UNCTAD eWeek 2023

Arguments

The intellectual property system can be leveraged to promote economic development and sustainable development in the digital environment

Supporting facts:

• The WTO is based on a set of multilateral trade agreements, one of them concerning intellectual property, the so-called TRIPS agreement

• The relationship between trade and intellectual property has been transformed by digital technologies

Topics: WTO, TRIPS agreement, digital technologies, Intellectual property

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The creative industries have potential to reach global audiences using digital platforms

Supporting facts:

• The creative industries are thriving around the globe with an increasing focus on the ‘orange economy’

• Digital technologies offer potential for creators to reach global audiences

Topics: creative industries, orange economy, digital platforms

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Antony Taubman points out that digital products often consist of digital IP and intellectual property, making them tradable.

Supporting facts:

• The two specific case studies about the African musicians and environment waste treatment services relied significantly on software applications.

• IP is defined country by country, jurisdiction by jurisdiction, leading to challenges in creating a global marketplace for intangible products.

• Trade agreements attempt to create more connected global marketplace.

Topics: Digital Trade, IP Protection, Software

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Antony Taubman suggests that trust and expectation to pay could become key issues for African musicians and proposes digitization and IP protection as potential solutions.

Supporting facts:

• Digital platforms can significantly influence the sphere of music, both for copyright registration and develop the domestic market.

• Successful IP efforts could repatriate African music and address the challenge of royalty collections.

Topics: Music Industry, African musicians, Copyright

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The session was extremely beneficial and the ideas discussed can be taken forward

Supporting facts:

• The session involved a discussion about the business aspects of intellectual property and its relation to international trade

Topics: Intellectual Property, International Trade

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Report

The session featured discussions on the role of intellectual property (IP) in promoting economic and sustainable development in the digital environment. The speakers highlighted the transformative impact of digital technologies on the trade-IP relationship. The World Trade Organization (WTO) is based on a set of multilateral trade agreements, including the TRIPS agreement, which focuses on IP.

They emphasized the significant influence of digital transformation on this relationship. However, the speakers also identified obstacles limiting development opportunities in the digital space. The digital divide and platform dominance were seen as significant challenges. These factors create disparities and hinder inclusive growth in the digital economy.

Achieving reduced inequalities in the digital sphere was highlighted as a priority. The creative industries were discussed in terms of their potential to reach global audiences through digital platforms. Digital technologies offer creators the ability to expand their markets and connect with global audiences.

The challenges of establishing a global marketplace for intangible products were also highlighted due to differing IP protection laws across countries and jurisdictions. Trade agreements were mentioned as a means to address these challenges and create a more interconnected global marketplace.

The impact of digital platforms on the music industry was explored, focusing on aspects such as copyright registration and the development of the domestic market. Successful IP efforts were seen as key in repatriating African music and addressing royalty collection challenges.

The importance of technical assistance in shaping future practices and directions in the digital economy was emphasized. Technical assistance can help businesses understand the importance of IP protection as they engage in the digital economy. Overall, the session was regarded as highly beneficial, generating ideas for future developments.

Gratitude was expressed towards the speakers and the organizing team. In summary, the session addressed the role of IP in promoting economic and sustainable development in the digital environment. Key topics included the transformative impact of digital technologies, challenges in the digital space, the potential of the creative industries, establishing a global marketplace, the impact of digital platforms on the music industry, and the importance of technical assistance.

Arguments

Singapore is negotiating digital economy agreements with several countries including Australia, New Zealand, Chile, Korea, UK, the EFTA states, and the EU

Supporting facts:

• Singapore currently has four digital economy agreements with five countries and is in the process of negotiating two other agreements with the EFTA states and the EU

Topics: Digital Economy, Trade Agreements

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Uncoordinated government regulations can potentially create trade barriers

Supporting facts:

• As the digital economy evolves, a lot of governments are starting to create regulations around the digital economy which can affect cross-country trade

Topics: Digital Economy, Trade Policies

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Digital trade agreements are pivotal in harmonizing regulatory frameworks, enhancing digital trade, enabling free flow of data and fostering trust in the digital economy

Supporting facts:

• Digital trade agreements are designed to enable the digitalization of paper-based manual processes, ensure the free flow of data across borders, and protect both consumer and business rights

Topics: Digital Trade, Digital Economy, Data, Consumer Rights

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Protection of creator’s rights during cross-border flow of digital goods and services is essential

Supporting facts:

• Important elements include the protection of source code and the use of cipher keys.

• Certain governments might demand release of these trade secrets for doing business, which is something that needs to be prevented.

Topics: Intellectual Property, Digital Trade

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IP protection is a crucial aspect for businesses crossing borders, especially for micro, small, and medium enterprises (MSMEs)

Supporting facts:

• Reducing barriers for business when they cross borders is a key objective of digital trade.

• However, ensuring IP remains protected during this process is critical.

Topics: Intellectual Property, Digital Trade

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Joyce Lim has learned a lot from the panel, especially about the business aspect of IP and its interaction with international trade

Topics: Intellectual Property, International Trade

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Report

Singapore is actively engaging in negotiations for digital economy agreements with several countries, including Australia, New Zealand, Chile, Korea, the United Kingdom, the European Free Trade Association (EFTA) states, and the European Union (EU). These agreements aim to enhance digital trade, enable the free flow of data across borders, and foster trust in the digital economy.

Currently, Singapore has four digital economy agreements with five countries, and they are in the process of negotiating two additional agreements with the EFTA states and the EU. However, a challenge in the digital economy is the lack of coordination between governments in creating regulations.

As the digital economy evolves, governments are starting to implement regulations that can affect cross-country trade. The absence of coordinated efforts in developing these regulations may give rise to trade barriers hindering the growth and development of the digital economy.

To address this issue, digital trade agreements play a pivotal role in harmonising regulatory frameworks. These agreements aim to enable the digitalisation of paper-based manual processes, ensure the free flow of data across borders, and protect consumer and business rights.

By establishing consistent rules and standards, digital trade agreements reduce barriers for businesses operating across borders and foster trust in the digital economy by providing secure and reliable frameworks for data exchange. Protecting intellectual property (IP) is another crucial aspect of digital trade.

It is essential to safeguard the rights of creators during the cross-border flow of digital goods and services. Elements such as the protection of source code and the use of cipher keys are vital for preserving the integrity of trade secrets.

Demands from governments for the release of these trade secrets pose a potential threat to IP protection, and measures must be taken to prevent such demands. IP protection is particularly important for micro, small, and medium enterprises (MSMEs) engaging in cross-border business activities.

Reducing barriers for these enterprises is a key objective of digital trade, and ensuring the protection of their intellectual property is critical for their growth and competitiveness. Educating companies about IP protection in the digital economy is crucial. This area is of interest to both IP and trade policymakers.

By raising awareness and providing guidance on IP protection, companies can navigate the digital economy with greater confidence, ensuring the security and value of their intellectual property assets. Joyce Lim, who supports the negotiation of digital trade agreements, appreciates the insights gained from a panel discussion on the business aspect of IP and its interaction with international trade.

Her support stems from the recognition that digital trade agreements are essential in enhancing digital trade, liberating the flow of data, and building trust in the digital economy. Overall, the negotiation of digital economy agreements plays a vital role in advancing the digital economy.

By harmonising regulatory frameworks, protecting intellectual property, and educating businesses, these agreements create an environment conducive to digital trade and innovation. Through these efforts, Singapore and other countries seek to foster economic growth and strengthen partnerships in the digital era.

Arguments

Copyright is a critical element of industrial development.

Supporting facts:

• Copyright industries account for an expanding share of the global economy and a significant component of the digital economy.

• In the US, the copyright sector is bigger than the manufacturing sector, earning and employing more.

• Earnings from the digital economy is largely attributed to the copyright sector.

Topics: intellectual property, industrial development, copyright sector

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The creative economy is a sizable component of the global economy now.

Supporting facts:

• The creative economy is estimated to be worth somewhere between 8% and almost 12% of global GDP.

• Platforms largely depend on creative content.

Topics: creative economy, global GDP, creative content

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Low-income countries are dependent on exporting to middle-income countries.

Supporting facts:

• Approximately 84% of exports from low-income countries go to middle-income countries.

• Low-income countries are largely dependent on exporting within their own regions to the middle-income countries.

Topics: low-income countries, export economy

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There is a large value gap in the creative industry due to the genre gap.

Supporting facts:

• Only 8% is being earned by creators in the platform economy.

• Developing countries suffer because their domestic markets are not strong enough to generate purchasing power, and the overseas markets may not be attuned to their genres.

Topics: creative industry, value gap, genre gap

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Government should better understand and invest in creative industries

Supporting facts:

• Creative industries are largely underfunded in developing countries

• Commercialization of intellectual property and financing creative industries is not well developed in developing countries

• Government institutions spend more on low-return physical infrastructures like ports instead of investing in creative sectors.

Topics: Creative Industries, Government Funding, Intellectual Property

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Artists need to understand and use modern technologies like blockchain, AI, and e-commerce

Supporting facts:

• Training artists and creative entrepreneurs in the digital era is important.

• Many developing countries lack understanding and exposure to emerging technologies like blockchain and AI

Topics: Digitalization, Training, Creative Industries, Artificial Intelligence, Blockchain

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Report

The analysis provides an in-depth examination of various aspects related to copyright industries and the creative economy in the context of global development. The copyright sector is found to be a significant contributor to the global economy, with the United States’ copyright sector even surpassing the manufacturing sector in terms of earnings and employment.

This highlights the increasing importance of copyright industries in driving economic growth and creating employment opportunities. Similarly, the creative economy is acknowledged as a substantial component of global GDP, estimated to be worth around 8% to almost 12%. It is emphasised that platforms heavily rely on creative content, highlighting the pivotal role of the creative industry in sustaining and driving the digital economy.

On the other hand, the analysis sheds light on the challenges faced by low-income countries in their economic development. It is highlighted that these countries heavily rely on exporting to middle-income countries. Approximately 84% of exports from low-income countries are directed towards middle-income countries.

This dependency on neighbouring economies for trade creates a potential vulnerability, as the performance of their own domestic markets might not be sufficient to generate purchasing power, and overseas markets might not be well-aligned with the genres or products they bring forth.

Moreover, the analysis brings attention to the existence of a significant value gap in the creative industry, primarily resulting from the genre gap. Only 8% of earnings in the platform economy are received by creators, which poses a challenge, particularly for developing countries.

It is indicated that their domestic markets might lack the strength to generate purchasing power, while overseas markets might not appreciate or align with their unique genres. This disparity leaves many creators from developing countries at a disadvantage, preventing them from benefiting fully from their creative works.

Another significant aspect highlighted in the analysis is the underfunding faced by creative industries in developing countries. It is noted that government institutions tend to allocate more resources towards low-return physical infrastructures, such as ports, rather than investing in the growth and development of creative sectors.

This underinvestment hampers the potential of creative industries to contribute to economic growth and employment generation, further limiting their impact and potential. The analysis also emphasises the urgent need for artists and creative entrepreneurs in developing countries to understand and leverage modern technologies, such as blockchain, artificial intelligence (AI), and e-commerce.

It is mentioned that many artists face a lack of understanding and exposure to emerging technologies, which can hinder their ability to adapt and thrive in the digital era. By embracing and utilising these technologies effectively, artists can access new opportunities, expand their reach, and create innovative business models.

Lastly, the analysis suggests that the registration of artists with local copyright societies can play a crucial role in redirecting income to the country of origin. Currently, many artists register with copyright societies in developed countries, resulting in a loss of income for their home countries.

As an example, various globally recognised artists from countries like Jamaica are registered with copyright societies in the United States or Europe, leading to a loss of revenue that could benefit their home countries. By encouraging artists to register with local copyright societies, governments can ensure that income generated from their creative works returns to their country of origin, fostering economic growth and reducing inequality.

In conclusion, the analysis highlights the significant contribution of copyright industries and the creative economy to global development. It emphasises the need for policymakers and governments to better understand and invest in the creative industries, address the value gap and genre gap that hinder development in the creative industry, and empower artists with modern technologies.

Furthermore, it underlines the importance of redirecting income to the country of origin through local copyright societies to support economic growth and reduce inequalities in low-income countries.

Arguments

Greenplatt is a startup specialized in waste management

Supporting facts:

• One of their clients is Arcos Dorados, the McDonald’s restaurants franchise in Latin America

• More than 8,000 collections each month in Brazil are controlled through their platform

Topics: Waste management, Digital Economy, Software, Brazil

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Intellectual property is a major concern for Greenplatt

Supporting facts:

• All clients sign a licensing agreement which protects Greenplatt’s software and clients’ data

Topics: Technology, Software, Intellectual Property

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Marcela Nectoux appreciated the time spent in the discussion

Topics: Discussion, Learning

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Report

Greenplatt is an innovative startup that specializes in waste management. With a positive sentiment, Greenplatt aims to bring transparency to the waste management sector. Their software plays a crucial role in achieving this goal by consolidating all environmental information related to waste management.

This allows for efficient tracking and monitoring of waste collections. Moreover, Greenplatt ensures the security of transactions and data on their platform, providing a minimum level of guarantees to clients. One notable client of Greenplatt is Arcos Dorados, the McDonald’s franchise in Latin America.

This partnership highlights the trust placed in Greenplatt’s services and the effectiveness of their waste management solutions. With more than 8,000 collections being controlled through their platform in Brazil alone each month, Greenplatt’s impact on responsible consumption and production, as outlined in SDG 12, is substantial.

However, Greenplatt faces challenges when expanding into international markets due to variations in jurisdiction and environmental laws. Each state in Brazil, for example, has its own set of regulations. Despite these challenges, Greenplatt is determined to broaden its reach and is expanding its operations to Mexico, Colombia, Argentina, and Chile.

This indicates their commitment to addressing waste management issues beyond regional boundaries. Furthermore, intellectual property is a major concern for Greenplatt. To safeguard their software and clients’ data, all clients are required to sign a licensing agreement. This ensures the protection of Greenplatt’s innovative technology in the waste management sector.

Additionally, a panel discussion proved to be a valuable learning experience for Marcela Nectoux, who gained insights into various aspects including environmental considerations, data protection, and intellectual property legislation. Marcela Nectoux expressed a positive sentiment about the discussion, suggesting that it was both informative and engaging.

In conclusion, Greenplatt’s mission to promote responsible consumption and production aligns with SDG 12. Their efforts to bring transparency to the waste management sector through innovative software benefit clients like Arcos Dorados. While they face challenges expanding into international markets, Greenplatt’s determination and expansion plans demonstrate their commitment to addressing waste management issues globally.

