More encouragingly, there are countries, like the UK and Singapore, that are taking unilateral legislative steps to advance trade digitization. The US is the latest to do so. In July, it amended its Uniform Commercial Code (UCC), an ostensibly federal statute, to address a host of issues

related to trade digitization, including digital records, e-signatures, electronic negotiable instruments, and hybrid transactions (those that involve both goods and services.)[13] Given the US’ influence and importance to international trade, one would hope this would have a cascading effect on its partners. But for that to happen, the UCC measures need to be adopted by individual states in the US, a process bound to take longer.[14]

Discordant notes

Governance of cross-border data flows is exceedingly contentious and will be a defining issue of trade for the foreseeable future. Ian Bremmer, Chief Executive Officer of the Eurasia Group consultancy, has called for the establishment of a World Data Organization, akin to the World Trade Organization.[15]

Short of such ambition, the ‘network of networks’ might be the next best solution for something approaching harmonization in trade digitization. Even that is going to prove difficult, however. More countries are becoming protective of their citizens’ personal and financial data, the data stored by the companies that operate within their jurisdictions, and the websites its residents can access.

China and its ‘Great Firewall’ is, of course, the prime example here, though just about every country in the world imposes data restrictions that ultimately inhibit harmonization in this area, says Inga Morton, general manager at International Port Community Systems Association, an organization of sea and airport operators. Australia, for one, has been cited above, though not because it cordons its citizenry off from the internet in the same manner as China; rather because of its tightening data localization requirements.

And then there’s Europe and its General Data Protection Regulation (GDPR), along with more targeted policies within the EU member states themselves. There are others as well, including the US, making the differences between these disparate platforms potentially irreconcilable.

But the search to strike a fine balance between data privacy and commercial interests is certainly on. It may not be enough for global harmonization of trade digitization. Unless and until that compromise is found, however, firms will be stranded astride a line, one foot stuck in the past and one edging to the future.