World Trade Organization

The session was moderated by Ms Latifa Elbouabdellaoui (Directeur des Relations Commerciales Internationales, Ministère de l’Industrie, de l’Investissement, du Commerce et de l’Economie Numérique, Royaume du Maroc), who started by introducing the panellists. She said that there is a lack of infrastructures and digital skills in Africa. According to her, new technologies are present, but there is still so much to be done towards the development of the continent. In addition, Elbouabdellaoui said that when it come to digital trade, Africa is the least integrated continent. She argued that African countries must invest in education and digital infrastructures for better competitiveness.

Ms Marion Jansen (Chief Economist, International Trade Center (ITC) started by going through the ITC report, ‘SME Competitiveness Outlook 2018: Business Ecosystems for the Digital Age’. She talked about platform revolution and said that we are entering a new era of digital platforms. She pointed to the challenges and opportunities that this creates for small and medium-sized enterprises (SMEs). Jansen said that the information and communications technology (ICT) infrastrucure remains quite important for digital trade and that there are still many people offline, in places such as Nigeria, India, etc.

Jansen gave the example of Rwanda integrating ICT into logistics services, by using drones to deliver medicine. She noted the importance of building trust in the digital economy. According to her, big data has a great role to play in helping SMEs. She said that there is a need for a plan of action and for education in order to move rapidly into the digital age. In response to a question from the moderator, she emphasised the importance of the interoperability of technology. Finally, she talked about the issue of privacy and cybersecurity of enterprises. According to her, the key point for the SMEs is to have trust.

Mr Ajay Kumar Bramdeo (Ambassador, Permanent Representative of the African Union to the United Nations and other Geneva-based Economic Organizations) started by thanking the moderator. He highlighted the African Continental Free Trade Area (AfCTA) signed last March in Rwanda. He argued that Africa needs to integrate itself into the gobal digital market soon, as it would bring so many opportunities to the continent.

Furthermore, Bramdeo asked how we can shape the challenges of the digital economy to address the issues of development. According to him, four African countries (South Africa, Tunisia, Egypt, and Marocco) count for more than 80% of the exports. He emphasised the potential of e-commerce in increasing the competitiveness of the private sector, creativity, etc. He said that the integration of African countries in digital trade would help reduce poverty. In addition, he said that there is a need for co-operation between public authorities, the private sector, and international organisations.

Bramdeo pointed to issue of legislation when it comes to regulating digital trade. He said that it is often an obstacle to innovation. He also highlighted the role of the African Union in facilitating partnership between countries. Finally, he stressed that ownership of data is a big issue in digital trade in Africa.

Mr Diego Aulestia (Ambassador and Permanent Representative of Ecuador to the WTO and other economic organizations based in Geneva) asked what the context of digital trade in developing countries, such as Ecuador, was. He said that the benefits of digitalisation will not be automatic and that there is a need for economic growth, productivity, jobs, and transformation in international trade. How asked how developing countries could increase their share of the profits.

In addition, Aulestia noted that 57% of enterprises use a digital signature. He said that there are three major challenges: investment, regulation, and industrial policy. He further explained the development implications of e-commerce, for example, the transfer of technology, access to infrastructure, etc. Moreover, he mentioned that there is a need for digital capabilities, data sovereignty, industrial policy, tax policy, and articulation with manufacturing activities, etc.

Finally, he talked about the Agenda Elac2020 : improving digital infrastructure, digital government, regional digital market, etc. He said that Latin America, as a region wants more co-operation, for example, ‘South-South cooperation and Triangular’.

The event was organised by TechUK and addressed the rise of data flows, and technologies like additive manufacturing (3D printing) and their implications for global trade. The meaning of trade is changing, due to the evolution of cross-border data flows, worth trillions to the world economy, and the expectation of the global additive manufacturing market to grow rapidly through 2030. Developments in this field are challenging the notion of who is adding value, and where the value is added. Moderated by Mr Stuart Harbinson (Senior Consultant, Hume Brophy) the event was featured by a panel discussion.

The first panellist H.E. Andrew Staines (Ambassador and Deputy Permanent Representative, UK Mission to the UN and Other International Organisations, Geneva), talked about the trends of the last two decades. He argued that the expansion of service industries, in addition to the shift from analogue to digital, has created more intangible assets in the economy. Moreover, this shift has been characterised by a geographical shift, from the West to the East. As a result, there is an increase in waves of returns in intangible assets. He further added that latest trends have been affected by the fourth industrial revolution, the increased utilisation of data, and by the evolution of new technologies such as Internet of things (IoT), 3D printing, and others. Focusing on the UK, he argued that innovation is the foundation for competition in a revolutionised world of manufacturing. He concluded that in order to address challenges, rules need to be adapted to new scenarios, tackling issues such as freedom of data flows, and data tariffs.

The second panellist Mr Carlos Halasz (Customs Compliance Officer, Global Trade, HP Inc), gave an overview of the global manufacturing sector, which is becoming increasingly automatised. He explained that China has recently became the largest manufacturing hub in the world, while 15% of the EU's total added value comes from the manufacturing sector. With this regard, despite the slowing down trend in recent years, manufacturing continues to shift and centralise in specific regions of the globe. Halasz used the example of 3D printing, which was initially used for prototypes in its beginning stages, is being used for mass production since 2015. The technology is becoming more efficient and less expensive, therefore 3D printing has the potential to be as competitive as traditional manufacturing in the future. He concluded by stressing the importance of the sustainability of 3D technologies, which must able to produce goods without creating waste.