With a strong focus on protecting intellectual property, Greenplatt ensures the security and integrity of its software and clients’ data. Overall, Greenplatt’s positive sentiment, commitment to transparency and responsible waste management, and contribution to SDG 12 make them a notable player in the industry.

Arguments

Budunda is a music service focused on the African continent with a mission to promote both accessible music and better rewards for musicians.

Supporting facts:

• Budunda started out in Kenya about 12 years ago.

• Today, their biggest markets are Nigeria and Tanzania.

Topics: Music, Africa, Budunda

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A significant problem in the African music market is piracy, and a significant characteristic is the high consumption of local music.

Supporting facts:

• In Africa, more than 50% of the music consumed is local.

• 80% across all their markets is from Africa.

Topics: Music, Africa, Piracy

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Music rights in Africa are primarily held by the artists themselves, which creates both opportunities and challenges.

Supporting facts:

• Globally, majority of the music rights is owned by the three biggest major record labels.

• In Africa, majority of the music is owned by the artists themselves.

Topics: Music, Africa, Music Rights

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Budunda is a self-serve platform, enabling artists to upload and manage their content directly.

Supporting facts:

• Budunda works with 150,000 African artists.

• The service allows artists to control their content.

Topics: Music, Africa, Music Rights, Budunda

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Their business model is not yet financially sustainable, but they aim to be by 2025 while riding on the ongoing popularity of African music and Afrobeats

Supporting facts:

• They’re a public-listed company in Denmark and currently not a financially sustainable business

• They’re experiencing a wave of popularity they could not have predicted when they started

• Their numbers are publicly available

Topics: Business model, Financial sustainability, African music, Afrobeats

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Innovation in the music streaming service often starts as an unlicensed service

Supporting facts:

• Spotify, YouTube, and TikTok started as unlicensed services until they gained traction

• Market factors often break the norm, attracting users more than rights holders

• Rights holders typically come to services after they’ve established some sense of success

Topics: Music streaming service, Innovation, Copyrights

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Lack of expertise and funding are challenges for musicians in Africa

Supporting facts:

• There is a lack of maturity in local societies and rights holders, who often lack the expertise of their counterparts in the developed world

• Lack of volume affects the economics of the local associations, leading to higher costs

Topics: IP, Music industry, Developing countries, Trade agreements

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Report

Budunda is a music service that was founded in Kenya approximately 12 years ago. Its main focus is to promote accessible music and improve the rewards for African musicians. While the service initially started in Kenya, it has now expanded its presence and its biggest markets are Nigeria and Tanzania.

Budunda works closely with around 150,000 African artists, offering them a self-serve platform that allows them to directly upload and manage their music content. Piracy remains a significant issue in the African music market. Nevertheless, more than 50% of music consumed in Africa is local, and within all markets served by Budunda, 80% of the music listened to is from Africa.

This highlights the vibrant and diverse musical landscape of the region. One interesting aspect of the African music industry is that music rights are primarily owned by the artists themselves. This diverges from the global trend where major record labels generally hold the majority of music rights.

The ownership of music rights by artists in Africa presents both opportunities and challenges, as it empowers artists but also requires infrastructure to ensure fair compensation for their work. Although Budunda’s current business model is not yet financially sustainable, the company has set ambitious goals to achieve financial sustainability by 2025.

They plan to capitalize on the ongoing popularity of African music, particularly Afrobeats, in order to attract a larger user base and generate more revenue. As a publicly listed company in Denmark, Budunda’s financial numbers are transparent and available for public scrutiny.

In the music streaming industry, innovation often starts with unlicensed services that gain popularity before rights holders become involved. Spotify, YouTube, and TikTok are examples of services that initially operated without licenses before establishing partnerships with rights holders. This pattern underscores the importance of striking a balance between market appeal and responsible copyright practices.

Enforcing copyright laws in emerging markets presents a significant challenge, and there is a lack of effective alternative solutions to combat piracy. While copyright laws exist, enforcement can be difficult in many emerging markets, posing a significant obstacle to protecting the rights and interests of artists and the music industry as a whole.

Artists face a dilemma when choosing between joining global associations or local associations. While global associations may be more effective at collecting rights, opting for local associations can contribute to the growth of the local music ecosystem. However, this choice is complex due to the industry’s instability and artists’ personal survival considerations.

The lack of expertise and funding severely affects musicians in Africa. Local associations often lack the maturity and resources of their counterparts in developed countries, which limits their ability to effectively support rights owners. To better serve artists and rights owners in Africa, it is crucial for local associations to build expertise and achieve economies of scale.

In conclusion, Budunda’s mission to promote accessible music and improve rewards for African musicians aligns with the vibrant musical landscape of the continent. Despite the challenges posed by piracy, the high consumption of local music emphasizes the strong demand for African artists.

The ownership of music rights by artists presents both opportunities and challenges. Budunda’s self-serve platform empowers artists and aims to achieve financial sustainability by leveraging the popularity of African music. However, the music industry faces difficulties in enforcing copyright laws and providing effective solutions to combat piracy.

The dilemma of choosing between global and local associations further complicates the growth of the local music ecosystem. The lack of expertise and funding are significant constraints for musicians in Africa, and it is crucial for local associations to develop scale and expertise to better support rights owners.

Arguments

Digitization projects may unintentionally increase inequality

Supporting facts:

• Observation that benefits of digitization end up with the stakeholders that are already well off

• Infrastructure for digital payments is not fully digitized, causing friction and cost converting digital payment into cash

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Report

During a discussion on digitization projects, two speakers focused on the potential impact of such projects on inequality. They both expressed concerns about the current state of inequality and how digitization might unintentionally exacerbate it. One of the main points raised by the speakers was that the benefits of digitization tend to be concentrated among those who are already well-off.

This observation suggests that rather than reducing inequalities, digitization may actually reinforce existing disparities. To support this argument, the speakers pointed out that the infrastructure for digital payments is not fully digitised yet. This results in difficulties when converting digital payments into cash, particularly for those who rely on cash transactions.

The friction and costs associated with the conversion process further marginalise individuals who may not have access to digital banking services or prefer to use cash. Consequently, these individuals are left out of the benefits that digitization promises to bring.

Another speaker emphasised the need for strategies that improve the value proposition for end receivers of digital payments. They suggested focusing on enhancing digital and financial literacy, as well as addressing health-related concerns. By empowering individuals with the knowledge and skills needed to effectively navigate digital systems, they can fully participate in the digital economy.

Overall, there was a negative sentiment surrounding the potential unintended consequences of digitization projects on inequality. The discussion highlighted the necessity of reflecting on strategies to ensure that digitization projects are inclusive and do not further widen the gap between the well-off and the disadvantaged.

By prioritising the improvement of the value proposition for end receivers and addressing the challenges in the infrastructure, digitization can be leveraged to bridge the inequality gap rather than exacerbate it.

Arguments

Deepali Fernandes found the pilots presented by Gabriel Bizama very innovative and successful, particularly noting how they have been tried and tested in real world scenarios.

Supporting facts:

• The US-Colombia corridor pilot reduced remittance cost from 6% to 1.6% to 2% with the assistance of blockchain technology.

• The Ukraine program enabled portability across different regions while maintaining currency value.

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Report

The analysis focuses on two significant points. Firstly, it highlights the success of Gabriel Bizama’s pilots, which utilized blockchain technology to revolutionize the remittance process. These pilots have effectively reduced remittance costs from 6% to a range of 1.6% to 2%. By leveraging blockchain technology, the US-Colombia corridor pilot achieved this impressive cost reduction.

Additionally, the Ukraine program demonstrated the ability to maintain the value of currency while ensuring portability across different regions. It is worth noting that both pilots have undergone thorough testing and have proven their innovative and transformative capabilities in real-world scenarios.

Secondly, the analysis highlights Deepali Fernandes’ interest in exploring the gender aspects of digital remittances in relation to financial inclusion. This signifies a recognition of the potential impact of digital remittances on promoting gender equality and ensuring financial access and empowerment for all.

While no specific supporting evidence is provided, Fernandes’ interest indicates a desire to further understand and address the gender disparities that may exist in digital remittance systems. Overall, the analysis highlights the effectiveness of blockchain technology in reducing remittance costs and ensuring the portability of funds.

It also emphasizes the importance of considering gender aspects in the context of digital remittances and financial inclusion. These insights shed light on the potential for technological advancements to drive positive change and promote greater financial empowerment and equality.

Arguments

Gabriel Biyazama discusses use cases of blockchain for cross-border payments, digital wages, and cash transfers.

Supporting facts:

• Pilot programs conducted in U.S.-Colombia and UAE-Philippines

• Exploring corridors in Europe-Africa

• Blockchain is cost-effective with a less than half the average cost of the market

• The importance of interoperability and financial education in the system.

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Key technology will mainly focus on digital assets and currencies, leveraging digital wallets

Supporting facts:

• Digital wallet RTM enables businesses to pay workers using digital assets like USDC, digital dollars

• Workers can convert USDC to local currency, send those funds to a bank account, or a prepaid account or even do a cash out with local physical agents

• In October, RTM processed over 1 million transactions, over 100 million USD in volume

• The solution is seeing active use in Argentina, Venezuela, Colombia, Kenya, Ecuador, India, and Bangladesh

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Report

Gabriel Biyazama explores the potential applications of blockchain technology in cross-border payments, digital wages, and cash transfers. Successful pilot programs have been conducted in the corridors between the U.S. and Colombia, as well as between the UAE and the Philippines.

The use of blockchain technology in these areas is cost-effective, offering a solution that is significantly cheaper than the average market cost. To ensure the successful implementation of blockchain, two crucial factors must be considered: interoperability and financial education. Interoperability is essential for seamless communication and compatibility between different blockchain networks, allowing for efficient cross-border transactions.

Additionally, financial education plays a vital role in ensuring individuals and businesses understand the benefits and processes involved in using blockchain for their financial transactions. Another significant use case for digital assets lies in their potential to support humanitarian causes.

The UNHCR, for example, has utilized digital assets to aid refugees in Ukraine affected by the Russian invasion. This innovative solution provides portability, financial inclusion, and transparency, contributing to the achievement of Sustainable Development Goals such as No Poverty, Reduced Inequalities, and Climate Action.

Digital wallets, such as RTM, enable businesses to pay workers using digital assets like USDC and digital dollars. These digital assets can be converted to local currency, sent to a bank account or prepaid account, or even withdrawn as physical cash through local agents.

RTM has processed over 1 million transactions, amounting to over 100 million USD in volume in October alone. Countries such as Argentina, Venezuela, Colombia, Kenya, Ecuador, India, and Bangladesh have actively embraced this solution. However, the adoption of digital wallets in cash transfers and other financial transactions does present challenges.

One significant obstacle is connectivity, as solutions like RTM require access to smartphones, highlighting the need for robust digital infrastructure. Without reliable connectivity, the benefits of digital wallets and blockchain technology in financial transactions cannot be fully realized. In conclusion, Gabriel Biyazama emphasizes the potential of blockchain technology to enhance cross-border payments, digital wages, and cash transfers.

The successful pilot programs and exploration of new corridors demonstrate the positive impact this technology can have on financial systems. The use of digital assets in cash transfers further amplifies the potential contribution to humanitarian causes. However, addressing challenges such as interoperability, financial education, and connectivity is crucial for widespread adoption of technologies like digital wallets.

Arguments

Most migrant workers prefer their wages to be in cash due to convenience and familiarity.

Supporting facts:

• The majority, as studies show, of migrant workers prefer receiving their wages in cash.

• Many find finance stressful and see no immediate benefits of switching to digital systems.

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There is a need for studies that evaluate the potential business case for wage service providers and financial providers offering digital services.

Supporting facts:

• There hasn’t been a study that looks at wage service providers and financial providers in relation to digital services.

• It’s important to understand the business benefits for these institutions, migrant workers, and employers.

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Digital wage services support various benefits and opportunities for employers, financial institutions, and migrant workers.

Supporting facts:

• Digital wages can simplify payroll for employees and offer financial benefits for the institutions.

• Digital payment services open a new niche market with migrants.

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Significant number of migrants in Senegal receive their wages in cash and have limited access to digital financial solutions.

Supporting facts:

• Eight out of ten migrants in Senegal receive their wages in cash.

• About 25% of these migrants own a bank account, but almost half of those do not have access to digital wages.

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Delivery networks are important for migrant workers to make ease of access to digital financial services.

Supporting facts:

• Many migrants prefer services in their own languages which can ease transactions.

• To reach lower income people in developing countries, physical delivery networks remain very important.

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Gender disparity in remittances and financial inclusion

Supporting facts:

• Nowhere was the onboarding of women customers near 50% where you expect it to be

• Women prefer or use more the cash-based channels

• Women tend to send remittances in smaller amounts and more frequently

• Women have reported to be less able to cope with an unforeseen expense

• Women have less control over remittances and how they’re used than men

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Potential improvement of women’s financial inclusion through digital remittances

Supporting facts:

• Simple tweaks improved gender ratio in onboarding for a remittance company

• Financial health can play a major role in reducing stress related to remittances

• Women generally spend remittances on education, energy payments and healthcare

• Digitisation of remittances could improve women’s control over their finances

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Report

The analysis explores the topic of digitisation of wages for migrant workers from various perspectives. One argument is that the majority of migrant workers prefer to receive their wages in cash, citing convenience and familiarity as the main reasons. Studies show that many migrants find finance stressful and do not immediately see the benefits of switching to digital systems.

On the other hand, there is a need for studies to evaluate the potential business case for wage service providers and financial institutions offering digital services. The analysis points out that no study has specifically examined the relationship between wage service providers, financial providers, and digital services.

Understanding the business benefits for these institutions, migrant workers, and employers is crucial in order to make informed decisions regarding the adoption of digital payment systems. Digital wage services, however, offer various benefits and opportunities for employers, financial institutions, and migrant workers.

They can simplify payroll processes for employers and provide financial benefits for institutions. Moreover, digital payment services open up a new niche market with migrants, which can contribute to economic growth and development. In Senegal, a significant number of migrants still receive their wages in cash and have limited access to digital financial solutions.

Eight out of ten migrants in Senegal receive cash wages, while only around 25% of them have a bank account. Furthermore, almost half of those who own a bank account do not have access to digital wages. This highlights the challenges faced by migrants in accessing digital financial services and the need for improved access and inclusivity.

