The digitalization of international trade, known as going paperless, It is consolidating its position as a key factor in increasing global exports and addressing the challenges of more sustainable trade, according to an OECD report published in September.
Despite technological advances, a large part of international transactions still rely on paper-based processes. The OECD warns that, although the benefits of digital trade are widely recognized, a comprehensive approach encompassing the entire supply chain and the policies necessary to facilitate the transition from analog trade to one based on digitalized information and processes—that is, to full digitalization—are still lacking.
The study reveals that moving towards paperless trade could generate significant benefits for the global economy:
- Improve a 10% Facilitating border processes could increase global goods exports by up to 18%.
- Reducing digital restrictions on electronic transactions, digital payments and connectivity is associated with an increase in 37% in world trade.
Furthermore, the digitalization of business processes not only accelerates the exchange of goods and services, but is also emerging as a a strategy to boost global competitiveness and build more agile and sustainable trade, at a time when trade tensions, tariffs, and regulatory demands are increasing the complexity and costs of international trade.
How it is achieved
All of this poses a major challenge: it's not just about accumulating information, but also about structuring and optimizing the entire supply chain. Paperless trade is built on five fundamental pillars: digitization of documents such as electronic invoices and certificates of origin; digitization of processes through automation of controls and electronic payments; adoption of technologies such as blockchain, artificial intelligence, and APIs; data standardization to ensure interoperability and traceability; and national and international legal frameworks that enable electronic signatures and cross-border data flows.
The critical point is to move beyond efficiency: paperless trade not only streamlines processes, but also facilitates compliance with sustainability standards, increases visibility throughout the supply chain, and reduces transaction costs, generating a real and tangible impact on global competitiveness.
A global effort
The move towards paperless trade is supported by multiple levelsThe OECD study indicates the following:
Mmultilateral: Since the implementation of the WTO's Trade Facilitation Agreement (TFA) in 2017, significant reforms have been advanced, including the automation of border procedures, pre-processing of information, trade single windows, electronic payments, and the use of electronic trade documents. The WTO Trade Facilitation Committee is also exploring the links between the TFA and digitalization, while the Work Program on E-Commerce and the Joint Initiative on E-Commerce are advancing digital facilitation tools.
The "stabilized text," published in July 2024, covers frameworks for electronic transactions, authentication and digital signature, electronic contracts, electronic invoicing, systems interoperability, electronic payments and e-commerce, as well as aspects of consumer protection, personal data, and cybersecurity.
Regional: Regions such as APEC, ASEAN, and the European Union are promoting initiatives to simplify rules of origin, promote electronic documents, and standardize technical regulations. Examples include the EU-Singapore Digital Partnership (2023) and the EU-Japan Digital Trade Principles (2023), as well as the updated ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Digital Economy Framework (DEFA) for regional digital integration.
In Central America, the Digital Trade Platform (PDCC), launched by SIECA and SICA in 2023, seeks to streamline trade processes through the interoperability of national single windows and coordination between customs, immigration, and ministries.
Other international forumsThe G7 and G20 are advancing principles for the digitization of trade documents, promoting digital systems, interoperability, traceability, trust, and security. The G7 Digital Trade Principles (2021-2022) and the G20 High-Level Principles on the Digitization of Trade Documents (2023) establish frameworks for the transition to more efficient and accessible trade.
National and private initiatives: At the national level, the European Union Single Window Environment for Customs (2022) and the future European Union Customs Data Hub (2028) stand out.
The private sector is also driving digitalization through electronic bills of lading (eBL), document standardization, and platforms connecting public and private actors, such as CargoX, the Trade Logistics Information Pipeline, and the World Economic Forum's TradeTech Global initiative.
Towards paperless trade
Moving toward paperless trade boosts exports, competitiveness, and global sustainability. Digitalization and cross-organizational cooperation reduce costs and facilitate the implementation of sustainability standards.
The OECD study highlights that the regulatory environment is crucial: Automating border processes and harmonizing documents generates the greatest trade benefits, while a 10% improvement in trade facilitation indicators can translate into an increase of up to 18% in global goods exports. Furthermore, reducing barriers to electronic transactions and digital payments could boost exports by 37%.
Ultimately, paperless trade depends not only on technology, but also on a coordinated policy framework that combines border facilitation with new sustainability requirements, ensuring interoperability and certainty for both operators and authorities. As the OECD concludes, progress in this direction is key to building more efficient, transparent, and resilient supply chains at all levels.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
