IncollaborationwiththeMinistryofForeignTradeoftheUnitedArabEmiratesandAbuDhabiDepartmentofEconomic

DevelopmentTheTradeTech

Paradox:ConnectivityAmid

FragmentationI

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6Images:AdobeStock,Midjourney,Studio

Miko.ContentsForeword

3Executivesummary

4Introduction51

Thetradestack

61.1Globalfoundationalframework71.2National

governance

layer81.3Tradeenabler

layer

81.4

Enterprise

layer

91.5Interactions

between

layers92

Thetradetechstack102.1Single-layerconnections:

innovationswithin

layers112.3Multi-layerconnections–

bridging

layers173

Beyondthetech223.1Inter-governmentalcollaboration233.2Connectorcountries253.3Cross-layerpartnerships263.4Data

infrastructure273.5Human

capacity283.6

Ethics294

Strategicforesightstresstest:exploringthe

resilience30oftradetechnologies

inachangingworldConclusion34Contributors35Endnotes

37DisclaimerThisdocumentis

published

bytheWorld

Economic

Forumasacontributionto

a

project,

insight

area

or

interaction.Thefindings,interpretationsandconclusionsexpressedherein

are

a

resultofacollaborativeprocessfacilitated

andendorsedbytheWorld

Economic

Forumbutwhoseresultsdo

not

necessarilyrepresenttheviewsoftheWorld

EconomicForum,nor

the

entirety

of

its

Members,Partnersorother

stakeholders.?2026World

Economic

Forum.All

rightsreserved.

No

part

of

this

publication

maybereproducedortransmitted

in

anyformorbyany

means,

including

photocopyingandrecording,or

by

any

informationstorage

and

retrieval

system.TheTradeTech

Paradox:ConnectivityAmid

Fragmentation2Theworldisenteringa

periodof

profoundtransformationinglobaltrade.Shiftinggeopoliticalalignmentsandevolvingsupplypatterns

arereshapingglobalflows,redefininghoweconomiesconnectandcompeteandredrawingthemap

ofinternationalcommerce.Tradetechnologyhasemergedasasourceofstabilityand

progress,reinforcingtrustandcontinuity,helpingglobalsupply

chainsremainconnectedamidrapid

change.Thisyear’s

reportshowcasescatalyticeffortsdesignedto

responsiblyscale

innovations,

including

theTradeTech

RegulatorySandbox,

helpingtechnologysolutions

increasetrustandefficiency

inglobal

trade.Atthecoreofthisyear’swork

lies

a

new

conceptual

lens:thetradetechstack.This

reveals

howtrade

is

linkedacrossglobal

institutions,

nationalregulators,enablersandenterprisesthrough

asingle,

integrateddigitalcontinuum.Withinthisstructure,technology

is

notaseparatecomponent,

itfunctionsastheconnective

infrastructurethatintegratesevery

layer,ensuringthatcommerce

remainsefficient,

predictableand

inclusive,even

inchallengingtimes.The

report

underscoresthattechnology’s

potential

is

best

realizedwhen

it

isguided

bycollaboration.

