FAO in Geneva Agriculture Trade Talks: Digital tools for agrifood trade: Taking stock of progress and key issues for adoption
Digital trade tools are making considerable inroads in reshaping how agrifood trade transactions are executed. Many of which provide opportunities to lower costs, reduce friction, and overall strengthen efficiency and transparency in trade. FAO held a webinar to examine these emerging digital solutions for agrifood trade, assess how quickly they are being adopted around the world, and how governments can expedite this transition.
The presenters highlighted the importance of digital trade facilitation in using ICT to automate and simplify trade procedures. The presentations outlined the different types of digital solutions for agrifood trade, such as electronic documents (like ePhyto), electronic data exchange systems, digital traceability systems and other trade services like digital trade finance. In addition, the important role of solutions like trade information portal and electronic single windows were also highlighted.
When assessing global progress in adopting digital trade facilitation measures, the presenters used the 2021 United Nations Global Digital and Sustainable Trade Facilitation Survey. The findings showed that adoption varies by measure and region. For example, global implementation of automated customs systems and internet connection available to trade control agencies are both above 80%. Among the 9 paperless trade measures, electronic single window systems (article 10.4 of the World Trade Organization’s (WTO) Trade Facilitation Agreement) had the least progress, with only a roughly 25% implementation rate worldwide. The Pacific Islands notably lagged behind other regions for the paperless trade measures.
For cross border paperless trade measures, which look at legal frameworks for electronic trade and the exchange of electronic trade documents, the implementation levels remain low. The legal frameworks for digital trade are fully implemented only at roughly 30% globally, while electronic trade documents were exchanged at rates less than 10% globally.
Countries can make greater progress through numerous steps. It is important to begin reforming laws and regulations to facilitate electronic commerce, in particular recognizing the equivalence of paper and electronic trade documents. In addition, countries should ensure interoperability between different electronic data exchange systems, such as those used for electronic phytosanitary certificates (ePhytos) and electronic single windows. Capacity building of national authorities and supply actors is a vital aspect to ensure these systems are used actively and effectively.
Speakers:
*Mischa Tripoli, Economist, FAO Markets and Trade Division
*Nelli Hajdu, Director, Trade Policy and Business Development, European Fresh Produce Association; Secretary General, Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE)
*Craig Atkinson, Founder/Director, Lexmerca International Trade
Presentations and recording of the FAO in Geneva Agriculture Trade Talks
The Recording of the webinar is available HERE. Please use the Passcode: e566Ah#3
Presentations (will be available saoon here).
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