WTO

Trade has always been shaped by technological innovation. In recent times, a new technology – Blockchain – has been greeted by many as the next big game-changer. This publication explores the question of whether Blockchain may revolutionize international trade.
Opening with an explanation of the technology, the publication goes on to analyse the relevance of this technology for international trade by reviewing how it is currently used and how it may potentially be used in the various areas covered by WTO rules. In doing so, it offers insights into the extent to which this technology could affect cross-border trade in goods and services and in intellectual property rights.
The publication also discusses the potential of Blockchain for reducing trade costs and enhancing supply chain transparency, as well as the opportunities it provides for small-scale producers and companies. It concludes with a review of various challenges that must be addressed before the technology can be used on a wide scale and have a significant impact on international trade.

This paper briefly describes how international trade has been transformed in recent years and what has determined its increasing politicisation. It argues that the two main pillars of the global trading system—international trade regulation and the dispute settlement mechanism—are being put under strain due to various developments.

The whole system is being challenged by opposing tendencies: on the one hand, the multiplication of global risks and opportunities demands common action and multilateral rule-making; on the other, we are witnessing increasing fragmentation and regionalisation. The realistic objective that can now be set for the future development of world trade is the preservation of as much as possible of the present system and its improvement in specific areas.

The WTO’s 10th ministerial conference took place shortly before Christmas 2015, the first to be held in Africa. Verdicts on its outcomes range from “the death of the Doha Round” to WTO Director-General Roberto Azevêdo’s praise for a “historic” package. A more measured assessment reveals a mixed picture. While a number of important decisions were reached in Nairobi, most of the controversial questions were not even on the agenda. And it is less clear than ever where the talks should go from here. A consistent and ongoing shared interest in the global public good of a strong world trade system should persuade the member-states to find constructive new approaches.