The third panellist Ms Karishma Banga (Senior Research Officer, ODI), focused on Africa, the challenges, and opportunities created by new technologies. She argued that the third industrial revolution created a wave of premature de-industrialisation in developing countries. With regards to the use of new technologies for manufacturing in developing countries; she pointed to an important digital divide that persists, for instance in the use of robotics and 3D printing capabilities. The impact of digitalisation in African countries is lower compared to global statistics. In terms of challenges, African countries are facing issues related to, reshoring activities; the limited future for offshoring; new goods and their related data being increasingly linked to pre-manufacturing; and the slow-down of convergence in manufacturing labor productivity. In terms of opportunities, they can benefit from the lower costs of production, trade and co-ordination, allowing participation in global value chains; and improvements in productivity that boost outputs, exports, jobs, and value. Finally, she concluded with a few recommendations to increase African countries’ competitiveness. There is a need to continue to boost traditional manufacturing, while at the same time, it is crucial to start the digitalisation of such manufacturing. In addition to this approach on traditional manufacturing, actions must be taken related to digital manufacturing, such as investments in Internet and digital technologies, and targeted skills development.

The final panellist was Mr Antony Walker (Deputy CEO, techUK) who gave a policy expert insight on the topic. He argued that the WTO agenda still uses the term e-commerce, despite the fact that the fourth industrial revolution has went way beyond that. He stated that discussions are inevitably politicised, and this could be found in the term revolution that implies dramatic changes, as well as winners and losers. Such discussions cover issues of privacy, children safety online, use of public data, artificial intelligence, and employment to cite a few. With this regard, he stated that while considering the potential to open up to new markets around the world, the aforementioned topics and concerns should be considered. Finally, he concluded by saying that there is a need to embrace the change, and that 'the old model is no longer applicable'.

Moderated by Ms Sanya Smith (Legal Advisor, Third World Network), the session explored 'the implications of the services domestic regulation disciplines being proposed at the World Trade Organization (WTO) in the context of rapidly evolving technology and technology enabled trade’.

The ongoing negotiations on domestic regulation disciplines relate to the General Agreement on Trade in Services (GATS) and the decision on domestic regulation, which ‘call upon WTO members to develop any necessary disciplines to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures do not constitute unnecessary barriers to trade in services’. In other words, the current debate is about, to what extent domestic regulations pose unnecessary barriers to trade; and if proposed domestic regulation principles ensure domestic regulations do not impose stricter rules than necessary.

Ms Vahini Naidu (Foreign Economic Representative, South African Permanent Mission to the WTO), underlined the importance of exploring the implications of the proposed domestic regulation principles. She detailed qualification requirements and procedures, technical standards, and licensing requirements and procedures, in this context. Typically, these stipulate what a foreign service provider needs to do in order to establish itself in a given market. The argument by proponents of the domestic regulation disciplines, is that domestic rules should be reasonable, and should not unduly impair the provision of services by foreign providers. Naidu pointed out that this debate concerns all levels of government, and can potentially impact the past and future of domestic regulations. She raised concerns that governments would be constrained in their ability to regulate, while domestic priorities and national objectives could also be constrained. The proposed domestic regulation disciplines would remove considerations for unique circumstances of each country. There are also fears that the future of domestic policies and developments would be severely constrained, especially in light of new technological developments. Naidu alluded that this might make it very difficult for African countries to catch-up, and make it even harder to move away from being consumers of emerging technology, to being producers.

Mr Parminder Jeet Singh (Executive Director, IT for Change), pointed out that proponents often argue that domestic regulation disciplines do not deal with substance, but only with structure. Yet, structure often becomes substance. He explained that the proposal mentions 'objective' and 'transparent' approaches, however, only in relatively stable contexts and worldviews, these keywords are attainable. Singh argued that in times of fundamental change such as these, there can be no creation of a reasonable global worldview. He argued that the digital revolution has the same level of impact as the industrial revolution, and the impact of digital technologies are being felt in all sectors. This means that domestic regulations need to be flexible and adaptable to changing circumstances. The proposed domestic regulation disciplines can prevent this. Singh was concerned by the fact that, when domestic approaches are compared to emerging global standards, many issues under domestic regulation principles may be found unreasonable.

Mr Andrew Cornford (Counsellor, Observatoire de la Finance), talked about his work as part of the United Nations Conference on Trade and Development (UNCTAD). This included, the Uruguay Round of multilateral trade negotiations in the late 1980s and early 1990s, and the Basel Accords (Basel II and III), dealing with banking regulation and standards.

The moderator, Mr Eloi Laourou (Ambassador, Permanent Mission of Bénin in Geneva), started the session by stressed that a lot needs to be done to support small and medium sized enterprises (SMEs) in least developed countries (LDCs), and that the benefits of supporting local communities and countries are substantial.

Ms Elodie Akotossode (FounderEd Tech Women and Ed Tech Academy) described her personal story of advancing her knowledge regarding new technology. However, she also noticed a lack of women in the field, and decided to establish an organisation to address this gap. The trainings offered have a local focus, are geared towards small vendors, aiming to enable them to make the most of their online presence. Trainings include web design, building online shops, product presentation, and logo design, among other topics. Akotossode stressed the need for personalised training, starting by identifying the needs on the ground in order to tailor the training as much as possible; she emphasised the importance of empowering women to make the full use of technology in order to avoid being left behind.