Delivery networks also play a crucial role in facilitating access to digital financial services for migrant workers. Many migrants prefer using services that are available in their own languages, as this can ease transactions and improve overall user experience. Additionally, for lower-income individuals in developing countries, physical delivery networks remain vital to ensure that they can access digital financial services.

The analysis also addresses gender disparities in remittances and financial inclusion. It highlights that women generally face greater challenges in terms of financial inclusion and control over their remittances. Women tend to use more cash-based channels, send smaller amounts more frequently, and have less control over how their remittances are used compared to men.

However, there is potential for improvement in women’s financial inclusion through digitisation of remittances. Simple tweaks in onboarding processes have shown improved gender ratios in a remittance company. Additionally, improving women’s financial health can play a crucial role in reducing stress related to remittances.

Digitisation of remittances could enhance women’s control over their finances and enable them to allocate funds towards education, energy payments, and healthcare. In conclusion, the analysis suggests that the digitisation of wages and financial services for migrant workers should aim to be gender-inclusive.

Addressing the barriers faced by women in terms of financial inclusion and control over remittances is essential. By studying the potential business case for digital services, improving access to digital financial solutions, and focusing on gender inclusivity, policymakers can work towards achieving SDG targets related to decent work and economic growth, reduced inequalities, and gender equality.

Arguments

Digital wage payments are important as they ensure workers receive full wages and provide proof of payment for labor disputes.

Supporting facts:

• A digital wage ensures accuracy and timeliness of wage payments.

• Workers have reported that when paid digitally, the wage payment is much more accurate.

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The transition from cash to digital wage payments needs to be done responsibly to fully benefit the workers.

Supporting facts:

• Workers, especially the more vulnerable or less digital-savvy ones, might face challenges when their wages are digitalized without proper financial literate education.

• Instances found where women had to take a day off to go to the bank to cash out their money, indicating gaps in digital literacy

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The importance of financial education for women migrant workers

Supporting facts:

• Many workers in developing countries lack sufficient digital and financial education

• The ILO has been working on providing financial education over the past 10 to 15 years

• Financial issues were found to be the cause of mental health issues among migrant workers in Jordan

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The need for personal savings products for migrant workers

Supporting facts:

• Many migrant workers return to their home country with little to no savings

• Exploring financial products beyond remittances can enable workers to plan for their futures

• Many Filipino workers returned to the Philippines after working abroad during the pandemic with nothing

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Importance of considering local context and ecosystem for successful digitization of wage payments

Supporting facts:

• Mention of Philippines case where workers were willing for digital payment once ecosystem developed.

• Rapid development of financial ecosystem in many places.

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Report

The importance of digital wage payments is highlighted in the summary, as it ensures the accuracy and timeliness of wage payments for workers. This helps to reduce instances of payment inaccuracies, which can have significant implications for workers, especially those living in poverty.

Workers have reported that when paid digitally, the wage payment is much more accurate, proving the necessity of digital wage payments. However, it is important to ensure that the transition from cash to digital payments is done responsibly. Workers, especially those who are vulnerable or less digitally-savvy, may face challenges when their wages are digitalised without proper financial literacy education.

Instances have been found where women had to take a day off to go to the bank to cash out their money, indicating gaps in digital literacy. Therefore, it is crucial to provide financial literacy education to workers, particularly in developing countries.

Governments have a vital role to play in promoting responsible digitisation of wage payment by setting the appropriate policies and regulations. Bilateral labour agreements in some countries have a clause ensuring workers’ access to a bank account, which facilitates digital wage payments.

For example, the Ministry of Labour in Thailand has required vessel owners to pay wages digitally, benefiting many migrant workers. By implementing these policies, governments can ensure that workers receive their full wages and have access to reliable payment methods.

While using mobile wallets for wage payments presents opportunities, it also poses risks if not fully supervised. There are laws that restrict the use of mobile wallets for wage payments if they are not backed by a bank. It is important to consider the issue of risk and protection of funds when using unsupervised mobile wallets.

Supervision and regulation are necessary to safeguard workers’ financial interests. Financial education is essential, particularly for migrant workers who often lack sufficient digital and financial literacy. Many workers in developing countries face these challenges, resulting in financial issues that can lead to mental health problems.

The International Labour Organization (ILO) has been working on providing financial education for the past 10 to 15 years, recognising its importance in empowering workers. By equipping workers with the necessary knowledge and skills, they can make informed financial decisions and better navigate the digitised payment systems.

Additionally, there is a significant need for personal savings products for migrant workers. Many of them return to their home countries with little to no savings, despite their hard work. Exploring financial products beyond remittances can enable workers to plan for their futures and secure their financial well-being.

The COVID-19 pandemic highlighted the vulnerability of migrant workers who returned to the Philippines with nothing after working abroad. Preventive action and prior financial education before migration are necessary to address the challenges faced by migrant workers. Many workers get trapped in a cycle of debt to repay recruitment fees and remittances.

Providing financial education before the migration process can help workers deal with potential issues, such as managing their finances abroad and avoiding exploitative practices. This proactive approach can protect workers from falling into financial hardships. The successful digitisation of wage payments depends on considering the local context and ecosystem.

It is crucial to understand the unique characteristics and challenges of each country or region to effectively implement digital payment systems. For instance, in the Philippines, workers were willing to adopt digital payment once the ecosystem was developed. Rapid development of the financial ecosystem has been observed in many places, creating opportunities for the digitisation of wage payments.

It is important to view digital wage payments in the broader perspective of all digital payments that workers need to make. Central banks have released studies showing that a significant portion of private sector workers still receive wages in cash, indicating a need for further adoption of digital payment methods.

The increased number of merchants accepting digital payments also emphasises the growing acceptance of digital transactions. In conclusion, digital wage payments play a crucial role in ensuring accurate and timely payment for workers, reducing payment inaccuracies. However, a responsible transition from cash to digital payments is necessary, accompanied by financial literacy education for workers.

Governments can promote responsible digitisation through policies and regulations. Financial education is crucial for migrant workers in particular, and there is a need for personal savings products to secure their financial well-being. Prior financial education and preventive action can help workers avoid falling into financial hardships.

The successful implementation of digital wage payments depends on considering the local context and ecosystem, and it is important to view digital wage payments in the broader context of all digital payments.

Arguments

Arnau Izaguerri is moderating the Roundtable on Regional Cooperation for Safer Online Consumer Markets.

Supporting facts:

• Arnau Izaguerri works as a legal officer at the Competition and Consumer Policies Branch of UNCTAD.

Topics: Online Consumer Markets, Regional Cooperation, Product Safety

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Arnau Izaguerri ready to support in creating regional cooperation on online consumer product safety

Supporting facts:

• Arnau Izaguerri expressed readiness to support

Topics: online consumer product safety, regional cooperation

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Regional cooperation is a catalyst for international cooperation in matters of product safety.

Supporting facts:

• Ms. Moreira asserted that regional cooperation accentuates the good parts of product safety at the national level

• Ms. Moreira believes it helps share these parts regionally

Topics: Product Safety, Regional Cooperation, International Cooperation

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A solid legal framework at both national and regional levels is essential

Supporting facts:

• Izaguerri emphasizes on the necessity of a solid legal framework not only at the national, rather also at the regional level

Topics: Legal Framework, Product Safety

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Technology should be harnessed for product safety

Supporting facts:

• Mention was made of the e-surveillance crawler at the European Commission to a WhatsApp group at the COMESA, Competition Commission

Topics: Product Safety, Technology

---

Commitment is needed from all authorities for effective product safety

Supporting facts:

• Izaguerri draws on the speakers comments expressing their commitment to these frameworks

Topics: Product Safety, Commitment

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Importance of networking the networks, both at regional level and at inter-regional level

Supporting facts:

• Refers to the proposal of the African Forum or the European-Chinese agreements

Topics: Networking, Cooperation

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Report

Arnau Izaguerri, a legal officer at the Competition and Consumer Policies Branch of the United Nations Conference on Trade and Development (UNCTAD), is playing a pivotal role in moderating the Roundtable on Regional Cooperation for Safer Online Consumer Markets. This event aims to address the pressing issues related to trust in Cross-Border E-Commerce and explore ways to overcome technological challenges in this rapidly evolving sector.

Izaguerri emphasises the importance of discussing trust in Cross-Border E-Commerce, recognising that it is a crucial factor in fostering a safe and reliable online consumer market. Despite facing connection issues with one of the speakers, Dr. Mwemba, Izaguerri demonstrates his resilience and suggests proceeding with the session in the hope that Dr.

Mwemba would be able to join later. This positive and proactive attitude of Izaguerri highlights his determination to facilitate meaningful discussions on these critical topics. Moreover, Izaguerri is committed to supporting the creation of regional cooperation on online consumer product safety.

This cooperative approach is seen as a catalyst for international cooperation in matters of product safety, primarily highlighting the positive aspects of product safety at the national level and the potential benefits of sharing these at the regional level. Izaguerri’s readiness to support regional cooperation showcases his dedication to promoting safe and secure online consumer markets.

Additionally, Izaguerri stresses the necessity of a solid legal framework, not only at the national level but also at the regional level. Understanding that a robust legal framework is essential for effective consumer protection, Izaguerri emphasises the need for cooperation and collaboration among authorities and stakeholders to ensure comprehensive oversight and enforcement.

The importance of harnessing technology is also highlighted by Izaguerri as a significant factor in ensuring product safety. Mention is made of the e-surveillance crawler at the European Commission, which demonstrates the potential of technology in monitoring and enforcing product safety standards.

This acknowledgment reflects Izaguerri’s understanding of the importance of incorporating technological advancements to enhance consumer protection. Furthermore, commitment from all authorities is essential for the effectiveness of product safety frameworks. Izaguerri refers to the speakers’ comments, where they express their commitment to these frameworks, underscoring the significance of collective dedication to ensuring consumer safety.

Izaguerri recognises the value of networking and cooperation, stating the importance of networking both at the regional level and inter-regional level. This includes mentioning proposals such as the African Forum and the European-Chinese agreements, which seek to enhance collaboration and coordination in addressing product safety challenges across borders.

In a gesture of support, Izaguerri also encourages everyone to participate in UNCTAD’s informal working group on consumer product safety. He highlights the group’s plans, which involve holding webinars, developing common tools, guidelines, and recommendations. These initiatives aim to promote collaboration and knowledge-sharing among stakeholders to enhance consumer protection.

Overall, Arnau Izaguerri’s active involvement in moderating the Roundtable on Regional Cooperation for Safer Online Consumer Markets highlights his dedication and commitment to improving consumer protection in the rapidly growing realm of e-commerce. His emphasis on trust, regional cooperation, legal frameworks, technology, commitment, and networking showcases the multifaceted approach required to create safer online consumer markets.

By urging stakeholders to come together and fostering collaboration, Izaguerri aims to lay a strong foundation for effective consumer protection measures in the digital age.

Arguments

The European Union has made ambitious steps in improving laws and introducing voluntary initiatives to protect consumers from dangerous products sold online

Supporting facts:

• The Digital Services Act entered into force last year, applying common rules to all digital companies offering their services in the EU

• The General Product Safety Regulation (GPSR) is set to replace the current General Product Safety Directive by mid-December next year

• The GPSR requires all products placed on the market to be safe, with a responsible person that can be contacted in case of safety concerns

Topics: Product Safety Regulations, European Union, Online Market

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Enforcement is crucial to keep consumers safe, so the GPSR provides new powers to authorities to perform online market surveillance

Supporting facts:

• The General Product Safety Regulation gives new powers to authorities to perform online market surveillance

• The European Commission has developed the e-surveillance web crawler to help detect unsafe products

Topics: Enforcement, Consumer Safety

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The importance of a regional rapid alert system on dangerous products like the EU’s safety gate

Supporting facts:

• The safety gate system helps countries quickly detect and remove harmful products from the market

• The alerts are published on the safety gate portal and are readily available for businesses and consumers

• The system adds weight to the alerts and is appreciated by partner countries

Topics: Regional Cooperation, Market Surveillance, Consumer Safety

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The importance of regional cooperation to tackle product safety issues

Supporting facts:

• Isabelle Pérignon is available to develop contacts to encourage cooperation between authorities in the region

Topics: Regional cooperation, Product safety, Digital markets

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Report

The European Union has taken significant steps to protect consumers from dangerous products sold online. Two key initiatives in this regard are the Digital Services Act and the General Product Safety Regulation (GPSR). The Digital Services Act, which came into force last year, applies common rules to all digital companies offering their services in the EU.

This ensures that consumers are protected regardless of the platform they use to purchase products. The GPSR is set to replace the current General Product Safety Directive by mid-December next year. Under the GPSR, all products placed on the market must be safe, and there must be a responsible person that can be contacted in case of safety concerns.

This regulation aims to ensure that consumers can have confidence in the safety of the products they purchase online. The Commission views it as crucial for businesses to go beyond legal obligations in enhancing consumer safety. In line with this, the Commission has been facilitating the Product Safety Pledge since 2018, which encourages businesses to go above and beyond legal obligations for consumer safety.

The pledge has garnered 11 signatories, and in March this year, they agreed to a more ambitious cooperation under the Product Safety Pledge Plus. This initiative emphasizes the commitment of businesses to prioritize consumer safety and improve product standards. Enforcement is crucial in keeping consumers safe, which is why the GPSR provides new powers to authorities to perform online market surveillance.

The GPSR gives authorities the ability to effectively monitor digital markets and detect unsafe products. To support this, the European Commission has developed the e-surveillance web crawler, a tool that helps identify potentially hazardous products. To swiftly detect and remove harmful products from the market, the EU has established the safety gate system.

This regional rapid alert system allows countries to exchange information and take coordinated actions to protect consumers. When unsafe products are identified, alerts are published on the safety gate portal, making them readily accessible to businesses and consumers. The system has been highly appreciated by partner countries, as it enhances consumer safety and strengthens regional cooperation.

Coordinated actions among different countries can improve regional cooperation on product safety. The European Commission supports “Coordinated Activities on the Safety of Products” (CASP), where authorities responsible for market surveillance collaborate. These activities focus on testing products and exchanging best practices.

Last year, 431 products were tested through these coordinated activities, highlighting the effectiveness of collaborative efforts in ensuring product safety. An active communication strategy about coordination activities and their results is crucial for transparency. By promoting transparency in product safety, businesses and consumers are kept informed about the progress made in addressing safety concerns.

This approach fosters trust and confidence in the market, further enhancing consumer protection. Regional cooperation plays a vital role in tackling product safety issues. By fostering cooperation and exchanging information between authorities in different countries, the EU can effectively address safety issues and improve product standards.

