The UK’s Department for International Trade plans to include blockchain regulation in the upcoming free trade agreement (FTA) with the US.
The document outlines the UK’s position in negotiating a free trade agreement after the UK has left the European Union.
The FTA represents great opportunities for all economic sectors in the UK, from agriculture to professional services. It has also other potential benefits include better jobs, higher wages, more options, and lower prices across the UK.
In addition, the record identifies the main objectives of such an agreement. “In areas such as data flows, blockchain, driverless cars and quantum technology we have the opportunity to help shape global rules through ambitious digital trade provisions.”
The document contains a chapter covering small and medium-sized businesses (SMEs), which is considered of a particular concern to the blockchain industry.
As almost two thirds of the UK trade with the US is processed electronically, the new SME chapter also reads:
“A digital trade chapter with cutting edge provisions that will aim to maximise opportunities for digital trade across all sectors of the economy.”
The agreement will also benefit the UK in terms of digital economy. It highlights the blockchain space as a potential beneficiary:
“In areas such as data flows, blockchain, driverless cars and quantum technology we have the opportunity to help shape global rules through ambitious digital trade provisions.”
FTA to increase UK-US trade
The total trade between the UK and the US was estimated at £220.9 billion in 2019. Thus, the UK government expects the agreement to increase trade with the US by £15.3 billion in the long run. In addition, it would boost wages of UK workers by £1.8 billion.
It is worth mentioning that the FTA will also boost cooperation on regulatory issues:
“Expand opportunities for UK financial services to ease frictions to cross-border trade and investment, complementing co-operation on financial regulatory issues.”
Juan Perez, co-founder of Finboot, said corporations that advocate responsibilities for Environmental, Social and Governance (ESG) initiatives should adopt blockchain technology.