Trade in the next decade will be dependent on the Global Information Infrastructure, putting the spotlight on the potential of telecommunications, Electronic Data Interchange (EDI), electronic mail and multi-media (e.g. Internet-based) applications to make trade more profitable and efficient.

Developed countries have long made efforts to improve their capacities and those of their trading partners in this regard. At the same time, the international community has stressed the need to widen participation in international trade and to reduce trade transaction costs resulting from excessive regulation and bureaucracy.

During the last few years, specific efforts have been made to encourage and assist developing and transition economy countries in their efforts to become integrated into an ever more liberal and global world economy.

The United Nations plays an important role in implementing these strategies for trade development.

Three key organizations are leading the way. They are the:

•   United Nations Economic Commission for Europe (UNECE)
•   United Nations Conference for Trade and Development (UNCTAD)
•   International Trade Center (ITC).

The UNECE, UNCTAD and ITC work harmoniously to assist enterprises in Europe and throughout the world to import and export efficiently, thus providing greater access to the full benefits of an open trade environment. In the work to achieve this important goal, each organization has its own, specific role.

In summary

•   UNECE develops trade facilitation standards and recommendations for reducing and automating procedures and paperwork;
•   ITC develops programmes and training in trade information for developing countries;
•   UNCTAD, through its trade efficiency programme, provides delivery mechanisms and assistance for the "products" developed by the UNECE and ITC as well as technical advice in trade areas not covered by the other two organizations.

These roles are explained in more detail in the following pages.

A renewed focus was given to this work during 1994 by the World Symposium on Trade Efficiency. This event highlighted the contribution of the United Nations in making world commerce more efficient and more profitable, especially in the aftermath of the Uruguay Round agreement and the decision to establish the World Trade Organization.

One of the more important conclusions coming out of this meeting is that:

"Greater participation in international trade is a prerequisite for development. Dynamic and healthy international trade is a major instrument for the economic growth and sustainable development of all countries. It also contributes to the goals of poverty alleviation and employment creation on a worldwide basis."

Ministerial Declaration on Trade Efficiency October 1994

Each of the above UN organizations contributes to the accomplishment of this important task. They look to member countries for guidance and for assistance. It is, after all, the UN member states who will benefit the most from an improved and enlarged world trading system.

Standards and Recommendations

UN Economic Commission for Europe

The UNECE region accounts for two thirds of all international trade. UNECE is, therefore, an important forum for the development of trade facilitation solutions. It has worked in this field for over thirty years. Today, the large majority of countries actively participating in the development of trade facilitation standards and recommendations are UNECE members.

Trade facilitation is the reduction or elimination of trade procedures and paperwork, as well as recommendations and standards for their simplification and automation.

As a Regional Commission, the UNECE has a special responsibility for promoting and implementing trade facilitation in its region and, in particular, in countries in transition.

As the international focal point for the trade facilitation standards and recommendations, the UNECE also has a special responsibility to cooperate with and disseminate its work through other UN organizations as well as other international agencies.

UN/EDIFACT: Developed and Maintained by the UNECE UN/EDIFACT is the only international standard for Electronic Data Interchange (EDI) and stands for United Nations Electronic Data Interchange For Administration, Commerce and Transport. EDI is used to exchange structured information between computers and is critical to the implementation of management techniques such as just-in-time manufacturing.

The purpose is to overcome obstacles to trade created by national "information barriers". The concepts behind UN/EDIFACT are simple:

•   a single international EDI standard flexible enough to meet the needs of government and private industry;
•   an independent technology allowing users free choice in their equipment and software.

The UNECE is responsible for the development and maintenance of UN/EDIFACT. It coordinates the activities of UN/EDIFACT Rapporteurs and Boards for the Americas, Western Europe, Central and Eastern Europe, Australia-New Zealand, Asia and Africa.

The rules for how to structure UN/EDIFACT messages have been adopted by the International Organization for Standardization.

UN/EDIFACT is also:

•   the European EDI standard;
•   the International Article Numbering Association's EDI standard;
•   the EDI standard used by S.W.I.F.T. (Society for Worldwide Interbank Financial Telecommunication) for bank-client data exchange;
•   the EDI standard chosen by users in North America who have voted to migrate from the U.S. standard (ANSI ASC X12) to UN/EDIFACT.

Using UN/EDIFACT means being compatible with a wide range of organizations and information systems. This is one reason why training modules on UN/EDIFACT are included in relevant ITC and UNCTAD technical assistance programmes.

UN/EDIFACT also plays an important role as a common basis for exchanging international trade data. For example, it has been agreed that structured data sent between UNCTAD Trade Points, such as electronic trading opportunities, will use UN/EDIFACT messages.

