Unleashing Digital Trade and Investment for Sustainable Development (UN ESCAP)
6 Dec 2023 10:00h - 11:30h UTC
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Pimchanok Pitfield
Thailand has shown a strong commitment to developing its digital economy, actively participating in negotiations for e-commerce and digital trade with organisations such as the World Trade Organization (WTO), Asia-Pacific Economic Cooperation (APEC), and the Regional Comprehensive Economic Partnership (RCEP). The country has recognised the importance of the digital economy for almost a decade and has been working to establish a regulatory framework that supports and encourages digital trade.
However, there are several challenges that Thailand faces in implementing its digital economy. One major obstacle is the inadequate development of infrastructure, which hinders the progress of the digital economy and leaves it vulnerable to fraud and scams. These fraudulent activities have eroded consumer trust, undermining the potential growth of the digital economy.
Furthermore, Thailand struggles to keep up with the rapidly evolving global regulatory requirements in the digital landscape. Adapting to these changing regulations presents difficulties, limiting the country's ability to fully benefit from the digital economy.
Micro, small, and medium-sized enterprises (MSMEs) and small and medium-sized enterprises (SMEs), which are critical components of the Thai economy, also face specific challenges in embracing digitalization. Limited resources, lack of technical expertise, and inadequate access to financing impede the digital transformation of MSMEs and SMEs, hindering their full participation in the digital economy.
Additionally, cross-border electronic crimes have become a pressing issue in Thailand. As digital trade and transactions increase, so do the opportunities for cybercriminals to exploit vulnerabilities. Addressing these cyber threats and ensuring robust cybersecurity measures are in place is crucial for the secure growth of the digital economy.
Despite these challenges, the COVID-19 pandemic has highlighted the importance of the digital economy. Thailand experienced rapid growth in the digital economy and digital trade due to the pandemic. This growth underscores the need to address the financial needs of MSMEs and SMEs, as they play a vital role in driving economic recovery and resilience.
In conclusion, Thailand's commitment to the development of the digital economy is admirable. However, the country must overcome the challenges it faces in implementing the digital economy. Improving infrastructure, strengthening regulatory frameworks, supporting MSMEs and SMEs in their digitization efforts, and addressing cyber threats are key steps towards establishing a thriving and inclusive digital economy in Thailand.
Gerd Müller
The analysis provides a comprehensive overview of the various aspects related to digital trade and its impact on economic growth, innovation, and reducing inequalities. It starts by acknowledging the transformative potential of digitalisation and AI, recognising them as game-changers in today's global landscape. Furthermore, it highlights the opportunities brought by digital trade for development, emphasising the need to leverage these opportunities.
However, the analysis also points out the existing problem of unequal access to necessary technology, which acts as a limiting factor to fully harness the potential of digital trade. This discrepancy in technology access creates a digital divide, hindering the participation of certain communities and exacerbating inequalities.
The role of digital infrastructure, competition policies, and data regulations is deemed pivotal in driving economic growth through digital trade. The analysis cites the Asia-Pacific trade report to underscore the importance of these factors. Implementing robust digital infrastructure, fostering fair competition policies, and establishing effective data regulations are key steps towards realising the full potential of digital trade.
In addition, the analysis recognises the significance of policies facilitating e-commerce, business licensing, and investment. It argues that data-driven policies can strategically minimise costs and broaden opportunities for digital trade, unlocking its full potential for sustainable development.
Another important point highlighted in the analysis is the impact of large corporations on empowering small and medium enterprises (SMEs), particularly in the context of digital platforms. The analysis suggests that by providing SMEs with access to digital platforms, large corporations can enable their growth and contribute to a more inclusive digital trade ecosystem.
The need for efficient, safe, and trusted digital trade interoperability and open standards is also emphasised. This highlights the importance of seamless connectivity and interoperability between various digital trade systems, as well as the need for common standards to ensure smooth and secure transactions.
The analysis presents several key stances and recommendations, such as supporting targeted interventions and investments that address specific needs. It emphasises the importance of harmonised regulatory frameworks to ensure regulatory consistency, which can foster a conducive environment for digital trade. Moreover, an integrative approach to policymaking with a clear focus on the Sustainable Development Goals (SDGs) is urged, highlighting the need for informed decision-making that aligns with the broader development agenda.
