Globalisation, digitalization: the game-changers in the world of trade

World Trade Board unveiled the three key initiatives at the Sibos event 2016. The action plan, published today, includes:

Driving global adoption of Legal Entity Identifiers (LEIs) In consultation with GLEIF, the World Trade Board will launch a taskforce to drive greater adoption of LEIs by global businesses, with a focus on SMEs. This initiative will serve to improve transparency, support trade finance digitalisation and streamline onboarding and risk management along global financial supply chains in order to underpin more inclusive trade and SME finance.

Another key point is forwarding blockchain education, standards and adoption for the complex ecosystem of world trade. The World Trade Board plans to bring together the different parts of the trade ecosystem, from producers to collateral managers to shipping firms, as well as banks, governments and Non-Governmental Organisations. Its Blockchain Working Group intends to deliver education across these stakeholders in global trade and shape discussion on implementation standards and the adoption of best practices.

The third aspect is to enable SMEs from around the world to engage effectively and successfully in international markets. This will assist in increasing the global economic impact of these organisations.
“Many of the barriers to global trade and access to finance can be addressed with technology. The success of these initiatives and our ability to address impediments to trade through financial technology is largely based on our ability to easily, accurately and efficiently find, track and validate information – about individuals, businesses, and goods too,” said Steven Beck, Member of the World Trade Board and Head of Trade Finance, Asian Development Bank.

“Globalisation and digitalisation are game-changers in the world of trade,” said Simon Paris, Co-Chair of the World Trade Board and President at Misys. “Through a greater integration of trade, finance and technology we can facilitate improvements in transparency, the adoption of harmonised standards and incentives that can help trade realise its potential as a force for transformation. The initiatives outlined are designed with this in mind. There is no better time for the stakeholders in global trade to unite under a common goal – to improve people’s lives.”

The World Trade Board and World Trade Symposium aim to foster a more inclusive future for international trade, finance and investment by bringing together global and regional leaders in business, finance, technology, politics and economics.