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The International Chamber of Commerce (ICC) UK and newly launched International Centre for Digital Trade and Innovation (iC4TDI) have published a paper outlining a “roadmap” to digitalise trade.

The benefits of moving away from paper are well documented, speeding up transaction time and reducing the risk of fraud.

Drawing on ICC, Commonwealth and G7 data, the report estimates that trade digitalisation would boost growth across the G7 by US$9tn, and by as much as US$1tn for Commonwealth and Asean nations.

Digitalisation would also provide “full visibility and transparency across global supply chains”, making it easier to track sustainability initiatives such as scope 3 emissions reporting.

However, speaking at an industry event in London in early December, ICC UK secretary general Chris Southworth said progress is currently hampered by a lack of strategy.

“We’re struggling because the [trade] system has never been designed. It’s always evolved over time, layer upon layer of processes,” he said.

“As we move to data, we’ve got a once in a generation opportunity to design the future. My own view is, if we carry on as we are, we’re sleepwalking into digitalising the same inefficiency we’ve had the last 200 years.”

In response, the paper lays out three sets of recommendations: one for the UK government, one for ICC UK and the iC4DI, and one for businesses engaged in trade.

It recommends the UK government sets a deadline to mandate the use of e-invoices, and continues to develop digital trade corridors like the one it established with Singapore in 2022.

Additionally, it suggests further integration of government departments and law enforcement agencies to better detect trade-based money laundering, as well as the creation of a new trade finance ministerial post within the department for business and trade and the treasury.

One of the ICC UK and iC4TDI’s key aims is to work with bodies including the Global Legal Entity Identifier Foundation (GLEIF) and Companies House to establish a “scalable cross border digital identity”, otherwise known as a legal entity identifier.

Industry groups argued earlier in the year that global implementation of this system could cut trade costs by as much as US$100bn, but a knowledge gap on the subject means adoption has remained low.

ICC UK also intends to “scale up” its engagement with businesses in the space through a trade digitalisation taskforce it launched with Barclays in July 2023.

For buyers and sellers, the report encourages engagement with industry groups and suppliers to identify paper-heavy processes within their sectors.

It also calls for businesses to work with their carriers to support the Fit Alliance – a collaboration between Swift, the ICC and major shipping industry associations launched in 2022 – in its goal to remove all paper bills of lading by 2030.

The roadmap has been supported by key trade industry participants including GLEIF, the International Credit Insurance and Surety Association and Baft (Bankers Association for Finance and Trade).

Speaking at the launch event, Oswald Kuyler, digital trade advisor to the Asian Development bank, said: “The UK roadmap is a very good example of what a roadmap looks like. Our hope is that every country does the same thing.”