Using electronic documents and transactions can speed up and increase trade. Electronic messages can eliminate the need to enter data into a computer manually at each supply chain checkpoint and can provide opportunities for the potential reuse of data. There are various ways to digitize trade documents and transactions. One way is simply to take a visual snapshot of a paper document. Another possibility is an internet web portal where individual data elements can be keyed in – this is known as data-trader interface (DTI). Paperless transactions can also be conducted using computer-to-computer electronic messages in a standard format between business partners – known as electronic data interchange (EDI). Typically, these systems provide an application programming interface to facilitate interactions with the database (UNECE and UN/CEFACT, 2018).
A study focused on the Asia-Pacific region found that even partial implementation of cross-border paperless trade measures could see an export increase of US$ 36 billion annually or, under a more ambitious scenario of full implementation, an annual export gain of US$ 257 billion (ESCAP, 2014). The time required to export could also fall on average by 24 per cent for partial implementation and 44 per cent for full.
The use of electronic processes in international trade can also have significant environmental benefits, given that global supply chains usually involve the printing, dispatching, processing, exchanging and ultimately discarding of vast quantities of paper documents (Duval and Hardy, 2021): “At the global level, emissions The use of electronic processes in international trade can also have significant environmental benefits, given that global supply chains usually involve the printing, dispatching, processing, exchanging and ultimately discarding of vast quantities of paper documents (Duval and Hardy, 2021): “At the global level, emissions The 2021 United Nations Global Survey on Digital and Sustainable Trade Facilitation1 (United Nations, 2021) shows that TFA-related measures have been well implemented by improving transparency of regulations, streamlining the formalities and enhancing institutional arrangements and cooperation mechanisms. However, more work remains to be done in digitalizing trade processes, in particular on enabling the exchange and legal recognition of trade-related data and documents in electronic form.
A recent joint study by the Asian Development Bank (ADB) and ESCAP finds that the average trade cost reduction in the Asia-Pacific would be more than 13 per cent in the case of full digital trade facilitation implementation, such as paperless trade measures, in addition to the binding and non-binding measures already under the TFA (ADB/ESCAP, 2021). Several regional instruments and initiatives, such as the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific, have aimed at accelerating progress in this area (see Box 1). The relative urgency in enabling cross-border paperless trade became more apparent during the COVID-19 crisis, when physical distancing measures made the exchange of paper documents more challenging and the flow of small shipments and parcels through e-commerce platforms further accelerated.
Source: World Trade Organization