Technology has significantly transformed the world’s economy. The ability to obtain instantaneous data flows worldwide, and the digitisation of information have enabled new business models and transformed the composition of trade. The impact of cross-border data flows on gross domestic product (GDP) growth is now larger than the impact of the traditional flow of goods.
The fact that digital flows also underpin and enable every other kind of traditional cross-border flow helps to explain this changing scenario: even when ships carry physical products, customers increasingly retrieve, order, and pay for them online. This is an increasing trend not only in developed countries, but also in developing ones. The significant penetration of mobile phones in the developing world has allowed for the emergence of mobile payments, money transfers, and micro-financing services.
The digitalisation of trade brought about numerous advantages for consumers. It has increased consumer choice, allowed access to different markets, and to less time-consuming online banking and e-payment operations. At the same time, it has created significant challenges for policymakers and regulators, who try to apply existing international trade norms to the context of cyberspace, in which the ‘cross-border’ element is much more fluid.
Through a series of activities, DiploFoundation addresses a practical need: to assist governmental and non-governmental actors to better understand the implications that digitisation and the Internet bring to trade discussions, and to help them reap the benefits of the digital economy. In parallel, the GIP Digital Watch observatory, operated by Diplo, maintains regular updates on e-commerce, taxation, consumer protection and the growth of virtual currencies.
Featured: Digital Commerce Capacity Development: preparing trade professionals for the challenges of the digital economy
The publication presents the thematic approach, methodology, achievements and lessons learned from a capacity development initiative on e-commerce jointly offered in 2017/2018 by DiploFoundation, CUTS International Geneva, the International Trade Centre (ITC), the Geneva Internet Platform(GIP), and delivered with the United Nations Conference on Trade and Development (UNCTAD). The initiative consisted of a comprehensive training programme designed to address a practical need: to assist governmental and non-governmental actors – especially in developing countries and LDCs – to better understand the implications that digitisation and the Internet bring to trade discussions, and to help them reap the benefits of the digital economy.
Current situation and challenges
Policy discussions at the national level, in regional trade agreements and at the World Trade Organization (WTO) reveal a growing interplay between trade and digital policy agendas. The inclusion of digital regulatory aspects in trade negotiations is not necessarily a new phenomenon. Discussions on digital commerce have traditionally touched on online consumer protection, privacy, and authentication – the Organisation for Economic Co-operation and Development (OECD) 1998 framework on e-commerce is an example of this. However, the explicit connection between trade issues and topics of a more technical nature has only recently been established on international and regional levels.
Policy discussions at the national level, in regional trade agreements and at the World Trade Organization (WTO) reveal a growing interplay between trade and digital policy agendas. The inclusion of digital regulatory aspects in trade negotiations is not necessarily a new phenomenon. Discussions on digital commerce have traditionally touched on online consumer protection, privacy, and authentication – the Organisation for Economic Co-operation and Development (OECD) 1998 framework on e-commerce is an example of this. However, the explicit connection between trade issues and topics of a more technical nature has only recently been established on international and regional levels.
In regional and mega-regional trade agreements (RTAs), specific Internet provisions are being included. More than half of WTO members have signed at least one RTA that contains a standalone digital commerce provision. Nowadays, there are 60 RTAs worldwide with embedded standalone digital commerce chapters, along with more than 10 RTAs with digital-trade-relevant provisions in their texts. Among the issues currently included in the RTAs:
- Intermediary liability, a topic which encompasses the legal responsibility of Internet platforms, as well as safe harbours and limitations to this responsibility.
- The balance between personal data protection, privacy, and cross-border data transfers.
- Measures to be taken to control spam.
- Network neutrality as a trade facilitation measure.
- Cyber-espionage.
Discussions on e-commerce at the WTO are taking place in two parallel tracks: the Work Program on Electronic Commerce, from 1998, and the recently started plurilateral negotiations on e-commerce. Under the Work Programme, e-commerce issues are examined in four bodies: the Council for Trade in Services, the Council for Trade in Goods, the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS), and Committee on Trade and Development. The programme currently has no negotiating mandate, but provides a platform for WTO members to discuss and exchange clarifications and official communications.
Because of the increasingly important role that e-commerce plays in the digital economy, some members argued that the WTO could more strongly incorporate e-commerce in its agenda. Accordingly, the 2017 Joint Statement on Electronic Commerce, aimed at starting exploratory talks on the potential negotiation of trade rules on electronic commerce. The members of the Joint Statement Initiative (JSI) announced their intention to start the e-commerce negotiating process in the second Joint Statement of January 2019, launched in Davos.