Isabelle Pérignon, an advocate for regional cooperation, is available to develop contacts and encourage cooperation between authorities in the region. Her expertise and connections can facilitate successful regional initiatives for better consumer protection. In conclusion, the European Union has made significant advancements in protecting consumers from dangerous products sold online.

Through the Digital Services Act and the General Product Safety Regulation, common rules are applied to digital companies, ensuring consumer protection across platforms. Enhancing consumer safety beyond legal obligations is encouraged through initiatives like the Product Safety Pledge. Coordinated actions, enforcement, and regional cooperation contribute to effective market surveillance and product safety.

Transparent communication and cooperation among authorities further enhance consumer protection and build trust in the market.

Arguments

Oman is implementing strict regulations to ensure consumer protection in online markets

Supporting facts:

• The Consumer Protection Authority’s Resolution Numbers 1 of 2022 includes provisions for electronic commerce

• Sellers, advertisers, and agents must adhere to clear and specific procedures, including obtaining approvals from consent authorities, displaying items in their true form, and establishing clear policies for exchanges and returns

• The Ministry of Commerce, Industrial and Investment Promotion has issued regulations for electronic commerce, which includes requirements for licensing and accurate data display

Topics: Consumer Protection, Online Markets, E-commerce

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Sharing problems and solutions between countries for consumer complaints

Supporting facts:

• GCC countries sit together and share experiences and strategies to control the e-market

Topics: E-market regulation, Consumer complaints, Regional cooperation

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Necessity for increased inter-regional cooperation and communication to combat e-commerce challenges

Supporting facts:

• E-commerce is international and can’t be controlled without cooperation

• Coming together can provide better solutions for e-commerce problems

Topics: E-commerce, International Cooperation, Consumer Safety

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Report

Oman is implementing strict regulations to ensure consumer protection in online markets, with Resolution Numbers 1 of 2022 from the Consumer Protection Authority including provisions for electronic commerce. These regulations require sellers, advertisers, and agents to adhere to clear and specific procedures, such as obtaining approvals from consent authorities, displaying items in their true form, and establishing clear policies for exchanges and returns.

The Ministry of Commerce, Industrial and Investment Promotion has also issued regulations for electronic commerce, including requirements for licensing and accurate data display. International cooperation plays a crucial role in maintaining safe online markets. The regulations in Oman apply to suppliers, advertisers, and agents both within and outside of the country, indicating an international scope.

Oman is taking a step towards global standardization by establishing an electronic website to authenticate electronic stores and monitor compliance. Notably, GCC countries are collaborating and sharing experiences and strategies to control the e-market. This regional cooperation allows for the sharing of problems and solutions related to consumer complaints.

By coming together and discussing these issues, countries can work towards designing effective control mechanisms to protect consumers from fraud and ensure their safety. The necessity for increased inter-regional cooperation and communication is emphasized, as e-commerce is international and cannot be controlled without cooperation.

It is believed that by joining forces and sharing information, better solutions can be found for the challenges posed by e-commerce. Lastly, the speakers in this discussion support increased information sharing and collaboration among international organizations and authorities. They believe that coming together and discussing problems and solutions at the same table is crucial in creating a safe e-market for consumers.

Overall, the consensus is that strict regulations, inter-regional cooperation and communication, and the creation of a safe e-market are essential for consumer protection in online markets. In conclusion, Oman is taking proactive measures to safeguard consumers in online markets through strict regulations and inter-regional cooperation.

The emphasis on international cooperation, information sharing, and collaboration among organizations and authorities highlights the recognition of the global nature of e-commerce and the need for collective efforts to address its challenges. By implementing these measures, Oman aims to create a safer and more secure environment for consumers in the online marketplace.

Arguments

Concerns rising about unsafe products sold online and lack of information on products and services offered cross-border

Supporting facts:

• 27% of the world’s population aged 15 years and older shop online

• UNCTAD adopted its first recommendation on product safety entitled ‘Recommendation on Preventing Cross-Border Distribution of Known Unsafe Consumer Products’ advocating for increased data exchange and awareness-raising initiatives

Topics: Consumer protection, E-commerce, Data availability, Product safety

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Regional initiatives play an important role in improving online consumer market safety

Supporting facts:

• Regional trade agreements across the world are increasingly considering consumer protection cooperation

• Specific initiatives identified in 2020 UNCTAD research across various continents including Africa, the Americas, Southeast Asia, and Europe

Topics: Regional Initiatives, Consumer protection, E-commerce

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Report

Concerns are growing regarding the safety of products sold online and the lack of information available for cross-border products and services. A significant 27% of the global population aged 15 years and older engage in online shopping, highlighting the urgency of addressing these concerns.

International cooperation is deemed essential in enhancing consumer safety while minimizing trade barriers. By implementing appropriate policies that promote both trade and safe consumer products, consumer confidence can be boosted, ultimately leading to more favorable conditions for sustainable economic development.

This highlights the recognition that consumer protection and trade facilitation are interconnected goals. The United Nations Conference on Trade and Development (UNCTAD) has taken notable action in response to these concerns. It has adopted its first recommendation on product safety titled “Recommendation on Preventing Cross-Border Distribution of Known Unsafe Consumer Products.” This recommendation emphasizes the need for increased data exchange and awareness-raising initiatives.

Such efforts aim to enhance the identification and prevention of unsafe consumer products, particularly those distributed across national borders. Regional initiatives also play a vital role in improving online consumer market safety. Regional trade agreements worldwide are increasingly considering cooperation in consumer protection.

In-depth research conducted by UNCTAD in 2020 identified specific initiatives in various continents, including Africa, the Americas, Southeast Asia, and Europe. This highlights the concerted efforts being made at a regional level to address the challenges associated with unsafe products and the lack of information surrounding cross-border products and services.

In conclusion, the rise of online shopping brings concerns about the safety of products and the lack of information available for products sold across borders. International cooperation is necessary to ensure consumer safety while minimizing barriers to trade, with appropriate policies promoting both trade and safe consumer products.

Regional initiatives also have a significant role in improving consumer market safety online. By addressing these concerns through collaboration and strategic initiatives, global commerce can thrive while ensuring the well-being and protection of consumers.

Arguments

Comesa established a network and formed a Consumer Protection Committee to enhance cooperation and quick response to online safety issues.

Supporting facts:

• The network involves 21 member states

• A WhatsApp forum was created for prompt information sharing and swift action on infringements.

• Currently investigating a Zambian company based on information gathered from the forum.

Topics: Comesa, Consumer Protection, Online Safety

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Importance of clear objectives in the design framework for regional cooperation on online consumer product safety

Supporting facts:

• Objectives will provide a systematic and coherent approach for cross-border cooperation

• Issues with e-commerce transcend borders

Topics: design framework, regional cooperation, online consumer product safety

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Need for commitment of the involved parties

Supporting facts:

• Commitment of parties is crucial for achieving set objectives

• All parties need to make it clear they are willing to work together

Topics: regional cooperation, commitment

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Need for enforcement in the regional cooperation

Supporting facts:

• Enforcement will prevent repeat offenders and deter potential offenders

• Serious enforcement strategies are required

Topics: regional cooperation, enforcement

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It’s clear that regions are addressing issues and concerns in their respective sectors, but there needs to be inter-regional cooperation.

Supporting facts:

• We are doing something in our respective regions

• There’s lots that we can learn from each other

Topics: Regional Cooperation

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Report

Review and Edit: Checking for grammatical errors, sentence formation issues, typos, or missing details. Correcting those errors. Checking if UK spelling and grammar is used in text and correcting it where necessary. The expanded summary should be as accurately reflective of the main analysis text as possible.

Trying to include as many long-tail keywords in the summary as possible, without losing the quality of the summary. The Common Market for Eastern and Southern Africa (Comesa) has taken significant measures to enhance consumer protection and address online safety issues.

One of their key initiatives is the establishment of a network and the formation of a Consumer Protection Committee, which aims to promote cooperation among member states and ensure a quick response to online safety infringements. This network, involving 21 member states, has proven effective in facilitating prompt information sharing and swift action on infringements.

In fact, Comesa is currently investigating a Zambian company based on information gathered from this forum. Recognising the increasing digitisation of commerce, Comesa is also adapting by setting up a rapid alert system and updating their regulations. The web-based rapid alert system will play a vital role in disseminating information about unsafe products, thus protecting consumers from potential harm.

To keep pace with current issues, amendments are being made to the Competition Commission regulations. These amendments are inspired by guidelines from international bodies such as the OECD, EU platforms, FCC, and UN, ensuring that Comesa remains aligned with global best practices.

Comesa strongly believes that regardless of whether consumers are shopping online or in person, they should receive the same safety and health warnings. In order to achieve this, the commission is working towards developing e-commerce guidelines. These guidelines will not only ensure that consumers receive mandatory safety warnings but also aim to guide the interaction between consumers and sellers on online platforms.

By establishing such guidelines, Comesa aims to create a safer and more transparent online shopping experience for consumers. In the context of regional cooperation on online consumer product safety, Comesa emphasises the importance of clear objectives in the design framework.

These clear objectives will provide a systematic and coherent approach for cross-border cooperation, considering that issues with e-commerce often transcend borders. Furthermore, the commitment of all parties involved is crucial for achieving the set objectives. By making it clear that they are willing to work together, all parties can contribute effectively to creating a safer online environment for consumers.

Enforcement plays a vital role in ensuring the effectiveness of regional cooperation. Comesa recognises that serious enforcement strategies are required to prevent repeat offenders and to deter potential offenders. By implementing and strengthening enforcement measures, Comesa aims to create a stronger deterrent against online safety infringements.

Comesa also values interactions and meetings as important platforms for knowledge sharing and learning. They are supportive of ongoing meetings, which stimulate further interactions in localised areas and foster collaboration among various regional economic communities. Through such interactions, Comesa and other regional entities can acquire new insights and perspectives to address common concerns and issues collaboratively.

As part of their advocacy efforts, Comesa promotes the development of a uniform curriculum to address consumer protection issues systematically. The Comesa Consumer Protection Committee is actively discussing the creation of such a curriculum, which will help ensure that consumer protection issues are adequately addressed across member states.

A uniform curriculum will also promote consistency in consumer protection practices. Observing the progress made in various regions, it becomes evident that individual regions are addressing issues and concerns within their respective sectors. However, to effectively tackle common challenges, there need to be inter-regional cooperation.

Comesa acknowledges that there is much to learn from each other and that inter-regional cooperation can only strengthen efforts towards creating a safer and more secure consumer environment. In conclusion, Comesa has taken a comprehensive array of measures to enhance consumer protection and address online safety issues.

These measures include the establishment of a network and the formation of a Consumer Protection Committee, adapting to digitisation through a rapid alert system and updated regulations, developing e-commerce guidelines, emphasising clear objectives and commitment from all parties involved, strengthening enforcement strategies, supporting interactions and meetings, advocating for a uniform curriculum, and recognising the need for inter-regional cooperation.

By actively engaging in these initiatives, Comesa aims to create a safer and more secure consumer environment and promote responsible consumption and production, in line with the United Nations’ Sustainable Development Goals.

Arguments

Chile is actively playing role in negotiation for reducing digital trade barriers within Latin America and beyond

Supporting facts:

• Chile signed a digital agreement with Singapore and New Zealand, with Korea recently joining

• Chile is currently working on incorporating China, Canada, and Costa Rica

• Uruguay, Peru, and the Emirates have also expressed interest in the agreement

• Chile started developing its digital trade sector with the US in 2005, followed by similar agreements with other countries including Singapore

Topics: Digital Trade, Trade Barriers, Chile, Latin America

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Chile aims to involve SMEs in international trade using digital channels

Supporting facts:

• Chile wishes to increase digitalization of SMEs to help them form part of international trade

• The country is trying to simplify e-commerce and digital processes to facilitate entry and transactions for businesses of all sizes

Topics: Digital Trade, Chile, SMEs

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Chile’s involvement with the Pacific Alliance aims to harmonize digital trade practices among member countries

Supporting facts:

• The Pacific Alliance’s objectives align with Chile’s in promoting smooth digital trade

• The Alliance seeks to improve digital infrastructure, regulate and uphold standards, and promote inclusivity and development

Topics: Digital Trade, Chile, Pacific Alliance

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Report

Chile is actively taking part in negotiations to reduce digital trade barriers not only within Latin America but also globally. The country has already signed digital trade agreements with Singapore, New Zealand, and Korea. Recently, more countries have shown interest in joining this agreement, including China, Canada, Costa Rica, Uruguay, Peru, and the United Arab Emirates.

These agreements showcase Chile’s commitment to promoting seamless and efficient digital trade practices. An important goal for Chile is to involve small and medium-sized enterprises (SMEs) in international trade through digital channels. Recognising the potential of digitalisation for SMEs, Chile is working towards increasing their access to digital tools and platforms.

By simplifying e-commerce and digital processes, Chile aims to facilitate the entry of SMEs into international markets, allowing them to participate in global trade on an equal footing with larger businesses. This initiative supports Chile’s efforts to achieve the Sustainable Development Goals related to decent work and economic growth, industry, innovation, and infrastructure, as well as reduced inequalities.

Chile’s participation in the Pacific Alliance also contributes to the harmonisation of digital trade practices among member countries. The Pacific Alliance, which aims to promote economic integration and development in the region, shares objectives with Chile in terms of promoting seamless digital trade.

Together, they seek to enhance digital infrastructure, regulate and uphold standards, and ensure inclusivity and development in digital trade. By aligning their efforts, Chile and the Pacific Alliance can create a more cohesive and forward-thinking digital trade environment in the region.

In conclusion, Chile is actively working towards reducing digital trade barriers within Latin America and globally. The country has signed agreements with various nations and is making efforts to expand its digital trade network. Chile’s focus on involving SMEs in international trade and its engagement in the Pacific Alliance highlight its commitment to fostering an inclusive and efficient digital trade landscape.

By implementing measures to simplify digital processes and improve digital infrastructure, Chile is paving the way for increased participation and growth in the digital economy.

