, because there’s no disconnect in what we’re collecting and what we’re sharing with one another. So, implementation of things like the WCO data model will move us closer to having that fungibility of data that gives common understanding and ability to use information effectively. Hard technology is another one of the barriers, because not every customs administration has the automated capability to collect, retain, and push the information to a partner. So, having not equivalent infrastructures, but similar enough infrastructures to allow the electronic exchange is one of the barriers. But apart from those technology-related issues, one of the critical issues is trust, and making sure that when we’re exchanging it, we’re comfortable in how the customs administration we’re providing the information is gonna handle it. We wanna make sure that that environment is safe, that information is not public for a reason, and we wanna make sure that when that information is exchanged, it’s used appropriately. Some of that comes from experience, and where there is good experience, success begets success. But the trust barrier is one of the things that we will need to look at, and related to that, legal requirements to make sure that everyone has a common understanding of what the level of protection is between the customs administration that provides the information and that administration that receives it. We have to resolve those things, develop a common understanding, common trust, and enabling infrastructure. If we do those things, we’ll get a lot closer to a more effective customs-to-customs information exchange.


Audience: A question for the Finnish minister. We were talking before, and you said, over 50% of the EU’s land border with Russia is Finland, right, and so I was just wondering if there are any kind of lessons that we’ve learned from the last two years in terms of using technologies, and if not technologies, then using process kind of refinements and iterations to better manage a border where sanctions are in place, and to distinguish between essential goods that can cross and those that cannot, without having to actually open up every container. Are there any lessons learned from administering this sanctioned border? Thank you, minister.


Ville Tavio: Well, that’s a tough question, because, of course, now we had big problems with circumvention of the sanctions, which we always put a lot of force into, and to be honest, it’s a most matter of the truck traffic. I don’t think so much of the, maybe, train traffic, because that has gone much lower after the war, but the trucks, they do cross the border from all the way in the European border, not just the Finnish border, but obviously a lot of that data that is about those goods, I mean, surveillance of that data is crucial, and knowing the companies who order the products. This has been the case specifically in the goods that would go from EU to Middle Asian countries, and we do acknowledge that some of the trucks that go through Russia, they end up stopping there and then dismantling, so I think there is a problem there, but we’ve been active and, most of all, cooperating with the countries on the receiving side. But as a big picture that we are now discussing about customs today, I think, because the basic functions for me, the customs, they make sure that the goods entering the country are legal, I mean, all the legal requirements are filled, and, of course, the flow of illegal substances, and to detect these, we’re gonna need a lot of new technologies and data to prevent of those entering the country, and I think one big issue that we are gonna face this year, it’s gonna be the huge number of small parcels coming to European Union, especially from China, but I think this might be an issue with America as well, and a flow of those parcels is gonna make all the time more difficult to detect what is coming in, and because they are coming from such a wide array of companies, so difficult also to detect one company, so I’m following this situation very carefully.


Macarena Torres: Thank you very much. Maybe, I know, because we’re coming at the end of the session, so thank you again so much for your time, but maybe I wanted to give you one or two minutes if you wanted to share with us some final thoughts on the discussion, especially on the technology aspect, the humanitarian aspect, and the role that trade plays. Anything else that you’d like to share? Maybe we can start with the Secretary General.


Ian Clifton Saunders: Right, thank you, Macarena. Maybe a final point that I would offer is that with trade growing and the complexity of supply chains growing, the challenges that customs administrations face are also growing, and so being able to keep pace with the changes, the increase in complexity, the fact that the adversaries that want to misuse the system are that much smarter and that much more aggressive in their tactics, being able to keep up with this requires continued attention and continued investments. Customs needs infrastructure, it needs good processes, it needs enabling partners in the private sector and the rest of government in order to keep up with what’s coming its way. Small parcels, large volumes, complex supply chains, sanctions regimes, many reasons that customs has to work hard to keep up. And so keeping our eye on the fact that the situation is changing and requires us to evolve with it and making sure that investments keep pace with it is something that’s gonna continue to be a challenge for customs administrations, but also governments as a whole, because at the end of the day, the public’s expectation is that what customs allows to enter is safe and appropriate. And for us to provide that assurance, that guarantee means you’ve got a lot of work to do and hopefully we’ll have the benefit of investment partners and technology to enable us to continue doing it.