Mr Denis Deschamps (General-Director, Conférence permanente des chambres consulaires africaines et francophones (CPCCAF)) began by describing the work of the organisation. The standing conference aims to be a space for sharing experiences and information among member countries. The CPCCAF provides support for economic development and the business sector in member countries. It aims to foster partnerships among African countries and beyond. Deschamps explained that the CPCCAF also works with SMEs, in particular related to topics in communication and information technology (ICT). He stressed that Africa has the potential to leap forward using new technologies, such as drones and geo-tracking, and emphasised that the first goal behind these efforts has to be to feed people and contribute to their subsistence. The key, according to Deschamps, is to provide adequate content that meets the needs of people, and information that enables entrepreneurship, since there is no development without information.

Mr Carlos Foradori (Ambassador, Permanent Mission of Argentina in Geneva) highlighted that there are challenges as well as opportunities when it comes to technology and SMEs in LDCs. Challenges include the fact that LDCs have low Internet penetration rates, lack of communications infrastructure, high administrative costs for businesses (that want to take advantage of global markets), and lack relevant skills. However, he stressed that e-commerce and new ICTs also generate new opportunities. He mentioned the Global Trade Help Desk, and the Foreign Trade Information Centre as examples that try to empower SMEs in developing countries, allowing them to take advantage of e-commerce opportunities and global markets.

Ms Arancha González (Executive Director, Centre du Commerce International (ITC/CCI)) argued that it is time that LDCs move from being consumers to becoming producers of technology, technology needs to be a lever of development. González argued that technological innovation and digital progress is not only for the Global North, the Global South also has best practices that illustrate the incredible speed of transformation taking place. Institutions that focus on trade and investment promotion have an important role to play to transform big data to knowledge, and provide user-friendly intelligence based on big data, ‘big data for small businesses’. González stressed that it is crucial to zoom in on the ecosystem required for people in the Global South to participate meaningfully in e-commerce and make the most use of available technology. She argued that it is important to investigate difficulties faced by enterprises, to become more effective globally. Ultimately, the key, according to González, is to connect SMEs to digital markets.

The session on digital trade was organised by the Confederation of Danish Industry (DI) and was moderated by Mr Peter Bay Kirkegaard (Senior Adviser, Confederation of Danish Industry (DI)). The session explored the rise of digital trade and the counter-evolution of digital protectionism, which is currently being observed by specialists. While digital trade increases productivity and provides better market access for small and medium sized enterprises (SMEs) on global markets, it also raises a range of concerns with regard to data security, privacy, and tech monopolies. In the absence of international rules to handle these issues, countries worldwide have introduced digital trade barriers hampering digitalisation and international trade. This is why governments and organisations increasingly demand multilateral rules that provide transparent and stabile regulation of digital trade.

Kirkegaard introduced the session by providing examples of businesses which are part of the DI, Denmark’s biggest confederation, which is privately owned, and showcased how data collected in one place of the world is being processed in another, in order to manufacture tailored products for their customers. He explained that certain members of the confederation voiced concerns about the evolution of the digital agenda in light of countries adopting more protective measures on data transfers and data localisation that could harm their business models. He mentioned that clients are in favour of international trade rules and that these same clients were also in favour of the EU’s General Data Protection Regulation (GDPR) because it enhanced consumer trust in their products and services.

Mr Erik Van der Marel (Senior Economist at ECIPE) and his team created an indicator for digital restrictiveness in trends, and spoke about the rising trend of digital trade policies. In general, it could be observed that information and communications technology (ICT) services have grown much faster than trade in goods and commodities. Additionally, he mentioned that many sectors are not digital but are undergoing digitalisation. The importance of data across all sectors is also reflected in a McKinsey study which shows that the contribution of data to global GDP already surpasses that of goods, and its impact will keep increasing with the rapid deployment of artificial intelligence (AI) enhanced technologies.

The indicator also identified privacy and data protection as well as data localisation policies as being most restrictive for trade. As observed by Van der Marel, data policies, especially policies regulating cross-border flows, are rising. However, the economist noted that according to their findings, countries with more restrictive data cross-border flow regulations are benefitting less from digital trade. In order to overcome these challenges, the panellist mentioned the importance of multilateral rules and the creation of an enabling environment for digital trade, particularly with regards to developing countries.

Mr Pascal Kerneis (Managing Director at ESF) acknowledged that certain countries are in need of the most basic infrastructure for companies to have a chance of prospering in digital trade. These needs range from a continuous power supply to road infrastructure, and are not only the basis for digital trade, but trade in general. To that, he added, legal frameworks and access to finances are essential.

He further stated that 'digital trade is about services' and that 'data is a service', given that trade in general could not operate without the varous data produced, starting from the ICT infrastructure required to operate transactions, to the information analysis which is based on benchmark results.

Kerneis reminded the audience of the WTO’s precursory role in 1998 when it adopted a programme on electronic commerce and said that no progress had been made since. He is therefore in favour of the joint initiative on electronic commerce that 71 sates pledged to during the Buenos Aires round of negotiations, and would allow willing countries to move forward with an agreement on e-commerce. In that context, he also encouraged negotiators to look into free trade agreements that already adopted provisions on digital trade and data flow principles, such as the agreement between the EU and Canada (CETA), the EU and Japan (EPA), and the newly negotiated USMCA. According to Kerneis, localised data would prove to be an extremely costly solution that would only increase costs for consumers and businesses alike.

