Digital Trade & The Acceleration of Digitalization Between SMEs. Introduction: Welcome to the Future Citizen News Research on The Acceleration of Trade Digitalization Welcome to Future Citizen News Research, your go-to source for informative, in-depth, and accessible insights on emerging global trends. Today, we are going to dive into an important but hidden critical aspect of the Fourth Industrial Revolution - Digital Trade, an innovation creating a new era transformation that's shaping the future of commerce on a global scale.
Understanding Digital Trade and the Challenges of Paper-based Transactions Digital Trade: A Primer Digital Trade refers to the digitization or digital transformation of traditional paper documents and trade practices. This involves the use of digital technologies to reduce paper and manual processes, streamline transactions, and improve the efficiency and transparency of international trade. As our world embraces the digital revolution, this form of trade is starting to become the norm.
A visual to showcase paper is a problem to the global financial system.
Why is Paper a Problem in Global Trade? For over 400 years, global trade has been heavily reliant on paper-based processes, which can be costly, time-consuming, and susceptible to errors and fraud. Managing physical documents in cross-border transactions creates bottlenecks, slows down processes, and increases operational costs with a high carbon footprint. Upgrading to a digital system model will revitalize global trade by eliminating high costs and slow transaction times.
In our global “grid” (TF & SC) system, annually around 28.5 BILLION paper documents move across the globe , which is painstakingly slow and expensive for ALL using the global trade system. 99% of documents are still in paper as legislation in most jurisdictions are based on the Bills of Exchange Act of 1882 , which requires documents to be in wet ink and does NOT validate digital docs.
In the average global trade transaction, there are around 36 documents and there can be up to 240 copies . With this amount of paper, transfer documents can take up to 2-3 weeks to process.
Visual from Genfinity.io The Grid - Global Trade Finance Research Report Edition #1
The Benefits of Digital Trade: A Paradigm Shift The Perks of Going Digital in Trade Digital trade brings a multitude of benefits. For businesses, it translates to reduced costs, improved speed of transactions, increased access to markets, and greater financial inclusion. For governments, digital trade offers enhanced regulatory control, better fraud prevention, and increased tax revenues. For citizens, digital trade will bring more transparency for shipments with real time tracking, reduced shipping costs, and faster delivery times.
Global Trade Digitalisation / Digitalization - Allowing Data to flow quickly and securely across international borders.
Unraveling The Potential of SMEs in Digital Trade By embracing digital trade, Small and Medium Enterprises (SMEs) can overcome many of the traditional barriers they face in the global market. Digital Trade levels the playing field, enabling SMEs to access international markets, streamline their operations, and compete on a larger scale.
SMEs have always been the backbone of global economies. However, in traditional trade, they often face roadblocks like inadequate access to international markets, complex regulatory environments, and logistics issues. Digital Trade, with its suite of online tools and platforms, can help these SMEs overcome these challenges. Through eCommerce platforms, online marketing, digital payments, and automated logistics, SMEs can now reach global customers, streamline their operations, and even automate various processes. Digital trade democratizes access to the global marketplace, fostering a healthy business environment where SMEs can thrive alongside larger corporations.
Empowering SMEs in the Digital Trade Ecosystem With Digital Policies The future of digital trade relies heavily on SMEs (Small Medium Sized Enterprises), as they constitute the majority of businesses globally. Therefore, it's vital that their voice is heard when formulating digital trade policies. SMEs' unique challenges and needs should be taken into account to ensure that the digital trade ecosystem is inclusive and equitable. This means that SMEs need to be part of the policymaking process, contributing their valuable insights and feedback.
Future Citizen News Fun Fact:
SMEs are major sources of public revenue for governments (up to 40% of GDP in emerging economies) Policy and Regulation: Paving the Way for Digital Trade The Role of Government Policies in Digital Trade The digital economy thrives when it is supported by robust and forward-thinking policies. Governments play a pivotal role in shaping the digital trade landscape. They have the power to create a conducive environment for digital trade to flourish by promoting technological innovation, protecting digital rights, and encouraging digital literacy. Simultaneously, they have the responsibility to address potential issues related to data privacy, cybersecurity, and digital divide. Therefore, open dialogues and collaborations between governments and businesses are crucial to balance economic growth with social responsibility.
The Global Landscape: Digital Trade Policies Countries like UK, Singapore, Australia, and New Zealand are the leaders spearheading the development of digital trade policies. These nations are known for their tech-savviness and robust regulatory frameworks creating clarity for businesses to use digital trade technology. These nations have recognized the potential of digital trade and are creating an enabling environment for it to grow. For instance, Singapore's National Digital Identity initiative and Australia's Digital Transformation Strategy are noteworthy efforts in this domain. At the same time, international bodies like the WTO & The ICC are working to harmonize these national efforts and develop a unified digital trade policy.
Overcoming International Divergences in Digital Standards In the digital economy, standardization amongst all global nations is a critical aspect. Different countries adopting different digital standards can lead to a fragmented global market like the one we already have. Making it difficult for businesses to operate internationally. Therefore, regions like ASEAN and the UK are striving to align digital standards, working towards a unified digital standard for global markets. This effort is aimed at creating a smooth, frictionless digital trade environment that benefits both businesses and consumers.
