Blockchain’s Practical and Legal Implications for Global Trade and Global Trade Law

Abstract

Technology is not only transforming international trade, it is also pushing the boundaries of regulation. The cross-border nature of the Internet challenged existing regulatory approaches, raised new regulatory issues and gave rise to new forms of governance. Digital technologies that leverage the Internet are challenging existing approaches even further. Among those, one technology, blockchain, keeps making the headlines. A game changer for some, the most overhyped technology for others. Few technologies have sparked so much debate.Often associated with Bitcoin because it was first implemented as the technology underpinning the famous cryptocurrency, blockchain is much more than Bitcoin. 1 In fact, by making it possible for actors along the supply chain to interact on a peerto-peer basis in quasi real time and in a highly secure and trusted environment, this technology could have a major impact on many facets of international trade and deeply transform it. Blockchain could facilitate international trade transactions and help implement World Trade Organization (WTO) agreements, and it could foster the digitalization of trade.Yet, technology is only a tool. A number of regulatory issues deserve the attention of policymakers for this potential to be realized. It is therefore critical that government officials educate themselves to understand the technology, its potential, but also its limitations, and keep an eye on developments. This chapter discusses the measures that should be taken to promote the development of a regulatory * Emmanuelle Ganne is a Senior Analyst at the World Trade Organization.

Pixels and Policy: The Symbiotic Relationship Between Digitalization and International Trade Legislation

“…Our quantitative analysis underlines its substantial role in enhancing efficiency and trust within trade financing systems, highlighting a transformative potential that is hard to ignore. Yet, the qualitative insights reveal a complex tapestry of the ethical and cultural considerations, prompting us to ponder if impersonal nature of blockchain could potentially disrupt established human connections (Chang et al, 2020;Ganne, 2021). This leads us to the profound realization: the integration of technology and trade law transcends legal and economic dimensions, delving into the sociocultural fabric of our society.…”

“…In a time when the distinction between physical and digital realms becomes increasingly blurred, the world of international trade law undergoes significant transformation. William Gibson's insight that "The future is already here it is just not very evenly distributed" (Gibson, 1999) captures the essence of this evolution, as digitalization permeates the commercial sphere, transforming a realm once dominated by tangible goods and written contracts. The digitalization transcends being mere technological milestone, instead becoming the lifeblood of contemporary commerce.…”