UNCTAD eWeek 2023

Arguments

Digital transformation involves focusing on the government, economy, and society

Supporting facts:

• Digital transformation is central to the development of inclusive, responsible, and sustainable digital economy.

Topics: Digital Transformation, Economy, Government

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Digital transformation should also be sustainable, considering environmental and climate change aspects

Supporting facts:

• The process of digitalisation has direct environmental costs, including energy use and the extraction of raw materials.

• Digital tools can support local communities in becoming more adaptive and resilient to climate change challenges.

Topics: Digital Transformation, Sustainability, Climate Change

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The government supports the Safe Digital Access Program which promotes inclusive digital access for underserved communities.

Supporting facts:

• The program has been running since 2017-18 and operates in five countries: Kenya, Nigeria, South Africa, Brazil, and Indonesia.

• As of June 2023, it has reached 3,282 communities and over 10.2 million people direct beneficiaries.

Topics: Safe Digital Access Program, Digital Access

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A country needs a detailed diagnostic to understand their baseline capacity in cybersecurity.

Supporting facts:

• Programmes and projects with a focus on cybersecurity capacity building are carried out by the Foreign Commerce and Development Office.

• Oxford University developed a self-assessment tool known as the Cybersecurity Capacity Maturity Model (CCMM) that helps countries understand their baseline capacity in cybersecurity.

Topics: cybersecurity, Digital Access Programme

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Engaging with key stakeholders, especially within the private sector, is crucial for addressing cybersecurity challenges.

Supporting facts:

• Stakeholders that contribute significantly to cybersecurity are not only in government.

• The private sector, including industries, can help to identify the challenges they face and therefore the areas where initiatives are necessary for improvement.

Topics: private sector engagement, cybersecurity

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FCDO’s approach to digital development includes a flagship initiative called the digital access programme, along with 70-plus other programmes that have a digital component.

Supporting facts:

• The team owns those programmes that work on the foundations of digital development including digital identity.

• This approach allows FCDO to understand the needs of firms and enterprises from a digital perspective.

Topics: Digital Development, Digital Access Programme, FCDO

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E-commerce is a crucial part of FCDO’s digital development framework.

Supporting facts:

• FCDO has had a trade and development programme supporting UNCTAD in working with partner countries to develop e-commerce strategies.

• An example is the one developed with Rwanda.

Topics: E-commerce, Digital Development, FCDO

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Report

Digital transformation is crucial for developing an inclusive, responsible, and sustainable digital economy. This process involves focusing on the government, economy, and society. Inclusivity is a key aspect, as approximately 2.6 billion people currently do not have online access, with women facing greater barriers.

Sustainability is also important, considering the environmental costs of digitalization and the potential for digital tools to help communities adapt to climate change. Additionally, digital standards play a central role in driving the development of a more inclusive and responsible digital economy.

The Safe Digital Access Program, supported by the government, promotes inclusive digital access for underserved communities. Cybersecurity is another crucial aspect, with a need for comprehensive understanding and engagement with key stakeholders, including the private sector. The Foreign, Commonwealth & Development Office’s (FCDO) approach to digital development, including the Digital Access Program, supports firms and enterprises from a digital perspective.

Furthermore, e-commerce is a critical part of the FCDO’s digital development framework. Understanding the needs and challenges faced by digital enterprises is important for their participation in the digital economy. Overall, addressing barriers to access, considering environmental impact, establishing digital standards, enhancing cybersecurity, and supporting digital enterprises contribute to an inclusive, responsible, and sustainable digital economy.

Arguments

Standards could help countries overcome infrastructure and expertise problems

Supporting facts:

• This could be circular because you would need standards to help them overcome, but at the same time, infrastructure and expertise is also needed to implement standards.

Topics: Standards, Infrastructure, Expertise

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Standards play a crucial role in supporting policy objectives

Supporting facts:

• ISO has launched a toolkit to help guide policy makers

Topics: Standards, Policies, ISO

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Translating complex standards into more accessible formats can engage industries more effectively

Supporting facts:

• A little book of cybersecurity was launched to break down and explain the core principles of the 27001 standard

Topics: Standards, Engagement, Industries

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Report

Standards play a crucial role in helping countries overcome challenges related to infrastructure and expertise. This is particularly evident in areas such as AI technology and cybersecurity, where standards provide a framework and guidelines for ensuring that infrastructure and expertise meet necessary requirements.

By implementing and following these standards, countries can enhance their capabilities and effectively address infrastructure and expertise problems. ISO, the International Organization for Standardization, recognizes the importance of standards in supporting policy objectives. They have launched a toolkit to assist policy makers in aligning standards with their policy goals.

This toolkit serves as a valuable resource, helping policy makers understand how standards can be integrated into policy frameworks and contribute to achieving objectives in areas such as industry, innovation, and infrastructure. One challenge with standards is their complexity, which can make them inaccessible and difficult for industries to understand and implement.

However, when complex standards are translated into more accessible formats, they can effectively engage industries. ISO has demonstrated this by launching the “Little Book of Cybersecurity,” which breaks down and explains the core principles of the 27001 standard. Making standards more digestible and easier to comprehend increases industry acceptance and implementation, leading to better adherence and overall improvement in various sectors.

E-commerce is a significant concern in international trade, with developing countries expressing apprehensions about its impact. This concern has been raised at the World Trade Organization (WTO), highlighting the need for attention to be given to the development of e-commerce policies.

Developing countries recognize the importance of e-commerce in achieving sustainable development goals and are emphasizing its inclusion in trade discussions and negotiations. As part of the digital access program, e-commerce has been identified as a priority, reflecting the recognition of its potential in promoting economic growth and digital connectivity.

While the focus on standards is crucial, it is also essential for organizations like the British Standards Institution (BSI) to pay attention to data and data-driven economies. The last Digital Economy Report from BSI emphasized the significance of data and data-driven economies in the current digital landscape.

With the increasing reliance on data and the growth of data-driven industries, BSI should allocate more resources and efforts towards understanding and addressing the challenges and opportunities associated with data. By doing so, they can further support the development of robust standards that enable efficient and secure data-driven economies.

In conclusion, standards play a vital role in addressing infrastructure and expertise problems, particularly in areas such as AI technology and cybersecurity. ISO’s toolkit for policy makers facilitates the alignment of standards with policy objectives. Making standards more accessible to industries fosters better engagement and implementation.

E-commerce is a crucial trade-related concern, emphasizing the need for its inclusion in trade discussions. Additionally, BSI should focus on data and data-driven economies to effectively navigate the digital economy.

Arguments

Standards and best practices can drive operational efficiencies and quality in organizations

Supporting facts:

• Standards provide best ways of doing things, therefore, even if not certified it will result in improvement

• Lead to removing basic function complexities enabling organizations to build on innovation

Topics: Standards, Best Practices, Operational Efficiency, Service Quality

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Standardization can build trust in new technologies

Supporting facts:

• Standards can help prove the trustworthiness of new technologies such as AI, ensuring their safer and more secure adoption

• Users are more likely to adopt technologies they trust

Topics: Standardization, Trust, New Technologies

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Fragmentation and rapid technological evolution are challenges in standardization

Supporting facts:

• As technology develops rapidly, there is an influx of new standards and best practices leading to fragmentation

• Different jurisdictions have different approaches to regulate new technologies, making it complex to keep up with the standards

Topics: Standardization, Challenges, Technological Evolution, Fragmentation

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BSI is working on international projects to accelerate standards development

Supporting facts:

• BSI is involved in initiatives like the Innovate UK Bridge AI programme, the International Quantum Standards Center, and the Global AI Network Standards (GAINS)

• These initiatives aim to provide a space for innovators and stakeholders to understand and engage in standards development

Topics: BSI, International projects, Standards Development

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Most countries, including the UK, are good at investing GDP into innovation

Supporting facts:

• The UK government is investing in developing market sectors, both nationally and internationally

Topics: Innovation, Investment

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Organizations struggle when they try to scale what they’re trying to develop

Supporting facts:

• The UK government is investing in developing market sectors, both nationally and internationally, but struggles to keep up with the infrastructure needs for scale

Topics: Business scaling, Innovation

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The benefits and outcomes of standardization are often not clear

Supporting facts:

• Penetration rate of cybersecurity standard globally is very low, especially in the UK with only 9 or 10 percent businesses certified

Topics: Standardization, Outcomes

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There’s a need for greater education in promoting the benefits of standardization

Supporting facts:

• Educational toolkit is already in use as a first step towards this education on standardization

Topics: Education, Standardization

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David Cuckow believes in a public-private dialogue for MSME regulation, not just regulators imposing rules.

Supporting facts:

• There needs to be a initiative where all the stakeholders including government, industry and MSMEs get involved

• Cuckow emphasizes this idea through the example of a panel discussion in Nairobi involving various stakeholders

Topics: MSME, Regulation, Public-Private Dialogue

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Cuckow supports the idea of incorporating knowledge of international standards within countries

Supporting facts:

• There’s a proposal for a train-the-trainer approach to make trainers aware of the existence of international standards and hopefully train them in that

• This is seen as necessary for the higher-level educational entities within the country

Topics: International Standards, Education

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Unlocking the value of data is a major challenge due to concerns around law, privacy, and commercial value.

Supporting facts:

• Organizations tend to not share data due to these concerns

• The power of sharing data has been appreciated during the pandemic such as in vaccine development.

• The National Data Strategy for the UK focuses on unlocking the value of data for the economy.

Topics: Data sharing, Data security, Law, Privacy

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Standardization in data presents a complex situation, with around 5,000 to 6,000 different standards.

Supporting facts:

• Many standards exist in areas such as quality, cybersecurity, privacy, AI etc.

Topics: Data sharing, Data standardization, Interoperability

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A data sharing and interoperability framework can simplify the data sharing process.

Supporting facts:

• The framework would guide users through acquiring, protecting, valuing, combining and removing data.

• Such framework can be shared across national standards bodies globally.

Topics: Data sharing, Interoperability, Framework

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Report

The analysis explores the role of standards and standardization in driving operational efficiencies, quality, and trust within organisations. It highlights the importance of standards as best practices and asserts that their implementation can lead to improvement even without formal certification.

Additionally, standards are instrumental in removing complexities from basic functions, enabling organisations to innovate. Standardization is shown to be crucial in establishing trust in new technologies, particularly AI. Adhering to standards ensures the trustworthiness and reliability of AI, promoting secure adoption.

Users are more likely to adopt technologies supported by established standards. Contrary to the belief that standardization stifles innovation, it is highlighted that standards actually facilitate innovation. Streamlining repetitive tasks provides space for innovation, as exemplified by Wi-Fi and power standards that have enabled technological advancements.

While standardization offers numerous benefits, it also faces challenges due to rapid technological evolution and resulting fragmentation. The influx of new standards and best practices, along with jurisdictional differences in regulating technologies, presents complexities in the standards landscape. Efforts are needed to involve small enterprises and startups in standard development processes, helping them scale their products.

The British Standards Institution (BSI) is actively engaged in international projects to expedite standards development and foster innovation. The UK government’s investment in innovation is acknowledged but struggles to meet infrastructure needs for scaling innovations. Comprehensive education and awareness programs are necessary to promote the benefits of standardization.

Lack of clarity regarding the advantages and outcomes of standardization is identified as a hurdle. Public-private dialogue is seen as crucial for MSME regulation, and guideline standards and education are recommended to support MSME growth. Incorporation of international standards within educational systems and promoting knowledge about global standards is proposed.

Standards are shown to promote interoperability in technological infrastructure, particularly in broadband and ITU-based spectrum distribution. Data sharing faces challenges related to law, privacy, and commercial value, despite its recognized benefits. A data sharing and interoperability framework is proposed to simplify the process.

In conclusion, standards and standardization have a significant impact on operational efficiencies, quality, trust, and innovation. However, challenges such as fragmentation and the need for education persist. Efforts are required to ensure that standards keep pace with technological advancements and are accessible to all stakeholders.

Arguments

Role of standards in supporting the transition to a digital economy and facilitating digital trade

Supporting facts:

• Standards help organizations deliver what they promise to their customers

• Standards help build trust and provide stability in the digitalization transformation.

• Standards support policy initiatives and facilitate international and national trade.

Topics: Standards, Digital economy, Digital trade

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Standards need to be more visible to policymakers

Supporting facts:

• Policymakers needs to be aware of the existence of standards to use them

• There needs to be a greater collaboration between the National Standards Bodies and their policymakers to build trust and increase visibility of the Standards Body.

Topics: Standards, Policy making

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Digitalization and e-commerce do not occur in a vacuum and are linked to other sectors and programs

Supporting facts:

• BSI is working with the FCDO on the Standards Partnership Program

• The Standards Partnership Program is a collaborative program with 11 different countries aiming to promote bilateral and international trade

Topics: BSI, FDCO, Standards Partnership Program, Digital Access Program

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Synergies between the Standards Partnership Program and the Digital Access Program can be harnessed for mutual benefit and development

Supporting facts:

• BSI is looking actively to combine these two initiatives

Topics: Standards Partnership Program, Digital Access Program, Trade enhancement

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Report

Standards are crucial to support the transition to a digital economy and facilitate digital trade. They play a vital role in helping organizations deliver on their promises to customers, building trust and stability during the process of digitalization. Standards also support policy initiatives and promote both international and national trade.

However, there is a need to increase policymakers’ awareness of standards and their importance in decision-making. Collaboration between National Standards Bodies and policymakers is necessary to enhance visibility and ensure effective utilization of standards. This collaboration will contribute to the integration of standards into policy frameworks, strengthening their impact on economic growth and development.

In terms of data privacy, digital identification, and interoperability, standards play a critical role. For example, ISO IEC 27001 ensures information security and protects user data. Standards for digital identification and provenance are essential for digital services in different sectors. Interoperability standards, meanwhile, ensure smooth integration of digital systems, promoting efficiency and reducing barriers to trade.

Looking ahead, the significant role of Artificial Intelligence (AI) management systems becomes apparent. The impending publication of the ISO IEC standard for AI management systems will influence international policy initiatives related to AI. Digitalization and e-commerce are not isolated processes, but strongly connected to other sectors and programs.

The Standards Partnership Program, initiated by the British Standards Institution (BSI) in collaboration with the Foreign, Commonwealth & Development Office (FCDO), promotes bilateral and international trade. By partnering with 11 countries, this program highlights the interconnected nature of digitalization and its impact on various industries.

Synergies between the Standards Partnership Program and the Digital Access Program can be leveraged for mutual benefit and development. BSI actively seeks to combine these initiatives to enhance standards, promote digital access, and support trade. In conclusion, standards are vital in supporting the transition to a digital economy and facilitating digital trade.

