Publication：2019.12

Principal Investigator：江文基Jiang, Wun-Ji

Researchers：李淳Lee, Roy Chun、羅時芳Lo, Shih-Fang、王文娟、王煜翔Wang, Yu-Shung、李宜靜Li, Yi-Ching、許裕佳Hsu, Yu-Chia、廖倍妤

Abstract: This study aims to explore the feasibility of three different emerging technologies (including blockchain, artificial intelligence, and the Internet of Things) in improving bottlenecks within international trade supply chains. In addition, in response to the needs of Taiwan's policies, this study particularly emphasizes the research on blockchain. Apart from addressing the feasibility of improving supply chain bottlenecks, the study also investigates its potential applications in other trade sectors and its implications for the participation of micro, small, and medium-sized enterprises (MSMEs) in international trade and the promotion of focus areas in the APEC Internet and Digital Economy Roadmap. The research methodology primarily involves literature review (including secondary data collection), field interviews, and hosting seminars. The key points of the research are summarized as follows:

Blockchain and Cross-Border Trade (Chapters Three, Four, and Five):

l  Blockchain shows feasibility in improving supply chain bottleneck points such as "lack of coordinated border management and underdeveloped border clearance procedures" and "unreliable and costly logistics services." Relevant examples include the Global Trade Connectivity Network (GTCN), Cross Border Blockchain Platform (CBBP), and IBM TradeLens blockchain.

l  Besides improving supply chain bottlenecks, blockchain can also be applied in international trade sectors such as finance, insurance, e-commerce, intellectual property rights, and government procurement.

l  Blockchain can facilitate MSME participation in international trade through solving trade financing difficulties, striving for fairer sales prices, enhancing MSME export capabilities, and improving bidding process efficiency.

l  Blockchain is related to the goals of five focus areas in the APEC Internet and Digital Economy Roadmap, which include (1) promotion of interoperability; (2) promoting coherence and cooperation of egulatory approaches affecting the internet and digital economy; (3) promoting innovation and adoption of enabling technologies and services; (4) facilitating the free flow of information and data for the development of the internet and digital economy, while respecting applicable domestic laws and regulations; (5) enhancing inclusiveness of internet and digital economy. 

Based on the research conclusions, brief policy recommendations for Taiwan’s government regarding blockchain and cross-border trade are outlined as follows:

l  Propose initiatives in international forums (such as APEC) to promote G2G cross-border trade blockchain to reduce potential trade costs during customs clearance.

l  Assist MSMEs in applying blockchain to participate in international trade.

l  Evaluate the feasibility of introducing blockchain technology into government-regulated trade information exchange areas through pilot projects.

Artificial Intelligence and Cross-Border Trade (Chapter Six):

l  Artificial intelligence shows feasibility in improving supply chain bottleneck points such as "lack of coordinated border management and underdeveloped border clearance and procedures," "inadequate quality and lack of access to transportation infrastructure and services," and "unreliable logistics services and high logistical costs".

Policy recommendations for artificial intelligence and cross-border trade are briefly outlined as follows:

l  Emerging trade rules regarding cross-border data flow and applications should be closely monitored by the government for reference from trade policies set by key players such as the United States and the European Union.

l  Assess the feasibility of incorporating AI technology into Taiwan’s trade monitoring system to promptly detect abnormal trade situations through data analysis and thus take corresponding measures.

Internet of Things and Cross-Border Trade (Chapter Seven):

l  The Internet of Things shows feasibility in improving supply chain bottleneck points such as " lack of coordinated border management and underdeveloped border clearance and procedures," " inadequate quality and lack of access to transportation infrastructure and services," and "unreliable logistics services and high logistical costs".

Policy recommendations for the Internet of Things and cross-border trade are briefly outlined as follows:

l  The government can encourage enterprises to utilize (Radio-frequency identification, RFID) to enhance trade efficiency, promote supply chain information integration, and push for regional cooperation mechanisms to promote IoT.

Finally, recognizing that the impact of emerging technologies on international trade will continue to evolve, this study suggests that the government should keep track of international organizations' discussions on issues related to the promotion of cross-border trade through emerging technologies. This will enable timely adjustments to domestic economic and trade policy directions, thereby transforming the potential of emerging technologies into new drivers of domestic economic growth.

Chinese：https://web.wtocenter.org.tw/Page/89/401736