President Trump does not like the North American Free Trade Agreement, aka NAFTA, and wants it renegotiated.
In the meantime, the U.S. agency in charge of overseeing cross-border shipments will start testing blockchain as a way of verifying certificates of origin under NAFTA.
U.S. Customs and Border Protection will start “live fire testing” of blockchain in September, Vincent Annunziato, the director of CBP Business Transformation and Innovation, said during a recent trade symposium, according to American Shipper.
“Really, what the government’s trying to do is twofold,” Annunziato said. “One is to help blockchain along in a healthy manner for increasing market adoption, and the other thing is we’re trying to prepare ourselves in a proactive way to be ready for when private industry begins to really take off with this technology.”
He said that by using blockchain for certificates of origin under NAFTA, as well under as the Central America Free Trade Agreement, or CAFTA, the agency will get more accurate information from the country of export as well as verify that suppliers in other countries are complying with the rules along with their U.S. importers. Read more here.