By Ritah Kemigisa
A new report has shown that adopting electronic forms of trade documents could cut costs and boost profits following the Covid-19 pandemic across the Commonwealth countries.
The report from the commonwealth connectivity Agenda has found that widespread acceptance of digital trade documents could generate an additional US$1.2 trillion in trade by Commonwealth countries by 2026.
The analysis covers each economy in the 54 Commonwealth nations and presents a picture of the potential for cost reductions and trade increases if digital trade documents are accepted in the same manner as their paper equivalent.
Kirk Haywood, Head of the Commonwealth Connectivity Agenda says in a press statement that; this will be through the impact of cost reductions and greater access to trade finance.
He adds that the Covid-19 pandemic has left deep economic scars across the globe, and while countries are now looking to rebuild, many are likely to struggle for years to come.
Haywood emphasizes that it is vital that viable opportunities to boost trade are explored and acted upon if all member nations are to see increased prosperity.
“Commonwealth leaders have already committed themselves to the goal of increasing Commonwealth trade to US$2 trillion by 2030. This report clearly illustrates how the adoption of digital trade paperwork across the Commonwealth can help us reach this goal.
Trade costs are currently prohibitive for many countries across the Commonwealth. For four Commonwealth economies (Vanuatu, Tonga, Gambia, and Papua New Guinea) costs are higher than 100 per cent of the revenues received from trade, while another 34 economies are burdened with costs that exceed 50 per cent of their revenues.