Arguments

The speaker perceives the viewpoint of the conference as overly simplistic

Supporting facts:

• The digital divide is shrinking, while the digital economic divide is growing

• UNCTAD acknowledged the digital divide

Topics: digital trade negotiations, policy regulation, data control, digital colonialism

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The speaker suggests consulting experts and intellectual centers for nuanced understanding of digital trade

Topics: Asia, IT for Change, Jane Kelsey

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Need to understand when it is good to be open and when it is not, particularly in diverse ecosystems

Supporting facts:

• Discussed the difference in data findings between Costa Rica and Uruguay

• Emphasized on the importance of examining each developing country’s specific circumstances

Topics: Open Innovation, Digital Innovation, Ecosystem

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Restrictions are placed not arbitrarily, but to tackle negative effects of digitalization

Supporting facts:

• Reference to Cambridge Analytica scandal as an example of digital risks

• The audience is suggesting the relationship between openness and restrictions is not straightforward

Topics: Digitalization, AI regulation, E-commerce, Policy

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It could be beneficial to change the narrative and consider the balance

Supporting facts:

• The audience suggests considering each country’s individual policy objectives

Topics: Policy narrative, Trade restrictions, E-commerce

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Harmonization might be harmful for small businesses as they cannot compete with big businesses

Topics: Private Sector, Small Businesses, Big Businesses, Competition, Harmonization

---

Creating safeguarding measures might create restrictions that can be negatively captured by the index

Topics: Business Regulation, Safeguards, Small Businesses, Index

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Report

The conference on digital trade and regulation explored various perspectives on the topic. One speaker criticised the conference for having a simplistic viewpoint and lacking nuance in their understanding of digital trade and regulation. They believed that more consultation with experts and intellectual centres is needed for a comprehensive understanding.

Another speaker, who coordinates a global civil society network named Our World Is Not For Sale, expressed dismay over the lack of nuance at the conference and highlighted the importance of considering the specific circumstances of developing countries. The balance between openness and restrictions in digital trade was a key point of discussion.

The audience suggested a change in the narrative, stating that it should not simply suggest that openness is good and closeness is bad. They recommended considering each country’s individual policy objectives when determining the level of openness. The need for a nuanced approach was emphasised, as restrictions are not placed arbitrarily but are aimed at addressing the negative effects of digitalisation.

The relationship between openness and restrictions was deemed complex and not straightforward. The analysis also drew attention to the potential negative impact of harmonisation on small businesses. It was argued that harmonisation might be harmful to small businesses, as they cannot compete with larger businesses.

This highlights the need to consider the impact on different stakeholders when formulating policies related to digital trade and regulation. Furthermore, the discussion emphasised the significance of job quality and industry growth when analysing the effects of digitalisation. The audience suggested considering these factors along with other economic indicators to gain a comprehensive understanding of the impact.

In conclusion, the conference on digital trade and regulation explored multiple perspectives and raised important points regarding the need for a nuanced understanding. The speakers highlighted the importance of consulting experts, considering individual policy objectives, and analysing the impact on different stakeholders.

The analysis emphasised the complex relationship between openness and restrictions in digital trade, as well as the potential negative impact of harmonisation on small businesses. Additionally, the significance of job quality and industry growth was emphasised in the context of digitalisation.

Arguments

Growing digitally-enabled economy includes not just tech companies, but small-medium enterprises and startups

Supporting facts:

• Small-medium enterprises represent about 97% of the SEON businesses

• Asia is one of the regions with the growing digital startups

Topics: Digital Economy, Small-Medium Enterprises, Startups

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Regulations present a complex arena for private sectors to navigate and comply with

Supporting facts:

• One regulation affects everyone in the same digital ecosystem

• Regulations include those around data governance, content moderation, customer protections, and taxation

Topics: Private Sector, Regulation

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The cost of compliance for businesses operating in different markets is high

Supporting facts:

• Indonesia has about 65 million SMEs and 90% of them are transforming digitally

• Indonesia has about 15 unicorns that operated also in several markets within Asia

• 2,400 startups exist in the same digital ecosystem as the tech companies in Indonesia

• 90% of 65 million of SMEs are enjoying the pie of the development of digital platforms

Topics: SMEs, Digital platforms, Unicorns, Startups, Digital ecosystem, Regulations, Data privacy, Customer protection

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Report

The analysis explores several key aspects related to the growing digital economy, the impact of regulations, and their consequences for small and medium-sized enterprises (SMEs) and startups. It emphasises the critical role played by SMEs and startups in driving the digitally-enabled economy.

Notably, SMEs represent approximately 97% of SEON businesses, highlighting their significant contribution to the digital economy. The analysis also examines the growth of digital startups in Asia, indicating that the region is becoming a thriving hub for innovative ventures. This growth in digital startups creates new opportunities and job prospects in the economy.

This positive sentiment supports the argument that the digitally-enabled economy extends beyond technology companies, encompassing SMEs and startups. On the other hand, the presence of regulations presents a complex challenge for private sectors operating in the digital ecosystem. Regulations affect all entities within the digital ecosystem, regardless of their size or business nature.

Regulations cover various aspects such as data governance, content moderation, customer protection, and taxation. This negative sentiment suggests that the current regulatory landscape brings difficulties for private sectors in navigating and complying with the rules. The analysis highlights the need for streamlining policies and regulations across different economies to promote the growth of the digital economy.

It reveals that complex policies and procedures impose disproportionate costs and time implications for businesses. Furthermore, inconsistent regulations between different economies hinder the growth and potential of the digital economy. These findings emphasize the significance of regional harmonisation and international cooperation to create a conducive environment for businesses operating in the digital ecosystem.

Additionally, the analysis provides specific insights into the Indonesian digital landscape. It reveals that approximately 65 million SMEs in Indonesia are undergoing digital transformation, with 90% of them benefiting from the development of digital platforms. Furthermore, Indonesia has around 15 unicorns operating in various Asian markets and 2,400 startups in the same digital ecosystem.

However, the high cost of compliance for businesses operating in different markets presents a barrier to growth and expansion. In conclusion, the analysis underscores the importance of SMEs and startups in driving the digitally-enabled economy. It highlights the challenges posed by regulations and the need for streamlined policies across different economies.

The analysis argues for regulations to consider SMEs’ ability to comply without hindering their growth. Overall, this comprehensive examination provides insights into the current digital landscape and presents a holistic view of the opportunities and challenges faced by businesses in the digital economy.

Arguments

Digital trade is growing fast, with over a quarter of all trade now being digital.

Supporting facts:

• The pace of digital trade has far outpaced that of non-digital trade.

• Services can be more easily traded through digital networks, and services are also an underpinning pillar of the way in which digital trade operates.

Topics: Digital Trade, Global Trade

---

Regulations at a global level have become more restrictive over the past years.

Supporting facts:

• About two-thirds of these measures are related to barriers affecting interconnection between communication networks and data connectivity.

Topics: Digital Trade Regulations, Digital Trade Restrictions

---

There has been a dynamic evolution of data localization measures, with an increase in their implementation.

Supporting facts:

• The OECD spotted over 100 data localization measures across about 40 countries.

• About half of these measures have been adopted since 2015.

• About two-thirds of the measures are currently in the restrictive category.

Topics: Data Localization, Digital Trade Regulations

---

Progress is being made on an international level in terms of harmonising digital trade regulations and principles.

Supporting facts:

• There is a growing number of regional trade agreements that include digital trade provisions.

• The proliferation of digital economy agreements aim to harmonize thinking around certain disciplines.

• The WTO also has discussions on e-commerce ongoing.

Topics: Digital Trade Harmonisation, Digital Economy Agreements

---

Regulations are important and needed, for instance in consumer protection

Supporting facts:

• We need regulations to ensure quality, safety, and security.

• People wouldn’t want to go to a doctor who doesn’t have a license.

Topics: Regulations, Consumer Protection

---

The balance should not go too much in the direction of overthrowing the benefits of trade

Topics: Regulations, Trade

---

Open markets are needed to scale up and help young industries thrive

Supporting facts:

• The input to scale up young industries often comes from abroad.

Topics: Open Markets, Trade, Industries

---

Report

Digital trade is experiencing rapid growth, with over a quarter of all trade now being conducted digitally. The pace of digital trade has far outpaced that of non-digital trade. This is primarily due to the ease of trading services through digital networks, which has become a pillar of digital trade.

However, there has been a concerning trend towards more restrictive global regulations in recent years. Approximately two-thirds of these regulations are related to barriers that affect the interconnection between communication networks and data connectivity. These restrictions hinder the smooth flow of digital trade and limit its potential for further growth and innovation.

Furthermore, the implementation of data localisation measures has been on the rise. The Organisation for Economic Co-operation and Development (OECD) has identified over 100 data localisation measures across about 40 countries, with about half of these measures being adopted since 2015. Additionally, about two-thirds of these measures are considered restrictive.

This dynamic evolution of data localisation measures poses challenges to digital trade, as it restricts the free flow of data across borders and limits the ability of digital businesses to operate globally. Despite the challenges, there is progress being made on an international level to harmonise digital trade regulations and principles.

There is a growing number of regional trade agreements that include provisions for digital trade, aiming to harmonise thinking around certain disciplines. Furthermore, the World Trade Organisation (WTO) is engaged in ongoing discussions on e-commerce. These efforts indicate a positive shift towards achieving greater consistency and coherence in digital trade regulations globally.

The adoption of digital trade reforms has the potential to bring substantial economic benefits. Implementing reforms that align with a 0.1 reduction in the digital Services Trade Restrictiveness Index (STRI) could lead to a significant increase in exports of trade overall, with a possible doubling of exports in digitally deliverable services.

These reforms have the potential to boost economic growth and create more job opportunities. Regulations are of paramount importance in digital trade, particularly in ensuring quality, safety and security. For instance, regulations provide consumer protection by guaranteeing the quality and safety of products and services.

People rely on regulations to maintain trust and confidence in digital trade activities. However, it is crucial to strike a balance between regulations and the benefits of trade to avoid impeding economic growth and innovation. Open markets play a vital role in scaling up and supporting young industries.

These industries often benefit from inputs and knowledge exchange from abroad. Open markets create opportunities for innovative ideas, technologies and investments to flow across borders, contributing to the growth and development of industries. In conclusion, governments retain full discretion in deciding which policies to adopt or not to adopt, including protectionist measures.

It is essential to recognise the potential benefits of digital trade and strike a balance between regulations and facilitating trade. Efforts must continue to be made at the global level to harmonise digital trade regulations and promote an open and fair digital trading environment, allowing for sustainable economic growth and innovation.

Keywords: digital trade, global trade, digital economy, digital trade regulations, data localisation, regional trade agreements, World Trade Organisation, digital trade reforms, consumer protection, open markets, economic growth, innovation, harmonisation of regulations, digital networks, Services Trade Restrictiveness Index, job opportunities.

Arguments

The initiative is collaboratively supported by the European University Institute (EUI) and the Organization for Economic Cooperation and Development (OECD), and its goal is to understand the digital trade policy environment across three regions.

Supporting facts:

• The initiative has collected data on 82 countries

• The initiative started in 2020

Topics: digital trade, OECD, EUI

---

The data from the initiative is accessible via a dedicated webpage, which consolidates information for each of the three regions.

Supporting facts:

• The webpage includes data sets

• The webpage includes publications related to the project

Topics: data, dedicated webpage

---

Country profiles summarising findings, challenges, opportunities, barriers, and recommendations are available for each nation in the dataset.

Supporting facts:

• Country profiles are at various stages of being uploaded

Topics: Country profiles, Findings, Challenges, Opportunities, Barriers

---

Africa’s internet penetration rate is lower than many other regions, with about 37.1% of the population using the internet

Supporting facts:

• According to the ITU, 67.4% of the world population is using the internet in 2023, but in Africa, it’s about 37.1%

• Estimates indicate that it will take about 100 billion US dollars to connect the entire African population to the internet

Topics: Digital Infrastructure, Internet Penetration, Internet Usage

---

ECA’s research indicates African firms and individuals have a strong desire to engage with the internet

Supporting facts:

• During the COVID crisis, about 65% of responding companies, including micro, small and medium enterprises, took measures to increase their digital presence

Topics: Digital Engagement, Internet Usage, African Businesses

---

Africa doesn’t heavily restrict digital trade, but it also has the fewest enabling policies compared to other regions

Supporting facts:

• Africa’s score on the Regional Digital Trade Integration is .34, indicating not overly conducive, nor overly restrictive environment

• There is vast difference in scores among African countries, ranging from .22 in Mali to .56 in Egypt

Topics: Digital Trade, Policy, Regulation

---

Improvement in Africa’s digital trade situation can be achieved through policy measures such as liberalizing telecom licensing and easing cross-border data transfers

Supporting facts:

• Modeling exercises indicated that restrictions on data transfer is associated with lower exports and imports of digitally enabled services

Topics: Digital Trade, Policy, Telecom Licensing, Data Transfers

---

Report

The Digital Trade Initiative, a collaborative effort between the European University Institute (EUI) and the Organization for Economic Cooperation and Development (OECD), aims to gain a comprehensive understanding of the digital trade policy environment across three regions. Since its inception in 2020, the initiative has collected data on 82 countries, reflecting a substantial data collection effort.

To facilitate access to this wealth of data, a dedicated webpage has been created, consolidating information for each of the three regions. This webpage provides access to datasets and features publications related to the project. Notably, the datasets available include the Digital STRI (Digital Services Trade Restrictiveness Index) and the RDTI (Regional Digital Trade Integration Index), which provide valuable insights on digital trade for researchers and policymakers.

Additionally, country profiles have been developed for each nation in the dataset. These profiles summarize findings, challenges, opportunities, barriers, and recommendations, making them reliable resources for policymakers and stakeholders seeking specific information on individual countries’ digital trade landscapes. In terms of the African region, its internet penetration rate is lower compared to other regions, with only 37.1% of the population currently using the internet.

However, research by the Economic Commission for Africa (ECA) indicates a strong desire among African firms and individuals to engage with the internet, suggesting significant potential for digital growth in the region. The Regional Digital Trade Integration Index (RDTI) serves as a tool to assess Africa’s digital trade environment.

With a score of 0.34, it suggests a moderately conducive environment for digital trade. It is important to note the disparities among African countries, with Egypt scoring highest at 0.56 and Mali scoring lowest at 0.22. Tailored policy approaches that promote digital trade in specific African nations are needed to address these differences.

Policy recommendations, based on modelling exercises, include liberalizing telecom licensing and easing cross-border data transfers to improve Africa’s digital trade situation. These measures reduce restrictions on data transfer, which is associated with lower exports and imports of digitally enabled services.

By implementing such policies, Africa’s digital trade sector can grow, creating more economic opportunities. In conclusion, the Digital Trade Initiative, led by the EUI and OECD, provides a valuable platform for understanding the digital trade policy landscape across three regions.