The negotiation is taking place in small groups, encompassing, for example: enabling issues (e.g. e-signatures, e-authentication), digital trade facilitation (e.g. paperless trade, customs procedures), openness and e-commerce (non-discrimination, data flows, customs duties, access to the internet), trust in e-commerce (e.g. consumer protection, privacy, access to the source code of computer programs), cybersecurity, and telecommunications.
The next important meeting of the WTO will be the 12th Ministerial Conference (MC12), scheduled to take place in Geneva, from 30 November to 3 December. According to the co-conveners of the JSI, substantial progress will be delivered before the MC12. In February 2021, JSI participants finalised negotiations on the issue of unsolicited commercial messages (spam). In April, participants finalised a clean text on e-signatures and authentication. The MC12 will also discuss whether to render the moratorium on customs duties on electronic transmissions permanent or to continue the current practice of temporary renewals.
E-commerce capacity development
Against the background of current challenges, a multidisciplinary approach to capacity development is necessary. Diplo offers a comprehensive training programme designed to assist governmental and non-governmental actors to better understand what digitisation and the Internet bring to trade discussions, and to help them reap the benefits of the digital economy.
The key component of the project is a course on Digital Commerce jointly offered by Diplo, CUTS International, Geneva, the International Trade Centre (ITC), and the Geneva Internet Platform (GIP). Applications for the 2021 edition of the course are open until the 12 of May. Participants will gain the practical skills and information required to discuss specific aspects of digital policy, including:
- cross-border data flows and data localisation,
- e-signatures and authentication,
- online consumer protection and privacy,
- cybersecurity, and
- access to the source code.
The course adopts a ‘just-in-time’ approach, focusing on ongoing digital trade negotiations and policy processes taking place in International Geneva. It will cover discussions on digital commerce in preparation for the 12th World Trade Organization Ministerial Conference (MC12), scheduled from 30 November to 3 December 2021.
Graduation ceremony of the Digital commerce course Jan-Mar 2018
Against the background of current challenges, a multidisciplinary approach to capacity development is necessary. Diplo offers a comprehensive training programme designed to assist governmental and non-governmental actors to better understand what digitisation and the Internet bring to trade discussions, and to help them reap the benefits of the digital economy.
The key component of the project is a course on Digital Commerce jointly offered by Diplo, CUTS International, Geneva, the International Trade Centre (ITC), and the Geneva Internet Platform (GIP). Applications for the 2021 edition of the course are open until the 12 of May. Participants will gain the practical skills and information required to discuss specific aspects of digital policy, including:
- cross-border data flows and data localisation,
- e-signatures and authentication,
- online consumer protection and privacy,
- cybersecurity, and
- access to the source code.
The course adopts a ‘just-in-time’ approach, focusing on ongoing digital trade negotiations and policy processes taking place in International Geneva. It will cover discussions on digital commerce in preparation for the 12th World Trade Organization Ministerial Conference (MC12), scheduled from 30 November to 3 December 2021.
Graduation ceremony of the Digital commerce course Jan-Mar 2018
While completing the Digital Commerce course, the participants benefit from:
A multidisciplinary knowledge of course partners and faculty, with extensive experience in the fields of international trade, digital policies, and Internet governance.
An innovative methodology, beyond a typical training course, allowing them to:
- remain ‘on-the-job’ during the course;
- immediately apply new knowledge in the daily routines;
- bring the challenges and questions faced at work to class discussions; and
- benefit from the faculty members' experience and mentoring.
In 2021 the course will be conducted entirely online, and will be offered to:
- Diplomats from developing countries and LDCs who follow digital trade negotiations, in particular those based in Geneva.
- Staff from developing countries and LDCs working at trade-related international organisations.
- Capital-based officials and policy-makers from developing countries and LDCs, in particular those responsible for developing national policies on digital trade.
Feedback from course participants can be found in this video.
Capacity development portfolio of activities
Course on Digital Commerce
Four editions of the course have been delivered by partner organisations between 2017 and 2019. The United Nations Conference on Trade and Development (UNCTAD) took part on the delivery of the first three editions.
- First edition (May‒June 2017): A six-week blended learning course, combining online and face-to-face interaction, was offered to Geneva-based diplomats and e-commerce practitioners.
- Second edition (September‒November 2017): An eight-week course was conducted entirely online, offered to capital-based officials, policymakers, and non-governmental actors from developing countries and least developed countries (LDCs).
- Third edition (January‒March 2018): A six-week blended learning course was offered to Geneva-based staff from the permanent missions of developing countries and LDCs.
- Fourth edition (October‒December 2019): A eight-week blended learning course, combining online and face-to-face interaction, was offered to Geneva-based diplomats and e-commerce practitioners.
