According to a report by the World Trade Organization (WTO), there is a “clear” need to close the digital divide, both within and across countries, as the digital economy has played a key role during the current COVID-19 crisis.
The report has argued that the experiences and lessons emerging from the COVID-19 crisis could be an additional incentive for la Global cooperation in the area of electronic commerce, which could help facilitate the cross-border movement of goods and services, reduce the digital divide and level the playing field for small businesses.
The report also said that certain traditional barriers have become more pronounced and continue to hinder greater participation in e-commerce activities by small producers, sellers and consumers in developing countries, particularly in least developed countries (LDCs).
«The pandemic has made it clear the clear need to close the digital divide, both within and across countries, given the central role that the digital economy has played during the crisis," he said.
He also said that e-commerce for trade in goods and services has been negatively impacted by factors that have caused disruption in overall supply and demand, and such disruptions have resulted in delays in delivery or outright cancellation of orders.
Several other challenges related to e-commerce have emerged or have been further amplified during this pandemic, such as Raising prices to unreasonably high levels, product safety concerns, deceptive practices, and cybersecurity concerns, according to the report.
However, he said the implementation of social distancing, lockdowns and other measures in response to the COVID-19 pandemic has led consumers to increase online shopping, use of social media, Internet telephony and teleconferencing, and streaming of videos and movies.
“This has resulted in Peaks in business-to-consumer (B2C) sales and a rise in business-to-business (B2B) e-commerce. The increase in B2C sales is particularly evident in online sales of medical supplies, household items and food products,” he added.
Said Demand has also increased for internet and mobile data services.
He added that the pandemic has made it clear that e-commerce can be an important tool or solution for consumers.
“The global nature of COVID-19 and its impact on e-commerce may encourage strengthened international cooperation and further development of policies for online procurement and supply… E-commerce can also support small businesses and, by making economies more competitive, be an economic driver for both domestic growth and international trade,” he added.
The WTO work programme defines electronic commerce as the production, distribution, marketing, sale or delivery of goods and services by electronic means.
With a rapidly growing e-commerce sector both in India and globally, rich nations want specific guidelines on the sector at the WTO.
WTO report examines role of e-commerce during COVID-19 pandemic #e-commerce https://t.co/LSkbAfApWn pic.twitter.com/dRxQcq2VCv
— WTO in Spanish (@OMC_es) May 4, 2020
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