Lastly, the analysis applauds the Asia-Pacific Trade and Investment Report for providing valuable insights and guidance in navigating the complexities of digital trade.
Overall, the analysis highlights the multifaceted nature of digital trade, encompassing various factors such as technology access, infrastructure, policies, and the role of different stakeholders. It emphasises the need to address these aspects in a holistic manner to unlock the full potential of digital trade for sustainable development.
Rupa Chanda
The Asia-Pacific region is experiencing a surge in trade opportunities in the digital services sector, driven by the dynamism of its economies and the strength of its IT services. This region is home to key engine economies and has seen the rise of successful IT businesses. Moreover, the region benefits from a young and dynamic population that is adept at using digital tools and applications. The engagement of startups and small businesses in both regional and global value chains further amplifies the potential for trade in digital services.
However, it is important to acknowledge the challenges that hinder digital trade in the Asia-Pacific region. These challenges include the digital divide, regulatory fragmentation, and limited access to capital. The region exhibits diversity and differences in digital skills and regulatory capacity, which can complicate trade flows. Additionally, different data protection policies and non-tariff barriers create hurdles for digital trade. The need to develop capital markets for venture capital and startup investments further adds to the challenges faced by aspiring digital traders.
To effectively manage digital trade, a holistic systemic approach is required. This approach entails harmonizing regulations across countries to facilitate trade and ensure fair competition. It also involves supporting small and medium-sized enterprises (SMEs) and marginalized segments of the population, enabling them to participate in digital trade. Furthermore, fostering regional collaboration is crucial for enhancing connectivity and cooperation in the Asia-Pacific region.
International organizations such as the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) play a crucial role in facilitating digital trade. ESCAP's efforts in addressing regulatory fragmentation and promoting regional digital trade integration are important. Their work on paperless trade and the development of a regional digital trade integration index helps countries assess their readiness for digital trade. This understanding of challenges and gaps in readiness is vital for formulating effective policies and strategies.
In conclusion, the Asia-Pacific region offers immense trade opportunities in digital services, driven by the dynamism of its economies and the engagement of startups and small businesses. However, challenges such as the digital divide, regulatory fragmentation, and limited access to capital must be addressed. Taking a holistic systemic approach that involves harmonizing regulations, supporting SMEs, and fostering regional collaboration is necessary to effectively manage digital trade. International organizations like ESCAP have a significant role to play in facilitating digital trade and raising countries' readiness for this new era of commerce.
Armida Salsiah Alisjahbana
Digital trade and investment are driving forces of the modern economy, with global exports of digitally deliverable services accounting for close to 60% of the total global services trade, equating to approximately US$4 trillion. The Asia-Pacific region has consistently exceeded a growth rate in digitally deliverable trade of 8% per year for seven years.
However, the full potential of digital trade and investment is yet to be realized as it remains highly concentrated in only six economies, representing 85% of the region's GDP and digitally deliverable exports. This concentration of benefits hinders the equitable distribution of advantages across a broader spectrum. Furthermore, only a minimal portion of digital foreign direct investment (FDI) inflows are directed towards least developed countries (LDCs), which account for less than 1% of the region's export of digitally deliverable services.
To fully realize the potential of digital trade and investment, there is a need for active trade and investment policies and international cooperation. The Asia-Pacific Trade and Investment Report highlights the critical role of these measures. Implementing proactive policies and fostering international collaboration will ensure more inclusive and sustainable economic growth, allowing for the equitable participation of all countries, including LDCs, in the digital economy.
Frank Van Rompaey
The industrial sector in the Asia-Pacific region is currently experiencing a significant transformation as a result of the fourth industrial revolution. This revolution is characterized by the application of advanced digital production technologies such as artificial intelligence (AI), big data analytics, cloud computing, the Internet of Things (IoT), robotics, and 3D printing. These technologies are revolutionizing the manufacturing process and giving rise to the concept of smart manufacturing, which is expected to have a profound impact on the industrial landscape.
Digital trade and investment are set to play a critical role in driving this industrial transformation in the Asia-Pacific region. Access to digital services, particularly data services, is essential for the export of goods. Real-time customer data can be analyzed to enable cost-effective mass customization of products, effectively blending manufacturing and services. Moreover, digital trade facilitates the procurement and utilization of knowledge-intensive business services online. Therefore, it is evident that digital trade provides the necessary access to digital services, especially data services, which are vital inputs for goods export.
