The outlook for trade and supply chains, albeit anecdotally and unscientifically, is pretty grim. Challenges include:
- Continuing conflicts in Ukraine, Middle East, and now the disruption of shipping lanes, meaning increased transit time, prices, and delays;
- Protracted geopolitical uncertainty, particularly around the US and China;
- The outcomes of elections in major countries, chief among these the USA;
- The prospect of CBAM in Europe and other sustainability or national security related border import and export regulations;
- The rise of nationalist industrial policy, amidst the lack of effective multilateral trade fora;
- The continuing economic pressures created by inflation, high interest rates, and the rising cost of living.
Bright Spots: How Can Digital Deliver?
Economic downturns are rarely the most popular times to initiate large system changes, but we would like to make the case that digitalsation could be the exception. The pervasive uncertainty and volatility in trade means that supply chain resiliency becomes even more important: only those with full visibility and reliable data across their networks will be able to react, shift, navigate, and comply at the border as needed. Digitalisation is the single most effective response to the pressures facing supply chains.
The issue is not whether to do so, but rather how. This is where DSI and everyone who believes in digital trade must step up to provide answers. Core to this is the forthcoming DSI vision for trade digitalisation, along with the completion of the key trade document and data element standards recommendations.
On Legal: There is more interest than ever in MLETR, thanks to the spotlight on the issue in Europe, Asia and elsewhere. But much more needs to be done. We must engage proactively to connect governments with the right knowledge sources, providing them capacity building and technical assistance to speed their legislative approaches. Passage of the E-Commerce Joint Initiative under the WTO would be a great complementary step.
On Standards: Standards are great, for those who know how to use them. But we must go beyond the immediate trade and customs community to educate on why interoperability is the only sensible way to build the digital trade ecosystem for the future. Policymakers will also have questions about how precisely platforms work, whether one or many platforms are necessary, and the role of the public sector at guiding the market towards scalable digital trust. We must answer these and create guidance on the change that we seek.
On Business Transformation: The case is clear at the macro level, and we must continue to build the business case at the micro level, for adoption of interoperable standards, the piloting of new electronic documents like the eBL, and the use of open APIs and secure data exchanges to create visibility and transparency along the supply chain.
In short, it’s a really exciting time to be in this space. The need for digitalisation has never been stronger, and the tools are increasingly affordable and accessible. Let’s make it happen.