Macarena Torres: Minister, any closing words?


Ville Tavio: Okay, thank you for the event and just briefly about the humanitarian situation. It’s been on my desk on recent years so many times how difficult, of course, is to deliver the humanitarian assistance to the war zones. And this has been the case recently, of course, in the Israeli-Gaza war. And those we follow, you know, we have the daily statistics. We look on the flow of trucks inside the Gaza to deliver the humanitarian aid. And I think the lesson learned from this is, of course, like the couple of things I mentioned, it’s the international cooperation of different organizations and the key actors and also the technological, the processes, data and the possibilities to improve those processes on the flow of those deliveries. Yes, thank you.


Macarena Torres: Perfect. Thank you all so much for participating in this session, especially to our fantastic speakers for such an enriching discussion. Thank you for participating in the global situation space and thank you all. Have a wonderful day. Thank you very much.


I

Ian Clifton Saunders

Speech speed

160 words per minute

Speech length

1865 words

Speech time

699 seconds

Customs performs key functions at borders: revenue collection, trade facilitation, and preventing entry of illegal goods

Explanation

Customs plays a crucial role in border management by performing three main functions. These include collecting appropriate revenue, facilitating legitimate trade, and preventing the entry of harmful and illegal goods.


Evidence

Examples of customs’ role in humanitarian crises, such as managing the entry of medicines and construction equipment


Major Discussion Point

The Role of Customs in Humanitarian Assistance and Trade Facilitation


Agreed with

– Ville Tavio

Agreed on

Role of customs in crisis management and humanitarian assistance


Differed with

– Ville Tavio

Differed on

Focus on trade agreements vs. customs processes


Technology enables customs to process large volumes and make quick decisions

Explanation

Technology is a crucial enabler for customs operations, allowing them to handle the large volumes of goods crossing borders daily. It enables quick decision-making through digital solutions for data collection and non-intrusive inspection equipment.


Evidence

Mention of digital solutions for data collection and non-intrusive inspection equipment


Major Discussion Point

The Role of Customs in Humanitarian Assistance and Trade Facilitation


Agreed with

– Ville Tavio

Agreed on

Importance of technology in customs and trade facilitation


WCO data model provides a common language for trade data exchange

Explanation

The World Customs Organization has developed a data model that serves as a common language for data elements and messages. This model allows for consistent treatment across customs administrations and facilitates interaction between trade community, government authorities, and customs.


Major Discussion Point

Technology and Digital Solutions in Trade


Engaging with supply chain owners and logistics providers is crucial for customs

Explanation

Customs needs to engage with the owners of the supply chain to understand and mitigate risks. This includes developing good relationships with logistics providers, manufacturers, exporters, and importers of record.


Evidence

Explanation of how lower risk levels lead to greater facilitation, especially important in time-sensitive situations like humanitarian crises


Major Discussion Point

Public-Private Partnerships and Information Sharing


Agreed with

– Ville Tavio

Agreed on

Importance of public-private partnerships and information sharing


Information exchange between customs, private sector, and other agencies is critical

Explanation

Effective border management relies on information exchange between various stakeholders. This includes customs-to-customs exchange, interactions between customs and the private sector, and information sharing between customs and other government agencies.


Evidence

Mention of the ‘Globally Networked Customs’ initiative for real-time information exchange between customs administrations


Major Discussion Point

Public-Private Partnerships and Information Sharing


Agreed with

– Ville Tavio

Agreed on

Importance of public-private partnerships and information sharing


Investments in processes, infrastructure, and information enable daily trade management

Explanation

The management of trade on a daily basis relies on investments in processes, infrastructure, and information. These investments enable customs to make informed decisions at the border, facilitating trade and ensuring security.


Major Discussion Point

Trade Resilience and Crisis Preparedness


Trust and legal requirements are barriers to customs-to-customs information exchange

Explanation

One of the critical issues in customs-to-customs information exchange is trust. Ensuring that exchanged information is handled appropriately and securely is crucial. Legal requirements also need to be aligned to ensure a common understanding of protection levels between customs administrations.