However, it is important to address the digital divide that exists both between and within countries. This divide arises from an uneven distribution of digital investment, resulting in islands of technological leaders and the rest of the economy lagging behind. To bridge this gap, a strong effort is required at both the country level and from the international community to encourage the adoption of smart manufacturing. By addressing this digital divide, we can ensure a more inclusive and sustainable industrial transformation in the Asia-Pacific region.
In terms of industrial development, there is a particular emphasis on building industrial and technological capabilities at the firm level. These capabilities are crucial for the development of the industry, encompassing both digital manufacturing and traditional manufacturing. By focusing on developing these capabilities, the Asia-Pacific region can enhance its competitiveness and drive innovation in the industrial sector.
A key aspect of policy focus is the development of framework conditions, fostering demand, and strengthening skills and research capabilities. It is essential to have the proper infrastructure, regulations, and policy dialogue between the private and public sectors. Additionally, raising awareness about the economic and environmental benefits of technology adoption is important. Targeted support is needed for micro, small, and medium-sized enterprises (MSMEs) to ensure they do not fall behind in this digital transformation. It is also necessary to invest in research institutions to build capabilities and knowledge in digital manufacturing.
In conclusion, the Asia-Pacific region is currently undergoing a significant industrial transformation through the application of advanced digital production technologies. Digital trade and investment are vital drivers of this transformation, enabling access to digital services and data, which are imperative for goods export. To ensure an inclusive transformation, the digital divide between and within countries must be addressed. Emphasizing the development of industrial and technological capabilities at the firm level is crucial for overall industrial development. Finally, policy focus should concentrate on developing framework conditions, fostering demand, and strengthening skills and research capabilities. By addressing these key areas, the Asia-Pacific region can maximize the benefits of the industrial transformation and achieve sustainable economic growth.
Rebeca Grynspan
Digital trade holds enormous promise for countries in the Asia-Pacific region, revolutionizing how businesses operate and grow globally. Through digital trade, small businesses in cities like Manila, Ho Chi Minh City, or Busan can now easily sell their goods and services all over the world. This has brought about a significant transformation in business practices across the region.
However, basic digital literacy skills are insufficient for fully capitalizing on the benefits of digital trade platforms. In addition to technical knowledge, individuals must also possess an understanding of digital marketing, customer service, and international trade regulations. This highlights the importance of continuous skill development and education to maximize the potential of digital trade.
Moreover, a supportive regulatory environment is essential for the advancement of digital trade. It is crucial to establish clear laws that protect online transactions, consumer rights, and combat cybercrime. Such regulations inspire confidence and trust among businesses and consumers, fostering a fair and secure digital trading ecosystem.
Despite substantial growth in the value of digitally deliverable services globally, the share of least developed countries (LDCs) in the Asia-Pacific region has declined. The report reveals that LDCs' share of global exports of digitally deliverable services has dropped from a quarter of 1% to less than a fifth of 1% over the past decade. This necessitates greater efforts in addressing the disparities in digital trade and ensuring equal growth opportunities for all countries.
Prominent advocate Rebeca Grynspan stresses the urgency of initiatives like the Asia-Pacific Trade and Investment Report 2023-2024 to tackle these disparities. She emphasizes that maintaining the status quo is a luxury that cannot be afforded and calls for immediate action to bridge the digital trade gap.
Furthermore, Grynspan underscores the significance of inclusivity in digital trade, advocating for the creation of opportunities for everyone, regardless of their location or background. In her view, digital trade should provide equal access and opportunities, promote decent work, reduce inequalities, and advance gender equality. It is crucial to ensure that no one is left behind in the digital economy.
In conclusion, the analysis highlights the immense potential of digital trade in the Asia-Pacific region while addressing the challenges that must be overcome. By prioritizing skill development, establishing supportive regulatory frameworks, and fostering inclusive opportunities, countries can fully reap the benefits of digital trade while ensuring equal participation and growth for all.