They build trust, ensure data privacy, promote interoperability, and guide the adoption of AI management systems. Raising policymakers’ awareness and fostering collaboration between National Standards Bodies and policymakers are crucial. The intertwined nature of digitalization and its impact on different sectors emphasizes the need to align efforts and harness synergies.

Embracing standards and collaboration will enable countries to navigate the digital revolution and thrive in the digital economy.

Arguments

Voluntary standards are beneficial to globally diverse organizations

Supporting facts:

• Standards support economy efficiency and productivity gain

• They assist in environmental sustainability and transition to net zero

• They also enhance innovation by uniting stakeholders to agree on best practices

• Standards reinforce global trade and encourage interoperability

Topics: multi-stakeholder consensus-based process, economic growth, environmental sustainability, innovation

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Standards and associated national quality infrastructure can enhance digital services & provision

Supporting facts:

• Standards can enhance digital services and provision

• This can provide a basis for firms to join global value chains

Topics: Standards, digital transformation, national quality infrastructure, digital services & provision

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There is a challenge in terms of the visibility of standards, especially to SMEs and policy makers.

Supporting facts:

• The conversation with policy makers about the role that standards can play to support their own policy objectives is really important.

Topics: Visibility of Standards, SMEs, Policy Makers

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ISO has launched a toolkit which looks at the policy maker piece and the role that standards can play to support different policy outcomes.

Topics: ISO, Policy Makers, Standards

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Engaging with industries is a challenging process.

Topics: Industries, Engagement

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Standards’ core concepts should be disseminated in simpler formats for easy understanding, especially for SMEs.

Supporting facts:

• On cyber security, a little book of cyber security was launched which takes the core principles of 27001 in an 11-page document.

Topics: Standards, SMEs, Ease of Understanding

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Report

The discussion focused on the positive impact of voluntary standards on globally diverse organizations. These standards support economic efficiency and productivity gain, contribute to environmental sustainability, and aid in the transition to net-zero emissions. They also enhance innovation by bringing stakeholders together to agree on best practices.

Additionally, voluntary standards reinforce global trade and promote interoperability. However, challenges were identified, including the globally fragmented digitization journey, which leads to a growing digital divide. This unequal progress in digitization poses challenges in meeting the United Nations Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequalities).

Visibility of standards, especially to small and medium-sized enterprises (SMEs) and policymakers, was identified as another challenge. It is crucial to raise awareness among SMEs and policymakers about the role of standards in supporting their policy objectives to drive adoption and impact.

Standards and associated national quality infrastructure were recognized as essential in enhancing digital services and provision. They provide a basis for firms to join global value chains, contributing to economic growth and innovation, aligning with SDG 9. The International Organization for Standardization (ISO) was commended for launching a toolkit exploring the role of standards in supporting different policy outcomes, emphasizing the significance of standards in partnership building for SDG 17 (Partnerships for the Goals).

The difficulty of engaging with industries in the standard-setting process was acknowledged, recognizing the importance of effective industry engagement for developing robust and relevant standards. Practical implementation can be improved by disseminating the core concepts of standards in simpler formats, especially for SMEs, to ensure broader adoption and compliance, leading to improved business practices and economic growth.

In conclusion, voluntary standards have a positive impact on globally diverse organizations, promoting economic efficiency, environmental sustainability, and innovation. Challenges such as the digital divide, lack of visibility, and industry engagement were identified. The importance of standards in enhancing digital services, supporting policy objectives, and fostering partnerships was highlighted.

Simplifying the dissemination of standards for better understanding, particularly among SMEs, was emphasized. This information is valuable for organizations and policymakers interested in leveraging the potential of voluntary standards to achieve the SDGs and promote sustainable development.

Arguments

PostBase Super App is the platform and digital channel provided for customers to access Korean financial services as well as other post-Indonesia services

Supporting facts:

• PostBase Super App is equipped with KrisCash QR code with national standard and connected with payment system across Indonesia.

Topics: Financial services, Digital channels

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The societal benefits of the PostBase super app

Supporting facts:

• The society can utilize various and inclusive financial services and transactions through the PostBase Super App.

• There are more than 1,800 services available through the PostBase Super App.

• Forward transfer and Kris can pay or contribute funding to a community with free monthly administration fee.

Topics: Financial inclusivity, Ease of transactions

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PostBase Gold feature

Supporting facts:

• PostBase Super App has a PostBase Gold feature which is the first digital platform to buy and sell physical gold in Indonesia.

Topics: Digital Gold trading, Innovation

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Report

The PostBase Super App is a cutting-edge digital channel that enables users to access a wide range of financial services provided by Korean institutions, as well as other post-Indonesia services. This platform is designed to offer customers a convenient and accessible way to carry out their financial transactions and other related activities.

One of the key features of the PostBase Super App is its support for Micro, Small, and Medium Enterprises (MSMEs) and other types of businesses. The app serves as a comprehensive business solution, allowing MSMEs to streamline their operations and expand their reach.

This support for businesses is crucial for achieving Sustainable Development Goal 8, which is focused on promoting decent work and economic growth. The app also plays a significant role in promoting financial inclusivity and reducing inequalities, aligning with Sustainable Development Goal 10.

Users can access a diverse range of financial services and carry out transactions with ease through the PostBase Super App. With over 1,800 services available, users have access to a wide array of financial options that suit their needs. Furthermore, the app enables forward transfers and provides users with the ability to contribute to communities, fostering a sense of shared prosperity.

These inclusive financial services have a positive impact on reducing poverty, which is one of the goals of Sustainable Development Goal 1. The PostBase Super App acts as a bridge that connects remote areas with inclusive financial services. It offers comprehensive features and services that simplify postal Cash on Delivery (COD) services, particularly in distant regions of Indonesia.

Furthermore, the app involves small and medium enterprises in providing inclusive financial services to these remote areas, contributing to Sustainable Development Goals 8 and 9. Additionally, the app includes an innovative feature called PostBase Gold, which facilitates digital gold trading. Users can buy and sell physical gold using this digital platform, which aligns with Sustainable Development Goal 9, focused on promoting industry, innovation, and infrastructure.

In conclusion, the PostBase Super App is a game-changer in the financial services industry. It provides customers with access to Korean financial services and other post-Indonesia services, while also supporting MSMEs and promoting financial inclusivity. With its comprehensive features and services, the app helps bridge the gap between remote areas and inclusive financial services.

Furthermore, the inclusion of the PostBase Gold feature demonstrates the app’s commitment to innovation. Overall, the app has a positive impact on achieving Sustainable Development Goals 1, 8, 9, and 10.

Arguments

Audience questions if the panel works with telecom operators to facilitate network deployment.

Supporting facts:

• Mention of the importance of connectivity for 4G

• Discussion on the high coverage of telecommunications in a nation with over 17,000 islands

Topics: Telecommunications, Network Expansion

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Report

During a panel discussion, the importance of connectivity for 4G was emphasised, highlighting the impressive coverage of telecommunications in a nation comprised of over 17,000 islands. This suggests significant progress in expanding network infrastructure to ensure widespread connectivity throughout the country.

The audience, intrigued by the panel’s insights, raised questions regarding potential collaborations with telecom operators to further improve network coverage. One proposed approach was exploring infrastructure co-location, where multiple operators share the same physical infrastructure, reducing costs and expanding coverage.

Another suggested solution involved utilizing edge computing facilities, which would bring data processing and storage closer to the network’s edge, improving efficiency and reducing latency. The positive sentiment from the audience regarding collaborations with telecom operators indicates a desire for collective efforts to enhance network coverage.

By teaming up with telecom operators and utilising infrastructure co-location or edge computing facilities, there is potential to boost connectivity further and bridge any existing coverage gaps. Although specific supporting facts were not mentioned in the given information, the audience’s interest in these potential collaborations indicates their belief in the benefits of working with telecom operators.

This highlights the importance of partnerships and cooperative strategies in the telecommunications industry to ensure efficient and wide-ranging network coverage. In conclusion, the panel discussion highlighted the significance of connectivity for 4G and showcased the extensive telecommunications coverage in a nation with thousands of islands.

The audience’s keen interest in collaborating with telecom operators signifies a desire for expanding network coverage through strategies such as infrastructure co-location and edge computing facilities. Such collaborations have the potential to enhance connectivity and contribute to a more inclusive and connected society.

Arguments

E-commerce is a vital tool for digitalizing MSMEs

Supporting facts:

• GSMA has been focusing on how to aid MSMEs to adopt mobile services and the mobile internet

• GSMA studied e-commerce in Africa in partnership with the Department of Business and Trade of the UK government

Topics: E-commerce, MSMEs, Digitalization

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Access to finance and development of digital skills are vital needs for MSMEs

Supporting facts:

• 40% of the e-commerce users among the MSMEs mentioned access to finance as their main challenge

• The postal network’s wide availability could potentially aid in providing digital skills and access to finance

Topics: Access to finance, Digital skills, MSMEs

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Social commerce accounts for 60% of total e-commerce in Africa, largely due to its use by MSMEs

Supporting facts:

• MSMEs in Africa primarily use social commerce for their businesses

• Informal delivery mechanisms are still prevalent

Topics: Social Commerce, E-commerce in Africa, MSMEs

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E-commerce in Africa is challenging and seldom profitable due to high delivery and warehousing costs

Supporting facts:

• A lot of funding has gone into e-commerce platforms in Africa with little profitability to show

• Delivery and warehousing constitute the main cost for these platforms

Topics: E-commerce in Africa, Profitability, Delivery and Warehousing

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Report

This analysis focuses on the impact of e-commerce on MSMEs in Africa and highlights several significant points. The GSMA has been actively working to assist MSMEs in adopting mobile services and the mobile internet. This support is crucial as e-commerce is recognized as a vital tool for digitalising MSMEs.

Additionally, the relevance of mobile service offerings and the need for connectivity are emphasised in order to maximise the benefits of e-commerce for MSMEs. Access to finance and the development of digital skills are identified as essential needs for MSMEs to effectively engage in e-commerce.

In fact, 40% of the e-commerce users among MSMEs mentioned access to finance as their main challenge. The postal network is seen as a potential partner in addressing this issue by potentially providing access to finance and digital skills through its wide availability.

However, there are challenges associated with e-commerce in Africa. One significant challenge is the low profitability of e-commerce platforms despite significant funding. This is primarily due to high delivery and warehousing costs, which constitute a major expense. It highlights the need for innovative solutions in delivery and distribution, with private startups introducing new delivery methods and aggregating services on motorbikes in certain markets.

The analysis also reveals the prominent role of social commerce in Africa, particularly among MSMEs. It is mentioned that social commerce accounts for 60% of total e-commerce in Africa, largely due to its extensive use by MSMEs. This reflects the prevalence of informal delivery mechanisms in the region.

Overall, the analysis concludes that while e-commerce presents significant opportunities for MSMEs in Africa, there are challenges that need to be addressed. Efforts should focus on supporting MSMEs in accessing finance, developing digital skills, and addressing delivery and warehousing costs.

The postal network is seen as a potential partner in these endeavours. Partnerships and innovation in delivery methods are key to improving the profitability of e-commerce platforms. In conclusion, e-commerce has the potential to greatly benefit MSMEs in Africa, but concerted efforts across various fronts are required to maximize its impact.

By addressing challenges and capitalising on the opportunities presented by e-commerce, MSMEs can achieve digital transformation and contribute to economic growth and development in the region.

Arguments

Fazal discusses the digital transformation in Indonesia

Supporting facts:

• MSMEs contribute 61% share of Indonesia’s GDP

• Female run MSMEs have a 58% share of GDP in 2022

• Post-Indonesia was established in 1740s and provides services across 17,000 islands

• Post-Indonesia has moved towards becoming a customer-centric company

• Launched PostPay super app, offering various services to retail and corporate customers

Topics: Digital Transformation, Post-Indonesia, MSMEs, E-commerce, Postal Networks

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PostPay super app is a comprehensive platform that integrates financial, postal, and business services, with more than 1800 services available.

Supporting facts:

• More than 1800 services available through the Super App.

• First digital platform to buy and sell physical gold in Indonesia.

• Payment system connected with the network across Indonesia

Topics: financial services, PostBase Super App, PostIndonesia, postal services, business solution

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PostBase has proved their reliability through GiroKos, with government funding to support over 23 million beneficiary families.

Supporting facts:

• PostIndonesia distributed government and funding from various ministries to more than 23 million beneficiary families.

Topics: PostBase, GiroKos, government funding, beneficiary families

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4G connectivity and digital services are essential for the sustenance and growth of their organization and its businesses

Supporting facts:

• They use telco services for 4G and wire line or fiber optic services

• By 2023, telco should have deployed networks up to 94.5%

Topics: 4G connectivity, Digital services, Organization growth

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Data centers providers are interested in utilizing post offices as H data centers

Supporting facts:

• Discussions are ongoing to establish 300 H data centers across Indonesia

• There is availability of fiber optics in at least 514 cities

• Issues revolve around the availability of power sources as H data centers need two different power sources

Topics: Telecom Operators, Data Centers, Connectivity

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High risk in distributing cash across remote areas

Supporting facts:

• During COVID-19, cash for 20,500,000 families was distributed

• Employees had to go through high-risk situations such as carrying cash in bags using boats, crossing jungles

• Some cases, bags with cash fell into the sea

Topics: Cash Distribution, Remote Areas, Connectivity

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Report

The digital transformation in Indonesia, particularly for Micro, Small, and Medium Enterprises (MSMEs), is being discussed with a positive sentiment. MSMEs contribute a significant 61% share to Indonesia’s GDP, highlighting their importance to the country’s economy. Furthermore, it is projected that female-run MSMEs will have a 58% share of GDP by 2022, emphasizing the vital role of women entrepreneurs in driving economic growth.

Post-Indonesia, established in the 1740s, plays a crucial role in providing postal services across Indonesia’s extensive territory, which encompasses more than 17,000 islands. To adapt to the digital era, Post-Indonesia has undergone a transformation to become a customer-centric company. As part of this transformation, the PostPay super app has been launched, offering a wide range of services to both retail and corporate customers.

The app integrates financial, postal, and business services, providing users with convenient access to over 1800 services. Fazal, in his discussion, emphasizes the importance of leveraging the postal network for digital development, particularly for MSMEs. Post-Indonesia has established diverse platforms, including physical and digital ones, to cater to the needs of MSMEs.

It has also partnered with 2.1 million MSMEs, supporting their growth and development. Physical services are provided through six regional offices, 43 main branches, and over 5,000 sub-branch offices. In addition to these physical services, digital services are delivered through the PostPay super app and a specialized MSME customer platform.

