E-Commerce
Digital technologies and trade
Digital technologies are shaping the way we work and trade, creating opportunities but also risks. International organizations can play an important role in promoting a regulatory and policy framework that encourages the deployment of frontier technologies, such as blockchain, while mitigating potential risks. This page provides an overview of discussions and activities on frontier technologies at the WTO and links to relevant resources.
How digital technologies interact with trade issues
While trade digitalization has many benefits, implementing cross-border paperless trade systems is a complex endeavour. Various technical and legal tools can be called upon to establish cross-border paperless trade systems.
The COVID-19 pandemic had an accelerating effect on digitalization. This digital transformation has, however, exposed some important shortcomings in many developing countries. The WTO-led Aid-for-Trade initiative plays a crucial role in overcoming constraints by mobilizing resources.
Digital technologies have supported the growth of e-commerce. Under the Work Programme on Electronic Commerce, Members examine all trade-related issues relating to e-commerce. In this context, Members have expressed interest in exploring a variety of issues, including the relation between emerging technologies and digital trade.
One of the key objectives of the EIF Strategic Plan (2019-2022) is to help LDCs improve technology use in producing goods and providing services in global value chains. To this end, the EIF works with LDCs to facilitate their access to technologies and skills they need, including e-commerce infrastructure.
The WTO participated in a multi-agency dialogue in 2021 on the latest digital technologies to advance sustainable trade and environmental transparency. The WTO's Environmental Database contains all environment-related notifications submitted by WTO members as well as environmental measures and policies mentioned in the Trade Policy Reviews of WTO members.
The WTO Agreement on Government Procurement 2012 (GPA 2012) recognizes the importance, and encourages the use, of electronic means for procurement. It encourages participating governments to employ e-tools in all aspects of the procurement process.
Since the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS) came into force in 1995, digital technology has fundamentally changed the scale, diversity and nature of cross-border commercial transactions, and the ways in which intellectual property is licensed and traded. The WTO addresses the interface between digital technology, trade and intellectual property in several ways.
The Information Technology Agreement (ITA), signed in December 1996, aims to eliminate all import duties and other charges on information technology products. In 2015, it was expanded to cover over 200 more products.
The administration of rules of origin entails the issuance of trade documents (e.g. certificates of origin, importer declaration, certificates of non-manipulation in case of transit, packing lists, etc.). The wider use of digital technologies can greatly facilitate the exchange of the information contained in such documents.
The Standards and Trade Development Facility (STDF) is a global partnership which works to strengthen food safety, animal and plant health capacity in developing countries by encouraging the use of good practices – including through digital technologies – to facilitate safe trade worldwide.
Standards and regulations for digital and related technologies are now commonly discussed in the TBT Committee. Over the last few years, the Committee has received an increasing number of notifications of regulatory measures affecting a wide variety of digital issues, ranging from autonomous vehicles and drones to 5G and artificial intelligence (AI).
Bureaucratic delays are burdensome when moving goods across borders. Trade facilitation — the simplification, modernization, and harmonization of export, import and transit processes — is therefore an important issue for the world trading system. The Trade Facilitation Agreement, which entered into force in 2017, contains provisions for expediting the movement, release and clearance of goods, including through electronic means.
International trade in services covers many areas of economic activity. The rules governing services trade may have a significant impact on the use of digital technologies and the digital economy in sectors such as finance, telecommunications, distribution, entertainment and education.
The TRIPS Agreement is the most comprehensive multilateral agreement on intellectual property. It sets out minimum standards for many forms of intellectual property regulation and enforcement, and covers digital copyright issues such as digital rights management, software protection, and protection of databases.
News
AI for trade
Artificial intelligence (AI) is reshaping global trade by lowering trade costs, facilitating regulatory compliance and creating new opportunities for firms of all sizes. AI has the potential to deliver significant gains for both global trade and GDP, provided that digital infrastructure, skills and policy frameworks keep pace. The WTO seeks to promote constructive dialogue and a cooperative regulatory environment that supports the development and deployment of AI, while mitigating its risks. Under the banner of "AI for Trade", the WTO's work has three pillars: solutions; capacity building; and knowledge.
See moreBlockchain
A blockchain is a decentralized, distributed ledger of transactions in which records are stored permanently and are nearly impossible to alter. As it relies on a peer-to-peer network that no single party controls, blockchain offers secure, transparent, and verifiable record-keeping. In trade, this technology could transform processes such as customs documentation, supply chain tracking, payments, and contracts by making them more efficient, trustworthy, and less paper intensive.
- Reports: Can Blockchain revolutionize international trade?, Blockchain and DLT in Trade, Blockchain & DLT in Trade: Where We Stand.
- Events: WTO Global Trade and Blockchain Forums (2019 and 2021)
- Course: Online blockchain introductory course (WTO & International Trade Centre)
Quantum technologies
Quantum technologies harness the principles of quantum physics to enable new capabilities in computing, communications and sensing. While many applications are still at an early stage of development, these technologies have the potential to transform industries and international trade. Quantum computing could, among other things, improve logistics and accelerate scientific discovery while quantum communications could enhance the security of cross-border information exchanges. At the same time, advances in quantum computing pose challenges for existing encryption systems, raising important questions about cybersecurity and digital trade. International trade plays a critical role in the development and diffusion of quantum technologies by facilitating access to specialized equipment, materials, expertise and services across borders.
- Event: Quantum technologies and international trade: Key takeaways from the discussion organized by the delegations of Israel, Singapore and Switzerland (YouTube link)
Other resources
- Further information about WTO research work