Tailoring Digital Trade Strategies: A Country-Specific Approach While global alignment is necessary, it's also important to remember that digital trade strategies need to be tailor-made to suit a country's unique socio-economic context. Factors such as the digital literacy rate, infrastructure, legal system, and economic dynamics should guide the design of these strategies. This dual approach - global alignment combined with local adaptation - ensures that digital trade benefits all stakeholders.
Digital Champions: The Catalysts for Change The Need for Advocacy in Digital Trade In the digital economy, advocacy plays a significant role. Digital champions, whether they are individuals, businesses, or organizations, advocate for the rights and interests of SMEs and marginalized groups. They ensure that these entities are not left behind in the digital transformation. One way they do this is by pushing for global agreements, like the one under the WTO framework for e-commerce, which aims to establish consistent digital rules across the globe.
Mainstream Media Causing The Lack of Awareness Across the Globe The mainstream media, controlled by a select few, is often criticized for its lack of comprehensive coverage on technological advancements and revolutionary business models. A significant part of this criticism stems from the perception that these media outlets are owned by a small 1% of elite. They prioritize preserving their lucrative positions within the current financial framework over educating the global population. All because this traditional system is enriching their pockets because it's riddled with inefficiencies – high transaction fees, slow processing times, and lack of transparency, to name a few.
I noticed these mainstream channels tend to divert public attention towards divisive issues, creating narratives that often distract from critical global developments and make the citizens hate each others instead of the ones controlling "The System". One such neglected area is the ongoing digital trade revolution. By withholding knowledge of this seismic shift known as the Fourth Industrial Revolution, the power players can prolong their profit-making from the outdated system while the majority of citizens remain in the dark.
If you dont know, the Fourth Industrial Revolution, is characterized by a fusion of technologies that blur the lines between the physical, digital, and biological spheres, and is challenging this outdated status quo. This revolution's significant developments, such as the rise of digital trade, deserve to be highlighted and discussed openly by EVERYONE!
This is where Future Citizen News comes in. We are committed to disrupting this stifled narrative and creating a news platform that enlightens citizens on these groundbreaking developments. Our mission is to spark awareness of and engagement with the innovations brought by the Fourth Industrial Revolution (4IR) . We believe that by educating the global citizens about these transformative advancements, we can contribute to making a positive change in the future.
Legal Amendments and the Push for Digital Trade Understanding the UCC Amendments for American Trade In July 2022, the U.S. made a groundbreaking move towards digital trade. The Uniform Law Commission approved several amendments to the Uniform Commercial Code (UCC), which is the primary source of law in all matters of commercial transactions in the U.S. These amendments pave the way for electronic documents, digital assets, and digital signatures in commercial trade, ushering in a new era of digital commerce.
Global Trade Digitalization - Harmonizing Digital Trade Laws: A Global Effort Aligning U.S. Amendments with International Laws The push for digital trade is not confined to the U.S. It's a global movement to empower the Digital Transformation of Trade. Countries worldwide are realizing the importance of having a consistent legal framework for digital trade. The U.S.'s move to align the UCC amendments with international laws , such as the UK's trade digitization legislation and the UNCITRAL's MLETR (Model Law for Electronic Trade Transactions) , illustrates this global effort. This alignment is crucial for a seamless transition to digital trade between nations. This creates a common adopted framework that aligns data standards and interoperable DLT technology platforms.
The Role of G7 and the Path to the Future With Digital Trade Global Cooperation in Digital Trade Reforms The G7 economies, alongside China, are leading the charge towards legal reform for digital trade. These economies, known for their robust legal systems and advanced technology platforms, are making substantial progress in establishing global digital trade norms. They have shown commitment to the UNCITRAL's MLETR framework, which aims to incorporate another 86 countries into the initiative, to further solidify global cooperation for digital trade.
The Road Ahead: Embracing the Future of Trade Digitization While the legal and policy frameworks for digital trade are evolving, the actual adoption of digital tools in trade remains limited. There is still a wide gap between digital trade adoption and outdated systems. The industry is, therefore, making efforts to encourage investment in digital systems, creating a more level playing field . The goal is to make trade more efficient, inclusive, and sustainable through digitalization.
Are you Ready Citizens?
Conclusion: Seizing the Digital Trade Opportunity The journey to comprehensive trade digitization is indeed at an early stage. However, for those citizens bold enough to step in and research this new frontier, the rewards could be vast. There is no doubt we are at the forefront of a digital trade revolution that has the potential to redefine and reset the global economy. The opportunities ahead for growth, innovation, and prosperity are immense. So, stay tuned with Future Citizen News for the latest developments in this transformative journey and join us in exploring the future of global trade.
The citizens of North America are currently divided and conquered by the Mainstream Media and the Shadow Government controlling the narrative of division. The roots of our society are deeply rotten at its core but it is covered up with the abuse of power. We need to take the words of wisdom from JFK, and work on putting the drama beside us to focus on fighting for truth and freedom with the intention to expose the corruption of the elite running the shadow government. If we continue as a deeply divided population, the elite will just continue to censor, divide and gain more power over the masses. "It's only when they join together in a forward movement that this country moves ahead..." --"Remarks at Los Banos, CA at the Groundbreaking Ceremonies for the San Luis Dam (337)," August 18, 1962, Public Papers of the Presidents: John F. Kennedy.