Fazal also supports the idea of digital socio-commerce and life commerce as part of the PostPay super app. Live commerce allows users to sell and buy directly, utilizing the app and live streaming features for business purposes. This highlights the app’s potential to facilitate online transactions and support the growth of MSMEs in Indonesia.

The Post Office provides value-added digital services to MSMEs, including free access to WiFi and live streaming centers. These centers, ranging from 2 to 10 in a post office, aim to provide MSMEs with opportunities for promotion and direct engagement with their customers.

The Post Office plans to expand the number of live streaming centers to 1,000 across Indonesia by 2024, further enhancing the support provided to MSMEs. However, there are challenges in achieving connectivity across Indonesia’s unique geographical landscape. With more than 17,000 islands, 300 airports, and 2,700 seaports, the country presents significant logistical challenges for establishing reliable connectivity.

Efforts to address this issue include discussions to establish 300 H data centers across the country and the availability of fibre optics in at least 514 cities. However, challenges remain, particularly with the availability of power sources for the data centers. Another challenge highlighted is the high risk involved in distributing cash across remote areas, especially during the COVID-19 pandemic.

To reach 20,500,000 families, employees had to navigate high-risk situations such as carrying cash in bags using boats and crossing jungles. In some cases, bags with cash even fell into the sea, illustrating the difficulties faced in ensuring secure cash distribution in remote areas.

In conclusion, the digital transformation in Indonesia, with a focus on MSMEs, is seen as a positive development. The Post-Indonesia, through its PostPay super app and various digital initiatives, plays a significant role in facilitating this transformation. The app integrates financial, postal, and business services, providing a comprehensive platform for users.

However, challenges in achieving connectivity and ensuring secure cash distribution in remote areas highlight the unique geographical and logistical challenges faced by Indonesia. Overall, the efforts to embrace digital transformation and leverage the postal network are crucial for the growth and development of MSMEs in the country.

Arguments

The postal network is a unique physical and logistics network important for social and digital inclusion

Supporting facts:

• There are over 650,000 post offices around the world that connect communities

• Post offices located in rural and remote areas are particularly critical for small and medium enterprises

Topics: Postal Services, Digital Inclusion, Social Inclusion

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Digital transformation is changing traditional sectors like the postal industry

Supporting facts:

• Digital is changing the way people and businesses interact and trade

• The rise of digital communication and commerce has led to the need for adaptation and integration of digital services in the postal industry

Topics: Digital Transformation, Postal Industry

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Enhancing cooperation and collaboration between different networks and sectors is crucial for advancing the digital economy

Supporting facts:

• Cross-sector collaboration can promote mutual benefits and comprehensive development

• There is a need for practical collaboration to meet the challenges and opportunities in the digital economy

Topics: Digital Economy, Cross-sector Collaboration

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Postal services have been critical for communication and tradefor centuries

Supporting facts:

• Historically, people have relied on postal services for communication and trade, including the movement of money and goods

• The postal sector is one of the oldest public service networks

Topics: Communication, Trade, Postal Services

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Importance of connectivity and digital to the future of your organization

Supporting facts:

• Life commerce uses app and live streamings for direct selling

• Host offices can add value to users and have over 4,500 connected post offices

Topics: Digital Socio-Commerce, Life Commerce, Live Streamings

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Report

The postal network, comprising of over 650,000 post offices worldwide, plays a crucial role in promoting social and digital inclusion, particularly in rural and remote areas. These post offices act as vital hubs that connect communities, facilitating communication, trade, and providing essential services for small and medium enterprises.

However, the postal industry is facing significant challenges amidst the ongoing digital transformation. The rise of digital communication and commerce necessitates the adaptation and integration of digital services in the postal industry. Collaboration between different networks and sectors becomes essential to advance the digital economy, fostering mutual benefits and comprehensive development.

Postal services hold a long-standing historical importance in facilitating communication and trade. Paul Donahore, an influential advocate, recognizes the immense potential of the postal network in bridging the digital divide. He emphasizes the importance of connectivity and relevant services for post offices, reinforcing their role in delivering sustainable and inclusive digital services.

Leveraging the existing infrastructure of post offices can lead to the deployment of digital services that address the needs of underserved communities. Furthermore, the future success of organizations relies heavily on connectivity and digital technology. Incorporating digital access, including live streaming and digital accessibility, into business strategies can greatly enhance operations and tap into new opportunities for growth and success.

In conclusion, the postal network plays a vital role in social and digital inclusion. However, the industry faces challenges in adapting to digital transformation. Collaboration between networks and sectors is necessary to advance the digital economy. Postal services hold historical significance in facilitating communication and trade.

Advocates like Paul Donahore emphasize the potential of leveraging the postal network for sustainable and inclusive digital services. Connectivity and digital technology are crucial for the future success of organizations.

Arguments

The telecommunications sector is experiencing a major shift with more focus on digital and broadband services.

Supporting facts:

• Developments in the sectors include regulation implementation and overcoming challenges

• There is a significant amount of investment going into data centers, fiber, and broadband services

Topics: Digital technology, Broadband, Telecom sector

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The postal network could potentially support the physical aspects of the evolving digital ecosystem.

Supporting facts:

• All digital developments need some form of physical component like the transportation of products in e-commerce or the delivery of medical supplies in e-health services

Topics: Postal network, Digital services, E-commerce

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The coverage of 4G is significant but the remaining 6% unconnected portion is also substantial, highlighting the need for focussed strategic efforts

Supporting facts:

• 94% of 4G coverage has been achieved

Topics: 4G coverage, Digital infrastructure, Unconnected population, Government intervention

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The post work perspective reveals efforts are still needed in remote areas

Supporting facts:

• Out of 6000 post offices, 60 are not well

Topics: Remote societies, Digital divide, Post work perspective, Government intervention

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Report

The telecommunications sector is currently undergoing a major shift, with a strong emphasis on digital and broadband services. This shift is accompanied by significant investments being made in data centres, fibre optics, and the expansion of broadband services. These developments reflect the growing importance of digital technology and the increasing demand for high-speed internet connectivity.

In parallel, there is a recognition of the potential role that the postal network can play in supporting the physical aspects of the evolving digital ecosystem. The postal network is seen as a crucial component in facilitating the transportation of products in e-commerce and the delivery of medical supplies in e-health services.

This recognition highlights the need for a comprehensive understanding of how the postal network can effectively support these new digital services. Given the evolving landscape, it is imperative for governments and policymakers to have a deeper understanding of the ways in which the postal network can contribute to the digital transformation.

Policymakers must also plan for the necessary infrastructure and regulations to enable a sustainable and long-term reform and transformation of the postal sector. Ideally, this would involve a well-defined policy planning objective, spanning five to ten years. While there has been significant progress in achieving 4G coverage, with 94% of the population now covered, the remaining 6% who are still unconnected represent a substantial portion.

This underscores the need for focused strategic efforts to bridge the connectivity gap and ensure that all individuals have access to digital services. Governments should particularly prioritize the last unconnected percentages of the population, as this represents a significant number of people who are still excluded from the benefits of digital technology.

Moreover, efforts still need to be made to address the challenges faced by remote areas. For instance, out of the 6,000 post offices, 60 are not well-equipped to adequately serve these remote societies. This highlights the importance of targeted interventions and government support to ensure that even the most isolated regions are not left behind in the digital revolution.

In conclusion, the telecommunications sector is experiencing a shift towards digital and broadband services, backed by significant investments. The postal network has the potential to support the physical aspects of the evolving digital ecosystem, and it is crucial for governments and policymakers to understand and plan for this role.

While progress has been made in achieving 4G coverage, efforts are still required to bridge the connectivity gap and address the challenges faced by remote areas. Governments must prioritize the last unconnected percentages of the population to ensure that the benefits of digital technology are accessible to all.

Arguments

It is challenging to connect the 2.4 billion people who are currently offline and not benefiting from the digital economy, which requires collaboration among various actors

Supporting facts:

• 2.4 billion people are unconnected to the internet

• ITU works across three sectors i.e. radio sector, standardization sector, and development sector to enhance connectivity

Topics: Digital Connectivity, Digital Divide, Digital Economy

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Infrastructure build out that proved to be sustainable are driven by private sector with a clear business case

Supporting facts:

• Successful infrastructure projects are being led by the private sector

Topics: infrastructure, private sector, sustainability

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Public-private partnerships are necessary for sustainability

Supporting facts:

• Only through partnerships with the private sector, can the infrastructure gap be tackled in a sustainable way

Topics: public-private partnerships, sustainability

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Report

The analysis explores various topics including digital connectivity, digital inclusion, capacity building, infrastructure, public-private partnerships, and the government’s role. One of the main concerns highlighted is that around 2.4 billion people worldwide lack internet access, hindering their ability to benefit from the digital economy.

Collaboration among different stakeholders is identified as crucial to tackle this challenge. The analysis suggests that postal networks, such as the Universal Postal Union (UPU), could collaborate with the International Telecommunication Union (ITU) to enhance digital connectivity and inclusion. Postal networks have a significant global reach and can be leveraged to create an infrastructure backbone through fiberization.

This collaboration has the potential to bring digital services to remote areas and reduce inequalities, contributing to the SDGs related to industry, innovation, infrastructure, and reduced inequalities. Capacity building is emphasized as essential for enhancing digital inclusion. The lack of skills and knowledge about digital services is identified as a major barrier, which can be overcome through training and education initiatives.

Digital services also have economic value, enabling remote farmers, for example, to sell their produce online and increase their income opportunities. The role of the private sector in driving successful and sustainable infrastructure projects is highlighted. The private sector’s leading role in such projects and its clear business case are seen as significant factors contributing to their sustainability.

Public-private partnerships are also deemed necessary for addressing the infrastructure gap sustainably and achieving SDG objectives. The analysis suggests less government intervention and more collaborative play. Companies like Meta, Google, and TikTok are interested in forming partnerships, and regulatory regimes can be adjusted to attract more partners.

Encouraging collaboration between the private sector and the government through supportive regulatory frameworks can foster innovation and facilitate progress towards universal digital connectivity and inclusive development. In conclusion, the analysis emphasizes the importance of collaboration among different stakeholders to address the challenges of digital connectivity and inclusion.

It underscores the potential of collaborations involving postal networks, capacity building initiatives, private sector-driven infrastructure projects, public-private partnerships, and a collaborative approach between the government and the private sector. By leveraging resources, expertise, and fostering innovation, it is possible to enhance digital inclusion, create economic value, and promote sustainable development for all.

Arguments

Leveraging digital trade and cross-border paperless trade creates a more agile and responsive trading environment

Supporting facts:

• New technology contributes to the overall resilience of economies

• Enables countries to navigate global trade challenges and capitalise on new opportunities

Topics: Digital trade, Cross-border paperless trade

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Successful implementation of paperless trade requires careful planning, infrastructure development and capacity building

Topics: Paperless trade, Capacity building, Infrastructure development

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Issues like digital literacy, cyber security and legal frameworks need to be addressed for successful implementation

Topics: Digital literacy, Cyber security, Legal frameworks

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Technical assistance and support for adopting digital technologies can be crucial in the transition to paperless trade

Supporting facts:

• Trade-related technical assistance can include capacity-building programs

Topics: Technical assistance, Digital technologies

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Report

Leveraging digital trade and cross-border paperless trade can significantly enhance the agility and responsiveness of trading environments, contributing to the overall resilience of economies. This approach empowers countries to navigate global trade challenges and capitalise on new opportunities. By embracing digital technologies and eliminating reliance on traditional paper-based processes, countries can streamline their trade processes, reduce costs, and enhance efficiency.

However, successful implementation of paperless trade requires careful planning, infrastructure development, and capacity building. Governments and stakeholders must collaborate to establish legal frameworks and develop robust infrastructure to support the digital trade ecosystem. Additionally, investments in digital literacy and cyber security are essential for secure and smooth transitions to paperless trade.

Addressing issues such as digital literacy, cyber security, and legal frameworks is crucial for effective implementation of digital and paperless trade. Governments and educational institutions should work together to enhance digital literacy skills and ensure full participation in the digital economy.

Strengthening cyber security measures is necessary to protect sensitive trade data. Clear legal frameworks should be established to address aspects like data protection and intellectual property rights. Trade-related technical assistance and support for adopting digital technologies are crucial in the transition to paperless trade.

Capacity-building programs can equip individuals and organizations with the necessary skills. Governments and international bodies should provide technical assistance to countries in need to bridge the digital divide and ensure a smooth transition. In conclusion, embracing and investing in digital trade and cross-border paperless trade have positive effects on industry, innovation, and infrastructure.

These advancements create a more agile and responsive trading environment, contributing to the overall resilience of economies. However, successful implementation requires careful planning, infrastructure development, capacity building, and addressing issues such as digital literacy, cyber security, and legal frameworks. Trade-related technical assistance and support for adopting digital technologies are crucial elements in facilitating the transition to paperless trade.

By committing to these efforts, countries can advance economic growth and contribute towards achieving global goals of sustainable development.

Arguments

Benefits of cross-border pay-per-lecture for the countries

Supporting facts:

• Countries are using automated cross-border clearance and blockchain technology to significantly reduce trade costs.

• Countries are becoming more involved in creating and adopting new regulations and standards to support this new technological trend.

Topics: Trade Costs, Emerging Technology, Cross-border Pay-per-lecture

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Emerging technology used for internet of things and automated cross-border clearance

Supporting facts:

• These technologies are being increasingly used to facilitate easier cross-border trades.

• The adoption of these technologies allows countries to reduce trade costs and streamline bureaucratic procedures.

Topics: Emerging Technology, Internet of Things, Automated Cross-border Clearance

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Technical assistance and capacity building as well as of course countries learning is crucial

Supporting facts:

• Support provided by institutions like EAF, UNESCO, BUSCAN and the Trade Facilitation Agreement facilities have been instrumental in offering technical assistance and capacity building.

• Leveraging this support can help in furthering cross-border paperless and digitalization efforts in countries.

Topics: Technical Assistance, Capacity Building, Cross-border Pay-per-lecture

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Report

Countries recognise the potential benefits of embracing emerging technologies, such as automated cross-border clearance and blockchain, in reducing trade costs and streamlining bureaucratic processes. To facilitate the smooth adoption and implementation of these technologies, countries actively create and adopt new regulations and standards.

This proactive approach ensures a level playing field for all parties involved in cross-border trade. Governmental interoperability is considered vital, as it brings all agencies together within a unified government system. This promotes coordination, cooperation, and efficiency, minimizing delays and complications in cross-border transactions.

Harmonising legislation and standards with global regulations further strengthens the effectiveness and impact of cross-border trade. Technical assistance and capacity building offered by institutions like EAF, UNESCO, BUSCAN, and the Trade Facilitation Agreement facilities are instrumental in advancing cross-border paperless and digitalisation efforts.

