The study confirms the strong potential of blockchain technology in the domain of international trade document exchange. However, changing international trade processes in this way would require adaptations of the legislative framework and policy-driven initiatives.
The study’s analysis of the legislative framework and current policies in both international trade and blockchain technologies emphasised the challenges that international trade faces with regard to paper-heavy trade processes as well as the solutions proposed at EU and international level.
Despite significant regulatory and legislative efforts, the transition towards electronic document exchange and data-processing is still lagging behind. In that context, blockchain technology appears as a potential part of the solution as it can enable trade by providing a digital record of transactions and creating a connected, transparent and data-rich environment.
Use of this technology can raise challenges of its own in terms of legislation however. These relate to data localisation and privacy issues, identification of the applicable law and the allocation of liability, legal recognition and validity of blockchain-based information, and interoperability and standardisation across economic operators and regulatory frameworks. There are various initiatives to address these challenges at EU and international level as well as in the private sector.
Source: European Parliamentary Research Service