Frank Matsaert (CEO, Trademark East Africa) spoke about the transformative power of digitisation for trade, which creates a robust inclusive and sustainable operating framework for trade besides the creation of innovate disruptive models of operations. It also introduces data-driven, and automation-enabled trade systems and procedures. Additionally, Matsaert mentioned the redefinition of geospatial differences and the blurring of physical borders as results of these transformative powers.

According to Matsaert, the downside of these developments is the risk of increasing the digital divide due to many sectors of the economy in developing countries being weak and informal. In these contexts, alternative technologies are often accompanied with cybersecurity risks or cannot be supported effectively due to the lack of infrastructure. He also mentioned the lack of appropriate legal frameworks as being a limit to regional cross-border trade, for example due to restrictions imposed on cross-border money transfers. He therefore identified the risk of developing countries being locked into commodities and labour sectors of trade.

He further said that in order to avoid the digital divide becoming a permanent situation, solutions must be found to incorporate informal sectors into digital trade. Herein, he identified regional and shared regional capacities as being a good way forward. Bilateral agreements, especially on money transfers across borders, could also alleviate the situation. Additionally, Matsaert explained that incorporating these sectors would also increase efficiency and help reduce corruption.

Dr Burcu Kilic (Legal and Policy Director at Public Citizen, Access to innovation, Knowledge and Information Program) pointed out that data should be analysed differently than regular commodities, given that it is created and produced by us, and often comprises sensitive information about our lives. This is particularly important as 'whoever controls our data, controls the future', in particular with the rise of automation and AI.

Kilic explained that we find ourselves in a similar situation as with the first emergence of personal computers. People understood that great changes and technological disruption was to come, but nobody was able to fully understand and foresee how this technology would affect their lives. In this context, AI might be the next big disruption that we cannot fully understand and whose effects on our everyday lives we cannot forsee.

She further noted that 'your rights do not flow with the data' and warned that cross-border flows of data do not sufficiently ensure the protection of privacy. She therefore spoke about the necessity of governments aligning to increase consumer protection and of the need for trade decision-makers to incorporate consumer protection frameworks in future agreements.

The moderator of the session, Mr Rajeev Kher (Distinguished Fellow, RIS), assessed that developing countries are currently at a disadvantage in the digital economy, due to the lack of capacity and access to technology. He emphasised some of the challenges that countries face with the increasingly important role of platforms; the rising value of data; the difficulty to clearly define concepts which are relevant for competition policy and law, such as the relevant market; and pricing challenges in the context of network externalities.

Ms Rashmi Banga (Senior Economic Affairs Officer & Officer-in-Charge, Unit of Economic Cooperation and Integration among Developing Countries, UNCTAD) spoke of key findings from the ‘Trade and development report 2018: power, platforms and the free trade delusion’. According to her, trade is increasingly concentrated in the hands of big firms, which have become leaders in global value chains (GVCs). Capital share and profit are rising, but labour share is falling, even in developed countries. This will contribute to more social inequality in the future. Network effects will create ‘super platforms,’ strengthened by data that is given to them for free. If there is no competition regulation, the potential benefits for developing countries will be reaped by large platforms in reality. Competition policy has been historically introduced to protect consumers, but currently, it should protect and preserve market structures. Banga recognised that some countries do not have the capacity to economically explore their own data. Against this background, UNCTAD is proposing a ten-point progressive South-South Digital Cooperation for Industrialization: A Regional Integration Agenda. She warned that economic divides could widen in the future, if developing countries do not get access to digital capacity and infrastructure.

Ms Vahini Naidu (Foreign Economic Representative, South African Permanent Mission to the WTO in Geneva) emphasised that the digital economy and e-commerce are highly asymmetrical. The ‘winner takes most’ or ‘winner takes all’ dynamics and network effects benefit first-movers and standard-setters. She mentioned that there are voids in legislation and oversight, sharing insights from the African context. In South Africa, the impact of disruptive technologies, such as over-the-top technologies (OTT), can be felt in sectors like broadcasting, and there is a tendency of ‘replacing' or ‘displacing’ traditional industries by making them redundant, as the example of Uber shows. She opined that initiatives to regulate tech giants, put in place in the EU for example, are positive, but would be out of reach for smaller African countries. She concluded that the debate at the WTO needs to be refocused on how to promote development.

Mr Ansgar Koene (Senior Research Fellow, Horizon Digital Economy Research Institute at University of Nottingham) addressed the potential that algorithms and machine learning have to influence market behaviour. Algorithms make it hard to identify collusion, for example. Third party sellers use algorithms to set the prices they charge on Amazon.com, which can produce characteristics of undue coordination. Negotiations at the WTO, such as forbidding forced access to the source code, should not negatively hamper measures taken to enhance the transparency of algorithms as a side effect. Koene mentioned various examples of discrimination that reveal historical bias embedded in datasets. He also alerted for the dangers of ‘code reuse’ by programmers. Reuse multiplies the sneaky introduction of bugs and vulnerabilities that can span across different products.

Mr Abhijit Das (Head, Centre for WTO Studies, India) focused on anti-competition and market-distorting practices; using big discounts given by platforms; financial assistance provided by platforms to vendors; and platforms determining some strict conditions to vendors, such as the use specific packaging, as examples. Some practices could be tackled by current competition law, while others would require an update in competition law.

