TradeTech Report: Integration of Technology to Add $9 Trillion to Global Trade, Boosting Growth and Resilience
A new report published by the UAE Ministry of Economy and the World Economic Forum (WEF) highlights the significant potential of integrating technology into the global trading system. The report, titled TradeTech: Catalysing Innovation, was launched at the Davos forum and emphasizes how the integration of technology could add $9 trillion to the value of trade among G7 nations.
Embracing advanced technologies such as artificial intelligence, machine learning, blockchain, and the Internet of Things (IoT) has the power to revolutionize global trade. These technologies can enhance operational efficiencies, improve supply-chain resilience, and facilitate the participation of new players in the global trading system.
The report provides a roadmap for governments, global trade bodies, and the private sector to collaborate on the development, deployment, and regulation of technologies across supply chains. This collaboration aims to modernize international trade, expand its reach, and accelerate its growth. Key suggestions include establishing interoperable digital infrastructure, offering regulatory support, and fostering entrepreneurial ecosystems.
Several sectors within global trade are identified as ripe for technological disruption. Logistics, trade finance, and supply-chain sustainability can all benefit from the adoption of advanced technologies.
The UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, recognizes the importance of technology in making global trade more accessible and efficient, particularly for the Least Developed Countries. He emphasizes the need for close cooperation between the public and private sectors to create the right regulatory frameworks and interoperable systems.
Dr. Al Zeyoudi also announces plans for a trade tech incubator that will support promising projects and startups in the trade tech space. This initiative reflects the UAE’s commitment to providing the ideal ecosystem for innovation.
Furthermore, a new regulatory sandbox will be established to co-design, implement, pilot, and promote cutting-edge regulatory policies for trade tech. This sandbox offers an opportunity to address any challenges and roadblocks to the implementation of trade technology.
The Trade Tech Global initiative comprises various components to drive progress in this field. The Trade Tech Alliance will bring together leaders, CEOs, and experts to share knowledge and identify collaborative paths forward. Additionally, the TradeTech Forum will be held in the UAE parallel to the World Trade Organization’s 13th Ministerial Conference in February 2024.
Overall, the UAE recognizes that digital transformation is crucial for overcoming challenges in global supply chains. Efforts are being made to build the necessary physical and legal infrastructure to fully realize the potential of trade tech tools and eliminate any barriers to their implementation.
The integration of technology in the global trading system has the potential to revolutionize trade, boost growth, and enhance resilience. By embracing advanced technologies and fostering collaboration, governments, trade bodies, and the private sector can modernize international trade, expand its reach, and unlock its full potential for sustainable economic growth.