Evidence

Mention of the need for common understanding, trust, and enabling infrastructure to improve customs-to-customs information exchange


Major Discussion Point

Challenges in Global Trade


Increasing complexity of supply chains and trade volumes poses challenges for customs

Explanation

The growth in trade and the increasing complexity of supply chains present growing challenges for customs administrations. Keeping pace with these changes requires continued attention and investments in infrastructure, processes, and partnerships.


Evidence

Mention of challenges such as small parcels, large volumes, complex supply chains, and sanctions regimes


Major Discussion Point

Challenges in Global Trade


V

Ville Tavio

Speech speed

141 words per minute

Speech length

1613 words

Speech time

683 seconds

Customs authorities play a critical role during global crises like pandemics

Explanation

During global crises such as pandemics, customs authorities are crucial in managing trade flows. They demonstrate their ability to adapt to unpredictable changes in global trade and provide situation awareness on supply chains and global logistics.


Evidence

Reference to lessons learned from the COVID-19 pandemic


Major Discussion Point

The Role of Customs in Humanitarian Assistance and Trade Facilitation


Agreed with

– Ian Clifton Saunders

Agreed on

Role of customs in crisis management and humanitarian assistance


International connections between customs authorities help solve practical challenges

Explanation

Good working relationships between international customs authorities are important for solving practical challenges. These connections become particularly valuable during crises and can help facilitate the flow of critical supplies.


Evidence

Mention of applying lessons from the pandemic to support Ukraine


Major Discussion Point

The Role of Customs in Humanitarian Assistance and Trade Facilitation


Agreed with

– Ian Clifton Saunders

Agreed on

Role of customs in crisis management and humanitarian assistance


Digital networks and infrastructure make countries more resilient

Explanation

Modern digital networks contribute to a country’s resilience, especially in times of crisis. They support productivity improvements in various sectors and help maintain economic activity even when physical infrastructure is damaged.


Evidence

Example of Ukraine’s need to restore and strengthen communication links after Russian attacks on telecom and energy infrastructure


Major Discussion Point

Technology and Digital Solutions in Trade


Agreed with

– Ian Clifton Saunders

Agreed on

Importance of technology in customs and trade facilitation


Finnish businesses provide digitalized solutions for various stages of trade

Explanation

Finnish companies are developing digitalized solutions to support different aspects of trade. These solutions aim to improve efficiency and security in trade processes.


Major Discussion Point

Technology and Digital Solutions in Trade


Agreed with

– Ian Clifton Saunders

Agreed on

Importance of technology in customs and trade facilitation


Technological solutions help reduce waste and enable efficient cargo handling

Explanation

Digitalized solutions developed by Finnish businesses contribute to reducing waste and improving the efficiency of cargo handling at ports. These technologies enhance the overall efficiency of supply chains from production to consumers.


Major Discussion Point

Technology and Digital Solutions in Trade


Finland aims to ensure supply of critical goods and services in all circumstances

Explanation

As an open economy highly integrated into the global economy, Finland focuses on securing its ability to trade in all circumstances. This includes ensuring the supply of critical goods and services even during times of crisis.


Evidence

Mention of work within the context of the European Union and NATO to improve resilience


Major Discussion Point

Trade Resilience and Crisis Preparedness


Diversifying trade with new agreements helps manage supply chain risks

Explanation

Finland aims to trade with as many countries as possible to mitigate risks associated with global crises. This diversification strategy helps ensure that a shock in one part of the world does not cut off access to critical supplies.


Major Discussion Point

Trade Resilience and Crisis Preparedness


Securing global interconnectivity is crucial for safeguarding trade flows

Explanation

Ensuring global interconnectivity through international and public-private cooperation is essential for maintaining trade flows in all circumstances. This includes connections through seas, land, air, and space.


Evidence

Mention of Finland’s readiness to help other countries and businesses stay connected to the global economy through technological solutions


Major Discussion Point

Trade Resilience and Crisis Preparedness


Finland has a tradition of collaboration between public, private and third sectors for supply security

Explanation

Finland has a long-standing tradition of collaboration between different sectors to ensure supply security. This joint commitment involves working together to assess risks in critical supply chains and design necessary policies.