Das mentioned that innovators in India suffer when they refuse to sell their businesses to large tech companies. These companies usually provide start-ups with non-expensive access to data and cloud services, but withdraw their support if start-ups refuse to sell.

Questions were asked from the floor on the role of competition authorities, the ways in which the WTO could tackle digital monopolies and competition, and the possibility to consider some digital resources as ‘public commons’, which could be used by different players, even if they are competitors.

Banga opined that in a scenario of uncertainty, countries should not abide themselves by new rules; they should preserve their policy space and first try to understand the effects of platforms and the digital economy on markets.

Naidu mentioned she was not aware of work that has been done at the WTO on digital competition. Proposals tabled by member states in the context of the plurilateral discussions on e-commerce have not included competition issues.

Koene agreed that there is need for a mapping of the elements that should be considered public utilities in the digital space.

The workshop was organised by the Permanent Mission of the Islamic Republic of Afghanistan to the WTO, and the Economic Research and Statistics Division of the WTO. It addressed the post-2009 financial crisis that left developing countries with persistent and large trade finance gaps, and aimed to discuss the eventuality of new technologies such as e-payments, blockchain, fintech, and helping bridging the gaps.

Moderated by Mr Marc Auboin (Counsellor, Economic Research, WTO and Secretary, WTO Working Group on Trade, Debt and Finance), the session was introduced by Mr Mohammad Q. Haqjo (Ambassador and Permanent Representative of the I.R. Of Afghanistan to the WTO, Chairman of the WTO Working Group on Trade, Debt and Finance). He structured his speech around two key areas: the reasons behind the discussions on trade and finance in the WTO; and the role and mandate of the Working Group on Trade, Finance and Debt. First, he explained the reasons behind the trade, finance and debt discussions at the WTO. There is a deep interlink between trade and finance; 8% of today’s global trade has been financed through financial institutions. At present, everything is divided and institutionalised to facilitate trade, including for those struggling in accessing finance. Second, he talked about the Working Group on Trade, Finance and Debt which was established at the ministerial meeting in Doha, with the aim of studying how trade can best contribute to solving the problems of debt and finance. The group is currently focusing on ways to address the financial gap in developing countries, due to the following problematic variables: 60% of rejections in accessing finance are to small and medium sized enterprises (SMEs), moreover, banks have decreased their presence worldwide, creating a financial service gap, while regulations have become stricter, decreasing bank-to-bank transactions and relations. As a result, less money has been exchanged. The market is only for local banks, however, local banks in developing countries are lacking in human and institutional capacity. With this regard, he explained how a dialogue platform with private banks has helped in providingé loans for developing countries, and to the efforts put in place by the WTO in training professionals in 85 countries worldwide. Finally, he stated that the knowledge gap and digital divide are still the main obstacles in front of the implementation of technology for trade finance.

The second panellist, Mr Jean-François Lambert (Chief Executive Officer, LambertCommodities Inc.), talked about challenges small businesses in developing countries face. He shared his concerns regarding the capacity gap of local banks in providing access to finance. He argued that the trade gap persists as well, since currently the main lending activities are made to the same big companies, stating that 'banks have forgotten big parts of the world'. Moreover, he continued by saying that large banks do not want to take the risks and responsibilities that come with supporting local banks, and that political instability present in certain developing countries could also be a factor. Concluding his speech, he expressed his view saying that the current obstacles and challenges are not only represented in the financial gap, but also by a cultural gap.

The third panellist Ms Michelle Chivunga Nsanzumuco (Regional Advisor, British Blockchain Association; Executive Education Manager, University of Surrey Business School), addressed the topic of bridging the financial gap with new technologies, especially blockchain. The opportunities that blockchain creates are strictly related to the concept of creating value. She argued that blockchain is an enabling technology for everyone: it allows people to create their own value, such as M-Pesa did in Kenya; opening the market to local people; providing identity to people, and SMEs with digital identities, allowing them access to the market. Finally, she stated that despite the fact that blockchain is in its initial stages, there are significant uses already in place, and the way business is done will be increasingly affected by such technology.

The fourth panellist, Mr Vinay Mandonca (Global Head of Products, HSBC Trade and Receivable Finance), expressed the need for a paradigm shift in the way credit is assessed. The digitalisation of transactions through blockchain has positive effects on credits assessment, as 'visibility is a proven point'. He argued that it comes down to the concept of transparency of flows. Consequently, a question could be raised: Who is going to share the information, and with whom? In this context, blockchain represents a good opportunity because it does not require a database, and utilises decentralisation and democratisation for all processes. It creates the possibility of having a network of networks. Singapore’s new National Trade Platform is already using blockchain and benefiting from it.

The final panellist, Ms Emmanuelle Ganne (Counsellor, Economic Research, WTO), briefly commented on the points raised during the discussion. She argued that blockchain can be extremely helpful in building trust between actors, and providing more accurate traceability. However, traditional trade finance has not yet completely moved to the application of such technologies. With this regard, Ganne stressed two main points. First, blockchain technology guarantees the information that has been uploaded, but it does not guarantee the authenticity of such information. Second, is the question of interoperability; there are various blockchain technologies that are not interoperable with each other. Blockchain works best when the information is shaped through the same model.

After this overview of blockchain technology, she addressed the topic of new technologies enabling traders to move to a peer-to-peer model, without engaging with a bank. She argued that there are already fintech that leverage technology, and help SMEs to build their trade history; however, despite the new opportunities that technology creates, we are still trying them with the aim of benefitting from the intrinsic characteristics of such technologies.