Witada Anukoonwattaka
An analysis of digital trade in the Asia-Pacific region reveals a significant disparity between large and small economies. Six major economies dominate digital trade-related exports, accounting for a staggering 85% of the total. Conversely, 11 least developed countries (LDCs) in the region contribute less than 1% to digital trade. This stark contrast highlights the uneven distribution of digital trade opportunities and raises concerns about the exclusion of emerging economies and LDCs from the benefits of digital trade. By focusing on a few large economies, the majority of trade agreements with digital trade provisions are concentrated, exacerbating the challenges faced by emerging economies and LDCs, potentially widening the digital divide and deepening inequality.
To address these imbalances, the analysis proposes that trade agreements and digital trade cooperation should establish mutual recognition of equivalence in standards and procedures. This means ensuring that the rules and regulations governing digital trade are consistent across different countries and economies. It highlights the importance of leveraging existing international standard agreements and the guiding principles provided by the World Trade Organization (WTO) in enhancing consistency in digital trade regulations. This approach would help create a level playing field and promote inclusivity in digital trade.
Furthermore, the study emphasizes the need to focus on micro, small, and medium enterprises (MSMEs) in trade and investment policies for social inclusiveness. Optimizing digital trade procedures and reducing associated costs can offset the adverse impacts of tax-free removal and other trade barriers. Additionally, policies that remove barriers to cross-border service delivery can have a significant impact on access to essential services such as healthcare and education. By prioritizing MSMEs, trade and investment policies can generate decent work opportunities and reduce inequality.
Overall, the analysis highlights the pressing issue of a digital trade divide in the Asia-Pacific region. Large economies concentrate the majority of digital trade agreements, while smaller economies struggle to participate effectively. Bridging this gap requires a focus on soft infrastructure, such as regulatory environments that lower access costs and reduce compliance burdens. To ensure a more inclusive and equitable digital trade landscape, it is crucial to address the concerns of emerging economies and LDCs, establish consistent rules and regulations, and prioritize the social inclusiveness of MSMEs.
Torbjörn Fredriksson
The analysis highlights several significant aspects of Asia-Pacific's role in the digital economy and digital trade. It reveals that the region's share in trade in digitally deliverable services has experienced a notable increase, rising from 19 to 24 percent. Moreover, China emerges as a key player in the digital economy, underscoring its importance in driving growth and innovation within the region.
In considering the opportunities and challenges brought by digital trade, the analysis notes that companies that are unable to effectively participate in this domain risk falling behind. This highlights the pressing need for businesses to adapt and embrace digital technologies to stay competitive in an increasingly digital world. Furthermore, it is mentioned that least developed countries have witnessed a decrease in their import of ICT goods amid the global increase. This decline could indicate the potential difficulties faced by these countries in fully harnessing the benefits of digital trade.
The analysis underscores the crucial role of improving ICT infrastructure and connectivity in enhancing digital trade. It highlights the efforts made by UNCTAD in conducting E-Trade Readiness Assessments, which assess various factors such as ICT infrastructure and connectivity. These assessments help identify areas that require improvement, ultimately paving the way for more effective digital trade.
Another notable observation is the need to empower women in digital trade, an area that is predominantly male-dominated. The analysis highlights the efforts made by UNCTAD in empowering women digital entrepreneurs, emphasizing the importance of gender equality and inclusivity within the digital economy and digital trade sector.
Lastly, the analysis argues for the necessity of a global framework that addresses key aspects such as data, trade, taxation, and competition. Without such a framework, national governments may struggle to successfully implement digital trade policies. This underscores the interdependence and interconnectedness of countries in the digital realm, necessitating collaboration and coordination on a global scale.
In conclusion, the analysis sheds light on the various aspects of Asia-Pacific's role in the digital economy and digital trade. It underscores the regional growth and influence, as well as the challenges and opportunities that come with digital trade. The importance of improving ICT infrastructure, empowering women, and establishing a global framework is emphasized as essential steps towards maximizing the potential of digital trade and ensuring inclusive growth in the digital economy
Valerie Picard
Policy fragmentation in digital trade is a significant global issue that has resulted in a decrease in trade productivity and an increase in prices for industries worldwide. This impact is particularly severe for micro, small, and medium-sized enterprises (MSMEs), as it drives up the cost of essential services they rely on.
Research indicates that even a one-point increase in data restrictiveness for a specific country leads to a 7% decrease in trade output, almost a 3% reduction in trade productivity, and a 1.5% increase in prices for downstream industries. These findings demonstrate the negative effects of policy fragmentation in digital trade.
