The Institute of Export and International Trade (IOE&IT) was today among the signatories of a new agreement aimed at improving information sharing in global supply chains and implementing digital infrastructure for trade.
The agreement
The Collaboration Agreement was completed at the World Trade Organization (WTO) 13th Ministerial Conference (MC13) and was also signed by the World Economic Forum (WEF), the Tony Blair Institute for Global Change (TBI), the IOTA Foundation, TradeMark Africa and the Global Alliance for Trade Facilitation (GATF).
Signatories have committed to working together on new global digital trade infrastructure, which IOE&IT says will enhance “trust, fairness, inclusivity and participation in global trade”. This infrastructure, dubbed the Trade Logistics Information Pipeline (TLIP), aims to cut costs associated with trade, particularly for small to medium-sized enterprises (SMEs).
IOE&IT perspective
Marco Forgione, the director general of IOE&IT, said of the agreement:
“We are proud to champion the creation of a neutral, inclusive digital infrastructure for trade. This partnership between key international trade organisations pulls together a perfect mix of specialism, knowledge and the right balance of tech and trade experts to streamline supply chains and customs procedures.
“With the TLIP framework we expect promising outcomes, including up to 80% cost reduction, processing times cut to one day and a 35% increase in SME efficiency. Through collaboration, we are committed to shaping a future where trade facilitation benefits societies worldwide, through the creation of a more equitable and sustainable global trade ecosystem and infrastructure.”
Building on success
TLIP is intended to allow “everyone to share and consume information while maintaining control of their own data”. Interoperability across supply chains globally is another aim, achieved through distributed ledger technology (DLT) “in an open-source environment and non-profit commercial structure”.
The new agreement builds on recent smaller-scale trials of the infrastructure. The supply chain of flowers between Kenya and the Netherlands has recently used the TLIP programme to remove the need for paper documentation, while in the UK it was used as part of the government’s Ecosystem of Trust trials in 2021 and 2022.
According to IOE&IT, the average cross-border transaction “requires the exchange of 36 documents and 240 copies, involving up to 30 participants and convoluted trade regulations, leading to challenges such as document loss, information discrepancies and fraud”.
Signatories speak
The head of the WEF TradeTech Global Initiative, Tim Stekkinger, said that “exchanging information along the trade supply chain remains a real challenge”. For that reason, he added, “trust and structured collaboration will be key to scaling systems and approaches that work across many countries”.
Frank Matsaert of TBI, meanwhile, argued that “re-imagining trade in the information age is imperative in making global trade work for all”.
“Innovating a public global digital infrastructure for trade that is inclusive and green, that this partnership aims to achieve, resonates with TBI’s core goal of reimagining how governments and states deliver services in the 21st century.”
IOTA Foundation co-founder and board of directors chairman Dominik Schiener also said:
“The signing of the Collaboration Agreement is this coalition's promise to be a responsive institute focused on the needs of every stakeholder in the supply chain. We are ready to transform international e-commerce, but we need all public and private entities in the global trade space to help us craft the policies and frameworks of the future.”