Graduation ceremony of the Digital commerce course Jan-Mar 2018
Webinars
Webinars are an excellent way to share knowledge and to allow interaction between participants and experts in the field. In 2017, two webinars on digital commerce were offered. The first was organised by way of a partnership between two members of the eTrade for All initiative: Diplo and the e-Residency programme in Estonia. It focused on how e-Residency can facilitate access to global markets by enabling the establishment of an EU company. The second webinar discussed blockchain and virtual currencies, and how they impact digital commerce.
The recordings of the webinars can be found in the multimedia section.
Online publications
A series of online publications on aspects related to digital commerce, providing an overview of international discussions on this issue, were published online. They were widely publicised through social media, contributing to raising awareness and disseminating knowledge on digital commerce. In order to see the list of available publications, please visit our section on research and publications.
Course on Digital Commerce
Four editions of the course have been delivered by partner organisations between 2017 and 2019. The United Nations Conference on Trade and Development (UNCTAD) took part on the delivery of the first three editions.
- First edition (May‒June 2017): A six-week blended learning course, combining online and face-to-face interaction, was offered to Geneva-based diplomats and e-commerce practitioners.
- Second edition (September‒November 2017): An eight-week course was conducted entirely online, offered to capital-based officials, policymakers, and non-governmental actors from developing countries and least developed countries (LDCs).
- Third edition (January‒March 2018): A six-week blended learning course was offered to Geneva-based staff from the permanent missions of developing countries and LDCs.
- Fourth edition (October‒December 2019): A eight-week blended learning course, combining online and face-to-face interaction, was offered to Geneva-based diplomats and e-commerce practitioners.
Graduation ceremony of the Digital commerce course Jan-Mar 2018
Webinars
Webinars are an excellent way to share knowledge and to allow interaction between participants and experts in the field. In 2017, two webinars on digital commerce were offered. The first was organised by way of a partnership between two members of the eTrade for All initiative: Diplo and the e-Residency programme in Estonia. It focused on how e-Residency can facilitate access to global markets by enabling the establishment of an EU company. The second webinar discussed blockchain and virtual currencies, and how they impact digital commerce.
The recordings of the webinars can be found in the multimedia section.
Online publications
A series of online publications on aspects related to digital commerce, providing an overview of international discussions on this issue, were published online. They were widely publicised through social media, contributing to raising awareness and disseminating knowledge on digital commerce. In order to see the list of available publications, please visit our section on research and publications.
Just-in-time reporting from e-commerce events
Diplo and the Geneva Internet Platform provide just-in-time reporting from key digital commerce-related events, such as the UNCTAD e-commerce week and the WTO Public Forum. This has enhanced the accessibility of discussions taking place in Geneva, in accordance with sustainable development goal number 16 on, ‘peace, justice and strong institutions’, supporting the following targets, in particular:
Diplo and the Geneva Internet Platform provide just-in-time reporting from key digital commerce-related events, such as the UNCTAD e-commerce week and the WTO Public Forum. This has enhanced the accessibility of discussions taking place in Geneva, in accordance with sustainable development goal number 16 on, ‘peace, justice and strong institutions’, supporting the following targets, in particular:
- Develop effective, accountable and transparent institutions at all levels;
- Ensure responsive, inclusive, participatory and representative decision-making at all levels;
- Broaden and strengthen the participation of developing countries in the institutions of global governance.
Diplo's membership in the eTrade for All initiative
The eTrade for all initiative uses a multistakeholder approach to connect the dots between beneficiary countries, partners, and donors to enable more businesses and people to benefit from e-commerce. At the heart of the initiative is the eTrade for all online platform. This information hub helps developing countries navigate the wealth of technical and financial services they can use to drive development through e-commerce. Through the platform, countries can connect with potential partners, learn about trends and best practices, access up-to-date e-commerce data, and be informed about upcoming e-commerce events. Diplo is one of the members of the eTrade for All initiative, making resources related to capacity building and the development of skills available.
The eTrade for all initiative uses a multistakeholder approach to connect the dots between beneficiary countries, partners, and donors to enable more businesses and people to benefit from e-commerce. At the heart of the initiative is the eTrade for all online platform. This information hub helps developing countries navigate the wealth of technical and financial services they can use to drive development through e-commerce. Through the platform, countries can connect with potential partners, learn about trends and best practices, access up-to-date e-commerce data, and be informed about upcoming e-commerce events. Diplo is one of the members of the eTrade for All initiative, making resources related to capacity building and the development of skills available.
Events
Diplo & GIP at the UNCTAD E-commerce Week
Diplo & GIP at the WTO Public Forum 2017