Tradetech

both

requirescollaboration

betweengovernments,

industryandtechnology

partners,andenables

it–turningcomplexity

intoopportunity.ThroughtheTradeTechGlobal

Initiative,the

United

Arab

Emirates

Ministryof

ForeignTrade,theAbu

Dhabi

Departmentof

Economic

Developmentand

theWorld

Economic

Forumcontinuetoadvance

thisvision,

positioningtechnologyasastrategicbridge

betweeneconomiesanda

catalystfor

shared

prosperity.We

inviteallstakeholderstojoin

us

inshaping

afuturewheretrade

is

notdivided

bydisruption

butstrengthened

bycollaboration,andwhere

technologyservesastheenduring

backboneofa

more

resilientglobaleconomy.TheTradeTechParadox:ConnectivityAmid

FragmentationForewordThanibinAhmedAlZeyoudiMinisterof

ForeignTrade,Ministryof

ForeignTradeoftheUnited

Arab

EmiratesAhmedJasimAlZaabiChairman,Abu

Dhabi

DepartmentofEconomic

DevelopmentB?rge

BrendePresident

and

Chief

ExecutiveOfficer,World

Economic

ForumTheTradeTech

Paradox:ConnectivityAmid

Fragmentation3January2026Althoughgeopolitics

hasalways

influencedglobal

trade,thescaleandspeed

oftoday

s

shifts

signify

a

more

profoundtransformation.Specifically,theglobalorder

underpinningtrade,

notablytherules,alliancesandsystemsthat

have

governedexchangefordecades,

is

beingactively

rewritten.

Yetonetruth

remainsconstant:theglobal

economy

thrivesthe

mostwhensome

levelofstability

anddirection

is

present.Astheworldfragmentsand

rebuilds,thecriticalquestion

becomes:how

can

trade

remainstable,connectedand

resilient?Technologyoffers

partoftheanswer.The

modern

integrationofdigital

infrastructureacrossevery

layer

ofthetradingsystem

hasallowedglobalcommerce

totransformfromaseriesoftransactions

intoan

interconnected,adaptive

networkcapableofwithstandingdisruption.

Fromsmart

logisticstodigitaltradefinance,technologyenablesvisibility,trustandagilityacross

borders,

helpingglobaltrade

evolveeven

inturbulenttimes.Concreteexamplesthroughoutthereportdemonstrate

howemergingtechnologiesare

alreadyenabling

newefficienciesand

inclusion

acrossthetradeecosystem,such

as:Agenticartificial

intelligence

(AI)and

intelligentassistantsempoweringsmalland

medium-sized

enterprises(SMEs)tocompete

globallyDigitaltradefinance

platformswideningaccess

to

liquidityandacceleratingtime-to-cashBlockchainanddigitaldocumentationtools

strengtheningcomplianceThe

internetofthings(IoT),

data

platformsanddigitaltwins

increasingtransparencyand

predictabilityacrosscomplexsupply

chainsHowever,technologyalonecannotsafeguardthesystem

it

powers.Asdigital

infrastructure

becomes

a

bargainingchip

ingeopoliticalcompetition,

relying

ontechnologyasthesolesolution

risks

deepening

vulnerability.Thus,

resilienttrade

requires

morethan

innovation;

it

requiresstronggovernance,

collaborationand

humancapability.This

report

introducesa

newwaytovisualizethisrelationship:thetradetechstack.Thetradetechstackillustrates

how

institutions,technologyandthe

peoplewhodrivethem

interactas

a

livingframework,onethat

isconstantlyevolvingto

remain

effective.

However,

unlikethe

roleofgovernments,

internationalorganizationsorenterprises,

inthetradetechstack,technology

is

notafixed

layer;

it

is

adynamictoolthatconnectsevery

single

individual

and

institution.

It

istheconnectingfabricoftrade.Thus,toensurethattrade

remainsstable,technology

must

beenabled.Thisyear

sanalysis

highlightsthree

reinforcing

pillarsessentialtostrengtheningtheconnectingfabricofglobaltrade:1

Collaborativegovernance2

Cross-layerpartnerships3Human

capacityUltimately,the

resilienceoftechnologyamidgeopoliticalshiftsdepends

notonly

on

digitalinnovation

buton

humancollaboration.

Byreinforcing

boththedigitaland

human

layersofthe

globaltradingsystem,technology,asan

integralpartofthetradetechstack,provides

a

pathwaytowardsa

more

inclusive,efficientandadaptive

era

ofglobalcommerce.ExecutivesummaryInaneraof

geopolitical

fracture,

the

future

oftradedependson

howtechnologyconnects,protectsand

endures.TheTradeTech

Paradox:ConnectivityAmid

Fragmentation4This

uncertaintradeenvironment

is

making

it

more

difficultfor

bothgovernmentsand

businessestooperate.

