Despite significant technological advancements, the global trade industry still heavily relies on physical paperwork. Around 40 percent of containerized trade uses traditional bills of lading.

This outdated process persists even though it is clear that transitioning to digital methods could unlock substantial economic benefits.

A United Nations expert highlighted that Bangladesh could potentially earn an additional $0.6 billion annually if it adopts electronic bills of lading. This change could contribute to an increase of $30-40 billion in global trade volume.

Rupa Chanda, director at the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), emphasized the importance of digital trade for enhancing efficiency and sustainability in global trade.

Chanda made these remarks during a program on ‘Digitalizing International Trade in Bangladesh,’ organized by the International Chambers of Commerce (ICC) Bangladesh in Dhaka. The program was chaired by ICC Bangladesh President Mahbubur Rahman, who underscored the benefits of digitalization, including increased efficiency, reduced costs, and broader market access.

At the event, Rahman introduced the Digital Standards Initiative (DSI), a global effort supported by trade and finance entities such as the Asian Development Bank and the World Trade Organization.

He noted that ocean carriers issue about 45 million bills of lading annually, many of which are still paper-based and require physical exchanges. Electronic bills of lading, however, offer faster transactions, cost savings, and lower fraud risks.

Citing a McKinsey study, Rahman mentioned that full adoption of electronic bills of lading could unlock $30-$40 billion in global trade by reducing trade friction. This shift could also save 28,000 trees annually and cut carbon emissions. Bangladesh ratified the UNESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade in 2020.

The roundtable marked the initial step in introducing the Digital Standards Initiative (DSI) in Bangladesh, with plans to draft rules and regulations aligned with global digitalization trends by 2027.

Adviser to the Prime Minister on Private Industry and Investment, Salman Fazlur Rahman, stressed the importance of interoperability for successful digitalization and highlighted Bangladesh’s progress towards becoming a digital and cashless society.

Edimon Ginting, country director of the Bangladesh Resident Mission at the Asian Development Bank, emphasized that effective digitalization of trade can boost growth and create jobs by expanding access to global trade networks.

He identified two key impediments: the need for common standards and protocols to ensure interoperability among supply chain players and the need to enhance legislation supporting the use and enforceability of key trade documents.

To address these challenges, the ADB, the Government of Singapore, and ICC founded the Digital Standards Initiative, which aims to promote a globally harmonized digital trade environment. Ginting also highlighted the United Nations Commission on International Trade Law’s (UNCITRAL) development of The Model Law on Electronic Transferable Records (MLETR), which aims to improve domestic legal frameworks and facilitate cross-border trade.

Pamela Mar, managing director of the Digital Standards Initiative at the ICC, described the current moment as pivotal for Bangladesh as it transitions from a Least Developed Country (LDC) and expands its international trade profile. Digital trade, she asserted, builds on Bangladesh’s export manufacturing success and prepares it for future competition in the trade sector.