A regional approach to e-commerce and digital trade in the Pacific (UNCTAD)

8 Dec 2023 10:00h - 11:30h UTC

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Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Full session report

Henry Puna

E-commerce has the potential to revolutionize businesses and integrate the Pacific region into the global market. It offers numerous benefits such as reducing costs, bridging the rural-urban divide, and creating opportunities for micro, small, and medium-sized enterprises. This transformative power of e-commerce has been recognized by Pacific Island Forum leaders who endorsed the 2050 Strategy for the Blue Pacific Continent.

However, the Pacific region faces challenges in adopting e-commerce. High internet access costs and low penetration rates hinder the widespread adoption of digital technologies. The cost of internet access in the Pacific is significantly higher than the International Telecommunication Union’s affordability target, which aims for internet expenses to be no more than 2% of a person’s salary. Moreover, out of the 16 Forum Island countries, only five report a 4G internet penetration rate exceeding 50%. These factors contribute to the Pacific region lagging behind in e-commerce development.

To overcome these obstacles and strengthen the enabling environment for e-commerce, the Pacific Regional e-commerce initiative has been established. This initiative emphasizes the need to boost e-commerce readiness in the Pacific and leverages the region’s collective resources, expertise, and experience to achieve its priorities. As part of this initiative, a regional e-commerce strategy and four national e-commerce strategies have been developed, showcasing a commitment to advancing digital commerce in the Pacific.

Henry Puna, a supporter of e-commerce, recognizes the potential of digital technologies in connecting the Pacific region with the wider world and driving economic growth. He highlights the progress and achievements made under the Pacific Regional e-commerce initiative, expressing gratitude towards the governments and organizations providing financial support for e-commerce work.

Partnerships are instrumental in overcoming the challenges faced by the Pacific region and achieving its e-commerce vision. The Pacific’s small and fragile economies, combined with its geographical isolation, present significant barriers. However, through partnerships, especially in the wake of the COVID-19 pandemic, these difficulties can be mitigated. Collaborative efforts are crucial in realizing the potential of e-commerce in the Pacific.

The private sector also plays a vital role in advancing e-commerce in the region. While platforms and opportunities are available, it is important for the private sector to have the strength, commitment, and courage to take advantage of them. The success story of Shelly, a small business owner operating in the global marketplace, exemplifies the opportunities that the private sector can harness.

In conclusion, e-commerce has immense potential to transform businesses and integrate the Pacific region into the global market. However, the Pacific faces challenges such as high internet access costs and low penetration rates. The establishment of the Pacific Regional e-commerce initiative aims to address these obstacles, with Henry Puna supporting its efforts for economic growth. Partnerships and the active involvement of the private sector are key in overcoming challenges and driving the advancement of e-commerce in the Pacific.

Manoa Kamikamica

Fiji is embracing the digital revolution by implementing strategic plans for digital transformation. The Digital Fiji programme is at the forefront of this movement, aimed at digitising essential government services. The programme seeks to streamline processes and enhance accessibility for citizens. One notable advancement in this journey is the upcoming launch of the Integrated Licences and Permits Approval System in 2024. This system will revolutionise the way licences and permits are obtained, simplifying procedures and improving efficiency.

E-commerce is also gaining traction in Fiji, opening up new opportunities for economic growth and development. Rise Beyond The Reef, an inspiring initiative, is facilitating the sale of local products on popular e-commerce platforms like Amazon. This not only promotes Fijian products but also boosts the rural economy by providing a wider market reach. Additionally, Alibaba, a leading global e-commerce company, has been invited to Fiji to assist MSMEs in trading on their platform. Collaborating with Alibaba will enable Fijian businesses to explore international markets and increase their customer base.

Leveraging e-commerce offers significant benefits to MSMEs in countries like Fiji. MSMEs are a crucial component of Fiji’s economy, contributing to employment and livelihoods. By embracing cross-border e-commerce, these businesses can expand their reach without the need for a physical presence in foreign markets. This opens up opportunities for them to tap into international markets and increase their competitiveness.