Policy-makersaretryingto

balancesecurity,

resilienceandcompetitivenesswhilefirms

must

reorganizetheirsupplychainsand

complywithan

increasing

numberoftrade

rules.Technologyisalsoaffectedbythesegeopoliticalshifts,

notablythroughexportcontrols,datasovereigntyand

marketaccessrestrictions.Today,technologysitsat

theintersectionofnationalsecurityand

competitiveadvantage.Technologycanenablethemovementof

goods,moneyanddata,creating

newavenuesforcollaborationbetweenallactorsinthe

system,while

alsodeepeningstrategiccompetition,asnationsseek

tosecuretechnologicalsupremacy.Inthiscontext,globaltrade

is

increasinglyshaped

byatradetech

paradox:geopoliticaltensionsonone

hand,andunprecedentedtechnological

connectivityontheother.

Politicaldivergence

and

strategic

rivalriesare

pullingsupplychains

apart,

whiletechnological

innovationsareenabling

new

formsofcollaborationand

connection.SincetheendofWorldWar

II,

internationaltrade

has

beenanchored

bya

rules-basedsystemand

institutionsthat

reducedtrade

barriersandexpanded

markets.TheGeneralAgreementonTariffsandTrade

(GATT),succeeded

bytheWorld

TradeOrganization(WTO),

providedtheframework

forthegradual

liberalizationofglobal

exchange,which

resulted

ina4,300%growth

inworldtrade

levelssince

1950.1

Technologicaldevelopments

playeda

key

role

inthisgrowth;containerization,

digital

networksanddata-drivenoperationsempowered

businessesto

buildcomplexsupply

chainsacross

borders.Thistradegrowth

is

nowthreatened

by

heightened

geopolitical

risk.2

Global

merchandisetradevolume

isforecasttogrow

byonly2.4%

in

2025,

downfrom2.8%

in2024,andslow

even

further

in

2026

tojust0.5%asa

resultof

higher

tariffs

and

trade

policy

uncertainty.3

Discriminatorytrade

policies

haveseena

remarkable

increase,

risingfrom55

in2019to

2,752

in

2024.4IntroductionGeopolitics

is

reshapingtradeandtechnology,yetdigitaltoolscan

sustain

flows,deepen

resilienceand

expandcollaborationacross

borders.TheTradeTech

Paradox:ConnectivityAmid

Fragmentation5ThetradestackThetradestackis

a

livingframework

thatreveals

how

institutionsand

businessescome

togethertoshapemodern

commerce.TheTradeTech

Paradox:ConnectivityAmid

Fragmentation61MultilateralorganizationssuchastheWTO,

International

Monetary

Fund

(IMF),

World

Bank,

United

NationsTradeand

Development

(UNCTAD);

regionaltrade

blocssuchasthe

European

Union,Associationof

SoutheastAsian

Nations(ASEAN),

andtheAfrican

Continental

FreeTradeArea

(AfCFTA);

plurilateral

economic

partnershipsInternationalstandards

bodiessuchasthe

International

OrganizationforStandardization

(ISO),

InternationalTelecommunication

Union

(ITU),andWorld

CustomsOrganization

(WCO);datagovernance

alliancesWTOcommitteesanddispute

panels,

internationalarbitration

courts,

regionaleconomiccouncilsDevelopment

bankssuchastheWorld

Bank,Asian

Development

Bank

(ADB),

African

Development

Bank

(AfDB);

