TLIP’s Vision for Seamless Trade Gains Momentum with Collaboration Agreement
February 27th marked a significant stride forward for TLIP. As part of the 13th Ministerial Conference of the World Trade Organization (WTO) in Abu Dhabi, TradeMark Africa, and the IOTA Foundation, the organisations behind TLIP, sealed a Collaboration Agreement with the World Economic Forum, the Tony Blair Institute for Global Change, the Institute of Export and International Trade and the Global Alliance for Trade Facilitation. This agreement solidifies their commitment to advancing TLIP’s shared vision, particularly focusing on fostering collaboration and establishing a neutral governance framework around the digital infrastructure.
A Vision for TLIP’s Future
The Collaboration Agreement articulates a collective vision for TLIP as a neutral, open, non-profit, and inclusive digital platform for sharing trade data. It lays the groundwork for a collaborative governance structure that will unite the signatory organisations with other stakeholders, both public and private, from around the globe. This framework is designed to transcend individual interests, fostering an environment where collaboration flourishes, and digitally powered ecosystems can be built for the collective benefit of all.
Importantly, the agreement is not exclusive; rather, it serves as a catalyst for cultivating a vibrant ecosystem conducive to innovation and the dismantling of trade barriers.
Leveraging Open-Source Technology to Digitise Trade
TLIP’s infrastructure leverages open-source technology to streamline information exchange in international trade, promoting inclusivity and transparency throughout the supply chain. By allowing all participants to share and access information while retaining control over their data, TLIP empowers stakeholders to collaborate in establishing and operating an interoperable digital ecosystem. This ecosystem, built on IOTA’s Distributed Ledger Technology (DLT) within an open-source environment and non-profit commercial structure, has great potential to bring transformative improvements to the global trade landscape. Studies by the ICC UK estimated that digitising trade transactions would reduce costs by 80%, shrink the trade finance gap by 50%, and slash cross-border processing times from weeks to mere days.
To achieve the interconnected trade ecosystem envisioned by TLIP and dismantle the complexities facing international trade, it is crucial to include all actors involved in the global supply chain. Notably, significant strides have been made in Kenya to integrate TLIP with the systems of key government agencies such as the Kenya Revenue Authority and KenTrade, as well as logistics companies like Airflo. Ongoing collaborations with the UK Cabinet Office likewise aim to connect UK border agencies with TLIP, proving a model for other countries to participate in the network.
Stakeholder Perspectives on the Agreement
Commenting on the Collaboration Agreement, David Beer, CEO of TradeMark Africa, said: “Our collaboration with leading organisations underscores our commitment to sustainable and inclusive trade. We are proud of the development of platforms such as TLIP, through which we aim to dismantle barriers and foster innovation in global trade, empowering all stakeholders to actively participate in shaping the future of trade facilitation. We’re achieving remarkable feats with emerging technologies, but taking this to the next level is about joining forces with these innovators and great collaborators.”
Dominik Schiener, Co-Founder of IOTA and Chairman of the IOTA Foundation, commented: “The signing of the Collaboration Agreement is this coalition’s promise to be a responsive institute focused on the needs of every stakeholder in the supply chain. We are ready to transform international e-commerce, but we need all public and private entities in the global trade space to help us craft the policies and frameworks of the future.”
Tim Stekkinger, Head of TradeTech at the Global Initiative at the World Economic Forum, said “Exchanging information along the trade supply chain remains a real challenge. Trust and structured collaboration will be key to scaling systems and approaches that work across many countries.”
Meanwhile, Marco Forgione, Director General of The Institute of Export and International Trade, commented: “We are proud to champion the creation of a neutral, inclusive digital infrastructure for trade. This partnership between key international trade organisations pools together a perfect mix of specialism, knowledge, and the right balance of tech and trade experts to streamline supply chains and customs procedures.”
Frank Matsaert, Director of Trade and Infrastructure, Kenya Team, at the Tony Blair Institute for Global Change, said: “Re-imaging trade in the information age is imperative in making global trade work for all. Innovating a public global digital infrastructure for trade that is inclusive and green, which this partnership aims to achieve, resonates with TBI’s core goal of reimagining how governments and states deliver services in the 21st Century.”
Finally, Philippe Isler, Director of the Global Alliance for Trade Facilitation, said: “As a community, we keep promoting the pivotal role of technology in overcoming frictions to trade. Yet the reality remains that international trade continues to rely heavily on paper-based transactions. The introduction of TLIP marks a paradigm shift, utilising distributed ledger technology within a collaborative, non-commercial framework aimed solely at easing the process of conducting trade in a secure and efficient environment. I am delighted that the Global Alliance for Trade Facilitation is a leading player in this transformative venture.”
Implementation Plans and Collaboration
The practical experience gained from implementing TLIP in Kenya and the United Kingdom serves as a foundation for the Agreement’s aspirations. Over the next six months, partners will implement proof of concepts in Africa and Europe, aiming to onboard more actors and cultivate ecosystems. Through their extensive networks and deep understanding of trade dynamics, these partners are committed to co-creating digitally powered ecosystems that will revolutionise the global trade landscape.
We invite like-minded actors both from the public and private sectors to reach out to us to collaborate on this initiative and share the future of global trade. Contact us via our website or through our LinkedIn and Twitter pages. Stay tuned for further developments on TLIP’s journey!