Evidence

Mention of the importance of information sharing between public and private sectors for comprehensive risk assessments


Major Discussion Point

Public-Private Partnerships and Information Sharing


Agreed with

– Ian Clifton Saunders

Agreed on

Importance of public-private partnerships and information sharing


Public and private sectors should cooperate on risk assessments and policy responses

Explanation

Effective management of supply chain risks requires cooperation between public and private sectors in both risk assessment and policy implementation. This collaboration leverages the unique insights of both sides to create comprehensive risk management strategies.


Evidence

Mention of various policy tools available for managing supply chain risk, such as stockpiling and diversifying trade through new agreements


Major Discussion Point

Public-Private Partnerships and Information Sharing


Agreed with

– Ian Clifton Saunders

Agreed on

Importance of public-private partnerships and information sharing


A

Audience

Speech speed

155 words per minute

Speech length

251 words

Speech time

96 seconds

Small and medium-sized enterprises need support to integrate into global value chains

Explanation

The question raised concerns about how the evolving global trade environment impacts small and medium-sized enterprises (SMEs). It inquires about measures governments can take to support SMEs’ integration into global value chains.


Major Discussion Point

Challenges in Global Trade


Managing sanctioned borders requires refined processes and technologies

Explanation

The question addresses the challenges of managing a border where sanctions are in place. It inquires about lessons learned in using technologies or process refinements to distinguish between essential goods that can cross and those that cannot, without physically inspecting every container.


Evidence

Reference to Finland’s experience managing its border with Russia, which accounts for over 50% of the EU’s land border with Russia


Major Discussion Point

Challenges in Global Trade


Agreements

Agreement Points

Importance of technology in customs and trade facilitation

speakers

– Ian Clifton Saunders
– Ville Tavio

arguments

Technology enables customs to process large volumes and make quick decisions


Digital networks and infrastructure make countries more resilient


Finnish businesses provide digitalized solutions for various stages of trade


summary

Both speakers emphasize the crucial role of technology in enabling efficient customs operations and trade facilitation, particularly in processing large volumes of goods and making quick decisions.


Importance of public-private partnerships and information sharing

speakers

– Ian Clifton Saunders
– Ville Tavio

arguments

Engaging with supply chain owners and logistics providers is crucial for customs


Information exchange between customs, private sector, and other agencies is critical


Finland has a tradition of collaboration between public, private and third sectors for supply security


Public and private sectors should cooperate on risk assessments and policy responses


summary

Both speakers stress the importance of collaboration between public and private sectors, as well as information sharing, for effective customs operations and supply chain security.


Role of customs in crisis management and humanitarian assistance

speakers

– Ian Clifton Saunders
– Ville Tavio

arguments

Customs performs key functions at borders: revenue collection, trade facilitation, and preventing entry of illegal goods


Customs authorities play a critical role during global crises like pandemics


International connections between customs authorities help solve practical challenges


summary

Both speakers highlight the critical role of customs authorities in managing crises and facilitating humanitarian assistance, emphasizing their functions in border management and international cooperation.


Similar Viewpoints

Both speakers emphasize the importance of standardized data models and technological solutions in improving trade efficiency and facilitating information exchange.

speakers

– Ian Clifton Saunders
– Ville Tavio

arguments

WCO data model provides a common language for trade data exchange


Finnish businesses provide digitalized solutions for various stages of trade


Technological solutions help reduce waste and enable efficient cargo handling


Unexpected Consensus

Importance of diversification in trade relationships

speakers

– Ian Clifton Saunders
– Ville Tavio

arguments

Investments in processes, infrastructure, and information enable daily trade management


Diversifying trade with new agreements helps manage supply chain risks


explanation

While coming from different perspectives (customs and trade policy), both speakers unexpectedly agree on the importance of diversification in trade relationships and investments to manage risks and ensure trade continuity.


Overall Assessment

Summary

The speakers show strong agreement on the importance of technology in trade facilitation, the need for public-private partnerships, the critical role of customs in crisis management, and the value of information sharing and standardization in trade processes.


