Discussants at a roundtable today said digitalizing international shipping documents could generate an annual growth of $30-40 billion in global trade.
The discussion held at a Dhaka hotel underscored the transformative potential of paperless trade for economies worldwide.
Inflation is expected to ease from July: Salman F Rahman
International Chamber of Commerce Bangladesh (ICCB) President Mahbubur Rahman, while chairing the discussion, said that digitalization enhances efficiency, reduces costs, and broadens market access.
He introduced the Digital Standards Initiative (DSI), a global effort based in Singapore supported by entities such as the Asian Development Bank and the World Trade Organization.
“By adopting digital trade solutions, businesses can manage the challenges of international markets more effectively and sustainably. The Digital Standards Initiative (DSI) is a global initiative based in Singapore, backed by an International Governing Board comprising leaders from the International Chamber of Commerce (ICC), Enterprise Singapore, the Asian Development Bank, the World Trade Organisation and the World Customs Organisation,” Rahman said.
He said every year, ocean carriers issue about 45 million worth of bills of lading, a crucial shipping document. Many international shipping documents are still not standardized and mostly paper-based, needing physical exchanges.
Using electronic bills of lading (eBLs) will speed up transactions, save costs (like reducing administrative expenses for cargo handling and document processing), and reduce fraud risks with digital authentication.
ICCB jointly with ICC DSI hosted the discussion with the support from ADB TSCFP along with US Department of State and ITFC of Islamic Development Bank while Standard Chartered Bank was the knowledge partner.
Citing a McKinsey study at the event, Rahman said that 100 percent adoption of electronic bills of lading (eBL) could unlock $30-40 billion in global trade growth by reducing trade friction.
This shift could also save 28,000 trees annually and significantly cut carbon emissions.
He said Bangladesh ratified the UNESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade in 2020.
He said ICC Bangladesh, in collaboration with ADB and ITFC, is spearheading the DSI initiative in the country.
Everyone with a TIN certificate should be under tax net: Salman F Rahman
This roundtable marks the first step in introducing DSI, with plans to draft rules and regulations aligned with global digitalization trends by 2027.
Lawmaker Salman Fazlur Rahman, Adviser to the Prime Minister for Private Industry and Investment, highlighted Bangladesh's progress in digitalization under the leadership of Prime Minister Sheikh Hasina.
He noted the substantial GDP growth and the development of robust digital infrastructure, including optic fiber networks and submarine cables.
Salman said one of the most important components of digitalization is interoperability.
Highlighting Bangladesh’s success in creating an enabling atmosphere for digitalisation, PM's adviser said Bangladesh is making rapid progress in establishing a digital and cashless society.
However successful international digital trade depends on other countries too, he said.
“International trade is not only dependent on Bangladesh, but also dependent on the counterparts who also have to make various reforms,” Salman said, adding that there are also some challenges rising from developed countries.
“Now we are seeing more and more protectionism, especially from the United States. We are seeing that in Europe too,” he said.
Salman added that with the rise of technologies there are growing concerns with cyber defence. He said artificial intelligence is now evolving faster with exponential growth.
Regarding the export data mismatch among National Board of Revenue (NBR), Bangladesh Bank (BB) and Export Promotion Bureau (EPB), he said the EPB has double-counted the value of merchandise sent abroad from the export processing zones (EPZs).
Edimon Ginting, Country Director, Bangladesh Resident Mission, Asian Development Bank said effective digitalization of trade will increase growth and create jobs by expanding access to global trade networks for developing economies.
There are two key impediments that we need to jointly work on and address that include a need for common standards and protocols that will enable effective interoperability among the players in supply chains, from exporters to logistics, customs, warehousing/logistics, finance, etc. and the need to enhance legislation supporting the use and enforceability of key documents in trade.
To tackle these two important challenges, ADB, the Government of Singapore, and the International Chamber of Commerce founded the Digital Standards Initiative, or DSI, he said.
Rupa Chanda, Director of Trade, Investment, and Innovation Division at UNESCAP, highlighted that digital trade is crucial not only for Bangladesh but also for global trade efficiency and sustainability.
She said Bangladesh, in particular, stands to benefit significantly from these advancements. The country could reduce trade costs by 11-12% and gain an additional $0.6 billion in exports by embracing digital trade processes.
Iftekhar Alam, Regional Head for South & South East Asia at the International Islamic Trade Finance Corporation (ITFC), spoke about the ongoing efforts to streamline trade, particularly for major cotton-importing countries like Bangladesh.
Muhammad A (Rumee) Ali, Chairman of ICC Bangladesh Banking Commission, delivered the welcome address, emphasising the critical role of digitalization in modernizing trade infrastructure.
Lawmaker AK Azad, also Vice President of ICC Bangladesh, concluded the event by emphasising the importance of digitalization for reducing operational costs and enhancing trade efficiency as Bangladesh aims to become a middle-income country by 2026.
This roundtable showcased a collective commitment to leveraging digitalisation for sustainable economic growth and a more efficient global trade system.
Pamela Mar, Managing Director, Digital Standard Initiative (DSI), International Chamber of Commerce (ICC) presented the keynote while Mohammad Navid Safiullah, Additional Secretary of Ministry of Commerce, Mursheda Zaman, Joint Secretary, Ministry of Commerce, Md Sarwar Hossain, Director (Foreign Exchange Policy Department) of Bangladesh Bank, Raich Uddin Khan, First Secretary (Customs Automation) National Board of Revenue, Kutubuddin Ahmed, Member, ICC Bangladesh Executive Board, Naser Ezaz Bijoy, Vice President, ICC Bangladesh and & Chief Executive Officer, Standard Chartered Bank, Md. Saiful Islam, Former President, MCCI, Muhammad Zahangir Alam, CFO, Square Pharmaceuticals Limited also spoke, among others.
The roundtable proposed forming a National Committee to collaborate with ICC DSI and create suitable rules for digitising international trade in Bangladesh.
The initiative aims to enhance efficiency, transparency, and market access, solidifying Bangladesh's position in the global trade landscape.