Experts and business leaders on Sunday said that digitalisation of trade in Bangladesh had the potential to boost the country鈥檚 economy by expanding access to global trade networks and reducing financing barriers for small and medium enterprises.
Digitalising international shipping documents could generate an annual growth of $30-$40 billion in global trade, they said at a roundtable organised by International Chamber of Commerce, Bangladesh at Hotel Sheraton in the city.
Experts also suggested that effective digitalisation of trade could ensure transparency and traceability, helping to build a more trustworthy ecosystem.
This, in turn, aids in monitoring and incentivising of environmental, social and governance factors in global trade and supply chains, they said.
To ensure the digitalisation of trade in Bangladesh, Asian Development Bank country director Edimon Ginting emphasised the need for common standards and protocols to enable effective interoperability among supply chain players.
He also highlighted the importance of enhancing legislation to support use and enforceability of key trade documents.聽
Rupa Chanda, director of trade, investment and innovation division at UNESCAP, highlighted that digital trade was crucial not only for Bangladesh but also for global trade efficiency and sustainability.
She said that Bangladesh, in particular, stood to benefit significantly from these advancements.
The country could reduce trade costs by 11-12 per cent and gain an additional $0.6 billion in exports by embracing digital trade processes.
Pamela Mar, managing director of Digital Standard Initiative at ICC, presented the keynote paper at the event, stating that Bangladesh had already aligned itself with model for electronic commerce years ago and had been practicing the use of electronic signatures and transactions.
As a result, the existing legislation can be amended rather than entirely overhauled, she said.
Pamela said that this was a pivotal moment for Bangladesh as the country would graduate LDC, expand its international trade profile and set targets to become a digital economy.
鈥楤efore thinking about the digitalisation of international trade, we first need to understand what digitalisation is and it is very important to build digital Bangladesh,鈥� prime minister鈥檚 private industry and investment adviser Salman Fazlur Rahman said.
He said that Bangladesh had already established digital infrastructure and was moving it forward to a large extent to strengthen it further.
Salman said that international trade was not solely dependent on Bangladesh; it also relied on our counterparts.
When engaging in national trading with other countries, they also need to implement various reforms, he mentioned.
Salman identified protectionism as a serious challenge for the global trade saying that large economies, such as the United States and Europe, were increasingly adopting protectionist policies despite the era of globalisation.
鈥楢dditionally, we are witnessing the rise of non-tariff barriers under the guise of standardisation, which is affecting Bangladesh鈥檚 trade,鈥� he added.
Mahbubur Rahman, president of ICC Bangladesh, said that digitalisation enhanced efficiency, reduced costs and broadened market access.
Citing from a McKinsey study during the event, he said that 100 per cent adoption of electronic bills of lading could unlock $30-$40 billion in global trade growth by reducing trade friction.
This shift could also save 28,000 trees annually and significantly cut carbon emissions, he said.
Mahbubur Rahman proposed forming a national committee to collaborate with ICC DSI and create suitable rules for digitising international trade in Bangladesh.
AK Azad, vice-president of ICC Bangladesh, emphasised the importance of digitalisation for reducing operational costs and enhancing trade efficiency as Bangladesh aimed to become a middle-income country by 2026.
The roundtable was sponsored by ADB TSCFP along with the US Department of State and ITFC of Islamic Development Bank while Standard Chartered Bank was the knowledge partner.