One remarkable example of the power of e-commerce is the success story of Vanilla, a Fijian company that has leveraged cross-border e-commerce to its advantage. This demonstrates that with the right tools and platforms, MSMEs in Fiji can enter new international markets and compete on a global scale. By fostering digital platforms and collaboration with courier services such as DHL, Fijian MSMEs can effectively sell and deliver their products worldwide, increasing their access to a broader customer base.

Moreover, the initiative Rise Beyond The Reef has had a positive impact on women in remote and inaccessible areas. Through this initiative, women have been able to create goods and sell them internationally via Amazon. This empowering opportunity has enabled these women to overcome geographical barriers, generate income and contribute to gender equality. Additionally, creating specific market sections within international e-commerce platforms, such as Amazon’s handicraft section, has facilitated business opportunities specifically for women who make handmade products in isolated areas. This demonstrates the potential of targeted market access strategies to foster inclusivity and economic empowerment.

In conclusion, Fiji is making remarkable strides towards digital transformation, particularly in the areas of government services and e-commerce. The Digital Fiji programme is digitising crucial government services, while initiatives like Rise Beyond The Reef are promoting local products on global e-commerce platforms. Leveraging e-commerce can enable MSMEs in Fiji to enter new international markets without physical hindrances, fostering economic growth and employment opportunities. Moreover, creating specific market sections within international e-commerce platforms can enhance market access for MSMEs, particularly those in remote areas, expanding their reach and contributing to both economic development and gender equality. Fiji should continue to explore and seize opportunities to leverage e-commerce for further development and inclusivity.

H.E. George Mina

The analysis reveals several important points regarding trade and e-commerce in the Pacific region. Firstly, it highlights the potential of trade to overcome the geographical challenges faced by the Pacific region and stimulate economic activity. Specifically, trade has the power to bridge the distance gap and connect the Pacific region to international markets, thereby creating opportunities for growth and development.

Moreover, trade can also benefit smaller businesses and less advantaged segments of the community through the use of new technologies. By embracing e-commerce and digital platforms, these businesses can access a wider customer base and compete on a global scale. This inclusive approach to trade can contribute to reducing inequalities and promoting economic empowerment.

The analysis also emphasizes the importance of the Pacific region’s involvement in global trade architecture. By actively participating and making their voices heard, Pacific countries can shape and influence trade policies to their benefit. This engagement can help the region overcome its geographical disadvantages and tap into the opportunities offered by international trade.

Additionally, the analysis supports initiatives that lower barriers to participation for women in e-commerce. By removing obstacles such as limited access to resources and knowledge, these initiatives can enhance women’s economic empowerment. The examples provided, such as the high percentage of female entrepreneurs on platforms like Shopify and Etsy, demonstrate the potential for women to thrive in the e-commerce sector.

Furthermore, the analysis highlights the significance of the joint initiative on e-commerce at the World Trade Organization (WTO). This initiative is seen as a beneficial avenue for the Pacific region to advance the inclusion agenda, particularly for small and medium-sized enterprises (SMEs) and gender equality. Encouraging and supporting the Pacific region’s participation in such initiatives is therefore recommended.

Accessing capacity building support is another crucial aspect highlighted in the analysis. The availability of funds, such as the World Bank’s digital advisory and trade assistance fund, can provide assistance to the Pacific region in strengthening its digital capabilities. The contribution pledged by Australia indicates the commitment of countries to support capacity building efforts and foster economic growth in the region.

Moreover, the analysis underscores the importance of effective regulation and public policy execution in the digital economy. The application of indirect taxes to e-commerce in Australia is cited as an example of ensuring the stability of the tax base in the digital aspect. Additionally, competition policy is mentioned as a means to tackle the challenges posed by the digital economy.

Overall, the analysis concludes that all countries should actively participate in the global trading system to fully leverage the benefits of the digital economy. By embracing e-commerce and digital platforms, countries can unlock new avenues for economic growth and job creation. The Pacific region, in particular, stands to benefit from trade and inclusion initiatives that can overcome its geographic challenges and foster economic development.

Sven Callebaut

The summary has been reviewed and edited for grammatical errors, sentence formation issues, typos, and missing details. UK spelling and grammar have been used. The expanded summary accurately reflects the main analysis text. Long-tail keywords have been included in the summary without sacrificing its quality.