Consensus level

High level of consensus, implying a shared understanding of the challenges and potential solutions in global trade and customs operations. This consensus suggests potential for collaborative efforts in improving trade facilitation and crisis response mechanisms.


Differences

Different Viewpoints

Focus on trade agreements vs. customs processes

speakers

– Ville Tavio
– Ian Clifton Saunders

arguments

On my business, we usually more focus on the trade agreement side.


Customs performs key functions at borders: revenue collection, trade facilitation, and preventing entry of illegal goods


summary

While Minister Tavio emphasizes the importance of trade agreements, Secretary General Saunders focuses more on the role of customs processes in facilitating trade and ensuring security.


Unexpected Differences

Overall Assessment

summary

The main areas of disagreement were minimal, primarily revolving around the emphasis placed on different aspects of trade facilitation and security.


difference_level

The level of disagreement among the speakers was low. Both speakers largely complemented each other’s views, focusing on different aspects of trade facilitation and security. This low level of disagreement suggests a generally unified approach to addressing global trade challenges, which could lead to more effective implementation of trade policies and customs procedures.


Partial Agreements

Partial Agreements

Both speakers agree on the importance of collaboration between different sectors, but they approach it from different angles. Minister Tavio emphasizes a broader collaboration for supply security, while Secretary General Saunders focuses specifically on customs engagement with supply chain stakeholders.

speakers

– Ville Tavio
– Ian Clifton Saunders

arguments

Finland has a tradition of collaboration between public, private and third sectors for supply security


Engaging with supply chain owners and logistics providers is crucial for customs


Similar Viewpoints

Both speakers emphasize the importance of standardized data models and technological solutions in improving trade efficiency and facilitating information exchange.

speakers

– Ian Clifton Saunders
– Ville Tavio

arguments

WCO data model provides a common language for trade data exchange


Finnish businesses provide digitalized solutions for various stages of trade


Technological solutions help reduce waste and enable efficient cargo handling


Takeaways

Key Takeaways

Customs plays a crucial role in facilitating humanitarian assistance and trade, performing key functions like revenue collection, trade facilitation, and preventing entry of illegal goods.


Technology and digital solutions are essential enablers for customs to process large volumes of trade data and make quick decisions at borders.


Public-private partnerships and information sharing between customs, private sector, and other agencies are critical for effective trade facilitation and risk management.


Trade resilience and crisis preparedness require investments in processes, infrastructure, and information systems, as well as diversification of trade partnerships.


The increasing complexity of supply chains and trade volumes poses ongoing challenges for customs administrations, requiring continuous adaptation and investment in new technologies and processes.


Resolutions and Action Items

Implement the WCO data model to provide a common language for trade data exchange between countries


Increase engagement between customs and supply chain owners/logistics providers to improve trade facilitation


Develop and strengthen public-private partnerships for better risk assessment and policy responses in trade


Invest in digital networks and infrastructure to enhance country resilience and trade efficiency


Continue to evolve customs processes and technologies to keep pace with changing trade landscapes and emerging challenges


Unresolved Issues

Specific strategies for supporting small and medium-sized enterprises in integrating into global value chains


Detailed approaches to overcome trust and legal barriers in customs-to-customs information exchange


Concrete measures to address the challenge of detecting illegal substances in the increasing flow of small parcels, especially from countries like China


Specific technological solutions for managing sanctioned borders more effectively


Suggested Compromises

Balancing the need for thorough customs checks with the facilitation of rapid humanitarian aid delivery in crisis situations


Finding a middle ground between trade diversification for risk management and the potential risks associated with global expansion, especially in light of recent geopolitical events


Thought Provoking Comments

You may be wondering, what does customs have to do with humanitarian assistance? And the short answer is, it has a lot to do with humanitarian assistance. It does because whenever assistance comes from another country and has to cross a border, customs is present.

speaker

Ian Clifton Saunders


reason

This comment challenges the common perception that customs is primarily about revenue collection or security. It highlights the critical role customs plays in facilitating humanitarian aid, which many may not have considered before.


impact

This set the tone for the rest of the discussion by emphasizing the importance of customs in crisis situations. It led to a deeper exploration of how customs operates and its impact on global trade and humanitarian efforts.