Trade Procedures

The UNECE has created a wide range of Trade Facilitation Recommendations designed to reduce trade transaction costs. They include the UN Layout Key for Trade Documents, UN/LOCODE (Code for Ports and other Locations), Facilitating Measures Related to International Trade Procedures, PAYTERMS (Abbreviations for Terms of Payment) and Harmonization of Transport Status Codes.

In Central and Eastern Europe, as well as in the former Soviet Union, the UNECE assists national trade facilitation organizations to improve their countries' trade performance and contributes to integrating these countries into the world economy.

Policy Tools and Technical Cooperation

UN Conference on Trade and Development

The main objective of UNCTAD's Special Programme for Trade Efficiency (SPTE) is to encourage more actors to participate in international commerce. This includes a special, but not exclusive, emphasis on improving the integration of developing countries, and small and medium sized enterprises, into an open global trading environment.

A core element of the Trade Efficiency initiative is the Trade Point Programme. A practical tool for electronic commerce, the Global Trade Point Network (GTPNet), is managed by UNCTAD and tailored to meet specific country and regional needs.

Trade Points

Trade Points are self supporting service centres for international trade. They are a key element in achieving national systems for international trade that are more efficient, less costly and more accessible. This is accomplished by organizing trade services in a þone-stop shopping environment and by implementing, in one place, the Trade Standards, Recommendations and Guidelines developed by other organizations, as well as by UNCTAD.

Trade Point services can be roughly divided into three categories:

•    Assistance with trade transactions where advice and services are offered in an effort to improve efficiency and lower costs;
•    Trade information providing market and business opportunities data as well as information on trade regulations and requirements; and
•    A gateway to global networking, improving the access of small, medium and micro enterprises to electronic commerce and the global information infrastructure (GII).

Trade Point Global Network (GTPNet)

GTPNet will interconnect Trade Points world wide. It will allow Trade Points and their users (especially small and medium-sized enterprises) to:

•   access competitive trade-related information services;
•   receive and disseminate information about products, markets, and trade regulations;
•   and enhance the efficiency with which they trade with each other.

In order to give Trade Points freedom in their choice of database and applications software, and systems developed by/for them, Trade Points and GTPNet will be interconnectible and interoperable. This implies respect for internationally agreed standards, in particular those promoted by the United Nations (UN/EDIFACT as developed by the UNECE, for example).

Main Activities

1) Practical recommendations and guidelines for governments, Trade Points and enterprises

Where the primary work and expertise exists in another organization, these recommendations/guidelines have been prepared either by that other organization or in close cooperation with them. They include recommendations/guidelines on:

•   Customs (prepared by the World Customs Organization);
•   Information for Trade (prepared by the ITC)
•   Business Practices and Trade Facilitation (prepared in cooperation with the UNECE)
•   Transport;
•   Banking and insurance;
•   Telecommunications

2) Technical Assistance

Technical assistance includes training (e.g. through the TRAINFORTRADE programme), Customs reform (through the ASYCUDA programme), organizational advice, and help in establishing or installing needed databases, telecommunications connections, and software.

Information Services and Capacity Building

The International Trade Center UNCTAD/WTO

Information is one of the keys to success in international trade. As part of its overall technical cooperation programme in trade promotion, ITC participates in the Special Programme for Trade Efficiency (SPTE) with technical support to developing countries and economies in transition on establishing and strengthening sustainable trade information services and the dissemination to organizations and enterprises in these countries of business information on products, markets and services, as well as technical advice on trade support functions.

ITC's activities in this area include:

•   giving advice to countries on how to develop national infrastructures for the efficient supply of trade information to users;
•   training users on how to locate and use all types of trade information and to utilize efficiently electronic information media such as CD-ROMs and on-line databases;
•    providing market information and marketing advice, in particular to small and medium-size enterprises and to those in the least developed countries.

Six programme areas All of these activities are supported by and interlinked with ITC's six main programme areas:

•   product and market development;
•    develoment of trade support services,
•   trade information;
•   human resource development;
•   international purchasing and supply management;
•   needs assessment and programme design for trade promotion.

Examples of recent ITC projects to develop trade information services and network linkages include those in Belarus, Brazil, Lebanon, Senegal and Sri Lanka.

ITC is cooperating with UNCTAD in the development of database formats and standards to be used by the participants in the Global Trade Point Network.

ITC contributes to the training programmes on business information for Trade Points.

It has likewise worked with the UNECE in the development of a UN/EDIFACT message. This message is based upon the ITC company register standard and is used for the exchange of company information between Trade Points.

ITC is committed to strengthening the capacity of the business community in developing countries and economies in transition to enable it to participate fully in the global trading system.

Further information can be obtained by contacting any of these three organizations: