Currently digitalization is limited across PSIDS. Among all Asia-Pacific regions, the PSIDS have the lowest implementation rate of digital trade measures, including several certification and traceability measures that are critical for trade such as recognized certification, electronic Sanitary and Phyto-Sanitary certificates, internet connection available to customs, and electronic import and export permit application and approvals. UNESCAP estimates that implementing WTO digital trade facilitation measures could reduce trade costs by 2.5 - 17.9 percent in the PSIDS. Aside from reducing costs, these measures would also increase international trade access and feasibility for PSIDS, which are essential in order to increase export volumes and revenue.

The Digitalization, Certification, and Traceability project will support development of IT systems and tools that are critically needed for the digitalization of supply chains, certification of products, and implementation traceability systems region-wide. The project will develop IT platforms and hardware to enable digitalization of agricultural trade, which would include building a digital registration system of farmers and processors. In addition to enabling trade flows, higher volume transactions, better information and transparency, and traceability, this digital platform would also provide a digital database of the agricultural supply chain, which on its own is a valuable asset and addition to the region's agricultural system. The project will also deliver training to extension staff, processors and farmers to improve their awareness and capacity to meet certification requirements.

The estimated cost is USD 137 million.