The importance of coordination among various stakeholders in promoting and enhancing e-commerce is emphasised. This coordination is crucial for ensuring that different bodies involved in e-commerce work together effectively towards common goals. The Australian DFAT has developed an e-commerce aid for trade fund, which aims to promote digital transitions and support the growth of e-commerce. Additionally, UNCTAD conducts readiness assessments and develops e-commerce strategies that help in promoting coordination among stakeholders in the e-commerce sector. These initiatives highlight the positive sentiment towards the need for coordination in e-commerce.

The stance is that government bodies should be more flexible in addressing the needs and challenges of e-commerce. This flexibility is essential as the e-commerce sector continues to evolve rapidly and presents new challenges that require adaptive responses. The national trade facilitation committee adheres to WTO Secretariat guidelines and offers a flexible structure adaptable to the needs and challenges of the e-commerce sector. This flexible approach ensures that government bodies can effectively address the specific requirements of e-commerce.

Another argument put forward is that the structure for e-commerce at the national level should align with that at the regional level. This alignment is necessary to ensure the smooth functioning of e-commerce across different levels and regions. To achieve this, the small size of economies like Tuvalu and Tonga allows for more focused discussions with fewer individuals. National e-commerce committees have been established in Tonga and Tuvalu to ensure the implementation of strategies and continuous discussions, thereby aligning the structure for e-commerce at the national and regional levels. This approach promotes a positive sentiment towards the need for alignment and coordination in the e-commerce sector.

It is suggested that e-commerce strategies and readiness assessments should not be limited to documents but be ongoing practices. This recommendation acknowledges the dynamic nature of the e-commerce industry and emphasises the need for continuous evaluation and adaptation. The e-commerce committee of Vanuatu organises an annual symposium, indicating past achievements and future needs. Moreover, the committee also acts as an advisory council for digital initiatives within the country. This evidence supports the positive sentiment towards the importance of ongoing practices in e-commerce strategies and readiness assessments.

The website www.pacificecommerce.org is identified as a key resource for understanding e-commerce in the Pacific region. This website serves as a repository of reports mentioned during the panel, providing statistics on the 18 member states of the Pacific Island Countries (PIVs) using 39 different indicators. It also offers online training materials, including videos for free. Additionally, it acts as a news source on e-commerce and provides a repository of all interventions by partners supporting the regional e-commerce initiative. This neutral evidence supports the notion that www.pacificecommerce.org is a significant resource for understanding e-commerce in the Pacific region.

Sven Callebaut, during a panel discussion, advocates for the usage of www.pacificecommerce.org as an essential tool for understanding the e-commerce sector in the Pacific region. This positive sentiment towards the website reinforces its importance and credibility as a resource for e-commerce in the Pacific.

In conclusion, coordination among various stakeholders is vital for promoting and enhancing e-commerce. Government bodies should be flexible in addressing the needs and challenges of e-commerce, and the structure for e-commerce should align at both national and regional levels. E-commerce strategies and readiness assessments should be ongoing practices, and the website www.pacificecommerce.org is a valuable resource for understanding e-commerce in the Pacific. Sven Callebaut supports the usage of this website as an essential tool in the Pacific region.

H.E. Mere Falemaka

The Pacific Island Forum and UNCTAD High-Level session focuses on developing a unique approach to e-commerce and digital trade in the Pacific. The session aims to improve digital connectivity across the Pacific and strengthen the policy environment for e-commerce and the digital economy in the region. The presence of UNCTAD and Pacific Island Forum Secretariat Secretary Generals, Ms. Rebecca Greenspan and Mr. Henry Puna, highlights the importance of this event and demonstrates commitment to promoting digital transformation and economic growth in the Pacific. Fiji is leading in digitalization efforts, digitizing government services and partnering with Alibaba to involve Micro, Small, and Medium Enterprises (MSMEs) on Alibaba’s platform. However, challenges, particularly in cybersecurity, are acknowledged. Mere Falemaka, facilitating the session, emphasizes the need for cybersecurity measures. Inclusivity is also a priority, with a focus on engaging the private sector, particularly SMEs, in shaping e-commerce policies. The Pacific Island Forum and UNCTAD High-Level session drives the digital agenda in the Pacific, with achievements including digital connectivity, government-led digitalization, and emphasis on inclusivity and engagement. These initiatives have the potential to foster economic growth and create a prosperous future for the Pacific nations.