Part of what the WCO does is it’s developed what’s called the data model. It’s the common language of data elements and messages that allow the trade community, government authorities, including customs, and others to interact with one another so there is no misunderstanding about what’s in a shipment.

speaker

Ian Clifton Saunders


reason

This insight introduces the concept of standardized data models in international trade, highlighting the importance of common understanding and communication in facilitating global commerce.


impact

This comment deepened the discussion on the technical aspects of customs operations and led to further exploration of how technology and standardization can improve trade efficiency.


When thinking of critical supplies at times of crisis, one tends to think of food, water, and medical supplies. But we also need to think about the functioning of communications, financial services, or other critical services in various fields.

speaker

Ville Tavio


reason

This comment broadens the perspective on what constitutes critical supplies during a crisis, moving beyond basic necessities to include infrastructure and services.


impact

It shifted the conversation to consider a more comprehensive view of crisis management and the role of trade in maintaining various critical systems.


To be even better equipped to manage risk in the future, the public and private sectors should work together to access any risk in critical supply chains. Information sharing between the two is of key importance and can be very beneficial on both sides.

speaker

Ville Tavio


reason

This insight emphasizes the importance of public-private partnerships in managing supply chain risks, introducing a collaborative approach to crisis preparedness.


impact

It led to further discussion on the need for cooperation between different sectors and stakeholders in ensuring trade resilience and crisis readiness.


Part of it is having similarity in data sets, and that’s something that the WCO data model actually provides, that common language, so we are using the same data elements, we’re using them the same way, so that we genuinely understand the information, because there’s no disconnect in what we’re collecting and what we’re sharing with one another.

speaker

Ian Clifton Saunders


reason

This comment provides a concrete example of how standardization in data models can facilitate international cooperation and information exchange.


impact

It deepened the technical discussion on information sharing between customs authorities and highlighted practical solutions to improve global trade efficiency.


Overall Assessment

These key comments shaped the discussion by broadening the understanding of customs’ role in humanitarian assistance and global trade. They highlighted the importance of technology, standardization, and public-private partnerships in improving trade efficiency and crisis response. The conversation evolved from a basic explanation of customs’ functions to a more nuanced exploration of the challenges and solutions in international trade and crisis management. The speakers’ insights complemented each other, with Saunders focusing more on the technical and operational aspects of customs, while Tavio emphasized broader policy and strategic considerations.


Follow-up Questions

How can customs administrations keep pace with the growing complexity of supply chains and evolving tactics of adversaries?

speaker

Ian Clifton Saunders


explanation

This is important as it addresses the ongoing challenge for customs to adapt to changing trade landscapes and security threats.


What specific investments are needed in customs infrastructure, processes, and partnerships to meet future challenges?

speaker

Ian Clifton Saunders


explanation

This is crucial for ensuring customs can continue to effectively facilitate trade while maintaining security.


How can the issue of sanctions circumvention, particularly through truck traffic across borders, be more effectively addressed?

speaker

Ville Tavio


explanation

This is important for improving the effectiveness of sanctions regimes and preventing illegal trade.


What new technologies and data analysis methods are needed to manage the increasing flow of small parcels, especially from countries like China?

speaker

Ville Tavio


explanation

This is critical for customs to adapt to changing patterns in international trade and e-commerce.


How can international cooperation and technological processes be improved to facilitate the flow of humanitarian aid deliveries in conflict zones?

speaker

Ville Tavio


explanation

This is vital for ensuring effective delivery of humanitarian assistance in challenging environments.


What measures can be taken to enhance trust between customs administrations to facilitate better information exchange?

speaker

Ian Clifton Saunders


explanation

This is important for improving international customs cooperation and information sharing.


How can the implementation of the WCO data model be accelerated to improve data interoperability between customs administrations?

speaker

Ian Clifton Saunders


explanation

This is crucial for enhancing the efficiency of customs-to-customs information exchange.


Disclaimer: This is not an official session record. DiploAI generates these resources from audiovisual recordings, and they are presented as-is, including potential errors. Due to logistical challenges, such as discrepancies in audio/video or transcripts, names may be misspelled. We strive for accuracy to the best of our ability.