Next trade order needs stronger developing-world voice: ICC Chair

Harsh Pati Singhania says his ICC tenure will focus on giving developing economies a stronger voice in global trade, AI governance and digital standards

Only the fourth Indian to chair the century-old International Chamber of Commerce (ICC), Harsh Pati Singhania says his priority is to ensure that the concerns of developing economies and smaller businesses are better reflected in the global rules governing trade. From advocating reforms to bridge the global trade finance gap to advancing common standards for artificial intelligence (AI) governance and digital trade, Singhania, who is also the chairman and managing director of JK Paper, believes the ICC can play a key role in shaping the future of international commerce. In an in-person interaction with Krity Ambey in New Delhi, he discusses his priorities for the two-year tenure, the organisation’s advocacy on Basel III norms, and efforts to digitise global trade documentation. Edited excerpts:

 

How does having an Indian at the helm of ICC change the conversation around global trade and business priorities?

 

When I am given the responsibility of the ICC Chair, I have to look at it from a neutral platform. But your point is relevant. Coming from India, I would naturally have greater sensitivity towards the issues that developing economies face. I can help bring those perspectives into discussions when ICC develops rules, standards and protocols.

 

For example, whether it is trade finance or climate finance, we often find that small and medium enterprises and companies from developing countries face greater challenges. Bringing those concerns into global discussions is something my background can certainly help with.

 

ICC has said capital requirements under Basel III norms make trade finance more expensive for micro, small and medium enterprises. How optimistic are you that regulators around the world will revisit the treatment of trade finance?

 

Our role is to keep highlighting areas where improvements can facilitate global trade. According to our estimates, Africa alone faces a trade finance gap of about $100 billion. Similarly, Basel III provisioning norms also affect climate finance by limiting the ability of some multilateral agencies to provide funding to developing countries.

 

Our job is to bring these issues to notice and advocate for change. Everybody wants stronger global growth and solutions to financing constraints. At some point, there will have to be a balance.

 

ICC also works closely with multilateral development banks to improve the availability of trade finance. We have established a trade register that compiles data on trade finance transactions globally. It demonstrates that the risks associated with trade finance are often much lower than they are perceived to be.

 

What specific outcomes would make you consider your two-year tenure successful?

 

One important outcome would be progress towards developing common standards on AI governance and digital data flows. We may not complete the process in two years, but I would like to see a broad framework taking shape that can later be developed further.

 

Another priority is ensuring that more small businesses, particularly from emerging economies, have a stronger voice. In the current environment of global uncertainty, smaller businesses are often the most affected.

 

Making India a ‘norm-setter’ is among your agenda items. What is one international trade rule that India is well placed to shape over the next five years?

 

India has done great work on its digital public infrastructure through initiatives such as Unified Payments Interface, Aadhaar, and direct benefit transfers, and these are recognised globally. A major issue today is AI governance. AI is evolving on a daily basis, and because it is still new, there are no internationally harmonised standards. So ICC is working on developing standards around AI governance. We cannot tell governments what to do, but we can create frameworks that they may find useful. That is one opportunity where perhaps a country like India can be at the forefront.

 

Apart from AI, ICC’s Digital Standards Initiative aims to digitise global trade documentation. Eighty to 90 per cent of world trade still relies on paper-based documentation. ICC has identified 36 major trade documents and has already digitised standards for 21 of them. Once countries adopt these standards, trade can become faster, cheaper, and more efficient, particularly for small businesses.

 

Is there a timeline for digitising the remaining documents? Have countries begun adopting these standards?

 

It is still a work in progress. Some standards already exist, but interoperability remains a challenge, while others are at a much earlier stage. It will take some time. ICC is working with governments to facilitate adoption. Countries such as the UK, Germany, France, Singapore, and the United Arab Emirates have already adopted these digital standards. Discussions are also underway for their adoption in India.