Chaired by Mr Marcos Troyjo (Director, BRICLab Columbia University), the panel discussed options to better equip trade negotiators to represent their countries’ interests and level the global playing field at various trade negotiation tables. It explored opportunities for trade curators to interact with technology leaders for the development of trade-related artificial intelligence (AI tools). In particular, the panel discussed the Cognitive Trade Advisor (CTA), a new tool in the area of AI-powered tools for (trade) negotiations that comes out of the work of the Intelligent Tech & Trade Initiative (ITT).

Mr Daniel Feffer (Chairman, ICC Brazil) emphasised that developing countries still face inequalities at trade negotiation tables. Since increased trade means increased prosperity, it is crucial that these countries step-up their efforts and that other countries intensify their efforts to support them. Feffer argued that if we are observing the advances in AI, and in particular the contributions that IBM Watson, an AI platform, was able to make in the field of medicine, we also need to wonder how AI can support the work of negotiators, especially in the field of trade. Feffer described how the CTA was developed as a prototype. IBM Watson was taught to ‘read’ trade agreements and to be able to answer queries from trade negotiators. The intention is that trade negotiators can save time on research and spend more time on building the agreements. With this kind of augmented intelligence, Feffer argued, better trade deals and win-win solutions have become more achievable.

Mr Bonapas Onguglo (Head of Trade, Analysis Branch, UNCTAD) argued that it is important to encourage the UN to use new technologies. He pointed out that trade and technology are a catalyst for the sustainable development goals (SDGs) and that AI needs to be explored in this context in particular, as far as it allows developing countries to benefit. Countries need a permanent supporting mechanism for trade negotiations in order to level the playing field when financial and human capacities are insufficient. Trade negotiators in particular face the challenge of having to be aware of a vast amount of technical details within complex agreements that can often span more than a thousand pages. Similarly, the institutional memory of past negotiations needs to be preserved in cases where negotiators often change. AI can be a factor in addressing these challenges.

Ms Ana Lizano (Counsellor, Permanent Mission of Costa Rica to the WTO) brought her perspective as a negotiator to the table. In terms of trade negotiations, she observed a fast evolution and continuous disruptions by technologies such as blockchain and AI. She argued that new technology can play a big role in finding better trade agreements, automating ports and borders, reducing shipping costs, and increasing bilateral trade. In terms of negotiation support, AI-powered tools, she argued, can present suggestions and scenarios to enable humans to make better decisions. She also raised potential points for consideration, such as preserving the knowledge of experienced negotiators, engaging in meaningful public private partnerships, and designing new tools collaboratively and making them available to the wider WTO-membership.

Ms Julia Seiermann (Associate Economic Affairs Officer, UNCTAD) emphasised the need for levelling the playing field between developed and developing countries, and to work towards greater equality. Technology can help with this, but there is also the danger of exacerbating existing inequalities. There is a need to address the lack of resources, especially on the side of small and developing countries. The CTA could save resources and enable a more productive use of existing ones for trade negotiators and countries. The key, according to Seiermann, will be to make the technology and the data available to everyone and to tackle areas where data is lacking. Lastly, Seiermann emphasised that it will be up to humans, not machines, to decide which outcomes – such as trade, economy, or tackling inequalities – should be the main focus.

Mr Gabriel Petrus (Executive Director, ICC Brazil) argued that technology can build trust in the multilateral system of trade negotiations by addressing the lack of transparency (through public and open source tools). It can help in the reform of the WTO and enable a new kind of trade negotiation. The CTA is a tool that uses advances in AI to increase the productivity of trade negotiators. Petrus pointed out that the tool is useful in helping negotiators prepare better, building better strategies, and saving time in preparation and research for the negotiations. At the moment, the CTA focuses on so-called 'rules of origins' in the trade treaties, but there are plans to extend the tools to other areas with high relevance for trade negotiations. Petrus also stressed that the tool is ultimately always shaped by human intelligence.

Additional comments provided by Ms Lucia Maduro focused on the need for modernising the rules of origin within MERCUSOR. She argued that the CTA can be a useful tool in tackling the challenge of complexity and to ultimately develop a new model for rules of origin in trade treaties. Ms Sandra Rios pointed out that the benefits of the tool need to be clear, as well as the ambitions with regard to the scope of the tool. She emphasised that the tool itself does not provide results, but that it can help in levelling the playing field. Mr Nikolaus Schultze stressed that the CTA can be a big help for developing countries with smaller negotiation teams.

Questions raised during Q&A included: Who controls the data and who owns the data? Is the source code publicly available? Given that there is a fundamental problem with trust in algorithmic decision-making, does this make the tool potentially untrustworthy or unreliable?

The moderator of the session, Mr Pascal Kerneis (Managing Director, ESF), highlighted the issue of the rules of the e-commerce multilateral initiative. He stated the need for a commitment from the member states of the WTO, and flexibility on e-commerce debates.

Mr Alvaro Cedeno Molinari (Ambassador and Permanent Representative of Costa Rica to the WTO) noted the historic journey of e-commerce, starting with the WTO's Work Programme on E-commerce that was launched in 1998, and the impact the Nairobi Ministerial conference (MC11) had on e-commerce initiatives in 2015. He also higlighted the goals of the e-commerce multilateral initiative, which are skills and capacity development in ICTs and e-commerce.

