Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-29T07:02:39.987Z Has data issue: false hasContentIssue false

8 - Unblocking the Trade Pipes

Using Blockchain Technology to Facilitate Trade for Sustainable Development

from Part III - Bottom-Up: Private Sector and Civil Society Initiatives on the Sustainable Development Goals

Published online by Cambridge University Press:  18 September 2020

By
Alisa DiCaprio ,
Christine McDaniel ,
Badri G. Narayanan  and
Hanna C. Norberg
Edited by
Cosimo Beverelli ,
Jürgen Kurtz  and
Damian Raess
Cosimo Beverelli
Affiliation:
World Trade Organization
Jürgen Kurtz
Affiliation:
European University Institute, Florence
Damian Raess
Affiliation:
World Trade Institute, University of Bern
Get access

Summary

The emergence of blockchain technology has the potential to disrupt nearly anything from voting to healthcare, but could it help deliver the Sustainable Development Goals? International trade has been identified as an instrument in achieving these goals but in practice bottlenecks and trade frictions persist. This chapter aims to illuminate how blockchain technology can smooth three stubborn trade frictions: trade finance gaps, low preference utilisation, and customs frictions. We detail the channels through which blockchain technology can smooth these trade frictions. We then estimate the magnitude of potential economic effects and consider their contributions to these goals. We also discuss how policymakers can create an ecosystem to facilitate these advancements in trade and sustainable development.

Keywords

trade facilitation and trade financinginternational tradeblockchainsustainable developmenteconomic modeling
Type
Chapter
Information
International Trade, Investment, and the Sustainable Development Goals
World Trade Forum
 , pp. 228 - 269
Publisher: Cambridge University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

