Paperless trading is growing fast in many countries, in particularbecause "just in time" stock control usually means more, smaller shipments with very tight delivery schedules that paper documents cannot cope with, and also because EDI is a natural evolution in the international trade cycle. Indeed, one of the principal reasons for using EDI is the mountain of paper documents produced, moved, handled, corrected, transcribed and copied in normal business transactions. EDI has none of the disadvantages of paper documents and brings substantial benefits and savings to companies which implement it, such as accuracy (data are received directly from computer files and are not re-entered manually), speed (data are processed by computer without manual intervention and are transmitted quickerthan information sent by post or courier and re-entered manually) and savings (it saves on the cost of mailing, copying, filing, distributing and capturing data).
EDI cannot function without standards. Among the standards necessary for doing EDI, those concerning message construction are similar to a language, consisting of a syntax, i.e. rules for structuring data elements in segments within a message, and a vocabulary of words (data elements directory). Differing EDI standards have developed to meet sectorial and national requirements for a speedy and successful implementation within closed groups, but implementation across national and sectorial boundaries (open EDI) is difficult, since partners have to be able to support, maintain and interpret several EDI standards at great expense and inconvenience.
To remedy this, for more than ten years the UN/ECE WP.4 has been developing essential standards covering data elements, codes and syntax rules for EDI. UN/EDIFACT, the result of this development, provides the world market with the necessary ingredients for constructing EDI messages, as well as with complete standard message types (UNSMs) for business data interchange. (See in particular group D and group E)
It is obvious that replacing paper documents by EDI messages does not change the basic trade requirements between partners in international trade transactions. The same fundamental functions should be fulfilled, and the partners will still be, through EDI, sending and receiving a purchase order, or declaring goods to Customs, or reserving space with a carrier and arranging payments. For international trade information flows, it is the way in which data are transferred that will permit substantial procedural rationalization, and a more efficient trade, as is already the case e.g. in the framework of community systems largely based on the use of information technology, including EDI. In some countries, this may necessitate changes in laws and regulations, e.g. for permitting the replacement of traditional paper documents, Customs declarations, etc. by electronic messages, or for giving such messages the same legal value as that of a paper document.