Leveraging this support, countries can optimise their digital transformation processes, leading to enhanced trade facilitation and economic growth. Overall, the adoption of emerging technologies, coupled with the creation of regulations and focus on governmental interoperability, has the potential to significantly reduce trade costs, improve efficiency, and promote sustainable economic growth.

The provision of technical assistance and capacity building further strengthens countries’ ability to embrace and harness the potential of these technologies. Countries are actively taking measures to position themselves to thrive in the digital and interconnected world of cross-border trade.

Arguments

Bhutan faces numerous challenges in promoting trade as a landlocked country

Supporting facts:

• Bhutan has limited access to ports resulting in longer transportation routes and increased transit times

• This leads to delays and higher transportation costs

• Bhutan is heavily reliant on India as their largest trading partner, making them vulnerable to external shocks and changes in the neighbouring country’s policies

Topics: landlocked country, trade

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However, there are challenges to digital trade

Supporting facts:

• Bhutan faces challenges in HR capability

• They have limited IT infrastructure and automation

• They lack adequate legal instruments to govern paperless trade

• Their existing systems are isolated and owned by different agencies, requiring a strong integration for effective digital trade

Topics: digital trade, HR capacity, IT infrastructure

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Report

Bhutan, as a landlocked country, faces numerous challenges in promoting trade. Limited access to ports results in longer transportation routes and increased transit times. This not only leads to delays but also causes higher transportation costs for goods. Furthermore, Bhutan heavily relies on India as its largest trading partner, which makes the country vulnerable to external shocks and changes in India’s policies.

These challenges create obstacles for Bhutan’s economic growth and development. However, digital trade presents a potential solution to some of these challenges. It has the ability to reduce transaction and transportation costs, offering a more cost-effective and efficient way of conducting trade.

Digital trade also enables faster clearance processes and reduced transit times, allowing for smoother and timely movement of goods. Additionally, it provides a gateway for connectivity with a broader range of international partners, allowing Bhutan to diversify its trade relationships and reduce dependence on a single partner.

Despite the potential benefits, there are still challenges that need to be addressed for effective digital trade in Bhutan. The country faces difficulties in terms of human resource capability, with limited expertise in digital trade and related areas. Additionally, Bhutan’s IT infrastructure and automation capabilities are limited, hindering the smooth implementation of digital trade practices.

There is also a lack of adequate legal instruments to govern paperless trade, which is crucial in facilitating cross-border digital transactions. Furthermore, existing systems in Bhutan are isolated and owned by different agencies, highlighting the need for strong integration of these systems to ensure effective digital trade operations.

However, by embracing digital trade and cross-border paperless trade, Bhutan has the opportunity to enhance its overall economy. Digital trade provides a platform that incorporates advanced security measures, ensuring the safety of online transactions. This facilitates e-commerce, enabling small and medium-sized enterprises (SMEs) in Bhutan to participate in global trade and reach a wider customer base.

Moreover, digital trade can improve trade finance by facilitating digital payments, making transactions more efficient and reducing reliance on traditional banking systems. In addition to these advantages, digital trade also fosters data-driven decision-making, enabling Bhutan to make informed choices for its trade policies and strategies.

In conclusion, Bhutan’s status as a landlocked country presents certain challenges to its trade promotion efforts. However, digital trade offers potential solutions to overcome these challenges by reducing costs, enabling faster clearance, and facilitating trade diversification. To fully tap into the benefits of digital trade, Bhutan needs to address obstacles related to HR capability, IT infrastructure, and legal instruments governing paperless trade.

By doing so, Bhutan can enhance its overall economy through improved connectivity, increased SME participation in trade, enhanced trade finance, and data-driven decision-making capabilities.

Arguments

The need to adopt legislation enabling electronic transactions and electronic signatures for effective trade facilitation

Supporting facts:

• All the countries they have today and the vast majority of the countries in Asia Pacific have legislation based on ancestral monologues and also treaties.

• Such legislation is proving to be future proof.

Topics: Electronic Transitions, Trade Facilitation, Electronic Signatures

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Implementation of new technologies such as automation and blockchain can be accommodated under existing laws

Supporting facts:

• Legislation is robust and future proof, accommodating the use of blockchain and information generated by Oracles.

• Automated B2B exchanges and B2G exchanges are operational.

Topics: New Technologies, Blockchain, Automation

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Report

During the discussion, the speakers emphasised the importance of adopting legislation that supports electronic transactions and signatures to facilitate trade effectively. They highlighted that many countries in the Asia Pacific region have already implemented legislation based on ancestral monologues and treaties, which has proven to be future-proof.

This legislation has provided a solid foundation for countries to engage in electronic trade and has enabled them to keep pace with advancements in technology. Furthermore, the speakers noted that existing laws can accommodate the use of new technologies such as automation and blockchain.

They explained that the legislation is robust and allows for the incorporation of these innovative tools. Specifically, the laws can accommodate the use of blockchain technology, which provides a secure and transparent platform for conducting transactions. Additionally, the legislation can also accommodate the use of automation, enabling efficient and streamlined business-to-business (B2B) exchanges and business-to-government (B2G) exchanges.

The speakers also encouraged countries to actively participate in United Nations Conference on Trade and Development (UNCTAD) meetings. They stressed that participating in these meetings allows countries to familiarise themselves with the process and the output of UNCTAD. It also provides an opportunity for countries to reflect their unique views and challenges.

By actively engaging in UNCTAD meetings, countries can contribute to shaping international policies and initiatives that align with their interests and priorities. In conclusion, the discussion highlighted the necessity for countries to adopt legislation supporting electronic transactions and signatures for effective trade facilitation.

The implementation of such legislation, which is based on ancestral monologues and treaties, has proven to be future-proof and widely implemented in many countries. Additionally, existing laws are adaptable and can accommodate the use of new technologies like automation and blockchain.

To stay informed and contribute to international trade discussions, it is recommended that countries actively participate in UNCTAD meetings. This will allow them to understand the process, reflect their unique views, and address their specific challenges in the global trade arena.

Arguments

Bangladesh has always been a promoter of using digital technology in every sector, including digital trade

Supporting facts:

• The election manifesto of the current government in 2009 election focused on creating a digital Bangladesh.

• Bangladesh GDP grew from $92 billion in 2008 to $460 billion in 2022.

Topics: Digital Technology, Digital Trade

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The framework agreement can assist Bangladesh to better prepare for graduation from LDC, compensating impact from losing preferential trade benefits.

Supporting facts:

• Bangladesh has already proved its success of economic achievement with sustainable digitalization.

• Bangladesh met all the criteria for graduation from the LDC category in two consecutive triennial reviews conducted by UNCDP held in 2018 and 2021.

Topics: Framework Agreement, LDC Graduation

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Cross-border paperless trade will facilitate cross-border trade which will contribute to economic development of Bangladesh.

Supporting facts:

• Currently, Bangladesh is assessing its position and preparing a roadmap for implementation of the agreement.

• It can help Bangladesh to streamline its trade procedures effectively and reduce trade transaction time and cost.

Topics: Cross-Border Trade, Economic Development

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Cross-border paperless trade faces several challenges including legal reform, infrastructure development and technical knowledge.

Supporting facts:

• Legal reform is needed to facilitate cross-border paperless trade.

• Infrastructure to support automation of border agencies is also necessary.

• Developing technology, technical knowledge and human resources is another challenge.

Topics: Cross-border Paperless Trade, Digital Technologies, Economic Development

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Report

Bangladesh has demonstrated a strong commitment to embracing digital technology and trade. This commitment is evident in the election manifesto, which prioritized the creation of a digital Bangladesh. The country’s GDP has experienced significant growth, from $92 billion in 2008 to $460 billion in 2022, attributed in part to the adoption of digital technology and its positive impact on various sectors, including digital trade.

In addition to its economic achievements, Bangladesh has successfully embraced sustainable digitalization. The country has met all the criteria for graduation from the Least Developed Country (LDC) category in two consecutive triennial reviews conducted by the United Nations Committee for Development Policy (UNCDP) in 2018 and 2021.

To support its preparation for graduation, Bangladesh has entered into a framework agreement. This agreement aims to compensate for any impact caused by the loss of preferential trade benefits and provide support during the transitional period. Bangladesh is also actively exploring the benefits of cross-border paperless trade.

The country is currently assessing its position and preparing a roadmap for the implementation of an agreement that aims to streamline trade procedures and reduce transaction time and costs. The implementation of cross-border paperless trade is seen as a catalyst for economic development, facilitating smoother and more efficient cross-border trade.

However, cross-border paperless trade does face challenges that need to be overcome. Legal reform is required to establish the necessary framework to support this form of trade. Additionally, infrastructure development is necessary to automate border agencies. Developing the required technology, technical knowledge, and human resources is also a challenge in implementing cross-border paperless trade.

Nevertheless, Bangladesh remains committed to overcoming these challenges and expediting the implementation of trade facilitation agreements. The country has taken various steps to support this goal, such as modifying the Customs Act to include a national single system for the establishment of the Bangladesh Single Window.

Furthermore, the enactment of the ICT Act, ICT policy, national digital commerce policy, government e-policy, and digital commerce guidelines demonstrates Bangladesh’s determination to support the implementation of cross-border paperless trade. The Ministry of Commerce has also initiated efforts to establish a Digital Trade Authority to coordinate and regulate digital trade.

In summary, Bangladesh’s commitment to digital technology and trade is evident through its election manifesto, GDP growth, and successful sustainable digitalization. The country is actively preparing for graduation from the LDC category with the support of a framework agreement. Bangladesh recognizes the potential of cross-border paperless trade to stimulate economic development, despite the challenges it faces.

The country is undertaking various initiatives and reforms to overcome these challenges and expedite the implementation of trade facilitation agreements.

Arguments

Digital trade holds immense significance for Tuvalu, a small island nation heavily reliant on imports

Supporting facts:

• Tuvalu faces several challenges in its journey towards digitalisation, including slow legal development, limited ICT infrastructure, and the need for capacity building,

Topics: Digital Trade, Tuvalu, Imports

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ICT and Legal policy strategies are in development

Supporting facts:

• Tuvalu’s ICT department is developing a digital platform

• A legal policy for ICT is currently under review and pending cabinet approval

Topics: ICT, Legal Policy

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E-commerce and trade strategy implemented to reduce cost

Supporting facts:

• E-commerce and trade strategy, based on Biantet’s rapid e-trade readiness assessment, is developed and waiting for cabinet endorsement

• The WTO Trade Facilitation Agreement and UNESCAP paperless trade agreements are integral to this strategy

• The new trade development strategy prioritises developing e-commerce over the next five years

Topics: E-commerce, Trade Strategy

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Report

Tuvalu, a small island nation heavily reliant on imports, recognizes the significance of digital trade in shaping its future. However, it faces several challenges in its journey towards digitisation. These challenges include slow legal development, limited ICT infrastructure, and the need for capacity building.

Despite these obstacles, Tuvalu is making efforts to overcome them. One key strategy being pursued by Tuvalu is the development of a digital platform. Tuvalu’s ICT department is currently involved in this endeavour, aiming to provide a foundation for digital trade and related activities.

Additionally, a legal policy for ICT is under review and awaiting cabinet approval. This indicates the government’s commitment to creating a legal framework that supports and regulates digital trade. Furthermore, Tuvalu has formulated a trade strategy that places strong emphasis on e-commerce.

This strategy has been developed based on Biantet’s rapid e-trade readiness assessment and is awaiting cabinet endorsement. Integral to this strategy is the implementation of the WTO Trade Facilitation Agreement and the UNESCAP paperless trade agreements. Over the next five years, Tuvalu aims to prioritise the development of e-commerce, with the goal of reducing costs and enhancing trade efficiency.

To facilitate ongoing e-commerce development, Tuvalu requires continued support from organisations such as UNESCAP. UNESCAP has already been assisting Tuvalu with its e-commerce trade development, demonstrating the importance of partnerships and collaboration in driving progress. The support of international organisations like UNESCAP is crucial for the sustainable growth of e-commerce in Tuvalu.

In conclusion, Tuvalu recognises the immense significance of digital trade in its economic development. Despite the challenges it faces, the nation is actively working on different fronts to overcome them. Efforts include developing a digital platform, reviewing legal policy for ICT, and implementing a trade strategy that prioritises e-commerce.

Ongoing support from organisations like UNESCAP is essential to ensure the continued growth and success of e-commerce in Tuvalu.

Arguments

Developing countries in Asia and Pacific struggle with incorporating paperless systems

Supporting facts:

• Paper documents are still used in customs operations

• There’s a lack of legal ground for conducting cross-border electronic exchange of trade data

Topics: Technology, Cross-border trade, Paperless systems

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Feasibility studies propose steps towards e-trade in Asia and Pacific regions

Supporting facts:

• Countries should establish and enhance national single windows

• Utilizing pilot projects as testing ground

• Utilization of emerging technologies after completion of automation process

Topics: Cross-border trade, Feasibility studies, Emerging technologies

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Significant gaps exist between the willingness of countries to adopt e-trade and their capacity to do so

Supporting facts:

• There are strong willingness for electronic trade data exchange but capacity and infrastructure are lacking

Topics: Capacity building, Technology adoption

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Asia and Pacific countries are working towards facilitation of cross-border paperless trade

Supporting facts:

• The Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific has been established

• Currently 12 parties from Asia-Pacific have joined the framework agreement

Topics: Cross-border trade, Paperless systems

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Report

Developing countries in Asia and the Pacific are facing significant challenges when it comes to incorporating paperless systems in their customs operations. This is primarily due to the use of traditional paper documents and the absence of legal infrastructure for cross-border electronic exchange of trade data.

The reliance on paper documents hinders the efficiency and effectiveness of customs operations in these countries, leading to delays, errors, and increased costs. Feasibility studies have highlighted several proposed steps towards embracing e-trade in the Asia-Pacific region. One key recommendation is the establishment and enhancement of national single windows, which serve as a digital platform for the exchange of trade-related information between government agencies and stakeholders.

Through the implementation of national single windows, countries can streamline and automate trade processes, reducing the need for paper-based documentation and facilitating faster and more secure cross-border trade. Another important aspect mentioned in the feasibility studies is the utilization of emerging technologies.

Pilot projects can be initiated as a testing ground to assess the effectiveness of these technologies in simplifying trade procedures and eliminating the reliance on paper documents. Once successful automation processes are completed, the integration of advanced technologies such as blockchain, artificial intelligence, and machine learning can further enhance the efficiency and transparency of e-trade in Asia and the Pacific.