UNagencies;donoralliancesThe

United

Nations

FrameworkConventiononClimateChange

(UNFCCC),

the

International

LabourOrganization

(ILO),theGlobal

ReportingInitiative

(GRI)Academicconsortia,thinktank

networks,

intergovernmental

research

bodiesgeneratesharedevidenceand

policy

insightfor

internationaltradegovernance.Establishinternationaltradeandeconomicframeworksthatgoverncross-borderexchange,competitionand

cooperation.Develop

global

standards

and

norms

for

product

quality,

safety,datagovernanceand

interoperability

across

borders.Coordinate

multilateral

agreements

and

dispute

settlementmechanismstoensurestabilityand

fairness

in

global

trade.Provideglobalfinancing,developmentassistance,andtechnicalcapacity-buildingfortradeinfrastructureand

digitaltransformation.Defineand

promotesustainability,

labourandhuman

rightsframeworksthatguideethicaland

inclusive

global

commerce.Conveneresearch,knowledgeand

data

platformsthatBecause

internationaltrade

involves

manyoverlappingsystemsandactors,

it

is

difficulttocapture

inasimple,cohesiveframework.Thetrade

stackoffersawaytoorganize

and

understandthecomplexwebofmodern

internationaltrade.

It

providesaframeworkthatgroupsthe

manyactors

and

institutions

involved

inglobalcommerce

intoseveralconnected

layers.

Each

layer

representsa

differentfunctionofhowtrade

isgoverned,

enabled

andcreated.Thestackisnota

strict

hierarchy

or

a

completedescriptionofreality,butatoolfor

understandinghowthesystemfitstogether.

Becausetradeisdeeplyinterconnected,therewillalwaysbeoverlap

betweenlayers,andsomeorganizationsor

systems

mayoperateacrossmorethanone.Others

maynotfitneatly

intoanysingle

layer.This

overlap

isintentional:itshowsthattheglobaltradingsystem

isnotasetofseparate

parts,

but

a

networkwhere

policy,facilitationandproductionconstantlyinteract.Theglobalfoundationalframeworkdefinestheinstitutionaland

normative

baseofthetradesystem.

Itconsistsofinternational

organizations,

multilateralagreementsandstandard-settingbodiesthatestablishthe

rules,

normsandshared

commitmentsguidingglobalcommerce.

Examplesofparticipatingactors1.1TABLE

1This

layerdoesn’t

moveor

produceanygoods

but

insteaddecidesthecircumstancesunder

whichglobaltradecanfunction.GlobalfoundationalframeworkTheTradeTech

Paradox:ConnectivityAmid

Fragmentation7Globalfoundationalframework

Roles

RolesSetandenforcenationaltrade,economic

and

industrial

policytoguidecompetitiveness,

innovationandsustainable

growthRegulatecustoms,tariffsand

bordermanagementtoensurecompliancewithtrade

lawsand

internationalagreements.Implementandenforcedomesticregulationfor

product

safety,standardsandcertificationtoalignwith

global

norms

ornational

priorities.Negotiateandadministertradeagreementsand

internationalcommitments,

representing

national

interests

inglobalforums.Developand

implementdigitalanddatagovernance

policies

toregulatecross-borderdataflows,digitaltrade

and

cybersecurity.Overseeenvironmental,labourandsocialcomplianceframeworks,

ensuringthat

productionandtradealignwith

sustainability

andethicalstandardsDesignandadministerfiscalandfinancialmechanisms

that

enabletrade

and

industrial

activity,

including

subsidies,

incentives

andexportfinanceOperate

and

manage

physical

trade

infrastructure–such

as

ports,airportsandspecialeconomiczones–that

connect

markets

and

enabletradecapacity.Providelogisticstechnologyandsupplychainvisibilitysolutionsthatdigitize,optimizeandtrackglobal

trade

operations.Provide

secure

digital

infrastructure

that

connects

trade

systems,tradedataexchangeandoperational

cybersecurity.Facilitatecustomsclearance,certification,andcompliancetoenablecompliantandefficient