Molinari emphasised the fact that small and medium-sized enterprises (SMEs) have major challenges, and said that e-commerce is going beyond the electronic transaction services. He mentioned that although the same language is being spoken during discussions on e-commerce, the true problem lies in the lack of implementation of the decisions taken. According to Molinari, developing countries do not need to go though the same long journey taken by developed countries. He concluded by mentioning that facilitators of trade were technological materials, such as software and artificial intelligence (AI).

Ms Xiaolin Chai (Director of Trade in Services Division, WTO) started by explaining the role of telecommunications in making e-commerce development possible. She said that during the first years of e-commerce debates, technological issues were present. However, now the challenge for governments lies in tackling e-commerce policies. She pointed that during MC11, they discussed e-commerce, but there is still a difference in implementation levels.

According to Chai, MC12 would be the occassion to tackle the problem of momentum on e-commerce, stating that transparency is good for e-commerce debates between member states. E-commerce can be developed with commitment on infrastructure, and financial services. She concluded by emphasising the important role of e-commerce in the economic development of both developing and developed countries. Generally, there is flexibility for developing countries to allow implementation of the Trade Facilitation Agreement (TFA).

Mr Hosuk Lee-Makiya (Director, The European Centre for International Political Economy (ECIPE)) said that there are many reasons to discuss e-commerce issues in multilateral meetings. According to Makiya, e-commerce is already multilateral; whether it is data protection, digital channels, payment for services, or other topics. He added that we need to recognise the impact of the US-Mexico-Canada agreement (USMCA), in affecting the future of e-commerce debates.

He mentioned areas that needed focus, such as data usage and localisation and connectivity, as well as specific digital taxation to digital trade. Makiya said that digitalisation needs to be viewed beyond e-commerce, emphasising that we can not resist the digitalisation of the economy. He noted that it is helping SMEs grow their businesses, and concluded by stating that AI is not a concept, but a real digital material that can transform the global economy.

Mr Adriaan Scheiris (EU Public Affairs Manager, UPS) started by explaining the SME trends in e-commerce, noting that there is a rise in businesses every year because of lower transaction costs, higher Internet penetration rates, and the impact of the WTO TFA.

He posed the question of how to enable and support e-commerce globally and concluded that data flows, privacy, simplified documentations, but most importantly, trust, were the crucial answers.

The session was organised by the International Trade Union Confederation (ITUC) and the Trade Union Advisory Committee to the OECD (TUAC), and focused on issues and opportunities for workers and union members in light of digitalisation.

The moderator, Mr Georgios Altintzis (Policy Officer, International Trade Union Confederation (ITUC)), opened the session by sharing the news of Amazon’s recent decision to grant their warehouse workers in the US, a minimum hourly wage of USD$15. This decision came after persistent pressure from both the unions and the public. However, the company decided not to extend these salaries to delivery workers.

Altintzis further introduced the idea that greed will be an issue to be addressed in e-commerce. From a union’s perspective, he called for 'making unionisation sexy again', and for more governmental involvement in issues created by digital developments. The moderator urged governments to keep e-commerce out of trade agreements, at least for the time being.

Other issues identified by Altintzis included, the market power concentration being a threat to economic freedom; the creation of financial bubbles; the impact of social networks on humans; and the effects of digitalisation on democracy.

Ms Anna Byhovskaya (Policy Officer, Trade Union Advisory Committee (TUAC) to the OECD) said that there are three layers of data which need to be kept in mind:

• How is data collected (i.e. through online communication, sensors, etc.)?
• How is data processed?
• How is data repurposed?

She further spoke about the fragmentation of value chains due to digital enhancements, and identified the trackability of services as a great improvement, but also a threat to workers’ rights. Workers are now constantly exposed to their performance being tracked and analysed. Use of data can become relevant for human resource processes, since this information can be used as grounds for hiring or firing an employee. The challenge posed by this development is that workers currently have very limited capacities to defend themselves against these practices, as they have no clearly defined rights of accessing this data.

With regards to global value chains, Byhovskaya spoke about the opportunities that blockchain technology brings, and the improvement in transparency it could bring to value chains around the globe.

Given the short-lived and rapidly changing nature of digital developments, the speaker highlighted the importance of being able to create ex ante regulations; citing expert views which criticise the EU general data protection regulation (GDPR) for already being outdated on certain points just shortly after having been adopted. Another regulatory measure that Byhovskaya identified was the enforcement of transparency standards under which companies have to disclose the use and purpose of collected data.

Mr Victor Figueroa (International Transport Workers’ Federation) mentioned the use of sensors and other information for enhanced trackability, and spoke about their extensive application in the transport and logistics sectors. These massive amounts of information can be used to discipline workers; benchmark workers against each other; and lead to a new form of efficiency maximisation technique, also referred to as 'digital Taylorism'.

However, Figueroa stated that labour itself is no longer a simple productive task, as it creates data. This information emitted by employees’ work must be compensated, especially in a context where data is used to analyse which processes to automate. He further explained that artificial intelligence (AI) will also have a great impact on the workforce, creating new kinds of problems, such as the question of how to interrogate a machine-based decision.

The moderator led the discussion towards the lack of worker protection within the business models of online platforms - such as UBER or Airbnb - which put consumers in direct contact with the service provider. Besides the risks, such as the absence of social security plans, tax deficits or training deficits, Byhovskaya identified the lack of portability of data of self-employed workers from one platform to another as a further problem. Figueroa explained that this phenomenon is due to platforms by big companies attracting customers with free services, but making it difficult to leave for another service. He stated that there is a 'supercharged tendency towards monopoly in the field of digital'. This dynamic is also applicable to service providers, given that an UBER driver for example, might not be able to transfer his ratings and recommendations to another operator.