While there is a strong willingness among these countries to adopt e-trade, significant gaps exist in terms of capacity and infrastructure. Although they have the desire to embrace digital solutions for trade facilitation, limitations in technology infrastructure, digital literacy, and human resources hinder their progress.

Capacity-building efforts are necessary to bridge these gaps and provide the necessary support to ensure the successful implementation and adoption of paperless trade systems. In a positive development, the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific has been established.

This agreement signifies the collective efforts of countries in the region to work towards the facilitation of cross-border paperless trade. Currently, 12 parties from Asia-Pacific have joined this framework agreement, indicating a commitment to addressing the challenges and promoting the adoption of digital solutions in trade operations.

In conclusion, developing countries in Asia and the Pacific are encountering obstacles in transitioning to paperless systems in their customs operations, primarily due to the continued use of paper documents and a lack of legal infrastructure. Feasibility studies propose various steps, such as the establishment of national single windows and the utilization of emerging technologies, to promote e-trade in the region.

However, significant gaps in capacity and infrastructure must be addressed to effectively implement and adopt paperless trade systems. The establishment of the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific demonstrates progress and collaboration among countries in the region, fostering the facilitation of cross-border paperless trade.

Arguments

There is an online platform, TINA (Trade Intelligence and Negotiation Advisor), developed by ESCAP, still under development, but able to provide insights to digital trade provisions, however the platform hasn’t covered digital trade thoroughly yet.

Supporting facts:

• TINA is an online platform developed by ESCAP.

• Despite being under development, the audience mentioned it can be accessed to see its initial capabilities especially its ability to provide insights to digital trade provisions in over 400 agreements.

Topics: TINA, ESCAP, Digital trade

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Countries must start engaging in digital trade agreements in order to keep pace with the global economy

Supporting facts:

• It is suggested that countries take part in multilateral and regional trading partnerships, rather than bilateral ones, in order to avoid creating a ‘noodle bowl’ of agreements.

• A trend of digital economy agreements has been identified, with Singapore cited as a world leader.

Topics: Digital trade, Global economy, Trade agreement

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Report

During the discussion, several crucial points were raised in relation to digital trade. One important aspect is the development of the online platform TINA (Trade Intelligence and Negotiation Advisor) by ESCAP. Although still under development, TINA has the potential to provide valuable insights into digital trade provisions.

However, it has not yet fully covered all aspects of digital trade. Another significant point raised during the discussion was the recommendation for countries to engage in multilateral and regional trading partnerships rather than bilateral agreements. The aim behind this suggestion is to avoid creating a complex network of agreements, often referred to as a “noodle bowl.” The noodle bowl phenomenon can be detrimental to trade as it can create confusion and inefficiencies.

Additionally, it was noted that Singapore is regarded as a global leader in digital economy agreements, highlighting the importance of such partnerships. The effectiveness of non-binding frameworks and provisions on digital trade was also emphasized. According to econometric analysis, these non-binding measures have been shown to positively influence trade engagement.

This finding aligns with the perspectives shared by a colleague from UNCTAD during the discussion. The argument put forth was that non-binding frameworks can contribute to trade engagement and are preferable at present. In conclusion, the discussion highlighted the significance of participating in digital trade agreements to keep pace with the global economy.

The development of TINA as an online platform for digital trade provisions shows promise, although it is still in the process of being fully comprehensive. Engaging in multilateral and regional partnerships, rather than bilateral ones, is recommended to avoid creating a complex web of agreements.

The effectiveness of non-binding frameworks and provisions on digital trade was also recognized, further supporting the importance of these measures in fostering trade engagement. Overall, the discussion provided valuable insights for stakeholders in the field of digital trade.

Arguments

Cambodia is evolving rapidly in building a strong digital economy momentum.

Supporting facts:

• The median age of Cambodia is 25.6 years old, signifying a vibrant youthful demographic.

• Digital technology is helping in growth in many segments of the economy.

Topics: Digital economy, Cambodian demographic

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Adaptation to the new way of engagement is needed.

Topics: Digital economy, Stakeholder engagement

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Chia Ratan emphasizes on the importance of e-commerce in promoting growth.

Topics: E-commerce, Digital trade policy

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On November 25, 2020, under the aegis of the Ministry of Commerce and with the financial backing of the EIF, we launched the e-commerce strategy.

Supporting facts:

• Cambodia Trade Integration Strategy called CTSI 2019 to 2023

• The Royal Government of Cambodia prioritize on the digital economy and the fourth industrial revolution for our rectangular strategy phase four

Topics: e-commerce strategy, EIF, Ministry of Commerce

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Cambodia is a party of number of regional and bilateral agreement.

Supporting facts:

• Cambodian-China free trade agreement

• Cambodia-Korean free trade agreement

• Cambodia-UAE comprehensive economic partnership agreement

Topics: ASEAN e-commerce agreement, regional comprehensive economic partnership, bilateral free trade agreement

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Chia Ratan, stresses the complexity of creating a general department for digital trade, mentioning that it requires a lot of time and preparation.

Supporting facts:

• The creation of this general department involves engaging all stakeholders, identifying and equipping with necessary tools, and empowering the private sector.

Topics: General Department for Digital Trade, Digital Transformation, E-commerce

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Report

Cambodia is experiencing rapid growth in its digital economy, driven by a vibrant and youthful demographic and the increasing integration of digital technology in various sectors. The median age of Cambodia is 25.6 years old, signifying a vibrant youthful demographic. Digital technology is helping in growth in many segments of the economy.

To harness this momentum, Cambodia has launched an e-commerce strategy aimed at promoting growth and opening up opportunities for businesses. The strategy was initiated by the Ministry of Commerce with the financial support of the EIF (Enhanced Integrated Framework). The government also prioritizes the digital economy and the fourth industrial revolution in their rectangular strategy phase four.

Furthermore, Cambodia is actively engaged in regional and bilateral trade agreements, such as the Cambodian-China free trade agreement and the Cambodia-Korean free trade agreement. These agreements serve as important partnerships for driving further economic growth. To ensure the continued acceleration of the digital economy, effective and well-regulated policies are crucial.

The government recognizes the need for policies that enable growth to be shared among stakeholders and ensure that no one is left behind. The Ministry of Commerce is considering the establishment of a dedicated general department for digital trade. However, creating such a department requires time and preparation.

Chia Ratan stresses the importance of engaging all stakeholders, equipping them with necessary tools, and empowering the private sector for the success of the department. Participation and understanding from the private sector in policy-making processes are also important. Chia Ratan highlights the challenges faced by the private sector during the COVID-19 pandemic, particularly with access to government funding.

She suggests that government policies should be designed in a practical manner that can be implemented effectively by the private sector. Chia Ratan also emphasizes the need to understand the specific needs of different groups, such as women entrepreneurs. Tailored assistance programs that address these specific needs will contribute to more inclusive and sustainable economic growth.

She mentions her involvement with the Cambodian Women Entrepreneur Association and how they secured reduced interest rates for women entrepreneurs during the COVID-19 crisis. In conclusion, Cambodia is rapidly evolving in building a strong digital economy momentum. The country’s youthful demographic and the integration of digital technology in various sectors provide a solid foundation for growth.

The launch of the e-commerce strategy, prioritization of the digital economy and the fourth industrial revolution, and active engagement in trade agreements all contribute to Cambodia’s digital economy momentum. However, well-regulated policies, private sector engagement, and tailored assistance programs are crucial for ensuring sustainable and inclusive growth in the digital economy sector in Cambodia.

Arguments

The main obstacle in promoting cross-border e-commerce is the high shipping cost.

Supporting facts:

• When the platform, CambodianTrade.com was launched for B2B e-commerce activities, the shipping cost is higher than the cost of goods.

• The high shipping cost has become an obstacle to realize the objective of promoting cross-border e-commerce.

Topics: E-commerce, Shipping cost, Cross-border Trade

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The platform was initially to promote B2B cross-border e-commerce but ended up mostly selling to individual customers (B2C).

Supporting facts:

• A lot of sales on the marketplace is mostly B2C indicating that the marketplace is generating sales for SMEs.

• The original target was to promote B2B cross-border e-commerce but it’s mostly being used for B2C sales.

Topics: E-commerce, Marketplace Strategies, B2B vs B2C

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Report

The main obstacle to promoting cross-border e-commerce is the issue of high shipping costs. This challenge has hindered the achievement of the objectives set for CambodianTrade.com, a platform designed for B2B e-commerce activities. Interestingly, shipping costs on this platform are even higher than the cost of goods themselves.

The high shipping costs have become a significant deterrent to the promotion of cross-border e-commerce. As a result, the platform, initially intended to facilitate B2B cross-border transactions, has experienced a shift towards predominantly catering to individual customers (B2C) instead.

To effectively promote cross-border e-commerce and achieve the intended objectives, it is crucial to address the challenge of high shipping costs. This can be achieved through collaborative efforts with relevant stakeholders, such as the General Department of Customs and Cambodian Post, to identify and develop cost-effective shipping solutions that cater to the needs of small and medium-sized enterprises (SMEs).

Prominent examples of successful e-commerce markets, like China, highlight the importance of low shipping costs, which are largely driven by high sales volumes. In conclusion, high shipping costs pose a significant barrier to the promotion of cross-border e-commerce on CambodianTrade.com.

Overcoming this challenge requires collaborative efforts to develop cost-effective shipping solutions for SMEs. By doing so, the platform can fulfill its objectives and effectively support B2B cross-border transactions.

Arguments

Increased e-commerce transactions call for strengthened customs with more human resources and advanced technological systems

Supporting facts:

• There is a growing number of e-commerce transactions from time to time

• Human resources are divided into those who work on system development, those who are expertise in functional and regulatory aspects, and those who handle clearance of e-commerce

Topics: E-commerce Transactions, Customs Reinforcement, Human Resources, Technology

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Implementation of legal frameworks is necessary for e-commerce operations

Supporting facts:

• New laboratories for pre-arrival processing have been set up

• Regulations are implemented following standards, guidelines and international conventions

Topics: Legal Frameworks, E-commerce Operations

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Automatic, paperless systems are preferred by customs for e-commerce transactions

Supporting facts:

• Automatic system ASIHUB has been implemented

• Paperless systems are better for e-commerce as they can be processed by the system as compared to paper-based formats

Topics: Automatic Systems, Paperless Systems, E-commerce Transactions

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Report

In the analysis, the speakers discuss the increasing number of e-commerce transactions and the implications it has on customs and legal frameworks. The main argument put forth is that the rise in e-commerce calls for strengthened customs with more human resources and advanced technological systems.

To support this argument, the speakers highlight that there is a growing number of e-commerce transactions happening regularly. This indicates the need for customs to be equipped with adequate resources to handle the increased workload. They also mention that human resources in customs are divided into different roles, including those involved in system development, those with expertise in functional and regulatory aspects, and those handling the clearance of e-commerce.

This suggests that having a diverse team with expertise in various areas is essential for efficient customs operations. Furthermore, the speakers emphasize the importance of advanced technological systems in customs to manage the influx of e-commerce transactions. They argue that improved technological infrastructure is necessary to effectively process and oversee the increasing volume of e-commerce activities.

This indicates that customs need to invest in advanced technologies to ensure efficient and smooth operations in the face of the e-commerce boom. Another aspect discussed in the analysis is the implementation of legal frameworks for e-commerce operations. The speakers explain that the establishment of new laboratories for pre-arrival processing is a positive step towards ensuring compliance with regulations.

They also mention that the implementation of regulations adhering to international standards, guidelines, and conventions is crucial for the proper functioning of e-commerce activities. This highlights the importance of a legal framework that is aligned with global norms to facilitate secure and seamless e-commerce transactions.

Additionally, the analysis underscores the preference for automatic and paperless systems in customs for e-commerce transactions. The implementation of the automatic system ASIHUB is seen as a positive development that streamlines the processing of e-commerce transactions. Paperless systems are also seen as more efficient and convenient, as they can be easily processed by the automated system compared to traditional paper-based formats.

This suggests that customs should encourage the adoption of automatic and paperless systems to enhance the efficiency and effectiveness of e-commerce operations. In conclusion, the analysis highlights the need for strengthened customs with increased human resources and advanced technological systems to cope with the growing number of e-commerce transactions.

It advises the implementation of legal frameworks that are in line with international standards for the smooth operation of e-commerce activities. Moreover, it encourages the adoption of automatic and paperless systems in customs to improve efficiency and streamline e-commerce transactions.

Overall, the analysis provides valuable insights into the challenges and opportunities presented by the surge in e-commerce and offers recommendations for customs and legal frameworks to adapt to this changing landscape.

Arguments

The importance of e-commerce and inclusion in FTAs

Supporting facts:

• E-commerce market projected to grow from $300 billion in 2020 to $1 trillion in 2030

• E-commerce has seen a spike during the COVID-19 pandemic

• Cambodia has signed multiple FTAs with e-commerce provisions

Topics: E-commerce, FTAs, Economic growth

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Long Khammichet thinks the steps for negotiations are not too high for LDCs, including Cambodia, Laos, and Myanmar to handle in relation to the ASEAN Digital Economy Framework Agreement

Supporting facts:

• ASEAN still adheres quite closely to the principle of different level of development among its members, which provides flexibility

• Flexibilities such as transition periods and capacity building and technical assistance that are seen in its past FTAs will bring comfort

• Negotiations have only just begun, so they have yet to see the first draft of the agreement

• ASEAN is looking to accelerate its transformation into a leading digital economy through this agreement

• Agreement will cover broad elements like digital trade, cross-border e-commerce, payment and e-invoicing, digital ID and authentication, online safety and cybersecurity, cross-border data flows and data protections, competition policy, cooperation on emerging topics, and talent, mobility and cooperation

Topics: ASEAN Digital Economy Framework Agreement, LDCs, Cambodia, Laos, Myanmar

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The analysis underscores the importance of e-commerce and its inclusion in Free Trade Agreements (FTAs). The e-commerce market is projected to grow from $300 billion in 2020 to $1 trillion in 2030, with a significant spike in activity during the COVID-19 pandemic. Cambodia has recognised this potential and has signed multiple FTAs with e-commerce provisions, demonstrating its commitment to leveraging e-commerce for future development.

Including e-commerce in FTAs is seen as a forward-thinking approach, ensuring these agreements are future-ready and aligned with modern digital trends. It also serves as a roadmap for the progressive evolution of national legal and regulatory frameworks for e-commerce. By fulfilling these commitments, countries can keep pace with the rapidly developing e-commerce sector.

Implementing the commitments made in FTAs is crucial for enhancing national e-commerce frameworks. These commitments provide a work plan for the enhancement of legal and regulatory frameworks, which are essential for the growth and stability of the e-commerce sector. The analysis emphasises that fulfilling these commitments is not a matter of “if” but “when,” given the world’s rapid progress in this field.

