Managing Supply and Value Chains in a New Era of Global Trade: The Promise of Federated Learning

As global trade shifts from an era of efficiency-driven globalisation to a new compliance-centred paradigm, customs administrations face mounting challenges – ranging from forced labour and environmental enforcement to fractured supply chain visibility and escalating transaction volumes, particularly in e-commerce. This article introduces federated learning as a practical, privacy-preserving solution for enabling secure data collaboration across public and private actors without commingling or centralising sensitive information. We trace the structural failures of Globalisation 1.0 and propose a modernised model of border management built on federated system architecture and trusted networks. These systems allow customs authorities to apply actionable intelligence across multi-tier value chains, strengthen enforcement capabilities, and expedite legitimate trade. The article outlines key steps towards implementation, including legal, technical and institutional reforms, and argues that federated architectures can form the foundation for next-generation risk management and trade facilitation strategies. The future of effective customs governance will depend on embracing secure, data-driven collaboration within and across borders.