The World Trade Organization and Trade Finance Global have published their recent ranking of blockchain projects in international trade, organized in what they represent to the industry as a “periodic table”.
The original presentation of the periodic table was published in winter 2019. A lot has changed since then: Despite the pandemic, many of the indicators used in the table show that innovative blockchain merchants around the world are becoming more mature.
On a scale of one to five, the average project duration was 2.3. This month the same number – 3.3. According to the World Trade Organization and the Provisional Federal Government, these projects have been transferred to non-digital form. Now they are “between the initial stages of production, implementation and implementation.”
According to the report, blockchain, also known as distributed ledger technology or DLT, has two main advantages when it comes to international trade. First, it increases transparency by supporting what analysts also refer to as “traceability,” which is useful for ensuring product authenticity and thus increasing consumer confidence.
Other benefits of DLT technology include digitalization of commerce: simplification of documents and business processes, and secure exchange and monitoring of data. The report points here to what is considered the “weakest link” in the chain:
“Any digital process will be as reliable as digital communications for less money. For many international trading systems, this means customs integration. While many governments are testing or evaluating the use of digital processing technology in customs and single window operations, most projects are still underway. concept or stage “. Experimental.”
Latin America is a pioneer in customs. The report positively mentions the development of a DLT project called Cadena by ICT professionals from Mexico, Peru, Chile and Costa Rica in collaboration with Microsoft and IDB. Cadena is a customs-focused company that maintains mutual recognition agreements between so-called “authorized economic entities” within the framework set by the World Customs Organization.
Elsewhere, progress has been made in proof-of-concept and experimental concepts for customs from the U.S. Customs and Border Protection Agency of the North American Free Trade Agreement / CAFTA, as well as the Shanghai Single Window project, the Korea-Korea Clearance Project and DG Taxud ATA Proof of the book. Concept …
In addition, the DLT-based TradeLens project is consolidating more and more tariffs, the Avanza Innovations DLT commercial document digitization project has merged with Dubai Customs. However, the report is aware of the limitations of blockchain trading optimization:
While these are big positive changes, they are not enough. If an industry wants to push the boundaries when it comes to digitizing trade, it should see more movement in that direction. “