Digital Reach

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RADE FACILITATION HAS

been a major focus in international

trade negotiations since the World Trade Organization

(WTO) met in Singapore in 1996. Indeed, it was a key

point on the agenda at the WTO Summit in Cancun, 2003. Trade

facilitation and the reduction of barriers to trade are seen as a

powerful aid that would help countries to better integrate into

the global economy. Information and communication technol-

ogy (ICT) plays a vital role in bridging this divide.

The achievement of Singapore in speeding up trade transac-

tions and connecting most members of the trading community

into a single data network has attracted attention, and the expe-

rience has been replicated in Mauritius. Ghana, too, has recently

moved towards introducing the key features of this approach to

its own trading community.

CrimsonLogic has been involved in each of these projects. Having

successfully delivered TradeNet, the world’s first single electronic

window for trade facilitation in Singapore, CrimsonLogic replicated

the model in Mauritius. The company is now involved in a joint

venture with the Ghanaian Government to facilitate this project.

The Singapore TradeNet

The Singapore TradeNet links multiple parties, including 35

government controlling units, to a single point of transaction for

most trade-related transactions, such as customs clearance and

payment of duties, and processing import and export permits.

It became clear as early as 1979 that ICT could help Singapore

overcome the challenges its small size presented in global trade.

An early goal was to expand the skills base through accelerated

ICT training, with the implied computerization of government

agencies. Foreign trade was an area where rapid results could be

achieved, especially in shortening the clearance time for imports

and exports.

When Singapore entered its first recession in 1985, the matter

became more urgent, and the Singapore Trade Development

Board (STDB- mow known as IE Singapore) was given the respon-

sibility of coordinating the project. It proposed that all the trade

documents should be reduced into one online form that could

serve almost all the country’s trade documentation needs. With

government backing, it was announced that TradeNet would be

launched in January 1989, and Singapore Network Services (SNS

– later to become known as CrimsonLogic) was set up in 1987

to build and operate the system.

When the Singapore TradeNet became operative, traders were

invited to adopt its protocols voluntarily. By the end of the year,

45 per cent of all air and sea shipments were transacted through

TradeNet, and this rose to 95 per cent by the middle of 1991,

with the use of TradeNet becoming mandatory two years ahead

of schedule. The adoption process was supported by continued

high-level support, and by extensive training for traders, with

particular attention to small traders. Many traders were already

computer literate due to the Singapore Government’s strategy of

fostering ICT application.

Ghana

The 1990s saw Ghana engaged in fundamental trade policy

reforms, strongly supported by bilateral and multilateral donors

including the US, the World Bank and the International Monetary

Fund. The Ghanaian Government wanted to open up the

economy in order to attract foreign direct investment (FDI) and

promote competitiveness in global business.

But by 1998 FDI was still lagging, despite the fact that many

policy reforms, like reducing import quotas, export taxes and

import tariffs, had been made. It became clear that for the reforms

to have the desired impact on trade, FDI and growth, the opera-

tional efficiency of frontline agencies like customs, immigration

and port authorities needed to be improved, and that ICT could

enable this. In response, the Government launched the Ghana

Gateway project, with the support of the World Bank envisioning

Ghana as a gateway through which West Africa could reach the

rest of the world.

The Ghanaian Ministry of Trade and Industry (MOTI) devised

a scheme inspired by the Singapore model and its Mauritian adap-

tation, which had transformed Mauritius into a leading textile

and garment exporter. With the support of the Ministry of Finance

(MoF), MOTI proposed a strategy:

TradeNet in Ghana

V. Mathivanan, Chief Executive Officer, CrimsonLogic Pte Ltd (Singapore)

TradeNet boosted Singapore’s status as a trading and logistics hub

in the late 80s

Photo: PSA International Pte Ltd