cross-bordertrade.Enable

trade

finance,

insurance

and

payments,

providing

liquidity,

riskmanagementandsettlement

mechanismsforglobaltransactionsShipping

linesandcarriers,aircargo

operators,

trucking

and

railfreightcompanies,freightforwardersandthird-/fourth-party

logisticsproviders,

portandterminaloperatorsPortauthorities,airportoperators,

inlandterminals

and

dry

ports,

freezonesand

industrial

parks,

infrastructuredevelopmentand

managementagenciesSupplychainsoftware

providers,digitalfreight

platforms,

internet

ofthings

(IoT)andsensor

networks,cargovisibility

and

tracking

services,digitaltwinsand

logisticsanalytics

companiesTelecoms,satellite

providers,

internetexchange

points,cloud-serviceoperators,

identity-authenticationservices,application

programming

interface

(API)and

blockchain

network

providersCustoms

brokers,certificationservice

providers,tradecompliance

andconsulting

firmsBanksandtradefinance

institutions,fintech

platforms,

payment

service

providers

(PSPs),

insuranceand

reinsurancecompanies,blockchain-basedtradefinance

networksMinistriesofforeignaffairsandtrade

negotiation

units,

permanent

missionsto

internationalorganizationsMinistriesofdigitaltransformationand

informationtechnology

(IT),data

protectionauthorities,cybersecurityagenciesMinistriesofenvironment,

labourandsocial

welfare;

sustainability

andclimate

agenciesMinistriesoffinance,export-import

banks,

investment

promotion

agencies

ExamplesofparticipatingactorsMinistriesordepartmentsoftrade,

economy

and

industry;

national

planningcommissionsCustomsand

border

protectionagencies,

ministriesoffinance

or

revenue,tariffauthoritiesStandardsand

metrologyorganizations,accreditation

bodies,food

anddrugauthorities,

product

safety

agenciesprocedures,fiscalinstrumentsanddigitalgovernance

policies.Theseactorsensurecompliancewithinternationalobligationswhileprotectingnationalinterestsandfosteringinnovationandcompetitiveness.Thenationalgovernancelayertranslates

global

frameworksintodomesticpolicyand

regulation.Itincludesnationalgovernments,

ministriesandagenciesthatcraftandenforcetradelaws,customsTransportanddistributegoodsacross

bordersthrough

maritime,

air,

railand

land

networks,ensuringtheefficient

and

reliable

movement

of

tradeflows.borders.

Itincludeslogisticsandtransport

providers,

financialintermediaries,certificationandinspection

agencies,andsustainabilityverifiers,amongothers.Thetradeenablerlayeristhe

operational

engine

of

trade:theecosystemthatmoves,finances,verifies

andconnectsgoods,servicesanddataacross1.2TABLE21.3TABLE3NationalgovernancelayerTrade

enabler

layer

ExamplesofparticipatingactorsTheTradeTech

Paradox:ConnectivityAmid

Fragmentation8NationalgovernancelayerTrade

enabler

layer

Rolespointsofconnection,wherecollaborationand

technologiesallowtheentiresystemto

interact,

adaptandevolvetogether.Noneofthese

layersexists

in

isolation,and

eachis

being

reshaped

byachanginggeopoliticallandscapethat

is

redefiningtrade

relationships,investmentflowsandthetechnologiesthatconnect

theentiresystem.

Forsome,thisfragmentation

and

policydivergenceareaddingfriction,

uncertaintyandduplication.

Forothers,thisshift

is

creating

new

opportunities:connectorcountriesareemerging

as

neutral

hubs,digital

infrastructure

isopening

newpathwaysforcollaborationandcooperation,and

firmsare

innovatingfasterto

meet

newdemands.

Thetradestack

reflectsthis

reality:

it

is

nota

static

structure,

buta

livingsystemevolving

underthepressureofgeopoliticsandglobal

change.Amid

theseshifts,technology

is

playinganenabling

role

byfacilitatingconnection,trustandcollaboration

withinandacross

all

layers.The

layersofthetradestackare

designed

toclarify

roleswithinthecomplexwebthat

istheinterconnectedglobaltradingsystem,notto

create

rigid

boundaries.