As for the ASEAN Digital Economy Framework Agreement, negotiations are seen as manageable for countries like Cambodia, Laos, and Myanmar, which are classified as Least Developed Countries (LDCs). ASEAN values the principle of different levels of development among its members, which provides flexibility during negotiations.

Past FTAs have demonstrated that LDCs can benefit from flexibilities such as transition periods, capacity building, and technical assistance. While the first draft of the agreement is yet to be seen, ASEAN aims to accelerate its transformation into a leading digital economy, covering various aspects such as digital trade, cross-border e-commerce, payment systems, online safety, cybersecurity, and data flows.

Competition policy, cooperation on emerging topics, and talent mobility are also part of the agreement. The analysis suggests a positive and progressive approach towards the negotiations, while also advising caution. Some proposed provisions, such as digital identifications and data exchange platforms, go beyond current national laws and regulations, requiring further negotiation and consideration.

Despite these challenges, the negotiations are considered manageable for LDCs like Cambodia, Laos, and Myanmar. The agreement is viewed as a crucial step for the future, regardless of the specific outcomes of the negotiations. In summary, the analysis underlines the importance of e-commerce and its inclusion in FTAs.

It highlights the projected growth and recent surge in e-commerce, as well as Cambodia’s commitment through multiple FTAs. The inclusion of e-commerce in FTAs is crucial for future development and the evolution of national regulatory frameworks. The analysis also provides insights into the ASEAN Digital Economy Framework Agreement and emphasizes the manageable nature of negotiations for LDCs, supported by ASEAN’s flexibility.

While caution is advised for provisions beyond current laws, a positive and progressive approach is encouraged. Overall, the analysis promotes the long-term benefits of integrating the digital economy while accurately reflecting the main text.

Arguments

Policy space is essential in digital trade agreements

Supporting facts:

• A 2014 UNCTAD report defined policy space as the freedom and ability of a government to identify and pursue the most appropriate mix of economic and social policies

• Policy space discussion began in reference to the Uruguay Round of agreements

• The number of agreements that have been recorded as having provisions affecting e-commerce and digital trade is over 400

Topics: E-commerce, Digital Trade, Policy Space, Digital Economy

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Effective use of policy space requires policymakers to have a vision of where they want to take an economy.

Supporting facts:

• Analyzing the national e-commerce ecosystem and digital trade is essential

• Development of statistics to evidence-based policymaking is important

Topics: Policy Space, National Development Strategy, Local capabilities, Policy Instruments, Monitoring Mechanisms

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The analysis conducted reveals several key points regarding policy space and its importance in digital trade agreements. Policy space is defined as the freedom and ability of governments to identify and pursue the most appropriate mix of economic and social policies.

It is argued that policy space is essential in digital trade agreements. One important finding is that there are over 400 agreements recorded as having provisions affecting e-commerce and digital trade. This highlights the growing significance of digital trade and the need for robust policies in this area.

The discussion on policy space began in reference to the Uruguay Round of agreements, and it has since become a crucial issue in shaping trade agreements. Another key point is that appropriate policy space is required in trade agreements dealing with cross-border data flows.

It is highlighted that the issues related to data flows are not limited to trade alone; they also encompass elements such as human rights and national security. This highlights the need for comprehensive and holistic policies that consider a range of factors beyond purely economic considerations.

While having policy space is important, it is also emphasized that countries need to effectively utilise it. Merely having the freedom to shape policies is not enough; policymakers need to have a clear vision of where they want to take their economies.

Effective use of policy space requires a deep understanding of the national e-commerce ecosystem and digital trade dynamics. Additionally, the development of statistics for evidence-based policymaking is deemed crucial in ensuring that policy space is utilised effectively. The analysis also uncovers the role of tools and assessments in guiding countries’ transition in digital trade.

The e-trade readiness diagnostic report and tools like the e-trade reform tracker are mentioned as useful resources for countries looking to develop their digital trade capabilities. These tools provide a clear understanding of local capabilities, constraints, and opportunities, enabling countries to identify areas for improvement and progress.

Furthermore, the analysis highlights the importance of public-private dialogue in ensuring inclusion in digital trade agreements. It is emphasised that such dialogues should encompass all segments of society, including women, youth, rural populations, and people with disabilities. The involvement of diverse stakeholders is crucial in addressing the digital divide and promoting equal opportunities for all.

In conclusion, this detailed analysis highlights the significance of policy space in digital trade agreements. It underscores the need for appropriate policy space, effective utilisation, and comprehensive understanding of the digital trade ecosystem. It also recognises the role of tools and assessments in guiding countries’ transition and the importance of inclusive public-private dialogues.

Policymakers and stakeholders are urged to consider these insights to shape more effective and equitable digital trade agreements.

Arguments

Cambodia’s progress on trade facilitation and paperless trade has been outstanding, leading all the LDCs

Supporting facts:

• Cambodia achieved an implementation rate of 80.6% across measures in the UN Trade Facilitation Survey

• Cambodia exceeds the global average for LDCs, which is 55%, and also exceeds the global average, which is below 70%

Topics: Trade Facilitation, Paperless trade, Digital trade

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Cross-border paperless trade is the ultimate step of trade digitalization

Supporting facts:

• Cross-border paperless trade is a seamless flow of electronic data and documents, not only within the national environment, but across borders and around the entire supply chain

• Implementing cross-border paperless trade can result in about 17% reduction in trade costs on average across the globe

Topics: Cross-border paperless trade, Trade digitalization

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Cambodia has made remarkable progress in the areas of trade facilitation and paperless trade, outperforming other countries classified as Least Developed Countries (LDCs). According to the UN Trade Facilitation Survey, Cambodia has achieved an impressive implementation rate of 80.6%, which is significantly higher than the global average for LDCs of 55%, as well as the overall global average that remains below 70%.

This outstanding achievement reflects Cambodia’s commitment to streamlining trade processes and improving economic growth. In addition to this, embracing cross-border paperless trade has the potential to bring about significant cost reductions. This involves a seamless flow of electronic data and documents not just within national borders but across international supply chains, resulting in an average reduction in trade costs of approximately 17% worldwide.

This highlights the importance of digitalization in revolutionizing international trade and boosting economic efficiency. To ensure the effective implementation and oversight of paperless systems, it is crucial for Cambodia to establish a core team of technical and legal experts. By building this team, the country can leverage the necessary expertise to navigate the complexities of paperless trade and ensure the smooth functioning of the system.

Prioritizing the development of this competent team will allow Cambodia to sustain its progress and maintain its leadership in trade facilitation and paperless trade among LDCs. Moreover, incorporating provisions for paperless trade cooperation in trade agreements can enhance trust and collaboration among trade partners.

By including these provisions, Cambodia can foster stronger partnerships and create an environment conducive to the widespread adoption of paperless trade practices. This, in turn, will streamline trade processes across borders and improve efficiency. Additionally, achieving successful trade digitalization requires addressing capacity gaps within agencies and promoting collaboration among various stakeholders, including inter-agency cooperation and public-private sector partnerships.

By reducing these gaps and encouraging cooperation, Cambodia can overcome the challenges associated with trade digitalization and create a harmonized environment for digital trading. However, before undertaking complex capacity building initiatives, it is essential to prioritize reducing the digital divide and ensuring widespread access to the internet.

Bridging this divide will enable equal participation in the digital economy and allow individuals to benefit from the advantages offered by paperless trade. By ensuring internet access for all, Cambodia can promote inclusivity and maximize the potential of trade digitalization.

In conclusion, Cambodia’s exceptional progress in trade facilitation and paperless trade surpasses that of other LDCs. With an implementation rate of 80.6% in the UN Trade Facilitation Survey, Cambodia has exceeded both the global average for LDCs and the overall global average.

Embracing cross-border paperless trade can lead to significant cost reductions, while building a core team of experts, incorporating provisions for cooperation, narrowing capacity gaps, and prioritizing internet access will pave the way for successful trade digitalization in Cambodia.

Arguments

Sven Calvo emphasizes on the importance of policy space in e-commerce negotiations for developing countries

Supporting facts:

• Policy space allows countries to strategize their own national agenda.

• UNCTAD has been advocating for policy space in procedural trade agreement negotiations.

Topics: Policy space, Digital trade agreements, Developing countries

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Sven Calvo emphasises the importance of policy space in e-commerce negotiations for developing countries. He highlights that policy space allows these countries to strategise their own national agenda, enabling them to shape trade agreements according to their specific needs and interests.

This flexibility empowers developing countries to protect and promote their domestic industries, safeguard labour rights, and tackle inequality. However, Sven also questions the relevance of policy space in digital trade agreements and raises concerns about whether UNCTAD (United Nations Conference on Trade and Development) still supports developing countries in negotiations.

He wonders if policy space remains a priority or if the focus has shifted towards other trade-related issues. It is worth noting that UNCTAD has long advocated for policy space in procedural trade agreement negotiations. They actively promote this concept to allow developing countries the freedom and autonomy to negotiate based on their national agenda in e-commerce discussions.

This approach acknowledges the diverse economic and developmental circumstances among developing countries and ensures their equal participation in global trade. The analysis suggests that policy space plays a significant role in ensuring the interests and priorities of developing countries are adequately represented in trade negotiations, particularly in the dynamic digital economy.

It grants these countries the opportunity to carve out their own paths for economic growth and development, rather than being compelled to conform to a one-size-fits-all approach. In conclusion, Sven Calvo underscores the value of policy space in e-commerce negotiations for developing countries.

While he raises questions about its relevance in digital trade agreements and the support provided by UNCTAD, it is evident that UNCTAD actively advocates for policy space in procedural trade agreement negotiations, recognising its importance in empowering developing countries to shape trade agreements based on their own national agenda.

Arguments

Current global tax system was established in the 1920s before many developing countries were even in existence

Supporting facts:

• The current tax system was established by colonial powers in the 1920s

• Developing countries started to contribute to broader economic issues leading to pushback from colonial powers

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African countries and global South are asking for the conversation on tax regulation to be shifted back to the United Nations

Supporting facts:

• The shift aims for an equitable playing field where the interests of all countries are taken into consideration

• Global South countries had voiced the need for an inclusive forum for tax discussions in the past

• The Africa group recently tabled continuation of the discussion at the United Nations

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Shift in power dynamics to reflect the interests and needs of global South countries is starting to emerge

Supporting facts:

• The UK on behalf of EU countries, tabled a motion to not have a discussion on a UN framework convention, but this was voted against by Global South countries

• This is the first time conversations are leading towards an equitable space for these countries

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The current global tax system, established by colonial powers in the 1920s, is facing criticism from developing countries. These countries argue that the tax system was put in place before many of them even existed, and as a result, it does not adequately consider their interests and needs.

In recent years, developing countries have started to contribute more to broader economic issues, which has led to pushback from colonial powers who have traditionally dominated the global tax discussions. African countries and the Global South are at the forefront of the call for a shift in power dynamics and the inclusion of their perspectives in global tax discussions.

They believe that the conversation on tax regulation should be brought back to the United Nations, where all countries can participate and have their voices heard. The aim of this shift is to create a more equitable playing field, where the interests of all countries are taken into consideration.

There have been notable efforts in this direction. The Global South countries, particularly those in Africa, have expressed the need for an inclusive forum for tax discussions in the past. Most recently, the Africa group tabled a proposal to continue the discussion on tax regulation at the United Nations.

This move highlights the growing support for a more inclusive and equitable approach to tax policy. However, the UK, on behalf of EU countries, initially opposed the idea of having a discussion on a UN framework convention for tax regulation.

This motion was ultimately voted against by Global South countries, marking a significant shift in power dynamics. For the first time, conversations are leading towards an equitable space that reflects the interests and needs of the Global South countries. In conclusion, the current global tax system, established by colonial powers in the 1920s, is facing criticism from developing countries.

African countries and the Global South are demanding a shift in power dynamics and the inclusion of their perspectives in global tax discussions. The push for the conversation on tax regulation to be brought back to the United Nations aims to create a more equitable playing field and consider the interests of all countries.

While opposition initially existed, there are signs that the power dynamics are starting to shift towards a more inclusive approach.

Arguments

The current international tax architecture needs reform

Supporting facts:

• The digital economy has made the tax rules ineffective

• E-commerce is an integral part of various sectors including manufacturing and services.

• There are diverging opinions about the correct forum to discuss these reforms

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Trade rules impact on taxation

Supporting facts:

• Rules like not requiring offshore providers to have a local presence, not requiring data to be held within the source country, and not capping the cross-border royalty payments can pose obstacles to new tax regimes.

• There are differences between the trade rules in different agreements such as TPP, CPTPP, ASEP, etc.

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Digital Service Taxes (DSTs) are introduced as a solution

Supporting facts:

• Countries introduce DSTs to tax revenue of large digital services businesses

• U.S. launched investigations under Section 301 and threatened to impose sanctions

• OECD G20 BEPS process’ Pillar 1 solution seeks to address e-commerce taxation.

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The current international tax architecture is in need of reform due to the ineffective tax rules imposed by the digital economy. This has generated concerns and criticisms, leading to a negative sentiment surrounding the issue. E-commerce taxation, which is an integral part of various sectors including manufacturing and services, has had a detrimental impact on taxation.

One of the main arguments is that trade rules have also contributed to the negative impact on taxation. For instance, rules such as not requiring offshore providers to have a local presence, not mandating data to be held within the source country, and not capping cross-border royalty payments have created obstacles for new tax regimes.

Furthermore, there are discrepancies between trade rules found in different agreements, such as TPP, CPTPP, ASEP, and others. In response to these issues, Digital Service Taxes (DSTs) have been introduced as a proposed solution. Countries have taken action by implementing DSTs to tax the revenue of large digital services businesses.

This development shows a neutral sentiment towards DSTs. Additionally, other initiatives such as the OECD G20 BEPS process’ Pillar 1 solution seek to address the challenges related to e-commerce taxation. It is worth mentioning that Canada and New Zealand are among the countries planning to implement DSTs.

This demonstrates a positive stance towards finding a common solution to the problem. In the face of challenges like Section 301 of the U.S. Trade Act, collective defense strategies may be employed to safeguard countries against potential sanctions. In conclusion, the need for reform in the international tax architecture is evident due to the ineffectiveness of current tax rules in the digital economy.

E-commerce taxation and trade rules create obstacles and discrepancies in tax regimes. As a solution, DSTs have been introduced, and countries are starting to implement them. It is imperative for countries to collaborate to find a common solution, as there are shared interests and potential collective defense strategies to address the challenges that arise.

