The European Parliament (EP) has adopted a resolution, dubbed “Blockchain: a forward-looking trade policy”, setting out how blockchain technology could improve supply chain transparency and traceability, reduce transaction costs, improve the security of data, reduce corruption, detect tax evasion, enable the tracking of unlawful payments and tackle trade-based money laundering.
The resolution explains that, despite previous trade successes, EU free trade agreements (FTAs) still remain under-utilised. On average, only 67% of exporters and 90% of importers make use of the preferential tariffs in the EU and its partner countries. Usage of blockchain-based solutions may increase FTA utilisation.
Using blockchain technology, exporters could upload all their documents to a public authority application, and demonstrate their compliance with preferential treatment granted by an FTA, to benefit from the preferential tariffs, the resolution said.
Small- and medium-sized enterprises (SMEs) could also benefit from blockchain tech, believes EP, as it would allow better communication with consumers, customs authorities, international and domestic regulatory bodies. SMEs could also benefit from securing payments and simplifying business through the use of smart contracts.
