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Digital trade is complex and is subject to comprehensive regulatory requirements that aim to ensure the safety and stability of global e-commerce. Strengthening and improving the global digital trade environment has been a longstanding priority for the World Trade Organization (WTO), which launched an E-Commerce Joint Statement Initiative (JSI) to facilitate country negotiations on digital trade. Australia, Japan, and Singapore, alongside more than 90 WTO members, have been leading the process of agreeing digital trade rules that align with the needs of a rapidly evolving digital economy. Key negotiation provisions addressing global digital trade include a moratorium on customs duties for electronic transmissions, and rules governing electronic signatures, cybersecurity and online consumer protection. These measures are designed to streamline cross-border e-commerce, reduce barriers, and increase consumer trust. A key group of countries that require technical support in digital trade negotiations and differential treatment provisions are developing and least developed countries (LDCs).

Since 2020, the UK-funded Trade and Investment Advocacy Fund (TAF2+), implemented by Cowater International, has played a pivotal role in assisting developing countries and LDCs in navigating the complex digital trade negotiation process, under its Umbrella Grant. Examples of TAF2+ support included knowledge-building resources, such as state-of-play reports, guides, and videos, to help countries follow and understand the policy processes; webinars that enhanced technical knowledge and facilitated the exchange of views among developing countries and LDC delegates; national gap analytical studies to support countries in assessing their domestic regulatory readiness; and ad-hoc analytical and advisory support, across a range of technical issues. TAF2+ sought to ensure that developing countries’ and LDCs’ perspectives were reflected in the final WTO-facilitated agreement, which was endorsed by the majority of WTO member countries in July 2024.

Several key economies, including Brazil, the United States, Indonesia, and others, continue to hold domestic consultations on the text of the agreement, signalling that while significant progress has been made, full global consensus is still pending.

Next Steps for the E-Commerce JSI

Broadening membership: efforts will be made to encourage additional WTO members, particularly those who have not yet joined the agreement, to become part of the e-commerce initiative. Expanding participation will enhance the agreement’s global impact and ensure a more comprehensive framework for digital trade.

Integration into the WTO Legal Framework: incorporating the e-commerce agreement into the broader WTO legal architecture is a critical step. Integration will require the consensus of all WTO members, which may prove difficult to achieve given the diversity of country positions.

Implementation: WTO member states can initiate the process of adopting the e-commerce agreement once it has been integrated into the WTO treaty framework. The accepting parties are expected to have implemented the various rules of the Agreement by the Agreement’s entry into force, with developing countries and LDCs benefiting from a more flexible implementation period.

Further negotiations: the parties recognize that another phase of negotiations is important to keep up with the evolving nature of e-commerce. Important issues that can be addressed through future negotiations may include data governance matters, such as cross-border data flows, source code, and data localization.

The JSI’s stabilized text, agreed in July 2024, is a major milestone for international trade, particularly in a digitalized world. However, significant work remains to ensure the agreement is fully integrated into the WTO treaty framework and contributes to addressing the digital divide among countries. TAF2+ will continue to provide technical support to developing countries to effectively participate in the follow up negotiations, build their capacity for the implementation of the agreement, secure broader membership, and resolve outstanding issues that will be crucial for the agreement’s ultimate success.