Arguments

There is a need to reform the international tax architecture that is over 100 years old for it to accommodate the contemporary economic landscape including e-commerce

Supporting facts:

• There is an international consensus that change is needed

• The current legal framework governing the international tax architecture is not fit for purpose especially with regards to e-commerce

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There is debate over the correct forum for these reforms; competing processes are ongoing at the OECD and UN

Supporting facts:

• OECD’s BEPS project has run for close to a decade

• UN’s mandate provided by the UNGA resolution where 125 mostly developing countries backed a UN draft resolution proposed by Nigeria on behalf of the African group calling for a framework convention on international tax cooperation

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The OECD’s pillar 1 solution attempts to address e-commerce taxation by allowing market jurisdictions to tax digital platforms even if they don’t have physical presence in those jurisdictions

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This OECD pillar 1 solution is seen as inadequate by developing countries and tax justice advocates

Supporting facts:

• They believe it would continue to exempt companies with billions in assets and revenues

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There is an ongoing debate regarding the issue of moratorium and custom duties on electronic transmissions both at the WTO and in free trade agreements

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The UN resolution is pushing towards a UN tax convention and the creation of a UN tax body

Supporting facts:

• The Africa group led by Nigeria and other African nations pushed for this UN resolution to create a more equitable playing field

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The attempts to exempt digital economy taxation discussions at the United Nations should be viewed with skepticism

Supporting facts:

• Many sectors, including international financial institutions, are trying to carve out UN for taxation of the digital economy, arguing that the issue is too complicated for developing countries to handle. However, this is a condescending and inaccurate view as all countries have capacity to discuss these issues

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It is important for developing countries to engage both the UN and WTO processes

Supporting facts:

• As the big companies look at these issues on a holistic level, developing countries must also engage both UN and WTO processes in order to counteract any move to exempt platforms from income taxation in developing countries

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The international tax architecture is widely seen as in need of reform to better adapt to the changing economic landscape, particularly in relation to e-commerce. There is a growing consensus that the current legal framework governing international taxation is inadequate.

The argument for reforming the tax system is supported by the fact that the existing architecture is over 100 years old and does not adequately address the complexities and challenges posed by e-commerce. The debate over the correct forum for these tax reforms is ongoing, with competing processes taking place at both the Organisation for Economic Cooperation and Development (OECD) and the United Nations (UN).

The OECD has been running its Base Erosion and Profit Shifting (BEPS) project for almost a decade, while the UN has received a mandate from the United Nations General Assembly (UNGA) to create a framework convention on international tax cooperation, backed by 125 mostly developing countries.

One proposed solution from the OECD is referred to as “pillar 1”, which aims to address e-commerce taxation by allowing market jurisdictions to tax digital platforms, even if they do not have a physical presence in those jurisdictions. However, this solution is viewed as inadequate by developing countries and tax justice advocates, who argue that it would still exempt companies with significant assets and revenues.

There is also an ongoing debate regarding the issue of moratoriums and customs duties on electronic transmissions, both at the World Trade Organization (WTO) and in free trade agreements. This debate raises questions about the potential impact on developing countries and their revenues.

The push for tax reforms is further reinforced by the UN resolution calling for the creation of a UN tax convention and a UN tax body. This resolution, advocated by the Africa group and other African nations, seeks to create a fairer playing field in international taxation.

Critics argue that the OECD’s inclusive framework is not genuinely inclusive as it fails to genuinely include the voices of southern countries. This raises concerns about the representation and inclusion of perspectives from developing countries in the reform process. There are also concerns about attempts to exempt discussions on digital economy taxation at the United Nations, with some arguing that such attempts should be viewed with skepticism.

Moreover, the renewal of the WTO moratorium on customs duties on electronic transmissions is deemed detrimental for developing countries. It is argued that this could lead to significant revenue losses, particularly when combined with efforts by big companies to obtain tax-free treatments at both the customs and corporate income tax levels.

In conclusion, there is a growing consensus that the international tax architecture needs to be reformed to accommodate the evolving economic landscape, particularly with regard to e-commerce. The debate over the correct forum for these reforms is ongoing between the OECD and the UN.

The OECD’s proposed solution is seen as insufficient by developing countries and their advocates. There are also discussions about moratoriums and customs duties on electronic transmissions. The UN resolution aims to create a fairer playing field through a UN tax convention and a UN tax body.

Critics argue that the OECD’s inclusive framework lacks inclusivity, and there are concerns about attempts to exempt discussions on digital economy taxation at the UN. Renewing the WTO moratorium on customs duties is viewed as detrimental to developing countries’ revenues.

Developing countries are encouraged to engage in both UN and WTO processes to address these issues.

Arguments

Digital Companies often escape taxation by setting their businesses in tax heavens

Supporting facts:

• Certain companies like MercadoLibre have legal addresses in tax havens

• These companies often favor to declare their economic activities as IT services or financial intermediation

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Digital economy should bring benefits to the society

Supporting facts:

• The digital platform economy is expanding in Latin America, positioning itself as an inclusive service provider

• Digital companies have managed to bring services into sectors of the population that previously didn’t have access

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According to the analysis, digital companies often engage in tax evasion by establishing their businesses in tax havens. They take advantage of this loophole by declaring their economic activities as IT services or financial intermediation, thereby avoiding paying taxes. This practice has a negative sentiment associated with it as it leads to a loss of tax revenue for governments and exacerbates income inequality.

To address this issue, it is argued that there is a need for reform in the taxation system for digital companies. This reform is necessary to ensure a fair and equitable tax system. The current system often results in consumers bearing the burden of taxes through increased prices, rather than the companies themselves.

This sentiment is grounded in the belief that digital companies should contribute their fair share to society through taxation. Furthermore, the expansion of the digital platform economy in Latin America is seen as a positive development. It is positioning itself as an inclusive service provider, bringing services to sectors of the population that previously had limited or no access.

This is viewed as a significant benefit for society as it promotes economic growth, innovation, and infrastructure development. The digital economy is seen as a promising avenue for achieving the Sustainable Development Goals, particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 8 (Decent Work and Economic Growth).

In conclusion, the analysis highlights the issue of tax evasion among digital companies operating in tax havens. It supports the argument for tax reform with the aim of ensuring a fair and equitable tax system. The expansion of the digital platform economy in Latin America is seen as a positive development that can bring numerous benefits to society, including increased access to services and opportunities for previously marginalized populations.

Arguments

India has been trying to regulate tax on digital services since 2016 through the ‘equalization levy’, charging 6% tax on non-resident e-commerce operators engaged in online advertisement and related activities.

Supporting facts:

• India’s initial Equalization Levy was introduced in the Finance Act of 2016

• From April 2020 under the Finance Act 2020, India expanded the scope of the equalization levy to include a tax of 2% on gross income of non-resident e-commerce operators.

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Despite its introduction, the equalization levy has met with challenges and gaps in regular assessment and collection.

Supporting facts:

• Businesses are required to self-assess and remit the relevant fee on a quarterly basis, but compliance is not perfect.

• There’s a lack of understanding and guidance among professionals about the equalization levy.

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The surge in digital transactions and e-commerce particularly post-Covid, reveals the urgent need to facilitate more stringent measures for taxation of digital platforms.

Supporting facts:

• Due to the Covid-19, digital transactions and e-commerce have significantly surged across India, thereby enlarging the market for e-commerce companies.

• Many digital platforms like gaming, streaming services are yet to be properly taxed.

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Indian companies functioning as Multinational Companies (MNCs) can be as extractive and damaging as foreign MNCs

Supporting facts:

• Indian companies are conducting business in Africa and other regions worldwide.

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Report

India has been attempting to regulate the taxation of digital services since 2016 through the implementation of the equalisation levy. This levy imposes a 6% tax on non-resident e-commerce operators engaged in online advertising and related activities. However, despite its introduction, there have been challenges and gaps in the assessment and collection of the equalisation levy.

To address the surge in digital transactions and e-commerce, particularly in light of the Covid-19 pandemic, stricter taxation measures for digital platforms are urgently required. This increase in digital transactions has significantly expanded the market for e-commerce companies in India.

Yet, many digital platforms, such as gaming and streaming services, are not being properly taxed. The lack of understanding and guidance among professionals regarding the equalisation levy has resulted in imperfect compliance. Businesses are required to self-assess and remit the relevant fee on a quarterly basis, but there are gaps in ensuring full compliance.

This highlights the need for improved education and support to ensure accurate assessment and collection of the equalisation levy. The discussion also emphasizes the crucial role of civil society and grassroots movements in advocating for better taxation policies. There is limited understanding of taxation issues among citizens and grassroots movements, leading to a lack of pressure on policymakers.

The speaker, who is a member of the Indian Social Action Forum and Tax and Fiscal Justice Asia group, plans to campaign for improved taxation of digital platforms. Furthermore, it is highlighted that Indian companies operating as multinational companies (MNCs) can be just as extractive and damaging as foreign MNCs.

This challenges the perception that domestic companies are inherently more responsible and sustainable in their business practices. Therefore, civil society in India should scrutinise both foreign and domestic businesses to hold them accountable. Overall, this extended summary highlights the need for stricter taxation measures for digital platforms, improved compliance and collection of the equalisation levy, and increased pressure from civil society and grassroots movements to ensure better taxation policies that benefit the people.

Arguments

UNCTRAL is focusing on the interactions and the legal relationships between traders through progressive harmonization and modernization of law of international trade.

Supporting facts:

• UNCTRAL has been developing harmonised texts for over 30 years, which mostly consist of model laws.

• Recent work by UNCTRAL includes a Model Law on the Recognition and Use of Identity Management and Trust Services (2020).

• UNCTRAL is now examining the trading of data, including industrial data and commercially sensitive data.

Topics: international trade, legal affairs, policy-making

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Ancetral is working on developing ELI-ALI principles into an international legal instrument

Supporting facts:

• Ongoing work at Ancetral on picking up themes from the ELI-ALI principles

Topics: Ancetral, ELI-ALI principles, International Legal Instrument

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Report

The United Nations Commission on International Trade Law (UNCITRAL) has been developing harmonized texts for over 30 years, primarily consisting of model laws. These model laws provide guidance to countries seeking to modernize and harmonize their own international trade laws. One of UNCITRAL’s recent accomplishments is the Model Law on the Recognition and Use of Identity Management and Trust Services (2020), which establishes a framework for regulating identity management and trust services in electronic transactions.

UNCITRAL is also examining the trading of data, including industrial and commercially sensitive data. This reflects the organization’s recognition of the growing importance of data in international trade, as well as the legal complexities associated with it. By understanding the nature of data at a commercial level and the rights and obligations of participants in the data market, UNCITRAL aims to create legal frameworks that promote fair and transparent data trading practices.

In addition, UNCITRAL’s work on electronic transactions and traders’ identities complements Geneva’s approach to data and digital trade. UNCITRAL has developed model laws on electronic commerce, electronic signatures, and electronic transferable records, ensuring the legal recognition and enforceability of electronic transactions, signatures, and records.

Furthermore, Ancetral is working to transform the ELI-ALI principles into an international legal instrument. These principles, developed by the European Law Institute and the American Law Institute, aim to harmonize and improve private law systems in Europe and the United States.

Ancetral’s efforts demonstrate their commitment to enhancing legal frameworks and promoting international cooperation in private law. Overall, UNCITRAL’s ongoing work on modernizing and harmonizing international trade law, particularly in relation to identity management, trust services, data trading, and electronic transactions, plays a crucial role in facilitating secure and efficient global trade.

Additionally, Ancetral’s endeavor to establish the ELI-ALI principles as an international legal instrument aligns with the broader objective of strengthening legal frameworks and promoting international legal cooperation.

Arguments

There’s a need for domestic law to understand and grapple with what data is

Supporting facts:

• shift from documents to data

• the legislative frameworks are being put in place

• the mutual recognition of the outcome of these trust services

Topics: data law, offline to online transition, data mapping

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The audience member queries regarding the relationship between the MLIT and Virtual Credentials

Supporting facts:

• Virtual Credential refers to a set of linked credentials that go back to a trusted authority.

Topics: MLIT, Virtual Credentials

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Concern over the potential lack of responsibility of intermediary data handlers in data rights infringement cases

Supporting facts:

• The audience member notes that in cases where an upstream data provider wants to take legal action against a downstream person, the intermediary party may not be held accountable

Topics: data governance, data rights, digital economy

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Question about the drafting process of model laws for MLIT

Supporting facts:

• Pointed out that domestic level law drafting includes lobbying and scientific expertise.

• Questioned the geographical input considered during drafting these laws, especially considering challenges in regions like South Asia

Topics: Model Law on International Trade, Trust Services, Identity Management

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Open debate on the future shape of laws of contracts in the digital economic world

Supporting facts:

• Noted that traditional concepts of contracts and ownership do not cater to new developments in digital economy.

• Asked whether there should be separate laws for different types of contracts or if changes should be incorporated into existing laws

Topics: Digital Economy, Contract Law

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Report

The discussion emphasized the importance of domestic law in understanding and dealing with data. It acknowledged the need for domestic legislation to grapple with and comprehend the nature of data. This recognition arises from the ongoing shift in society from traditional documents to data, making it imperative for legal frameworks to adapt and evolve accordingly.

The implementation of high-level policy goals through legislative frameworks was deemed crucial. This involves translating policy objectives into actionable laws at the domestic level. The work of experts like Lucas and Rory McMillan, who utilize model laws in drafting legislation, was cited as examples of how this can be accomplished.

By adopting model laws, countries can effectively align their domestic legal systems with high-level policy goals, such as those outlined in SDG 16: Peace, Justice and Strong Institutions and SDG 17: Partnerships for the Goals. Additionally, the adoption and application of model laws were highlighted as integral to digital transformation, particularly in government operations.

For instance, MLIT being incorporated into laws indicates the significance of model laws in driving the digitization of governmental processes. The increasing need for authenticity, accuracy, and assurance in digital documents further underlines the importance of embracing model laws in the context of digital transformation.

However, the adoption of the Malita model law faced challenges due to the requirement for collective action and a shift from traditional practices. Despite the benefits it offers, such as enhanced efficiency and reduced reliance on paper-based processes, the slow adoption of the Malita model law was attributed to legacy departments being resistant to change and the lack of wider uptake.

These obstacles suggest the need for stakeholder collaboration and a broader transformation to fully integrate the new model law into existing systems. Another concern raised during the discussion was the lack of accountability for intermediary data handlers in cases of data rights infringement.

The audience member expressed worries about the potential negligence on the part of intermediary parties when forwarding data, as they may not bear legal responsibility for any wrongdoing. This criticism reflects the growing need to address accountability issues within the data governance framework, especially when intermediaries are involved.