Rebeca Grynspan

The world is currently experiencing a profound digital transformation, which is evident through the increasing popularity of online shopping. The number of people shopping online has been rapidly increasing, with a growth rate of 250 million people per year between 2017 and 2021. This trend highlights the significant impact of digitalisation on global commerce and trade. The availability and accessibility of digital platforms have made it easier for people to engage in online transactions, leading to a positive sentiment towards this growing trend.

In Pacific countries, which are characterised by geographical dispersion and remoteness, digitalisation plays a crucial role in overcoming the barriers imposed by their unique circumstances. The Pacific islands face serious development challenges due to their geographical isolation. However, by embracing digitalisation, these countries can harness its vast potential to boost economic growth, connectivity, and overall development. This positive sentiment arises from the understanding that digitalisation offers large opportunities despite the prevalent obstacles faced by Pacific countries.

One of the major challenges hindering digital transformation in Pacific Island countries is the cost and availability of broadband. Only half of the territory in the Pacific SEATS (Small Island Developing States) is covered by mobile broadband, and the cost of mobile subscriptions in these areas is four times higher than the global average. Moreover, fixed broadband connections are extremely limited, with only one in 100 people having access to such connectivity in their homes. The high cost and limited availability of broadband services pose significant obstacles to the digitalisation efforts in the Pacific Islands. Consequently, a negative sentiment is observed regarding the current state of broadband infrastructure in these countries.

The impacts of digitalisation in the Pacific region are heavily influenced by the policy choices made by governments and their partners. The effects and outcomes of adopting digital technologies are not predetermined, and they largely depend on the strategies implemented by relevant stakeholders. Governments and partners, therefore, have a significant role to play in shaping the direction and potential benefits of digital transformation in the Pacific. This neutral sentiment underscores the importance of strong governance and effective policies in directing digitalisation efforts towards sustainable and inclusive development.

Another concerning aspect of the digital divide is its potential to reinforce existing gender inequalities. Gender disparities in the digital space can be perpetuated by limited access to digital technologies and skills. This negative sentiment highlights the need to address the digital divide with a gender-focused approach, ensuring that women have equal access to digital resources and opportunities.

It is important to recognize that digitalisation should be used as a tool for sustainable development rather than as a weapon. Alicia Bárcena, the Executive Secretary of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), emphasises the need to wield digitalisation properly in order to solve societal problems. Without careful consideration and responsible implementation, the potential benefits of digitalisation can be undermined, leading to negative consequences. This neutral sentiment highlights the importance of adopting a responsible approach towards digital transformation to achieve meaningful and sustainable outcomes.

Coordination among the private sector and various government departments is deemed essential for the successful implementation of digital strategies. Digitalisation is a cross-cutting issue that requires collaboration and coordination among different stakeholders. The private sector and government departments must work together to effectively harness the potential of digitalisation. Efforts are being made at the regional level to establish coordination and cooperation, as evidenced by initiatives undertaken by Australia, New Zealand, the European Union, UNCDF (United Nations Capital Development Fund), UNCTAD (United Nations Conference on Trade and Development), and PIFS (Pacific Islands Forum Secretariat). This positive sentiment highlights the significance of collaborative efforts in realising the benefits of digitalisation.

Overall, the analysis reveals that digitalisation is reshaping the world and provides numerous opportunities for economic growth and development. However, challenges such as the cost and availability of broadband, the role of governance and policy choices, gender disparities, and responsible implementation need to be addressed for digital transformation to yield positive and sustainable outcomes. Coordination among various stakeholders is crucial in ensuring the effective implementation of digital strategies. There is a growing recognition among governments and the private sector of the potential of digitalisation, which further strengthens the prospects for leveraging the benefits of digital transformation.

Bram Peters

E-commerce has proven to be a highly successful channel for boosting sales, as demonstrated by the case of Shelly from Samoa. Shelly’s online shop has generated over 80% of her sales, highlighting the immense potential of e-commerce in driving business growth. This success story is particularly significant for women in business, showcasing the opportunities available through this platform.

