Trade Win No. 3
Going paperless has reshaped trade for the better
Digitalisation and going paperless is reshaping trade by speeding up transactions, expanding what can be traded and by whom, and allowing more businesses, especially SMEs, to access global customers and suppliers. Realising these benefits has taken more than just technology; it has required coherent and forward-looking policies.
Digital tools reduce trade costs and facilitate trade at various stages of the supply chain—reducing trade costs by almost 5 percent on average worldwide since the conclusion of the WTO Trade Facilitation Agreement. Regions such as Southeast Asia and Central America demonstrate that automation - through tools like trade single windows in Singapore or Costa Rica - has been a key driver of these gains. When effectively implemented, more automated border processes and streamlined trade-related documentation can deliver 18 percent increases in global goods exports. Going paperless enables greater transparency and traceability along the supply chain and improves firms’ ability to comply with regulations and standards.
Digital tools are shaped by both domestic and international regulations. For instance, the digital exchange of trade-related documents and the streamlining of processes underlying that exchange rest on the cross-border exchange of data. Lower barriers to these exchanges together with improved domestic frameworks for e-transactions are associated with a 37 percent increase in exports.
Digitalisation is not only about how we trade, but also what we trade. While sectors such as data processing, analytics and other digitally delivered services have clearly benefitted from lower trade costs via digital connectivity, the impact is far more widespread. These gains extend beyond ‘digital’ sectors to manufacturing, agriculture and food products. Ambitious reductions to barriers affecting digital trade could further boost exports significantly across all these sectors—by 53 percent on average.
The digital shift also has broadened who participates in trade. The wider use of digital platforms and websites to sell goods across borders has reduced information constraints, contributing to a significant increase in the number of parcels crossing borders. As a result, individuals and smaller firms are more engaged in trade than ever before, a trend that has accelerated during the COVID-19 pandemic. Ensuring parcels reach their destination requires policy action in e-payments, consumer protection, administrative processes, logistics, and transport services.
Where countries have implemented paperless border procedures and firms have adopted digital platforms, trade has become faster, cheaper, and more accessible—bringing SMEs and women-owned businesses into regional and global commerce.
Online forms, permits, and payments help goods clear borders and with fewer mistakes. Businesses save time and money because they don’t have to visit multiple offices or repeat the same paperwork. Consumers have more choice and quicker deliveries. Sellers can reach customers in far away places. In sum, going paperless makes trade faster, cheaper, and easier for everyone.