ADB (Asian Development Bank). (2015). Aid for Trade in Asia and the Pacific-Thinking Forward About Trade Costs and the Digital Economy. Mandaluyong City, Philippines: Asian Development Bank,Google Scholar
ADB (Asian Development Bank). (2016). “2016 Trade Finance Gaps, Growth, and Jobs Survey.” ADB Briefs, No. 64, August.Google Scholar
ADB (Asian Development Bank). (2017). “2017 Trade Finance Gaps, Growth, and Jobs Survey.” ADB Briefs, No. 83, September.Google Scholar
Ahn, JaeBin, Khandelwal, Amit K. and Wei, Sh.-J. (2011). “The Role of Intermediaries in Facilitating Trade.” Journal of International Economics 84: 73–85.Google Scholar
Auboin, M. and DiCaprio, A. (2016). “Why Do Trade Finance Gaps Persist: Does It Matter for Trade and Development?” WTO Working Paper no. ERSD 201701.Google Scholar
BAFT, R3 and Shearman and Sterling LLP. (2018). “Code Is Note Law: The Legal Background for Trade Finance Using Blockchain.” R3 Research Paper, July.Google Scholar
Baldwin, R. (2016). The Great Convergence. Harvard University Press.Google Scholar
Botton, N. (2018). Blockchain and Trade: Not a Fix for Brexit, but Could Revolutionise Global Value Chains (If Governments Let It). ECIPE Policy Brief No 1/2018. Brussels.Google Scholar
Brenton, P. (2011). Preferential Rules of Origin: Preferential Trade Agreement Policies for Development: A Handbook. Washington, DC: World Bank.Google Scholar
Brenton, P. and Ikezuki, T. (2004). “The Initial and Potential Impact of Preferential Access to the U.S. Market Under the African Growth and Opportunity Act.” World Bank Policy Research Working Paper No. 3262.Google Scholar
Cadot, O., de Melo, J., Estevadeordal, A. and Tumurchudur, B. (2002). Assessing the Effect of NAFTA’s Rules of Origin. Washington, DC: World Bank.Google Scholar
Cadot, O and Ing, L. Y. (2017). “Facilitating ASEAN Trade in Goods. Working Paper No. DP-2016–20.” Economic Research Institute for ASEAN and East Asia, ERIA.Google Scholar
Cantens, T. and Raballand, G. (2017). “Cross-Border Trade, Insecurity and the Role of Customs: Some Lessons from Six Field Studies in (Post) Conflict Regions.” ICTD Working Paper 67, August.Google Scholar
DiCaprio, A and Jessel, B. (2017). “Can Blockchain Make Trade Finance More Inclusive?” R3 Research.Google Scholar
DiCaprio, A. and Malaket, A. (2018). “Digital Islands in Trade Finance: Can a Decentralized System Solve the Network Problem?” R3 Research.Google Scholar
Di Caprio, A. and Trommer, S. (2010). “Bilateral Graduation: The Impact of EPAs on LDC Trade Space.” The Journal of Development Studies 46: 1607–1627.CrossRefGoogle Scholar
Egger, P., Francois, J., Manchin, M. and Nelson, D. (2015). “Non-tariff Barriers, Integration and the Transatlantic Economy.” Economic Policy 30: 539–584.Google Scholar
Francois, J. F., Hoekman, B. and Manchin, M. (2005). “Preference Erosion and Multilateral Trade Liberalization.” World Bank Policy Research Working Paper No. 3730, October 2005.Google Scholar
Francois, J., Narayanan, B., Norberg, H., Porto, G. and Walmsley, T. (2012). Assessing the Economic Impact of the Trade Agreement between the European Union and Signatory Countries of the Andean Community. Project Report published by the Directorate General of Trade, European Commission under Framework Contract TRADE10/A2/A16 and Centre for Economic Policy Research, London.Google Scholar
Greif, A. (1993). “Contract Enforceability and Economic Institutions in Early Trade: The Maghribi Traders Coalition.” American Economic Review 83: 525–548.Google Scholar
Hausmann, R. and Rodrik, D. (2003). “Economic Development as Self-Discovery.” Journal of Development Economics 72: 603–633.CrossRefGoogle Scholar
Head, K. and Mayer, T. (2013). “Gravity Equations: Workhorse, Toolkit, and Cookbook.” CEPII Working Paper, September 2013.Google Scholar
Helb, M. and Shepherd, B. (2017). Win-Win: How International Trade Can Help Meet the Sustainable Development Goals. Tokyo, Japan: ADB Institute.Google Scholar
Hertel, T. (1997). Global Trade Analysis: Modelling and Applications. Cambridge University Press.Google Scholar
Hoekman, B. (2017) Trade and the Post-2015 Development Agenda in Win-Win: How International Trade Can Help Meet the Sustainable Development Goals. Tokyo, Japan: ADB Institute.Google Scholar
Hummels, D. L. and Schaur, G. (2013). “Time as a Trade Barrier.” American Economic Review 103: 2935–2959.CrossRefGoogle Scholar
IMF (International Monetary Fund). (2009). World Economic Outlook, Crisis and Recovery, Washington, DC: International Monetary Fund.Google Scholar
Inter-American Development Bank. (2019). “Beyond Borders: How Blockchain Can Make Trade Safer. Available at https://blogs.iadb.org/integration-trade/en/blockchain-trade-safer/.Google Scholar
Keck, A. and Lendle, A. (2012). “New Evidence on Preference Utilization.” Staff Working Paper ERSD-2012, 12. Geneva, Switzerland: World Trade Organization, Economic Research and Statistics Division.Google Scholar
Kee, H., Nicita, A. and Olarreaga, M. (2009). “Estimating Trade Restrictiveness Indices.” The Economic Journal 119: 172–199.Google Scholar
Liu, L. and Yue, C. (2013). “Investigating Impact of Time Delays on Trade.” Food Policy 39: 108–114.CrossRefGoogle Scholar
McDaniel, C. and Norberg, H. (2019). Can Blockchain Technology Facilitate International Trade? Arlington, VA: Mercatus Research, Mercatus Center at George Mason University.Google Scholar