Regulated

by

policy,theflowof

trade,dataand

money

meansthatactors

oftenoperateacross

layers.

Forexample:–Atechcompany

might

builddigital

infrastructure

thatsupportsenterprisesandenables

trade–Nationalgovernments

participate

in

global

policy-makingwhile

regulatingandenforcing

rulesatthe

national

level–Logisticsfirms,

banksand

digital

platformsfrequentlyactas

bothenablers

and

innovatorsThetrade

“stack”and“l(fā)ayer”metaphorsrecognize

thateach

partofthesystem

has

its

primaryfunctions,

but

interactscontinuouslywiththeothers.Thestrengthofthetradestack

lies

intheseGrow,extractorharvest

natural

resources,agricultural

goodsandenergy

resourcesthatformthefoundationsof

internationalgoodstradeManufacture,byconvertingrawor

intermediate

goods

intofinishedproducts

that

are

traded

globallyInnovate,

research

and

develop

new

technologies,tools,digitalsystems

and

processes

that

are

used

across

sectorsDeliverknowledgeandprofessionalservice-basedsolutions,includingconsulting,

legal,

healthcare,educationanddigital

servicesFarmersandagriculturalcooperatives,agribusinesses,

fisheries

andforestryoperators,

miningandextractive

industries,

energyproducers,commodity

producersandexportersIndustrial

manufacturers,assemblersand

processors,equipmentand

machinery

producers,consumergoods

producers,foodand

beverage

processors,and

industrialsmalland

medium-sizedenterprises

(SMEs)andcontract

manufacturersTechnologyenterprises,

R&D

labs,engineeringand

designfirms,start-upsandscale-ups,softwareand

IT

service

companiesProfessionalservice

providers

(law,accounting,audit,finance,

healthcare),consultingand

advisoryfirms1.5

Thestrengthof

thetradestacklies

inthesepointsofconnection,where

collaborationand

technologiesallow

theentiresystemto

interact,adaptand

evolvetogether.Theenterprise

layer

representsthe

productiveand

innovativecoreoftheglobal

economy–the

actorswhocreatewhat

istraded.

Enterprisesinclude

producers,

manufacturers,

innovatorsandservice

providerswhotransform

resources,

ideas

and

knowledge

intotradablegoods,servicesandtechnologies.1.4TABLE4Interactionsbetween

layers

ExamplesofparticipatingactorsEnterpriselayerTheTradeTech

Paradox:ConnectivityAmid

Fragmentation9Enterpriselayer

RolesThetradetechstackTechnologyanddataformthe

digitalfabric

ofthetradestack,connectingevery

layer

by

enablingtrust,visibilityandcollaboration.TheTradeTech

Paradox:ConnectivityAmid

Fragmentation102

Enterpriselayer Trade

enabler

layer

Nationalgovernancelayer

Globalfoundationalframeworkintoaconnectedglobalsystem.

This

evolutionmarkstheshiftfromthetraditionaltradestacktotheemergingtradetechstack,asystem

wheredigitalcapabilitiesareembedded

in

every

layerofglobalcommerce.Servingasthe

connectingfabricofthisframework,technologyanddataareenabling

newformsofcoordination

acrossgovernments,enablersandenterprises.

Fromdigital

portsandblockchain

networkstosupply

chaintoolsandfintech

innovationsdriven

byartificialintelligence

(AI),thesetechnologiesare

poweringa

moreconnected,cooperativeand

resilientglobal

tradingsystem.Thetradestackintroducedthe

manyactors

that

shape

internationaltrade,

butunderstandingwho

theactorsareandwhatthey

do

is

only

the

first

part.The

realtransformationcomesfromhowthese

layersconnectandexchange

information.Astradesystems

become

morecomplexand

interconnected,technologyanddataarethe

common

languagethatbindsthemtogether.Across

ports,

borders,financial

institutionsanddigital

marketplaces,techno