To address these issues, it is recommended to establish digital trade rules at the World Trade Organization (WTO), covering areas such as data flows and non-localization requirements. This would create a level playing field for businesses of all sizes, locations, and sectors to utilize digital technologies for international trade, promoting fair competition and economic growth.
Another crucial factor in maintaining a favorable digital trade environment is the continuation of the Moratorium on customs duties on electronic transmissions. Governments are urged to avoid new tariff barriers and further fragmentation in the digital economy. The International Monetary Fund (IMF) suggests that taxing the digital economy through Goods and Services Tax (GST) and Value Added Tax (VAT) can offset any revenue losses from foregone customs duties without hindering digital economy development.
Furthermore, the adoption of the UNCTRAL model law and electronic transferable records can facilitate fully paperless digital trading. Countries like Singapore, Papua New Guinea, and Bahrain have already embraced these measures, demonstrating their viability and benefits. This transition would streamline processes, enhance efficiency, and align with responsible production and consumption goals.
In conclusion, addressing policy fragmentation in digital trade is vital to enhance trade productivity and promote fair competition. Establishing digital trade rules at the WTO, maintaining the Moratorium on customs duties, and adopting the UNCTRAL model law are essential steps in achieving a level playing field and enabling paperless digital trading. Coordinated global efforts are necessary to overcome the challenges posed by policy fragmentation and fully unlock the potential of digital trade for economic growth and development.
Audience
The audience is seeking clarification on the structure and content of the annual report. They want to know if subsequent reports are updates to the previous ones or if they introduce new themes and information. The audience's sentiment is neutral, indicating an open-minded approach to the question. Although supporting facts are not provided, it can be inferred that the audience's interest stems from a desire to understand the purpose and composition of the annual report. Knowing whether subsequent reports build upon previous ones or introduce new content would help them assess the relevance of the information to their interests or decision-making processes. In conclusion, the audience is genuinely curious and seeks clarification on the structure and content of the annual report.
Ratnakar Adhikari
Digital trade and investment play a crucial role in promoting sustainable development in Least Developed Countries (LDCs). There is a commitment to ensure that no LDC is left behind in the Sustainable Development Goals (SDG) commitment, with significant progress observed. The number of people online in LDCs has increased from one in five to one in three, indicating improved access to digital platforms. Notably, the Enhanced Integrated Framework (EIF) has also increased its investment in digital trade and investment, with 14 percent of their total investment allocated towards this area.
However, despite these advancements, Asia-Pacific LDCs face various challenges in harnessing the benefits of digital trade and investment. Accessibility and affordability remain major issues, particularly among different demographic groups. To overcome these obstacles, there is a call for the revision of consumer protection policies and cybersecurity policies to ensure a safe and secure digital environment. Additionally, skill development, specifically among marginalized communities, is considered critical to narrow the digital divide and ensure equal participation.
The EIF's efforts in enhancing digital trade and investment in Asia-Pacific LDCs are commendable. They have implemented projects that have had positive impacts in various countries. For instance, in Bhutan, the EIF supported the implementation of online auctioning and digital payment systems, resulting in significant savings for farmers. In Vanuatu, the EIF established a single window facility, reducing trade costs and carbon emissions. Furthermore, the EIF has collaborated with the World Association of Investment Promotion Agencies and UNCTAD to promote investment in LDCs, particularly in the digital sector. They are also actively involved in innovation advancement in countries like Bangladesh, supporting technologies such as 3D printing, artificial intelligence, and blockchain.
The need for more attention on Micro, Small, and Medium Enterprises (MSMEs) in digital trade is highlighted. These enterprises play a crucial role in economic growth and job creation in LDCs. Therefore, it is important to provide them with the necessary support and resources to fully participate in digital trade.
Furthermore, market power in the context of digital trade needs to be addressed. It is essential to ensure fair competition and prevent monopolistic practices that may hinder the growth and inclusivity of digital trade.
In conclusion, digital trade and investment have immense potential to drive sustainable development in LDCs. The progress made in increasing online access and the EIF's efforts in enhancing digital trade and investment demonstrate positive steps towards this goal. However, challenges such as accessibility, affordability, regulation, and skill development need to be addressed to fully harness the benefits of digital trade. Attention to MSMEs and the need to address market power also contribute to ensuring a more inclusive and equitable digital trade landscape.