With a robust dataset accessible through a dedicated webpage, policymakers and researchers gain insights into specific countries’ digital trade environments. While Africa faces challenges in terms of internet penetration, there is a strong desire to engage with the internet, laying the groundwork for digital growth.

By implementing appropriate policy measures that address country-specific needs, barriers to digital trade can be reduced, fostering increased economic opportunities in this domain.

Arguments

Introduction and overview of Digital trade integration project

Supporting facts:

• The project creates a network of people working on digital trade, a dataset, and an index on digital trade integration.

• The project is a collaboration between various universities, think tanks, and three Regional Commissions.

• The database comprises 130 economies.

Topics: Digital Trade, Policy Regulation, Data Collection

---

Analysis of restrictive and enabling digital trade policies

Supporting facts:

• South Asia, Central Asia, and the MENA region have higher restrictions on digital trade while Latin America, North America, and Sub-Saharan Africa have fewer.

• Europe and North America are most active in implementing enabling policies, with fewer regulations found in Africa.

• Low-income economies tend to have fewer restrictions on digital trade.

Topics: Digital Trade, Policy Analysis, Regulation

---

Empirical research application of the Digital Trade Integration project data

Supporting facts:

• Data shows a negative correlation between digital trade restrictions and digital trade performance.

• Regulatory heterogeneity across countries negatively correlates with digital trade.

• More open economies in Africa have the most to gain from liberalizing and harmonizing policies.

Topics: Digital Trade, Empirical Research, Data Analysis

---

Latin America is one of the most open regions in terms of developing digital trade

Supporting facts:

• Latin America has a lower average score of digital restrictions

• There are a total of 24 countries covered in LatAm in terms of digital trade development

Topics: Digital Trade, Latin America

---

Chile is being very active in negotiating agreements that cover digital trade

Topics: Digital Trade, Chile

---

There is a high level of heterogeneity within sub-regional integration schemes in terms of digital trade policies

Supporting facts:

• There is heterogeneity in the digital trade openess among Pacific Alliance members like Chile, Colombia, and Mexico

Topics: Digital Trade, Regional Integration

---

Latin America has seen a slight drop in the level of restrictiveness towards digital trade

Supporting facts:

• There’s been a drop in restrictiveness between the period 2014-2021

Topics: Digital Trade, Latin America

---

Report

The Digital Trade Integration project aims to enhance understanding and facilitate digital trade integration by creating a comprehensive network, dataset, and index. This initiative is a collaborative effort involving universities, think tanks, and three regional commissions. The dataset covers a wide range of 130 economies, providing extensive coverage for analysis and evaluation.

An analysis of digital trade policies reveals significant variation in restrictive and enabling practices across different regions. South Asia, Central Asia, and the MENA region have higher restrictions on digital trade, while Latin America, North America, and Sub-Saharan Africa have fewer restrictions.

Interestingly, the study also highlights that low-income economies generally impose fewer restrictions on digital trade. Empirical research based on the Digital Trade Integration project data unveils a negative correlation between digital trade restrictions and its overall performance. Additionally, the study identifies a negative impact resulting from regulatory heterogeneity across countries.

This finding emphasizes the potential benefits of liberalizing and harmonizing digital trade policies, with African economies standing to gain significantly from adopting more open digital trade practices. Latin America emerges as one of the most open regions for developing digital trade.

Despite variations among countries, the average score of digital restrictions in Latin America is relatively lower. The data covers a total of 24 countries in the region, highlighting their commitment to digital trade development and integration. Chile specifically stands out for its notable efforts in negotiating agreements that encompass digital trade.

This proactive approach demonstrates Chile’s commitment to leveraging the opportunities presented by digital trade. Furthermore, sub-regional integration schemes such as the Pacific Alliance show notable heterogeneity in terms of digital trade policies. Countries within this alliance, including Chile, Colombia, and Mexico, exhibit varying levels of openness towards digital trade.

Noteworthy observations from the analysis include a slight drop in restrictiveness towards digital trade in Latin America between the years 2014 and 2021. This positive trend indicates a growing recognition among Latin American economies of the importance of fostering a conducive environment for digital trade.

In conclusion, the Digital Trade Integration project presents a detailed understanding of digital trade integration, showcasing variations in policies across regions. The empirical findings highlight the negative impact of restrictive policies on digital trade performance and the potential benefits of liberalizing and harmonizing practices.

Latin America emerges as one of the most open regions for digital trade development, with Chile playing an active role in negotiation efforts. The analysis also reveals heterogeneity within sub-regional integration schemes and a positive trend towards reducing restrictiveness in Latin America.

These insights provide valuable knowledge for policymakers and stakeholders seeking to promote inclusive and sustainable digital trade integration.

Arguments

Latin America and the Caribbean are one of the most open regions for digital trade among developing countries

Supporting facts:

• Latin America has an average digital trade restrictiveness score of 0.26

Topics: Digital Trade, Latin America, Caribbean

---

Heterogeneity exists within the sub-regional digital trade in Latin America and the Caribbean

Supporting facts:

• Countries like Chile and Colombia score above the regional average, while Mexico is more open

Topics: Digital Trade Restrictiveness, Latin America, Caribbean

---

Many Latin American and Caribbean countries lack proper regulations for e-commerce marketplaces

Supporting facts:

• Many countries lack safe harbor for intermediary platform for e-commerce

• Seven countries do not have a comprehensive data protection law

Topics: Latin America, Caribbean, E-commerce

---

Restrictions are in place regarding telecommunications and domestic data policies

Supporting facts:

• Cuba has a very restrictive environment for telecommunications

• Data retention requirements are implemented in over half of the countries

Topics: Latin America, Caribbean, Telecommunications, Data Policies

---

The level of digital trade restrictiveness has slightly dropped in Latin America from 2014-2021.

Supporting facts:

• Latin America is an exception with regard to OECD and other developing regions

Topics: Digital Trade, Latin America

---

Countries without good consumer protection measures create uncertainty for businesses

Supporting facts:

• Absence of regulations is highly penalized by the methodology

Topics: Consumer Protection, Business Uncertainty, Regulation

---

Ecosystems play a crucial role in developing the digital trade and businesses

Supporting facts:

• The success in digital trade and business requires a multifaceted approach including entrepreneurship promotion, skills development and connectivity

Topics: Digital Trade, Business ecology, Connectivity, Skills

---

Report

Latin America and the Caribbean have been identified as relatively open regions for digital trade among developing countries. However, it is important to note that within this sub-regional context, there is heterogeneity in terms of digital trade. Some countries, like Chile and Colombia, score above the regional average in terms of digital trade openness, while Mexico is considered to be more open in this regard.

Despite the overall openness, there is a significant lack of proper regulations for e-commerce marketplaces in many Latin American and Caribbean countries. This poses challenges and risks for businesses operating in this sector. Notably, many countries lack a safe harbor for intermediary platforms in e-commerce, and seven countries do not have comprehensive data protection laws.

This suggests a need for stronger regulations and legislation that address the specific challenges of the e-commerce marketplace. Similarly, there are restrictions in place regarding telecommunications and domestic data policies. For instance, Cuba has a very restrictive environment for telecommunications, and over half of the countries in the region have implemented data retention requirements.

These restrictions can hinder the growth and development of digital trade in the region, as well as limit access to reliable and efficient telecommunications services. Notwithstanding the challenges, there has been a slight reduction in the level of digital trade restrictiveness in Latin America from 2014 to 2021.

This indicates some progress in creating a more conducive environment for digital trade within the region. The absence of regulations in consumer protection is also a negative factor affecting digital trade. The methodology used in the analysis penalizes countries that lack consumer protection measures, as it creates uncertainty for businesses.

Therefore, the implementation of strong consumer protection regulations is essential for fostering a secure and reliable digital trade environment. To address the issues and promote further growth, there is a call for trade harmonization among the trading partners in Latin America and the Caribbean.

The aim is to create a more homogeneous trade environment, particularly for small and medium businesses, enabling them to navigate the digital trade landscape more effectively. This would require collaboration and partnerships among stakeholders to establish common standards and regulations.

Additionally, it is emphasized that the success in digital trade and business requires a multifaceted approach. This includes promoting entrepreneurship, developing skills, and improving connectivity. Creating ecosystems that support digital trade and businesses emerges as a crucial aspect of this approach.

By providing the necessary infrastructure, resources, and support, these ecosystems can enhance the growth and development of digital businesses in the region. In conclusion, Latin America and the Caribbean exhibit openness to digital trade, although there are variations within the sub-regional context.

However, the lack of proper regulations for e-commerce marketplaces, restrictions on telecommunications and data policies, and the absence of consumer protection measures pose significant challenges. Nonetheless, there have been slight improvements in reducing the level of digital trade restrictiveness over time.

The call for trade harmonization, the development of supportive ecosystems, and the multifaceted approach to fostering digital trade and businesses are key strategies to unlock further growth and potential in this region.

Arguments

Countries in Asia-Pacific have a dual strategy of liberalization and complex digital governance measures, leading to a high compliance cost for cross-border digital business, particularly for small businesses

Supporting facts:

• North and Central Asia and South Asia have higher levels of policy enforcement stringency.

• Asia-Pacific is proactive in securing preferential trade agreements with embedded digital trade provisions.

Topics: Digital Trade Policy, Asia-Pacific, Cross Border Business, Liberalization, Digital Governance

---

The diversity in regulations across different Asia Pacific countries leads to high compliance costs for cross-border businesses.

Supporting facts:

• Regulatory divergence is significant in most areas.

• Asia-Pacific governments took a hands-on approach related to contents, platform, data, and e-commerce.

Topics: Digital Trade Policy, Asia-Pacific, Cross Border Business

---

The lack of standardization and mutual recognition in regulations increases compliance costs for SMEs.

Supporting facts:

• A small tourism company in Thailand mentioned the complexities in e-signatures as an example adding to cross-border contract difficulties.

Topics: SMEs, Digital Trade Policy, Compliance Cost, Standardization, Mutual Recognition

---

Compliance cost would be lower if there are coordinated corporations across member states to make it operable between different countries

Topics: Compliance Cost, International Cooperation, Corporations

---

Those who benefit most from this arrangement are smaller firms than large firms

Topics: Small businesses, Business benefits

---

Report

The Asia-Pacific region has adopted a two-pronged approach to digital trade, combining liberalisation with complex digital governance measures. However, this strategy has resulted in a high compliance cost for cross-border digital businesses, especially for small businesses. North and Central Asia, as well as South Asia, face higher levels of policy enforcement stringency, further exacerbating the compliance cost.

One of the main challenges faced by cross-border digital businesses in the Asia-Pacific region is regulatory divergence. Different countries in the region have significant variations in their regulations, particularly in areas such as content, platform, data, and e-commerce. This lack of harmonisation leads to increased compliance costs for businesses operating across borders.

Furthermore, the lack of standardisation and mutual recognition in regulations adds to the compliance burden for SMEs. For example, a small tourism company in Thailand highlighted the complexities of e-signatures, which contribute to difficulties in cross-border contract execution. Despite these challenges, the Asia-Pacific region is actively implementing digital trade provisions in preferential trade agreements.

Governments in the region have taken a proactive approach in including digital trade provisions in these agreements, signalling their recognition of the importance of digital trade. To address the high compliance costs and create a more favourable environment for cross-border digital business, it is argued that alignment with universally accepted principles, such as those of the World Trade Organization (WTO), is necessary.

Enhanced participation in international rule-setting processes would also ensure that the interests of the Asia-Pacific region are well-represented. Moreover, expedited policies specifically targeting the reduction of compliance costs for small businesses are needed. It is suggested that coordinated cooperation among member states can help mitigate compliance costs.

By working together, these states can create operable frameworks that facilitate cross-border business transactions. Additionally, it is important to recognise that smaller firms benefit the most from this arrangement, as they are able to compete more effectively in the global market.

In conclusion, the Asia-Pacific region’s strategy of combining liberalisation and complex digital governance measures has led to a high compliance cost for cross-border digital business, particularly for small businesses. Regulatory divergence and the lack of standardisation further add to the compliance burden.

However, active implementation of digital trade provisions in preferential trade agreements highlights a recognition of the importance of digital trade in the region. To address the challenges, alignment with universally accepted principles, enhanced international participation, and expedited policies targeting cost reduction for small businesses are necessary.

Coordinated cooperation among member states and a focus on supporting smaller firms can help effectively address compliance costs.

Arguments

Database is very valuable due to its consolidation of laws and in-depth analysis regarding digital trade regulations from a single source

Supporting facts:

• Yasmin pointed out her own experience with the practical application of the database in supporting negotiators from developing countries and LDCs

• She appreciated the ease with which country-specific regulatory information can be found

Topics: Digital trade, Database usefulness, E-commerce, WTO, Regulations

---

Database is helpful in quickly providing a desk research analysis of regulatory gaps or differences

Supporting facts:

• Yasmin highlighted regulatory gap analysis done for Lao and how the database would facilitate such research

Topics: Regulatory Gap Analysis, Policy Framework, Joint Statement Initiative

---

Report

During the meeting, the focus was on a database that proved to be of immense value due to its consolidation of laws and comprehensive analysis of digital trade regulations. The database was regarded as a vital resource for negotiators from developing countries and Least Developed Countries (LDCs).

Yasmin, in particular, shared her own experience regarding the practical application of the database in supporting negotiators from these countries. One of the key advantages of the database was its ability to provide country-specific regulatory information with ease. Yasmin emphasized how valuable this feature is, as it alleviates the burden of searching for regulatory information across multiple sources.

The consolidated nature of the database makes it convenient for users to access relevant information efficiently. Moreover, the database was commended for its capability to quickly provide a desk research analysis of regulatory gaps or differences. Yasmin highlighted a specific example of regulatory gap analysis conducted for Laos, underscoring how the database would facilitate such research.

This feature of the database saves time and effort that would otherwise be expended on conducting extensive literature reviews or comparative analyses. Another significant benefit of the database is its ability to reduce the time and costs associated with language translation.

Yasmin shared a case involving Laos and the complexities of translating their laws. With the database, these language barriers can be circumvented, ensuring a more efficient analysis of digital trade regulations across different countries. The overall sentiment towards the database was positive.

Its practical application in supporting negotiators and facilitating research was highly valued. It was seen as a valuable tool for understanding digital trade regulations comprehensively and efficiently. The ability to access country-specific regulatory information, conduct regulatory gap analyses, and overcome language barriers were regarded as powerful features that contribute to the usefulness and effectiveness of the database.

