Smart Contracts in International Trade: Legal Framework and Implementation Challenges

Abstract

The integration of smart contracts into international trade represents a paradigm shift in commercial transactions, offering unprecedented automation, transparency, and efficiency. This paper examines the legal framework challenges and implementation barriers facing smart contract adoption in cross-border commerce. Through comprehensive analysis of blockchain technology, legal enforceability issues, and regulatory compliance requirements, this research identifies critical gaps between technological capabilities and existing legal structures. The study explores how smart contracts can revolutionize international trade while addressing concerns about legal recognition, dispute resolution, and regulatory harmonization across different jurisdictions. Key findings suggest that while smart contracts offer significant benefits for trade automation and cost reduction, successful implementation requires comprehensive legal reforms, standardized protocols, and international cooperation frameworks. The paper concludes that a gradual, collaborative approach involving stakeholders from technology, legal, and business sectors will be essential for realizing the transformative potential of smart contracts in global commerce.