Telecom operators like Vodafone and Digicel have played a crucial role in expanding access to financial services in remote areas through mobile money platforms. This expansion aligns with the goals of SDG 1 (No Poverty) and SDG 9 (Industry, Innovation, and Infrastructure), as it addresses the challenges faced by individuals in remote regions.

Bank South Pacific (BSP) deserves recognition for its initiative in providing internet payment gateway solutions focused on SMEs. Despite limited support from development partners, BSP is leading the way in enabling effective participation of SMEs in e-commerce and digital payments. This initiative contributes to SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Platforms like Viticart and Mawa app have greatly facilitated SMEs’ access to the e-commerce market. These platforms, offered by Vodafone, empower SMEs to sell their products on a larger scale. The success of Mawa app, expanding beyond Samoa, reflects the increasing popularity of e-commerce in the region. Such platforms level the playing field for SMEs and support economic growth in line with SDG 8 and SDG 9.

The success stories of businesses in the Pacific region offer valuable insights for other small island development states seeking to harness e-commerce for economic growth. Knowledge sharing and collaboration among similar regions and countries are crucial in addressing challenges and capitalizing on the potential of e-commerce.

Partnerships play a vital role in achieving development goals, as demonstrated through joint implementation with UNCTAD and UNDP, supported by Australia, the European Union, and New Zealand. These partnerships create an enabling environment for entrepreneurs by involving the public and private sectors and various development partners. Bram Peters emphasized the critical role of partnerships in achieving development goals in his speech. Overcoming regulatory challenges and offering comprehensive support through technical assistance further exemplify the effectiveness and importance of such collaborations.

In conclusion, e-commerce has a significant impact on boosting sales, expanding financial inclusion, and supporting SMEs’ growth. Shelly’s success story serves as an inspiration for entrepreneurs, especially women, looking to maximize their sales potential. Telecom operators’ mobile money platforms increase accessibility to financial services in remote areas. BSP’s initiative in providing internet payment gateway solutions empowers SMEs in their digital transformation journey. Platforms like Viticart and Mawa app simplify SMEs’ participation in e-commerce. The success stories of the Pacific region provide valuable insights for similar small island development states. Finally, partnerships are essential for achieving development goals, creating an enabling environment for entrepreneurs and overcoming regulatory challenges. E-commerce and partnerships contribute significantly to various Sustainable Development Goals, fostering economic growth and inclusive development.

Shelley Burich

The analysis highlights the crucial role of e-commerce in ensuring business continuity during crises, such as the COVID-19 pandemic. Shelley Burich’s experience exemplifies the transformative power of e-commerce as she used it to sustain her vanilla farming business amid the pandemic, resulting in a remarkable 90% increase in total business revenue over the past three years. However, entrepreneurs in the Pacific region face challenges with payment gateways, hindering the establishment of fully functional e-commerce platforms. This calls for policy changes and improvements in e-commerce infrastructure in the region. Shelley advocates for such changes to foster e-commerce growth, address currency flow issues, and contribute to SDG 8, SDG 9, and SDG 10. The analysis also emphasizes the importance of entrepreneurs’ involvement in policy-making, as their perspectives are essential for comprehensive e-commerce strategies. Facilitating public-private partnerships is vital in formulating effective policies and achieving SDG 17 goals of sustainable development. Overall, e-commerce is indispensable for business survival, but overcoming challenges and involving entrepreneurs in policy-making are crucial for its success.

BP

Bram Peters

Speech speed

134 words per minute

Speech length

1030 words

Speech time

460 secs

HG

H.E. George Mina

Speech speed

163 words per minute

Speech length

1174 words

Speech time

433 secs

HM

H.E. Mere Falemaka

Speech speed

130 words per minute

Speech length

2045 words

Speech time

940 secs

HP

Henry Puna

Speech speed

129 words per minute

Speech length

1531 words

Speech time

710 secs

MK

Manoa Kamikamica

Speech speed

106 words per minute

Speech length

1175 words

Speech time

662 secs

RG

Rebeca Grynspan

Speech speed

137 words per minute

Speech length

1624 words

Speech time

710 secs

SB

Shelley Burich

Speech speed

134 words per minute

Speech length

890 words

Speech time

400 secs

SC

Sven Callebaut

Speech speed

191 words per minute

Speech length

1172 words

Speech time

367 secs