In conclusion, the meeting highlighted the significance of the database in the realm of digital trade regulations. The consolidation of laws and in-depth analysis provided by the database simplifies the process for negotiators, researchers, and policymakers. Its positive reception among attendees further underscores the database’s importance in supporting the goals of economic growth, industry innovation, and infrastructure development.

Arguments

The need for trust in international trade negotiations

Supporting facts:

• OECD identifying best practices where as WTO does not.

• Instead of reacting defensively, learning from each other is beneficial.

• Lessons learned from prosperous nations could be beneficial if received with trust.

• Adopting policies even before having legislated, as being done in the OECD.

Topics: OECD, WTO, Trade Policies, Developing Countries, Industrialisation, Policy Adoption

---

It will be challenging to integrate certain provisions into a final agreement

Supporting facts:

• The US has pulled their support from these issues

• Issues are hindering some countries from joining due to lack of an frameworks

Topics: Trade agreements, Data flow provisions, Source codes

---

More countries might join the first phase of negotiations or agreements because contentious issues may be addressed at a later stage

Topics: Trade agreements, International negotiations

---

Audience suggests that government regulations often inhibit the smooth operation of private sector businesses

Supporting facts:

• The audience member is from New York and owns an import/export business

• Sees regulation as restrictive and impeding business, especially in the context of COVID-19

Topics: Government regulation, Private sector, Business operation

---

Report

The need for trust and knowledge exchange among nations in international trade negotiations was highlighted. The Organisation for Economic Co-operation and Development (OECD) was commended for identifying best practices, while the World Trade Organization (WTO) was criticized for its lack of proactive measures in this area.

It was stressed that learning from prosperous countries and adopting policies before legislative mandates, as seen in the OECD, can yield positive results. The impact of the United States’ revised position on digital trade and its implications for the Global Services Innovation (GSI) were questioned.

The withdrawal of US support for certain provisions, such as trade agreements and data flow provisions, including source codes, has posed challenges in integrating them into a final agreement. Despite this, a possibility of more countries joining negotiations in later stages was suggested.

Connectivity issues in rural areas of Latin America and the Caribbean were emphasized, calling for support from the international development community to improve technical readiness. Additionally, the importance of capacity building for effective e-commerce regulations, highlighted in ongoing negotiations in Asia and Africa, was emphasized.

Concerns were raised about restrictive government regulations hindering private sector businesses, while others advocated for more accommodating policies to boost economic growth. The discussions reflected the significance of trust, learning from best practices, addressing contentious issues, and promoting collaboration in international trade negotiations.

Arguments

Digital goods and services play a critical role in business, supporting core business processes and supporting activities.

Supporting facts:

• A study conducted on 764 SMEs across Indonesia indicates increased productivity, lower costs, geographical expansion, inclusion of women, and formalization of otherwise informal businesses due to digital goods and services adoption.

• Digital technology empowers the informal sector and includes more women

Topics: Digital Trade, SMEs, Business Processes

---

Need to lower the barriers of entry and cost of adopting digital technology to make digital trade more inclusive.

Topics: Digital Trade, Inclusive Growth

---

Regulatory coherence and certainty are essential for businesses to expand and operate.

Supporting facts:

• Businesses struggle to operate under uncertainty and continuous regulatory changes.

• The need for definite and steady regulatory frameworks especially to digitalize more SMEs.

Topics: Regulation, Business Growth

---

Connectivity and infrastructure are crucial for developing economies like Indonesia.

Topics: Digital Connectivity, Digital Infrastructure, Developing Economies

---

Public-private partnership is essential for improving connectivity and infrastructure.

Topics: Public-Private Partnership, Digital Connectivity, Digital Infrastructure

---

Private sector consultation is crucial before policy is made

Topics: Private sector, Policy formulation

---

Report

The analysis of the discussions highlights several important points. Firstly, there is a positive sentiment towards the adoption of digital goods and services in businesses. These digital tools are viewed as crucial in enhancing productivity, lowering costs, facilitating geographical expansion, and promoting inclusivity, particularly for women in the informal sector.

A study conducted on 764 small and medium-sized enterprises (SMEs) in Indonesia revealed that the adoption of digital goods and services resulted in increased productivity, lower costs, expansion into new markets, and the formalization of previously informal businesses. The discussions also emphasize the significance of regulatory coherence and certainty for businesses operating in the digital realm.

Uncertainty and continuous regulatory changes pose challenges for businesses, especially when attempting to embrace digital technology and expand their operations. Therefore, there is a call for clear and steady regulatory frameworks to support the digitalization efforts of SMEs. Another important aspect highlighted is the need to reduce barriers and costs associated with adopting digital technology in order to promote inclusive digital trade.

Lowering entry barriers and making digital technology more affordable would enable more businesses, especially those in the informal sector, to participate in digital trade. This would contribute to reduced inequalities and support sustainable economic growth as outlined in SDG 8: Decent Work and Economic Growth and SDG 10: Reduced Inequalities.

Connectivity and infrastructure are identified as crucial factors for the development of economies, such as Indonesia. The discussions underscore the importance of improving connectivity and infrastructure to support economic growth and create an enabling environment for digitalization. Additionally, public-private partnerships are seen as essential in improving connectivity and infrastructure.

Collaborative efforts between the public and private sectors are crucial to bridge the gaps in connectivity and infrastructure development, particularly in developing economies like Indonesia. These partnerships are aligned with SDG 9: Industry, Innovation, and Infrastructure and SDG 17: Partnerships for the Goals.

Furthermore, it is acknowledged that private sector consultation plays a vital role in policy formulation. Engaging with private sector stakeholders before making policies related to technology, innovation, and infrastructure is valuable in generating effective and inclusive policies that can drive sustainable development.

This observation underscores the importance of involving all relevant stakeholders when formulating policies. In conclusion, the analysis of the discussions reveals the positive impact of digital goods and services in supporting core business processes and promoting inclusivity, particularly for women.

It emphasizes the need for regulatory coherence and certainty, lower barriers of entry and cost for adopting digital technology, enhanced connectivity and infrastructure, as well as the importance of public-private partnerships and private sector consultation in policy formulation. These findings contribute to the understanding of the role of digitalization and its implications for economic growth, inclusivity, and sustainable development.

Arguments

Lack of digital readiness impairs full engagement in global discussions

Supporting facts:

• E-commerce and digital trade discussions are super technical

• Countries without certain level of digital readiness find these negotiations challenging

• There is a regulatory gap between what is negotiated on multinational level and what is on the ground in these countries

Topics: Digitalization, E-commerce, Trade Agreements

---

Disparity in the approach and thematic topics covered in digital trade negotiations

Supporting facts:

• Infrastructure, jobs and skills, market access to ICT goods are more often mentioned by African countries

• Cybersecurity, privacy, data flows are more prioritized by developed countries

• Only 23% of trade agreements between developing countries have digital provisions on data flows

Topics: Digital Trade Negotiations, Cybersecurity, Data Flows

---

Intensity and structure of negotiation processes impede full engagement

Supporting facts:

• Negotiations are highly demanding and resources are needed

• Due to parallel small groups and connection requirements with the capital, the process might be too intense for countries with limited resources

Topics: Trade Negotiations, JSI Negotiations

---

Lowering the barriers of entry, reducing tariff and non-tariff barriers to support e-commerce development

Supporting facts:

• Business is concerned if there is a policy fragmentation across economies which makes it difficult for them to expand the market.

• Non-tariff barriers make it difficult to adopt digital technology.

Topics: E-commerce, Policy Fragmentation, Non-tariff barriers

---

Importance of digital skills and literacy for SMEs

Supporting facts:

• A large portion of SMEs are coming from informal sectors

• It’s difficult for them to upgrade or adopt a more advanced technology if their digital literacy is limited.

Topics: Digital Literacy, SMEs, Informal sectors

---

Need for public-private partnership to improve digital literacy for SMEs

Topics: Public-Private Partnership, Digital Literacy, SMEs

---

Harmonization of regulations can reduce export costs for businesses

Supporting facts:

• Companies are adopting different regulations which is a matter of cost. If regulations are harmonized, costs can be reduced and businesses can focus more on innovation.

Topics: Trade regulations, Trade costs, Export

---

Security and investment screenings can hinder international trade

Supporting facts:

• Countries are making it more difficult to engage with international companies by implementing security measures and investment screenings, which can obstruct the process.

Topics: Trade security, Investment screenings, International trade

---

It’s important to consider the backgrounds and needs of all countries in digital trade negotiations

Supporting facts:

• There are diverse policies which can affect a country’s ability to export. Developing countries or countries with certain challenges, such as fluctuating currencies, may have different needs and approaches in trade negotiations.

Topics: Digital trade, Trade negotiations, Developing countries

---

Connectivity is crucial for trade in the digital economy

Supporting facts:

• Javier has highlighted the importance of connectivity for trade.

• Without internet, trade will not be possible.

Topics: digital trade, connectivity, trade assistance, digital economy

---

For trade in the digital economy, there’s a need for change in development cooperation

Supporting facts:

• There’s a need to change mindset in terms of trade assistance and development cooperation.

Topics: digital economy, development cooperation, trade assistance

---

Report

The speakers’ points revealed various insightful aspects of the discussions on digital trade. One notable issue highlighted is the lack of digital readiness, which hinders the full engagement of countries in global talks on e-commerce and digital trade. These discussions can be highly technical, and countries that lack digital readiness face challenges in effectively participating.

This gap between multinational negotiations and local implementation creates a regulatory discrepancy. Another topic of discussion was the disparity in approaches and thematic topics covered in digital trade negotiations. African countries frequently prioritize infrastructure, jobs, and market access to ICT goods, while developed countries focus more on cybersecurity, privacy, and data flows.

This disparity in priorities and approaches adds complexity to the negotiations. The intensity and structure of the negotiation processes were also identified as obstacles to full engagement. The demanding nature of these procedures, coupled with resource requirements, can be overwhelming for countries with limited resources.

The parallel small group format and connection requirements with the capital further intensify these challenges. To address these issues, it was suggested that countries initiate regional conversations before engaging in global discussions. This approach allows countries to better understand how to approach digital trade, considering their specific needs and challenges.

Regional discussions are seen as a preferred starting point due to concerns over having rules dictated by others based on historical backgrounds. Lowering barriers of entry and reducing tariff and non-tariff barriers are crucial for supporting e-commerce development. Harmonizing regulations is essential to facilitate international trade, enabling businesses to focus more on innovation and expand markets.

Digital skills and literacy were emphasized as important for SMEs, especially those in informal sectors. Many SMEs operate in informal sectors, and limited digital literacy hinders their ability to adopt advanced technology or upgrade their operations. Public-private partnerships are crucial for improving digital literacy among SMEs and supporting their growth in the digital economy.

There is a growing concern regarding security measures and investment screenings, which can obstruct international trade. These measures make it more challenging for international companies to engage in trade and hinder the free flow of goods and services across borders.

The analysis also highlighted the need to consider diverse policies that impact a country’s ability to export in digital trade negotiations. Developing countries and those facing specific challenges, such as fluctuating currencies, may have different needs and approaches. Inclusive and fair digital trade agreements should consider these factors.

In summary, the analysis underscores the significance of digital readiness, regional and global discussions, barriers reduction, digital literacy improvement, regulation harmonization, and inclusive negotiation processes in advancing digital trade. Connectivity is crucial in the digital economy, and development cooperation should be adapted to support trade in this context.

It is also important for policymakers to identify regulatory gaps and communicate specific needs for development assistance that can be addressed by the global development community. By considering these factors, a more inclusive and prosperous environment for digital trade can be fostered.

Arguments

Digital transformation is profoundly changing individuals’ lives and firms’ operations, bringing them into international trade more than ever

Supporting facts:

• Digital connectivity reduces the cost of engaging in international trade

• Digital trade can enable more inclusive outcomes

Topics: Digital Trade, Digital Transformation, International Trade

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H.E. Ronald Saborio appreciates how digitalization led to more participation and inclusivity in trade

Supporting facts:

• Javier’s presentation highlighted that digital tools lead to greater export propensity of smaller firms and women-owned enterprises relative to larger firms

• Digitalization has been referred as a leveler that offers new opportunities.

Topics: Digitalization, Inclusivity in trade

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Raise concerns over the increase in barriers in digital trade

Supporting facts:

• Barriers and restrictions in digital trade are increasing

• The ambassador referenced the return of ‘Leviathan’ in the trade context since the early 2000s

Topics: Trade Barriers, Digital Trade

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Digital trade has significantly benefited small and medium-sized enterprises (SMEs) in Indonesia

Supporting facts:

• Adoption of digital technology has increased productivity and lowered costs for SMEs

• SMEs have been able to expand their businesses beyond their geographical network due to digital trade

• Women-owned businesses and previously informal businesses have been able to formalize their operations through digital goods and services

Topics: Digital trade, SMEs, Indonesia

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Importance of connection between connectivity and global interaction

Supporting facts:

• Digital transformation has facilitated global interaction and international work

• Digital transformation has opened doors to engage global professionals

Topics: Digital Transformation, Globalization

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The resilience of IT activity despite COVID and invasions

Supporting facts:

• IT activity coped with the difficulties of the pandemic and invasion

• IT services sector grew despite these setbacks

Topics: Resilience, IT industry, COVID-19, Invasions

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Digital products such as remote education facilitated by digital transformation

Supporting facts:

• Companies have been able to create digital platforms for various sectors including education

Topics: Remote Education, Digital Products, Digital Transformation

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Digital readiness is crucial for engagement in global economies

Supporting facts:

• Emma Savenborg’s study found that the lack of digital readiness among certain countries, particularly in Africa, was a key factor in their absence from global discussions.

• Costa Rica’s experience validates this point, where its decision to join the ITA led to a boom in its IT sector, becoming its most important export sector.

Topics: Digital Infrastructure, Trade Policies, Global Economy

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Emphasizes the need for trust in international trade negotiations

Supporting facts:

• Mentions the lack of trust in WTO negotiations

• References the more trust-based process of joining OECD

• Advocates for adoption of policies before legislation, given a framework of trust

Topics: WTO, OECD, Trade, Negotiations

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Believes in the value of learning from best practices and peer support

Supporting facts:

• Compares WTO and OECD practices, finding the latter’s focus on best practices and peer support appealing

• Talks about how Costa Rica learned from other nations during its industrialization process

Topics: WTO, OECD, Trade, Best Practices

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H.E. Ronald Saborio believes in the need for transparency in e-commerce negotiations

Supporting facts:

• Mentioned the progress from the Trade Facilitation Agreement and the Investment Facilitation Agreement for Development

• Suggests the creation of an e-commerce facilitation agreement

Topics: e-commerce, negotiations, transparency

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Report

Digital transformation is fundamentally reshaping individuals’ lives and the operations of businesses, leading to increased engagement in international trade. This shift towards digital trade has the potential to level the playing field, but it requires a holistic approach to digital trade policy.