Yann Duval
The Asia-Pacific Trade and Investment Report 2023-2024, which focuses on unleashing digital trade and investment for sustainable development, was launched in a positive manner. This flagship report for the International Steering Committee for the Asia-Pacific Trade and Investment (ISCAP) is produced every two years in collaboration with the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Industrial Development Organization (UNIDO). The report explores the potential of digital trade and investment in driving sustainable development in the Asia-Pacific region. Notably, it will be made available online, ensuring wider accessibility to its insights and recommendations.
In an effort to promote responsible consumption and production and align with the Sustainable Development Goals (SDGs), another report adopted a paper-saving approach. Instead of providing physical copies of the entire report, only the highlights and recommendations are made available in a physical format. This initiative aims to reduce paper waste and contribute to SDG 12: Responsible Consumption and Production and SDG 13: Climate Action.
A meeting, likely significant given the participation of heads from ESCAP, UNCTAD, and UNIDO, is expected to take place. However, specific details and the agenda of the meeting were not mentioned. The overall sentiment regarding this meeting is neutral.
The annual thematic report, published biennially, explores various topics related to trade and investment for sustainable development. Past themes have included climate-smart trade and investment, as well as non-tariff measures for sustainable development. The sentiment towards this report is neutral, indicating its value in addressing key challenges and opportunities related to sustainable development.
To provide trade forecasts in the Asia-Pacific region, a separate yearly report called the Asia-Pacific Trade and Investment Trends (APTIT) report is published. Although specific details are not provided, this report serves as a valuable tool for policymakers, businesses, and researchers in understanding trade dynamics and trends in the region.
A panel discussion involving representatives from ESCAP, UNCTAD, and UNIDO took place. The objective was to discuss the opportunities and challenges associated with digital trade and its link to sustainable development. This demonstrates the recognition of the significance of digital trade in achieving sustainable development goals. The sentiment towards this discussion is neutral, reflecting a balanced approach.
The report also acknowledges the collaboration between the International Chamber of Commerce (ICC) and ESCAP in developing a cross-border paperless trade database. This joint effort highlights the importance of enhanced digital infrastructure and standardization in facilitating trade across borders. The sentiment towards this collaboration is positive, reflecting appreciation for the initiative.
Concerns were raised regarding the potential marginalization of small and medium-sized enterprises (SMEs) and micro, small, and medium-sized enterprises (MSMEs) in the digital trade market. These enterprises may face challenges and competition from larger entities. It is essential to give more attention to safeguarding the interests of SMEs and MSMEs and ensuring their meaningful participation in digital trade. Robust competition policies are necessary to support fair competition and prevent the exclusion of smaller businesses.
In conclusion, the launch of the Asia-Pacific Trade and Investment Report on unleashing digital trade and investment for sustainable development is a positive development. This collaborative effort by ISCAP, UNCTAD, and UNIDO emphasizes the potential of digital trade and investment in driving progress towards the SDGs. The online availability of the report ensures wider accessibility. The focus on sustainable practices, the importance of SMEs and MSMEs, and the collaborative development of digital infrastructure contribute to a comprehensive approach to sustainable development in the Asia-Pacific region.
Speakers
A
Armida Salsiah Alisjahbana
Speech speed
126 words per minute
Speech length
426 words
Speech time
202 secs
A
Audience
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141 words per minute
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47 words
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20 secs
FV
Frank Van Rompaey
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149 words per minute
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1095 words
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441 secs
GM
Gerd Müller
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101 words per minute
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334 words
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198 secs
PP
Pimchanok Pitfield
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157 words per minute
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1081 words
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414 secs
RA
Ratnakar Adhikari
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168 words per minute
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1260 words
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449 secs
RG
Rebeca Grynspan
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110 words per minute
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619 words
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337 secs
RC
Rupa Chanda
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203 words per minute
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1388 words
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411 secs
TF
Torbjörn Fredriksson
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VP
Valerie Picard
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413 secs
WA
Witada Anukoonwattaka
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99 words per minute
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2036 words
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1233 secs
YD
Yann Duval
Speech speed
164 words per minute
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2185 words
Speech time
801 secs
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