Digital trade corridors

BUSINESSES NEED to ensure cross-border trade IT systems are interoperable and connected to make the most of this. Digital trade corridors show how this can be done.

Throughout human history, trade routes have shaped cultures, power dynamics and societies. The Silk Road, for example, was one of the most popular early trade routes, existing from the 2nd century BCE for over 1500 years. It was an extensive network of land and sea connections that facilitated the trade of silk, spices, paper and other commodities between Asia, Africa and Europe.

Today, trade routes connect the world through physical infrastructure such as ports and maritime routes, airports and warehouses. However, we stand at the dawn of a new era of transformation, in which digital trade corridors and systems are reshaping how we move goods globally.

What is a digital trade corridor?

A digital trade corridor, as defined by the UN Economic Commission for Europe (UNECE), is “an electronic platform that connects multiple trade ecosystems (e.g. air/ocean/land community systems or single window systems) to share the status of business activities and relevant cargo information”.

It aims to connect border agencies across jurisdictions, allowing companies to exchange trade documents and data in a secure and efficient manner, reducing friction and facilitating an easier movement of goods.

These corridors rely on digital standards, interoperable platforms and legal frameworks that enable real-time data exchange. They can be further enriched with technology that provides more accurate data, such as Internet of Things (IoT) devices, QR codes and scanners, identity-checking technologies, blockchain and AI.

Why does this matter?

Digital trade corridors are not an idea for the future; they already exist today. The UK government has pledged, as part of its 10-year Trade Strategy, to pilot new corridors with leading European markets, having already run multiple successful trials (see case studies below). It launched a new Digital Trade Corridor Pilot programme in October 2025, inviting participation from British exporters, alongside German and French importers. The aim is to support smaller businesses and to improve the seamless movements of goods across the border.

It is important to stress that digital corridors do not replace the physical infrastructure needed to move of goods. Rather, the technology makes the administrative aspects of cross-border goods more efficient, accurate and timely.

Trade data can be commercially sensitive, so digital corridors need to enable secure data exchange that is accessible to the right people. The platforms will inevitably involve multiple actors from across the supply chain, including importers, exporters, logistics firms and customs intermediaries, as well as government agencies monitoring compliance and checking goods at the border. 

For these corridors to succeed, IT systems between all these actors need to be interoperable, allowing real-time data exchange and verification to take place.

The four pillars of digital trade corridors

To ensure successful implementation and adoption, government and industry need to work together to establish the required legal framework and to facilitate participation across the supply chain. This will require an intentional and collaborative design approach, based on the following four pillars.

Legal reform: Currently, in many countries, only paper formats of certain key trade documents are legally recognised. This is a barrier to transformation and needs to be addressed. Digital versions of documents such as contracts, bills of lading and various certificates need to have the same legal standing as physical equivalents. 

The UNCITRAL Model Law on Electronic Transferable Records (MLETR) provides a global benchmark which national governments should follow. The UK’s Electronic Trade Documents Act does this and sets a global precedent that many countries have started to follow.

Data standards and interoperability: Global frameworks, such as the UN/CEFACT and WCO data models, have been created to provide a shared language for digital trade that will transform fragmented data into a unified string of information that can be used across various systems.

Important work has also already been done to create a Key Trade Documents and Data Elements (KTDDE) database.

Trust in technology: Digital corridors require secure and resilient platforms that ensure data is authentic and available to the right people.

Verifiable digital identities have an important role to play, ensuring the right stakeholders can submit, edit or view the data. These activities should also be tracked to these identities for auditing purposes.

Ensuring integrity in these new systems will be key to building trust in both industry and government. The technology also needs to be scalable and easy to adopt, particularly for SMEs.

International collaboration and governance: Trade data is used by governments and border agencies for many reasons, including protecting the safety of citizens.

Advanced data submission for goods movements could allow agencies to identify riskier imports earlier, allowing them to be more selective on what controls and checks they apply. This could help agencies to prevent unnecessary delays, clogged ports and crossings, enabling a smoother flow of goods across the border. 

More can be done to support this, including digital trade chapters within bilateral or multilateral trade agreements. The creation of global governance frameworks would truly support the digitalisation of trade routes between countries.

Case study: UK-Kenya corridor

This corridor was established between the UK and Kenya to reduce customs, certification and conformity barriers, and to provide traceability for goods.

It was created using blockchain technology developed through the Trade Logistics Information Pipeline initiative, led by TradeMark Africa alongside partners including the Chartered Institute.

This solution linked supply chain actors together and delivered an estimated 30% reduction in time and costs for movements of various goods.

Case study: Border Trade Demonstrator trials

The second phase of the Ecosystem of Trust pilots, led by the UK government, sought to assess how the use of technology could be used to support trusted trader schemes and facilitate cross-border goods movements.

A Cabinet Office evaluation report of the first phase, which finished in 2023, concluded that industry was able to provide “higher quality data” than what government had access to at the time, helping border agencies to decrease the time needed to make decisions on goods crossing the border by 17%. 

The data provided “80% of the minimum risking requirements for customs purposes and 60% of trade statistics requirements”, the report said.

The Border Trade Demonstrator trials in 2024/25 built on these findings, providing data to Port Health Authorities as much as 20 hours earlier than regular processes.

Make the most of the new digital era in trade

The Chartered Institute empowers global trade by equipping businesses and professionals with the expertise needed for compliant, sustainable and profitable trade.

Ilona Kawka, the imports advisory lead at the Chartered Institute, supports businesses to make the most of new digital opportunities in trade with hands-on advisory support.

For expert advice on how digitalisation can empower your trade, visit www.export.org.uk/advisory/imports-advisory-practice