The World Trade Organization (WTO) has released a publication that examines how its members can ensure that changes brought about by digital technologies benefit everyone and support inclusive growth. The material combines academic perspectives on digital trade with policy recommendations.
La publication titled «Adapting to the era of digital commerce: challenges and opportunities» analyses the implications of the rapid adoption of digital technologies for trade and development. It finds intensive use of information and communications technology (ICT) services by other sectors, increased reliance on big data and artificial intelligence, reduced trade costs due to new digital technologies, and the adoption of robotics that facilitates profit opportunities in the trade arena.
Trade and development
To illustrate the significant impact of digital technologies on trade, the authors use the WTO's global trade model. They estimate that between now and 2030,Global trade growth would be 2% higher per year, on average, as a result of the adoption of digital technologies. For developing countries, the model predicts that global trade growth would be 2,5% higher, on average, and also indicates that services exports would account for more than 25% of global trade, in contrast to concerns that greater use of 3D printing and robots will result in the relocation of production to advanced economies.
The publication also includes the section two on how the countries from different developing regions They look at the challenges and opportunities of digital technologies, using country case study examples.
That section, for example, examines the role of Internet technologies in strengthening ties between global value chains (GVCs) and African economies. The case assumes that digital technology will reduce the time and costs required to trade, a critical issue for participation in GVCs because goods can be traded across borders multiple times. The publication suggests that improvements in Internet infrastructure could have a significant impact on the ability of African companies to expand their participation in GVCs.
A case reflects how e-commerce transactions in China have increased enormously in dollar value over the past 20 years, supported by improved infrastructure, rapid growth in mobile telephony and increased financing.
Another chapter on the new rules of digital commerce in Latin America It highlights that while technological advances have supported an increase in e-commerce, this growth has occurred with a lack of clear and defined standards.
The aforementioned chapter also examines global digital trade regulations and regional agreements such as APEC and the Pacific Alliance, and includes a comparative analysis of digital trade standards embodied in recently negotiated regional trade agreements such as the Trans-Pacific Partnership (TPP) and the United States-Mexico-Canada Agreement (USMCA), which are the most advanced regional trade instruments on these issues.
Along these lines, another chapter examines the case of Argentina, Brazil and Mercosur Regarding convergence in e-commerce, the authors point out that e-commerce is growing rapidly in Argentina and Brazil. In both countries, the participation of the population in this exchange exceeds the Latin American average. In addition, both countries have legal frameworks for data protection, Internet regulation, consumer protection, e-commerce taxes, and electronic contracts and signatures. The authors suggest that new negotiations for convergence between the two countries on regulation for e-commerce should be carried out through MERCOSUR.
Inclusive growth
Furthermore, the section three on digital advances highlights opportunities to contribute to inclusive growth. Blockchain, for example, can help women overcome trade barriers and reduce the cost of cross-border payments, security compliance and trade. However, if not properly regulated, expanded blockchain use could lead to higher trade barriers for female participation or increase the relative return to more sophisticated technological skills that men are likely to have. One “promising development” is women’s blockchain networks, which help women take advantage of the opportunities presented by the technology. The publication lays out a “broad consensus” that policies can play a critical role in supporting the adoption of digital technologies in ways that ensure vulnerable groups are not left behind.
The authors consider the role of international cooperation and national policies to be indispensable in creating a more prosperous and inclusive future, and emphasize that the collaboration of nations is essential to maximize benefits and limit costs.
The 336-page publication was prepared by WTO Chairs, Advisory Board members and the WTO Secretariat's WTO Chairs Programme (WCP) team. The Governments of the Netherlands and France provided financial support to the WTO Chairs Programme.
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