WTO Agrees on New Rules for Digital Trade

WTO Agrees New Rules for Digital Trade: Key Insights

• The United States have unresolved concerns.

• Pact aims to ban tariffs on fast-growing digital trade.

• List of participants doesn't include India and South Africa.

• Deal requires unanimous consensus among all 166 members.

91 countries have signed a WTO agreement on digital commerce. That is about half of the members of the World Trade Organization (WTO). The agreement, spearheaded by Japan, Australia and Singapore, recognizes eDocuments and eSignatures, moving away from paper forms. It also prohibits tariffs on digital content, with the goal of simplifying and promoting digital trade worldwide. "We have negotiated the first global rules for digital trade" EU trade chief Valdis Dombrovskis wrote on the social media site X.

Key Provisions of the WTO eCommerce Agreement

Other provisions in the agreement aim to combat online fraud and misleading product claims. The agreement also includes a grace period of up to seven years for developing countries to implement these measures, with financial support. This is important for integrating smaller businesses from developing regions into the global digital economy, thereby promoting economic inclusiveness.

The Deal Still Lacks U.S. Approval

Despite widespread support, the United States has not signed, citing concerns about security issues and data flow regulations. Other countries, such as Brazil and Indonesia, also have reservations about certain aspects, such as the elimination of import duties on digital goods.

The agreement is an important step toward creating a unified framework for digital trade. It aims to benefit businesses and consumers around the world, especially in developing regions. The future of the agreement depends on its integration into the WTO's legal framework, which requires unanimous consensus among all 166 members. While this consensus has yet to be achieved, the co-sponsors remain optimistic that outstanding issues can be resolved.

Sources: Forbes, ECDB