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  • 6.4.1-E-COMMERCE AND SUPPLY CHAIN MANAGEMENT-SECURITY, COMMON GROUND, DISPUTE RESOLUTION

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  • Security, common ground, dispute resolution

     
     

    The trade in coffee would not be possible without security, some form of common ground and the effective, neutral resolution of disputes. The existing trade execution system has been developed and fine-tuned over many decades: electronic systems will have to satisfy the same concerns and meet if not surpass the same standards to address the new issues arising from the use of electronic documents.

    In the paperless chain, security will  primarily be provided by the legal framework, exactly as is the case with SWIFT, CHIPS, Identrus and others.

    Common ground will be  provided by the multilateral contract, with the main operator  acting as trustee for the entire operation. As in the traditional coffee trade, rules and regulations will have to be  clearly defined and would preferably be  overseen by the system users themselves, coming together rather as the coffee trade comes together in the GCA or ECF.