The panellists agreed that these barriers are issues that need to be addressed by governments in order to force companies to take responsibility for their workers, be it through stronger competition laws, the application of national jurisdiction and taxation to services delivered in a country, or - in countries where it is not already the case - by giving self-employed workers the right to unionise.

Figueroa mentioned that in the UK, they are considering models for the greater democratisation of data. Ideas range from the creation of a digital Commonwealth - under which a databank would be made accessible to public institutions and startups for a cost - to the creation of a network similar to the BBC which would have an oversight mechanism; and various types of social media platforms being regulated by an ethical charter.

The opening plenary debate of the WTO Public Forum 2018 was introduced and moderated by Mr Roberto Azevêdo (Director-General, WTO), who delivered a keynote speech on what trade will look like in 2030, while covering some of the topics that will be discussed during the forum, such as ways in which trade could become more sustainable. He argued that digital platforms are creating more ways of doing trade. Thus, a question could be raised: Is today's global trading system equipped to face the changing environment we live in? With this regard, the basic principles of the WTO apply, however, they are not enough. The evolution of technologies such as quantum computing, artificial intelligence (AI), 

and blockchain is challenging the trade system by creating gaps in the current legal frameworks. Following this line, Azevêdo argued that 'we are not going to stop the evolution, but we can shape it'. Concluding his speech, he stated there is a need to start shaping technology, without waiting to completely understand all its specific elements.

The first panellist, Mr Erik Solheim (Executive Director, UN Environment, Under-Secretary-General), addressed the following question: How can trade help environmental sustainability? He stated that trade and environment are deeply interconnected, as both rely on the best use of resources. With this regard, Solheim gave the example of solar energy producing more energy than non-renewable sources in 2017, underlining that this could have not been done without trade. Despite the fact that global poverty has been reduced almost by half, the general perception is that it has doubled. This is due to a lack of publicity of data and achievements. Moreover, he advocated in favour of a triple win solution with benefits for people, by creating jobs; the environment, by promoting sustainability; and health. He stressed his point by using two examples; the introduction of ecotourism in Botswana, and the initiative in India to stop using plastic by 2022. Finally, he stressed that it is important to stop the fight between trade and environment.

The second panellist, Mr Jack Ma (Executive Chairman, Alibaba Group), addressed the question of trade in 2030 and shaping our perspectives. He shared his willingness to stop the fight between trade and environment, and adding that we need to stop worrying about the future and the evolution of technology. Ma argued that trade will definitely be different in 2030, but this should not represent a concern. He took the example of globalisation to show how at the beginning only few companies benefited from it, while today the percentage of businesses benefiting from globalisation has grown on a large scale. Following this line, he argued that in 2030 goods will not be referred to by which specific country they are made in, instead they will be referred to as 'made in the Internet' goods. Furthermore, he argued that e-commerce will be the leading force, and the service industry will create more jobs in the future than expected. For this to happen, it is important for small business to reach the market, logistics, technology and training. Finally, he concluded by stressing that we cannot stop technology, we need to embrace it: 'change yourself, but do not change technology'. During the Q&A session, Ma strongly argued in favour of innovation as a solution to current problems, stating that 'it is not the regulation that solves the problem, it is innovation'. By doing so, he underlined what, in his opinion, are the wrong ways of interference by governments. Solheim complemented the answer by showing the Norway system; where legislations are created after having open consultations with tech companies for an extended period, before implementation. With regards to the current US-China economic relations, Ma argued that tension is 'not good for anybody'. Tensions would affect not only US-China trade relations, but other countries as well. There is a need for collaboration in the creation of new jobs, and trade should not be the weapon to fight against each other.

The third panellist, Ms Laura Behrens Wu (CEO and co-founder, Shippo), addressed the question of how small businesses can be competitive. She explained how the idea of her business came into practice. One of the biggest challenges in e-commerce can be the shipping mechanisms for e-commerce stores. However, with the help of technologies in place, people can now ship directly from their online location to national and international locations. E-commerce does not have boundaries and technology represents a leverage for success.

The fourth panellist, Mr Tunde Kehinde (Co-founder, Lidya), addressed how to make finance available for small businesses. Explaining how technology can improve access to finance for small players, he talked about Lidya and its ability to finance small businesses within one day, using existing data. He stressed this point by saying that as long as small businesses in developing areas are good actors, and there is data to show that, they can get access to the bigger market. Finally, he argued that governments should create legal and policy frameworks that allow better clarity for engagement in the private sector.

The final panellist, Ms Christine Bliss (President, Coalition of Services Industries) talked about trends, collateral effects, and dangers of technology transforming trade by 2030. She argued that small economies will not grow unless trade and investment allow that. With regards to the service industry, she stated that services are integrated in all sectors, from insurance to financing. Moreover, with the advent of the Internet and the digital economy, there will be an increase in the importance of services for trade due to the evolution of AI, online platforms, and big data analytics, to cite a few. In terms of the collateral effects, the explosion of data flows should not be underestimated, with its close links to privacy and cybersecurity concerns. Answering to a question from the audience, she further stated that services will represent the new jobs of the future.

Finally, the Q&A discussion covered different topics, such as the future of currencies, and the use of cryptocurrencies in the future. It was stated that they will have to be supported by governments.