This approach should consider issues such as digital skills, technology adoption, and access to digital networks. One of the key benefits of digitalisation is its ability to bring about greater participation and inclusivity in trade. Smaller firms and women-owned enterprises are finding digital tools to be essential in expanding their export opportunities.

Digitalisation has been referred to as a leveller, offering new opportunities for these groups. However, there are concerns over the increasing barriers and restrictions in digital trade. Barriers are impeding the growth and potential benefits of digitalisation in trade. It is important to address these barriers through regulatory coherence, ensuring security, and establishing predictability in the digital trade environment.

Uncertainty and continuously changing regulatory frameworks hinder businesses from expanding and operating effectively in the digital trade landscape. For digital trade to truly benefit everyone, certain conditions need to be met at both domestic and international levels. A supportive domestic environment is vital, encompassing areas such as domestic policies, education, and infrastructure.

At the international level, efforts through plurilateral negotiations at the World Trade Organisation (WTO) and regional trade agreements are essential in facilitating digital trade. Another significant aspect is the positive impact of digital trade on small and medium-sized enterprises (SMEs).

Adoption of digital technology has led to increased productivity and lower costs for these businesses. Furthermore, digital trade has enabled SMEs to expand their operations beyond their local networks. This has been particularly beneficial for women-owned businesses and previously informal businesses, allowing them to formalise their operations through digital goods and services.

Amidst the benefits of digital trade, challenges remain. Regulatory coherence and compliance in different markets can be complex and pose obstacles to businesses. Different markets have diverse regulations, and navigating this landscape requires the help of digital transformation and compliance officers.

The discussions and narrative in the WTO should be less ideological and more grounded in the reality of industry stakeholders. It is crucial to base trade negotiations on real experiences. Trust is also vital in international trade negotiations. The need for trust is emphasised, and international trade negotiations should be built on trust rather than relying solely on legislation and policies.

Digital readiness is crucial for engagement in global economies. Countries with a lack of digital readiness, particularly in Africa, may be absent from global discussions. Having the necessary digital infrastructure, skills, and policies is essential for countries to actively participate in global economies.

The case of Costa Rica highlights the importance of digital readiness, as the country’s decision to join the Information Technology Agreement (ITA) resulted in a boom in its IT sector, becoming its most important export sector. A future-focused approach to shaping trade policies is advocated, as demonstrated by Costa Rica’s experience.

Rather than basing trade policies solely on current production, Costa Rica adopted a forward-thinking approach, leading to the growth of its IT sector. This strategy allowed the country to adapt and capitalise on emerging opportunities. When it comes to African countries, it is suggested that they may benefit more from greater involvement in global trade discussions rather than focusing solely on regional integration.

Learning from the experiences of other countries, especially those that have successfully transitioned from agriculture-based to industrialised economies, can provide valuable insights for African nations. In conclusion, digital trade, driven by digital transformation, is reshaping international trade and providing new opportunities for businesses and individuals.

A holistic approach to digital trade policy is necessary to ensure that the benefits are realised by all. This includes addressing barriers, fostering regulatory coherence, and embracing digital readiness. By doing so, digital trade can contribute to global economic growth, reduce inequalities, and promote inclusive and sustainable development.

Arguments

A 1% increase in digital connectivity leads to a 2.1% increase in domestic sales and a 1.6% increase in international sales.

Supporting facts:

• Econometric work by the OECD has highlighted these benefits.

• These benefits are also present for middle-income and low-income countries. It’s also valid for all sectors meaning companies in any fields like pens, mobile phones or tourism services will all benefit by embracing digitalization.

• A direct correlation can be observed between the use of digital tools and greater export propensity, particularly for smaller firms and women-owned enterprises.

Topics: Digitalization, Trade, Market

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The benefits of digitalization are not automatic and have related risks which require certain conditions to be met for those benefits to materialize.

Supporting facts:

• A regulatory environment that supports digital trade is crucial.

• As per the Digital Services Trade Restrictiveness Index, restrictions that affect digital trades have been increasing.

• However, as per the index, there are also positive changes, particularly in Africa with many countries implementing digital trade supporting policies.

Topics: Digitalization, Digital Trade, Regulation

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Digital readiness is key in ensuring benefits from digital trade

Supporting facts:

• Connectivity skills, adoption as isolated

• Ran some correlations and saw restrictions on telecommunication services are associated with higher costs for internet globally

Topics: Digital Connectivity, Infrastructure, Regulations

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The recent change in the United States’ position towards digital trade in trade agreements has created disruption

Supporting facts:

• The offensive interest of the US have always been about a strong JSI, which has a strong element on cross-border data flows, data localization, and source code.

• The reluctance of the US to discuss these issues has created disruption.

Topics: GSI, Digital Trade, Trade Agreements

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There is ongoing internal discussion in the US regarding their position on digital trade

Supporting facts:

• There’s been a lot of discussion between USTR and Commerce and others in the US.

Topics: United States, Digital Trade

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There is a significant gap between aid for digital trade and the actual amount of trade reliant on digital technology

Supporting facts:

• Only 0.4% of aid for trades goes to digital issues while 25% of trade is considered digital trade

Topics: Aid for Trade, Digital Economy, Digital Trade

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Participating in international discussions facilitates learning for countries to handle complex issues

Supporting facts:

• Discussions at global platforms like WTO build capacity and allow for peer-learning

• Deeper involvement in these discussions aids in understanding and managing complex topics like privacy regulations and source code exceptions

Topics: International Cooperation, Learning, Digital Trade Discussions

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An optimal balance is required when it comes to regulations

Supporting facts:

• Too many regulations affect the ability of businesses to upscale, whereas no regulations at all also cause upheaval in government policy objectives like privacy, consumer protection

• The most optimal regulatory environment is one where it is non-discriminatory and least trade restrictive

• Regulatory certainty helps businesses understand rules and achieve a balance

Topics: Trade regulations, Public and Private sector

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Report

Digitalization and digital trade have been found to offer significant benefits, not only for high-income countries but also for middle-income and low-income countries, as well as companies in all sectors. There is a direct correlation between the use of digital tools and an increase in both domestic and international sales.

Specifically, a 1% increase in digital connectivity leads to a 2.1% increase in domestic sales and a 1.6% increase in international sales, as stated by econometric work conducted by the OECD. However, realizing these benefits requires certain conditions to be met. One key condition is the presence of a regulatory environment that supports digital trade.

Unfortunately, restrictions that affect digital trade have been increasing, as indicated by the Digital Services Trade Restrictiveness Index. However, there have also been positive changes, particularly in Africa, where many countries have implemented digital trade-supporting policies. To effectively harness the benefits of digital trade, countries need to carry out both domestic and international efforts.

Domestically, the focus should be on promoting connectivity, providing the necessary skills for the digital economy, and ensuring a supportive regulatory environment. Internationally, efforts should aim to establish an international regulatory framework that facilitates digital trade. Active participation in international trade forums and discussions, such as those held at the WTO, is crucial for the development of comprehensive and effective digital trade policies.

In addition to regulatory challenges, countries must address various other issues, such as digital readiness and connectivity skills. Restrictions on telecommunication services are associated with higher costs for internet access globally. Creating an enabling environment involves reducing tariffs on devices and network equipment, as well as addressing data flow and protection issues.

The recent change in the United States’ position towards digital trade in trade agreements has caused disruptions and increased uncertainty about the future of global digital trade. While there is ongoing internal discussion in the US regarding its position on digital trade, it has taken a step back from the discussions, allowing other actors to have more prominent roles.

There is also a significant gap between the amount of aid allocated for digital trade and the actual amount of trade that relies on digital technology. Bridging this gap and providing adequate support is essential to maximize the potential of digital trade.

Participating in international discussions and observing global trade debates is invaluable for countries to build capacity and enhance their understanding of complex issues related to digital trade. Regulations are important to ensure a fair and balanced digital trade environment, but there needs to be an optimal balance.

Too many regulations can impede business expansion, while no regulations can undermine government policy objectives. The private sector plays a key role in benefiting from trade regulations, and the benefits are driven by private sector actors. Trade regulations aim to ensure that regulations are not biased against specific countries or firms.

Overall, digitalization and digital trade present great opportunities for economic growth and development. To fully realize these benefits, countries need to address regulatory challenges, promote connectivity, enhance digital skills, and strike an optimal balance in regulations. International cooperation and participation in global trade discussions are crucial for capacity building and understanding complex issues.

Arguments

Digital transformation has significantly benefited Ukrainian businesses

Supporting facts:

• Ukrainian IT service sector grew significantly during the last 30 years

• Ukrainian IT sector equals right now just $7.3 billion of US dollars

• Each IT professional in the Ukrainian economy, creates five new jobs within Local Market

Topics: Global trade, Digital transformation, Ukrainian IT sector

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Regulations and policy landscape across different countries pose challenges

Supporting facts:

• Legislation and policy landscape is diverse especially when operating in multiple countries like the United States, UK, European Union

Topics: Policy making, Regulations, Legal requirements

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Governments should create a favorable policy framework that encourages digital readiness

Supporting facts:

• It was difficult to incorporate companies and open bank accounts in US during COVID-19 pandemic due to lack of digital solutions

• Digital readiness should enable identity verification, digital services from the government, company incorporation, permits, certification processes, opening of bank accounts

Topics: Government policy, Digital transformation, Digital Readiness

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The need for investment and provision of tax credits, R&D grants to startups since they are the main drivers of digital transformation

Supporting facts:

• Startups create platforms and enablers for digital transformation

Topics: Startup funding, R&D grants, Tax credits

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The need to continue investing in developing networking platforms for small companies from developed nations to interact with local companies in developed nations

Supporting facts:

• Participation in Stockholm Tech Summit led to successful contracts for the speaker’s company

Topics: Networking platforms, Business development, International trade

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Investment in startups working in alternative energy sources and internet accessibility is recommended

Supporting facts:

• Taras faced a similar problem in Kyiv when there were heavy missile attacks on infrastructure and they lost their connectivity, which they resolved with the help of alternative sources like Starlinks and alternative energy sources

Topics: Investment, Startups, Alternative energy sources, Internet accessibility

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There should be competition and emergence of new technologies for internet access, not just through traditional cables

Topics: Competition, Technological innovation, Internet access

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Private sector should be involved in policy decision making

Supporting facts:

• Before any policy is enforced, there should be a lot of working groups working jointly together with the private sector

• There is a concept in IT software engineering called design syncing workshops, where subject matter experts from different businesses and policy-making are involved

Topics: Policy-making, Private Sector

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Report

The analysis examines various arguments and stances regarding digital transformation and policy-making in the IT sector in Ukraine. It highlights the significant growth of the Ukrainian IT sector over the past 30 years, attributing this growth to the benefits derived from digital transformation.

The sector currently amounts to approximately $7.3 billion in US dollars. Furthermore, it is noted that each IT professional in the Ukrainian economy creates five new jobs within the local market, emphasizing the positive impact of the sector on employment and economic growth.

However, the analysis also raises concerns regarding the challenges posed by diverse regulations and policy landscapes across different countries. Operating in multiple jurisdictions, such as the United States, UK, and European Union, presents difficulties due to the varying legislative and policy frameworks.

This observation underscores the need for standardized and unified global standards for digital transformation to streamline operations and promote efficiency. The analysis also emphasizes the significant role of governments in creating a favorable policy framework that encourages digital readiness. It argues that governments should prioritize the establishment of policies that enable identity verification, digital services from the government, company incorporation, permits, certification processes, and the opening of bank accounts.

These measures are seen as crucial for facilitating business operations and promoting digital transformation. Furthermore, the analysis highlights the importance of supporting startups as the main drivers of digital transformation. It advocates for investment in startups and the provision of tax credits and research and development (R&D) grants.

Startups are recognized for creating platforms and enablers for digital transformation. However, it also notes the presence of barriers that restrict startups with government grants to working only with local entities. This restriction is criticized, with the argument that startups should have the freedom to collaborate with international companies to access quality and innovative services at lower costs.

Additionally, the analysis raises concerns about the impact of withholding taxes on international services. It shares a negative sentiment towards withholding taxes, explaining how they can hinder digital transformation initiatives. An example is provided where withholding taxes were encountered during the digital transformation of a hospital in Latin America.

This observation supports the argument against the imposition of such taxes. The analysis also highlights the value of networking platforms, particularly for small companies from developed nations to interact with local companies in developing nations. It cites a successful experience where participation in the Stockholm Tech Summit led to the speaker’s company securing contracts.

This underscores the importance of continued investment in developing networking platforms to foster collaborations and business opportunities. Furthermore, the analysis advocates for investment in startups focused on alternative energy sources and internet accessibility. It implies that such investment is recommended, as demonstrated through an example where a startup in Kyiv faced infrastructure damage and temporary connectivity loss due to missile attacks.

The startup successfully resolved this issue with the help of alternative sources such as Starlinks and alternative energy sources. The analysis also stresses the significance of policy-making that addresses connectivity and infrastructure. It emphasizes that policy-making should prioritize these areas to ensure the provision of stable and reliable digital services.

An example is provided where Kyiv faced heavy missile attacks, leading to infrastructure damage and connectivity issues, reflecting the temporary setbacks that can occur without proper policy measures in place. Moreover, the analysis argues for the competition and emergence of new technologies for internet access, beyond traditional cables.

It asserts that there should be a focus on promoting innovation and the adoption of advanced technologies to enhance internet access capabilities. Lastly, the analysis highlights the importance of involving the private sector in policy decision making. It advocates for the collaboration of working groups composed of subject matter experts from different businesses and policy-making entities.

By involving the private sector in the policy-making process, there is an increased likelihood of better acceptance and buy-in from those impacted by the policies. In conclusion, the analysis explores various arguments and stances relating to digital transformation and policy-making in the IT sector in Ukraine.

It recognizes the growth and benefits derived from digital transformation but also highlights challenges stemming from diverse regulations and policy landscapes. The analysis calls for standardized global standards, favorable policy frameworks, support for startups, removal of barriers, and the involvement of the private sector in policy decision making.

By addressing these issues, the Ukrainian IT sector can continue to thrive and contribute to economic growth and innovation.