Key Takeaways from the Inaugural Conference on the Future of Digital Trade and Innovation
The ICC Centre for Digital Trade and Innovation recently held its inaugural conference, bringing together speakers from various backgrounds to discuss the digitalization of trade. Trade bodies like the ICC and ITFA have been advocating for awareness and training in this area, aiming to integrate more businesses into the digital trade sphere. This conference sought to foster momentum for changes in law and practice, making the business case for digital trade a reality.
Key Themes and Takeaways from the Conference
- International Collaboration: One major theme of the conference was the need for international collaboration between governments and businesses, both regulated and unregulated, to accelerate digital trade adoption.
- Practical Applications of Technology: The conference also aimed to showcase the practical applications of technology in the digital trade market.
Key takeaways from the conference included:
A. Digital Trade Roadmap: The discussions centered around legal changes required for digital trade, the adoption of the UNICTRAL Model Law on Electronic Transferable Records (MLTR) or similar laws, and the implementation of ICC Uniform Rules on Digital Trade Transactions (URDTT). The need for international standards and interoperability of legal and technical systems was also emphasized.
B. Alignment and Inclusivity: Aligning legal systems with technology is crucial for smoothing supply chain mechanics and providing trade finance to a broader range of businesses, including SMEs.
C. Legal Entity Identifiers (LEIs): The panel discussed the benefits of adopting LEIs, unique codes assigned to legal entities, for KYC, AML, and counterparty verification. Although not yet a compulsory legal requirement, LEIs may become essential in the future.
D. Techno-Legal Assurance for Digital Trade: The panel highlighted the availability of technology to enhance digital trade and trade finance, including electronic platforms, IT security systems, and cybersecurity solutions. Piloting schemes to build user confidence and ensure data security are essential steps in the process.
The Road Ahead for Digital Trade
With the legal framework expected to enable digital trade and trade finance by early summer 2023, it is up to the industry to take the initiative and transform into a more efficient, collaborative, digitalized environment. The conference served as a starting point for increased collaboration among various market participants, driving the digitalization of trade and fostering innovation.
Conclusion
The ICC Centre for Digital Trade and Innovation’s inaugural conference showcased the potential and the necessary steps to move digital trade and trade finance forward. By fostering collaboration between various market participants and emphasizing the need for legal and technological advancements, the conference aimed to lay the foundation for a more efficient and innovative digital trade landscape.