Mimouni, M., Pichot, X. and Narayanan, B. (2015). “Utilization of Preferential Tariffs.” GTAP Conference Paper, presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia.Google Scholar
Minor, P. and Tsigas, M. (2008). “Impacts of Better Trade Facilitation in Developing Countries.” GTAP 11th Annual Conference, Helsinki, Finland.Google Scholar
Moïse, E. and LeBris, F. (2013). “Trade Costs: What Have We Learned? A Synthesis Report.” OECD Trade Committee Working Paper, Paris.Google Scholar
Monteiro, J. and Teh, R. (2017). “Provisions on Electronic Commerce in Regional Trade Agreements.” WTO Working Paper No. ERSD-2017–11.CrossRefGoogle Scholar
Narayanan, B., Sharma, S. and Razzaque, M. (2016). “Trade Facilitation in the Commonwealth: An Economic Analysis Margin.” The Journal of Applied Economic Research 10: 305–336.Google Scholar
Nicita, A., Ognivtsev, V., and Shirotori, M. (2013). “Global Supply Chains: Trade and Economic Policies for Developing Countries.” UNCTAD Policy Issues in International Trade and Commodities Study Series No. 55.Google Scholar
Nilsson, L. (2011). “Small Trade Flows and Preference Utilization: The Case of the EU,” South African Journal of Economics 79: 392–410.Google Scholar
Nilsson, L. (2016). “EU Exports and Uptake of Preferences – a First Analysis.” Journal of World Trade 50: 219–252.Google Scholar
OECD (Organisation for Economic Co-operation and Development). (2009). Overcoming Border Bottlenecks: The Costs and Benefits of Trade Facilitation. Paris: OECD Trade Policy Studies, OECD Publishing,Google Scholar
OECD (Organisation for Economic Co-operation and Development). (2015). “Implementation of the WTO Trade Facilitation Agreement: The Potential Impact on Trade Costs.” Policy Brief, June 2015.Google Scholar
Okazaki, Y. (2018). “Unveiling the Potential of Blockchain for Customs.” Research Paper No. 45. World Customs Organization, Brussels.Google Scholar
Olsen, M. (2010). “Banks in International Trade: Incomplete International Contract Enforcement and Reputation.” Harvard University mimeo.Google Scholar
Petri, P., Plummer, M. and Zai, F. (2012). “The Trans-Pacific Partnership and Asia-Pacific Integration: A Quantitative Assessment.” Washington, DC: Peterson Institute for International Economics.Google Scholar
Swedish National Board of Trade. (2018a). “The Use of the EU’s Free Trade Agreements,” 3rd ed. National Board of Trade Sweden, Stockholm, November 2018 – Third Edition.Google Scholar
UK Daily Express. (2019). “No Deal Brexit Ready: UK Firms Automatically Enrolled in Customs System for Post-EU Future.” Available at www.express.co.uk/news/politics/1168626/brexit-latest-news-uk-no-deal-brexit-boris-johnson-automatic-enrolment-customs-EROI-number.Google Scholar
UNCITRAL (United Nations Commission on International Trade Law). (1999). “UNCITRAL Model Law on Electronic Commerce with Guide to Enactment 1996 with Additional Article 5 bis as Adopted in 1998.” United Nations Publications, New York.Google Scholar
UNECE (United Nations Economic Commission for Europe). (2006). A Roadmap towards Paperless Trade. United Nations Economic Commission for Europe, ECE/Trade/ 371. New York and Geneva: United Nations.Google Scholar
United Nations. (2011). Global Food Losses and Food Waste – Extent, Causes and Prevention. Rome: The Food and Agriculture Organization of the United Nations,Google Scholar
United Nations. (2017). “Trade Facilitation and Paperless Trade Implementation: Global Report.” Geneva, Switzerland.Google Scholar
USTR (United States Trade Representative). (1986). Annual Report 1986. United States International Trade Commission, USITC Publication 1935. Washington, DC.Google Scholar
Walmsley, T., Aguiar, A. and Narayanan, B. (2012). ”Introduction to the Global Trade Analysis Project and the GTAP Data Base.” GTAP Working Paper No. 67. Purdue University, West Lafayette, IN: Global Trade Analysis Project (GTAP).Google Scholar
Walmsley, T. and Minor, P. (2015). “Willingness to Pay in CGE Models.” GTAP Working Paper.Google Scholar
WEF (World Economic Forum). (2018). “Trade Tech – A New Age for Trade and Supply Chain Finance,” January. Report. World Economic Forum. Geneva, Switzerland: World Economic Forum.Google Scholar
World Bank. (2019). “World Bank World Development Report 2020. Trading for Development in the Age of Global Value Chains.” Washington, DC: World Bank.Google Scholar
WTO (World Trade Organization). (2015). World Trade Report, Speeding Up Trade: Benefits and Challenges of Implementing the WTO Trade Facilitation Agreement.” Geneva, Switzerland: World Trade Organization.Google Scholar
WTO (World Trade Organization). (2016). Trade Finance and SMEs Bridging the Gaps in Provision. Geneva, Switzerland: World Trade Organization.Google Scholar
WTO (World Trade Organization). (2018a). Can Blockchain Revolutionize International Trade? Geneva, Switzerland: World Trade Organization.Google Scholar
WTO (World Trade Organization). (2018b). Mainstreaming Trade to Attain the Sustainable Development Goals. Geneva, Switzerland: World Trade Organization.Google Scholar
Wu, M. (2017). “Digital Trade-Related Provisions in Regional Trade Agreements: Existing Models and Lessons for the Multilateral Trade System, RTA Exchange.” International Centre for Trade and Sustainable Development (ICTSD) and the Inter-American Development Bank, Geneva, Switzerland.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×