Digital technology: It’s what every country needs
To reinforce an improved global trade standing, countries should consider adopting a better set of rules and laws to manage digital communications and documents used in international trade
While the expansion of global trade has helped uplift millions of people from poverty, there is still one vital component needed to create a truly transparent, seamless and open international trading framework.
Digital technology, according to Asian Development Bank (ADB)’s Head of Trade and Supply Chain Finance Steven Beck, appears to have been left out of the framework,
In his article published in the World Trade Symposium. Beck asserts that country leaders who want to develop their trade laws and policies should bank on the technological advancements such as blockchain, which has the potential to transform global trade.
To reinforce an improved global trade standing, countries should consider adopting a better set of rules and laws to manage digital communications and documents used in international trade.
“Most people don’t realize that these very basic building blocks are not in place, or that if governments adopted draft standards their actions could have a huge effect within just a few years,” Beck said.
He also proposes implementing standards that can cover the technological state of trade as well as globally recognize the distinctive identifiers for information about who a company is and who owns and runs it.
Currently, team players of the international trade — exporters, shoppers, warehouses, ports, banks and importers — can’t communicate seamlessly because digital technology has not been fully utilized.
For instance, once a solid global criterion backed by digital standards are in place, a massive amount of meta data or the data that gives information about other data will be made available to those who needs it for trading on a global basis.
“Without unique identifiers, finding relevant data about who to trade with will be akin to finding a single grain of sand in an ocean,” Beck notes
As a result of better exchanging of information among international traders, opportunities will then open up for individuals, micro businesses and SME as well as corporates, allowing smooth transactions to happen worldwide.
Technology develops at a breakneck speed but aside from using it for pleasure, people should also utilize its power to build an efficient international trading system.
There is nothing wrong in improving regional trade, Beck points out. But he concludes country leaders should focus more on international standards that will also benefit the international trade standing in the long run.