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Governments should implement Trade 4.0 digital transformation, Deloitte

Tuesday 19 January 2021 13:46 CET | News

Deloitte has released a report encouraging government agencies to implement Trade 4.0 as it crosses international borders, according to supplychaindigital.com.

Deloitte offers a framework that government agencies could follow as they adapt their role as facilitator, enforcer, and negotiator to this digital trade world. The report states: ‘governments should take steps to increase their prowess in Industry 4.0 technologies, hone its data analytics capabilities, forge public-private-partnerships (PPPs) to protect its citizens and trade partners, and strengthen its human capital.’

Known as The Fourth Industrial Revolution, Industry 4.0 has now crossed borders to become Trade 4.0 - the new digital thread transforming international trade. ‘When the digitalisation of how we make, transport, or sell is applied to goods crossing international borders, Industry 4.0 becomes Trade 4.0,’ points out Deloitte. Industry 4.0 is the application of advanced digital technologies such as Artificial Intelligence (AI), drones, and Internet of Things (IoT) which is revolutionising how the world makes, transports, and sells goods. 

The report says all facets of international trade - from processing of goods at ports of entry, to security of supply chains, to formulation of trade agreements – are all adapting to this new wave of digital transformation. While governments are still figuring out their roles as facilitators, enforcers, and negotiators there are examples of Trade 4.0 already at play. 

‘They are visible in the use of additive manufacturing, autonomous vehicles, and e-commerce in the making, transportation, and selling of goods respectively.’ Despite Trade 4.0 not being addressed globally, the United States-Mexico-Canada Agreement (USMCA), fully ratified by all three countries in 2020, is the first major international trade agreement with a chapter on digital trade. 


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Keywords: Deloitte, global trade, trade finance, digitalisation, digital transformation, trade agreement, AI, IOT, drones, ecommerce, Trade 4.0, Industry 4.0
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: World
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Banking & Fintech