Bangladesh might earn US $ 0.6 billion more per year if computerised bills of lading were to become the norm, unlocking US $ 30-40 billion in global trade volume, says a UN expert.
“Digital trade is crucial not only for Bangladesh but also for global trade efficiency and sustainability,” said Rupa Chanda, director at UNESCAP. “The country could reduce trade costs by 11-12 per cent and gain an additional US $ 0.6 billion in exports by embracing digital trade processes.”
She made the statements during a Digitalizing International Trade in Bangladesh event hosted by the International Chambers of Commerce (ICC) Bangladesh in Dhaka.
Mahbubur Rahman, President of the International Cricket Council of Bangladesh, presided over the event. He said that digitisation improves efficiency, lowers costs, and expands market access.
At the roundtable, Rahman launched the Digital Standards Initiative (DSI), a worldwide initiative centred in Singapore and funded by trade and finance organisations such as the Asian Development Bank and the World Trade Organisation.
He stated that ocean carriers issue over 45 million bills of lading each year. Many international shipping documents still need to be standardised and are primarily paper-based, necessitating physical exchanges.
In contrast, electronic bills of lading offer swift transactions, cost efficiency and carry less risks of fraud.
Citing a McKinsey research, the ICCB president stated that full use of electronic bills of lading may reduce trade friction by US $ 30-US $ 40 billion globally.
He also stated that this adjustment might save 28,000 trees and reduce carbon emissions.
Bangladesh approved the UNESCAP Framework Agreement on Facilitating Cross-Border Paperless Trade in 2020.
The discussion was the first step towards unveiling the Digital Standards Initiative (DSI), which aims to establish norms and regulations compatible with global digitalization trends by 2027.
Salman Fazlur Rahman, Adviser to the Prime Minister on Private Industry and Investment, stated during the programme that interoperability is one of the most crucial aspects of digitalisation.
Highlighting Bangladesh’s success in creating an enabling atmosphere for digitalisation, the adviser said Bangladesh is making rapid progress in establishing a digital and cashless Bangladesh.
However successful international digital trade depends on other countries too, he added.