The World Economic Forum (WEF) unveiled in a recent briefing note three developments that offer huge opportunities to make global trade more fluid and secure, as the power of digital technology to keep the world moving in times of crisis was revealed.
The first is a “digital identification system"where, instead of using paper documents such as passports and driving licenses, identities can be verified remotely through digital channels," explains the writing done by Victoria Masterson and published in the blog of the WEF.
This tool also allows for the use of authenticating not only users electronically, but also physical and digital objects, so that products can be tracked from source to shelf.
The Forum also notes that digital IDs that can be applied to people, organizations or things are now central to a wide range of transactions and processes in international trade. These digital ID systems are typically used by government agencies such as customs and commercial registration offices.
But as trade becomes more digital, so does “the need for a digital identification system that works globally across borders and not just in specific sectors.”
In Latin America, the Institute for the Integration of Latin America and the Caribbean (INTAL) of the Inter-American Development Bank (IDB) and the Latin American Internet Association (ALAI) held a meeting last June event to promote the use of the internet as a trade facilitation tool; and generate knowledge for the design of public policies that promote the development of the digital ecosystem.
The second emerging digital trend worldwide is the rise of “digital trade agreements”, a package of measures between governments designed to facilitate trade in the digital age.
“Digital trade agreements can help countries synchronize their regulatory frameworks and improve data sharing and cybersecurity,” the WEF says. The UK government noted that the agreement would “end outdated rules” for exporters of goods and services, “reduce costs and pave the way for [a] new era of modern trade,” it adds. Singapore also signed another digital trade agreement with Chile and New Zealand.
The latest digital commerce tool is the ”non-fungible tokens (NFTs))”, which provide any type of information with a unique digital signature that cannot be altered or falsified, enabling a secure form of digital ownership.
“The benefits of NFTs range from protecting sensitive information, such as that contained on an invoice or shipping document, to enabling seamless and transparent automated trading,” the blog states.
Essentially, these elements “streamline international trade by eliminating document fraud and the need for multiple regulations and human interventions along supply chains,” the World Economic Forum emphasizes.Note “3 digital innovations making global trade easier, faster and safer” by Victoria Masterson)
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.
