Emerging technologies, such as artificial intelligence, blockchain and distributed ledger technology, paired with international policy co-ordination, could propel global trade and accelerate economic recovery, according to a new report.
Written by the World Economic Forum (WEF) and the World Trade Organisation (WTO), it argues that TradeTech — the set of technologies that enables global trade and its digitalisation — is a critical part of supply chain resilience and a path to more efficient and inclusive trade.
While the benefits of TradeTech are promising, however, the report warns that uneven development could result in unequal growth, cybersecurity risks, fragmented “digital islands” and techno-nationalism.
Building international policy co-ordination through public-private partnerships would advance TradeTech adoption across borders, with trade agreements playing a key role in this regard. Recent trade agreements and plurilateral initiatives have started to explore the interplay between technology and trade.
The promise of TradeTech: Policy approaches to harness trade digitalisation can be found at weforum.org.
The 72-page report identifies five specific policy frontiers — the “5 Gs” of TradeTech — as follows:
- global data transmission and liability frameworks
- global legal recognition of electronic transactions and documents
- global digital identity of persons and objects
- global interoperability of data models for trade documents and platforms
- global trade rules access and computation laws.
Børge Brende, WEF President, said: “The Covid-19 pandemic has shown that digital trade and commerce are necessary for the survival of SMEs, while the application of autonomous technologies — from robotics to AI — contributed to the operation of ports and warehouses with minimal staff during lockdowns. According to a WEF survey, 65% of organisations have incorporated new technologies, resulting in reconfigured value chains and increased visibility of value chain data.”