In terms of contract law, it was acknowledged that traditional concepts of contracts and ownership may no longer be sufficient to accommodate the developments in the digital economy. This has prompted a debate on whether separate laws should be established for different types of contracts or if changes should be incorporated into existing laws.

The need for contract law to evolve to adequately address the emerging concepts within the digital economy was recognized. Additionally, questions were raised about the drafting process of model laws, emphasizing the need for both technical and legal expertise. The audience was curious about the inclusion of scientific expertise and the geographical input considered during the drafting process, particularly regarding challenges faced by regions like South Asia.

These questions highlight the importance of a comprehensive and inclusive approach to model law drafting that takes into account multiple perspectives and considerations. In conclusion, the discussions revolved around the vital role of domestic law in understanding and managing data, and the significance of legislative frameworks in implementing high-level policy goals.

The adoption and application of model laws were emphasized as a means to drive digital transformation, particularly within government operations. However, challenges in the adoption process, the lack of accountability for intermediary data handlers, and the need for an evolved approach to contract law in the digital economy were identified as areas that require further attention.

The inquiries regarding the drafting process of model laws also underscored the importance of incorporating technical and legal expertise, as well as considering diverse geographical perspectives.

Arguments

Luca Castellani highlights a shift in legal understanding of commercial dealings, moving from tangible documents to data represented in documents.

Supporting facts:

• Luca mentions UNCTRAL Model Law on Electronic Transferable Records (MLETR) as a key instrument that allows the use of documents of title in electronic form.

• The pandemic highlighted a significant digitization gap in supply chains, emphasising the importance of electronic handling of commercial documents.

• Luca also refers to the notion that a significant portion of data generated in modern trade is generated by objects, not people.

Topics: data governance, commercial dealings, document digitization

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Trust services provide assurance of data quality in electronic communications and can include a variety of services such as timestamping, archiving, and registered mail.

Supporting facts:

• Trust services operate independently of a legal requirement to sign, unlike handwritten signatures.

• Trust services can link the origin of a data message from an object.

Topics: Trust services, Electronic communication, Data quality

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Reliability of data from trust services can be evaluated ex ante (before the service is used) or ex post (after the service is used).

Supporting facts:

• Ex-ante evaluation is built on a presumption of data quality based on the trust service provider’s reputation and accreditation.

• Ex-post evaluation relies on post-event analysis and is typically favored by common law jurisdictions.

• Both approaches can be combined.

Topics: Data reliability, Trust services, Ex-ante evaluation, Ex-post evaluation

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Cross-border recognition of trust services is a significant challenge that needs to be addressed globally.

Supporting facts:

• The European Union has solved the issue of cross-border recognition of trust services due to its level of economic and political integration.

• The solution to this challenge does not exist at a global level yet.

Topics: Cross-border recognition, Trust services, Global challenges

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The identity element in electronic signatures is derived from a foundational identity

Supporting facts:

• The MLIT refers to the existence of technology neutral descriptions of levels of reliability for trust services and levels of assurance for identity management.

Topics: EIDAS, identity management, electronic signatures

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There’s an ongoing global movement towards paperless trade, which will especially benefit geographically disadvantaged countries

Supporting facts:

• Japan will adopt Malita for Bills of Lading by 2025 and Kiribati has included it in their electronic transaction flow.

• This will help reduce transportation costs and possibly mitigate geographic disadvantages.

Topics: paperless trade, geographic disadvantage, transportation costs

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Ancetral, a commission of the UN General Assembly, reflects different legal traditions and includes views from all regions

Supporting facts:

• Ancetral is made up of 70 member states, representing all world regions

Topics: Ancetral, UN General Assembly, Legal Traditions

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MLIT is open to standards that have certain recognition, as there’s no global consensus on applicable standards

Supporting facts:

• MLIT refers to standards but does not explicitly name them

• Standards for identity management could be ETSI or an IST

• Sometimes ISO or ITU standards are relevant, depending on the country

Topics: MLIT, Global Standards, Regional Recognition

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Report

Luca Castellani highlights a shift in legal understanding of commercial dealings, moving from tangible documents to data represented in documents. He points out the significance of the UNCTRAL Model Law on Electronic Transferable Records (MLETR), which allows the use of electronic documents of title in commercial transactions.

Castellani emphasizes the crucial role of electronic signatures in modern digital commerce. These signatures, despite their complexity, are fundamental in ensuring the authenticity and integrity of electronic transactions. Trust services, which operate independently of a legal requirement to sign, play a vital role in verifying the origin and reliability of data messages.

The reliability of data from trust services can be evaluated either ex ante or ex post. Ex-ante evaluation relies on the trust service provider’s reputation and accreditation, while ex-post evaluation involves post-event analysis. Castellani warns against over-reliance on ex-ante evaluation, particularly for developing countries, as it may hinder development and create data silos.

Cross-border recognition of trust services is a significant challenge that needs to be addressed globally. While the European Union has successfully solved this issue due to its economic and political integration, a global solution is yet to be established. The identity element in electronic signatures is derived from foundational identity.

Castellani mentions the existence of technology-neutral descriptions of reliability levels for trust services and assurance levels for identity management, emphasizing the importance of secure and trusted identities in electronic transactions. The ongoing movement towards paperless trade is set to benefit geographically disadvantaged countries by reducing transportation costs and potential barriers.

B2B transitions to electronic transactions also provide substantial cost savings, contributing to more efficient and sustainable business practices. Ancetral, a commission of the UN General Assembly, represents different legal traditions and ensures balanced consideration of legal matters. The MLIT is open to standards with certain recognition, accommodating regional differences in electronic commerce practices.

Overall, Castellani’s arguments highlight the transformation in commercial dealings towards data-driven transactions. Electronic signatures and trust services play essential roles in ensuring the authenticity and reliability of electronic transactions. However, careful consideration should be given to the reliance on ex-ante evaluations to avoid hindering development.

The challenges of cross-border recognition and the importance of secure identities call for global collaboration. The movement towards paperless trade presents cost savings and benefits for geographically disadvantaged countries, while B2B transitions to electronic transactions contribute to more efficient and sustainable business practices.

Ancetral and the MLIT provide platforms for fostering strong institutions and harmonizing electronic commerce practices.

Arguments

Traditional private law concepts and rules don’t fulfill the requirements of the data economy.

Supporting facts:

• Concept of ownership doesn’t work well for a resource that can be used by multiple parties at the same time without exhaustion.

• Data transactions often involve the interest of third parties who hold rights with respect to data.

Topics: Data Economy, Private Law

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Principles for data economy addresses data contracts, third party aspects and data rights.

Supporting facts:

• The project was a joint venture of the American Law Institute and the European Law Institute.

• First project between both institutions, aiming at achieving significant harmonization across different legal traditions.

Topics: Data Economy, Data Contracts, Third Party Aspects, Data Rights

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The principles have defined five different types of contracts with default rules for data transactions.

Supporting facts:

• Contracts for the transfer of data, simple access to a data source, exploitation of a data source, authorization to access and data pooling contracts are the defined types.

• These contracts consider both selling existing data and granting access to a data source generating data in real-time.

Topics: Data Contracts, Data Transactions, Data Economy

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Principles propose protections for third parties in the context of onward supply of data.

Supporting facts:

• The principles suggest that recipients of data have to pass on usage limitations to downstream recipients.

• Initial suppliers have direct action against downstream recipients in case of violations.

Topics: Data Economy, Third Party Protection

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The principles for data transactions represent a novel approach inspired by trade secrets law.

Supporting facts:

• The principles aim to provide balanced protection to the interests of both third parties and downstream recipients similar to traditional transactions laws.

• The principles are compared to the protection offered to buyers, who believe that the person who sells them goods is the real owner, but are also protected by law and they get ownership even if they buy from someone who is not the real owner.

Topics: Trade Secrets Law, Data Transactions, European Law

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The middle person in any transactions are not free of liability if they violate the initial contract

Supporting facts:

• Initial supplier can put in limitations in the first contract

• The first recipient must comply with the limits and restrictions set in the contract

• If the first recipient does not comply, they are not free from any liability

Topics: Contract Law, Data Security, Liability

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Principals envision a harmonization that goes across borders, no need for new contract types in all jurisdiction

Supporting facts:

• They just need to agree upon default terms and guidelines that fill the gaps

Topics: Contract Law, Jurisdiction, International Law

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Report

The analysis explores the complexities of the data economy and its interaction with private law. It argues that traditional private law concepts and rules fail to meet the requirements of the data economy. This is because the concept of ownership is not suitable for a resource that can be used by multiple parties simultaneously without depletion.

Furthermore, data transactions often involve third parties with rights to the data. To address these challenges, principles for the data economy have been proposed. These principles cover data contracts, third party aspects, and data rights. They aim to achieve significant harmonization across different legal traditions through a joint venture of the American Law Institute and the European Law Institute.

The principles define five types of contracts for data transactions, including the transfer of data, simple access to a data source, exploitation of a data source, authorization to access, and data pooling. These contracts encompass both the sale of existing data and granting access to data sources that generate real-time data.

An important aspect of the principles is the protection they provide for third parties in the onward supply of data. Recipients of data are required to pass on usage limitations to subsequent recipients, and initial suppliers have the right to take action against downstream recipients in case of violations.

Inspired by trade secrets law, the principles aim to provide balanced protection to the interests of both third parties and downstream recipients. They apply traditional transaction concepts to data transactions with necessary modifications, ensuring legal certainty and effective operation. The principles emphasize the significance of initial contracts and their restrictions in protecting the interests of the first supplier.

They allow the initial supplier to set limitations and restrictions in the first contract, ensuring downstream recipients are aware of and bound by these terms. Notably, middle persons involved in data transactions are not exempt from liability if they violate the initial contract.

This highlights the importance of contractual compliance and accountability throughout the data transaction process. The principles envision a harmonized approach that transcends borders, eliminating the need for new contract types in different jurisdictions. By establishing default terms and guidelines, they facilitate smoother data transactions across various legal systems.

Overall, the analysis provides a comprehensive examination of the complexities surrounding the data economy and its relationship with private law. The proposed principles offer a solid foundation for addressing the unique challenges of data transactions, ensuring legal certainty and protection for all parties involved.

Arguments

Supply chains are in unprecedented times, making them more risky

Supporting facts:

• Conflicts such as Ukraine, staff shortages, and disruption to transport capacity all contribute to this issue

Topics: Supply chain, Risk, Covid-19, Disruption, Conflict

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Cargo crime is a big business, especially in Europe

Supporting facts:

• Europol has identified some 5,000 organised crime groups operating at an international level in the EU alone

Topics: Cargo crime, Europe, Organised crime groups

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Data is increasingly important in managing cargo crime

Supporting facts:

• TAPA’s intelligence system, the ‘Google of cargo crime’, connects the dots using various data sources to paint a clear picture of the issue

Topics: Data, Cargo crime, Intelligence

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Availability of good data can pose a threat if not secured, as bad actors can exploit it.

Supporting facts:

• Bad actors also have intelligence, they know exactly where the vulnerability in the sector is

Topics: Data security, Cyber threat

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Operational processes, including 100% screening, may need to be adjusted to fight perpetrators.

Supporting facts:

• The Yemen incident, where explosives were transported into Europe, lead to 100% screening by express companies

• Express companies cannot afford diversions as they promise speedy delivery

Topics: Operational processes, Screening, Security

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Report

Summary: Supply chains are facing unprecedented risks due to conflicts, staff shortages, and disruptions to transportation capacity. Cargo crime is a major concern in Europe, with thousands of organized crime groups operating within the EU. Data plays a crucial role in managing cargo crime, with TAPA’s intelligence system using various data sources to identify patterns and hotspots.

Cooperation and information sharing among stakeholders are recommended to mitigate supply chain risks. However, the security of data must be prioritized to prevent exploitation. Efforts to improve data may increase costs for logistic service providers, requiring a balance between cost optimization and data management.

Operational processes, including screening, need to be adjusted to combat criminal activities without affecting delivery speed. A holistic approach encompassing collaboration, data management, and security is vital for resilient and efficient supply chains.

Arguments

Question about the definition of e-commerce by OECD

Supporting facts:

• OECD’s definition of e-commerce is from 2009

• The definition states that it’s conducted over computer networks not specifically designed for the purpose of receiving or placing orders

Topics: E-commerce, OECD, Dropshipping, Fulfilment Centers

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The customer experience with e-commerce platforms needs to be improved in order to efficiently identify and tackle illicit trade.

Supporting facts:

• Customers often receive goods with low-value declaration which is not what they actually paid.

• This inefficient process impairs the accurate collections of revenues.

Topics: e-commerce, customer experience, illicit trade

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Finding a way to identify and profile entities for control in e-commerce transactions is needed

Supporting facts:

• In the case of e-commerce, most transactions involve individual consumers rather than legal entities.

• Custom officers use a credit analysis process to determine the level of trust and facilities provided to a company involved in transactions.

Topics: Risk Management, E-commerce, Customs Control

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Report

The discussion revolves around the definition of e-commerce by the OECD and its potential vagueness, specifically regarding social media sales, dropshipping, and fulfilment centres. The OECD’s definition of e-commerce, which dates back to 2009, states that it is conducted over computer networks that are not specifically designed for the purpose of receiving or placing orders.

However, it is argued that this definition may be unclear or vague with regard to newer forms of e-commerce, such as social media sales, dropshipping, and fulfilment centres. The audience raises concerns about the need for improved customer experience on e-commerce platforms in order to efficiently identify and tackle illicit trade.

Customers often receive goods with low-value declarations, which do not accurately reflect the actual amount they paid. This inefficient process hampers the accurate collection of revenues. Therefore, there is a pressing need to enhance the customer experience on e-commerce platforms to ensure more accurate declarations and effectively combat illicit trade.

Furthermore, the audience believes that e-commerce platforms should take a more proactive role in eliminating illicit trade. This entails actively implementing measures to identify and address fraudulent activities and ensuring the integrity of transactions. By taking a proactive stance, e-commerce platforms can contribute to the overall goal of achieving peace, justice, and strong institutions.

Another important aspect discussed is the need to find a way to identify and profile entities for control in e-commerce transactions. While not all transactions in e-commerce require customs control, it is essential to differentiate and profile entities involved in transactions.

This can be achieved through a credit analysis process used by customs officers to determine the level of trust and facilities provided to a company engaged in e-commerce transactions. By effectively identifying and profiling entities, customs authorities can allocate resources more efficiently and mitigate the risks associated with illicit trade.

In conclusion, the discussion highlights the potential vagueness of the OECD’s definition of e-commerce and the necessity for it to encompass newer forms of e-commerce like social media sales, dropshipping, and fulfilment centres. It emphasizes the importance of enhancing the customer experience on e-commerce platforms to effectively combat illicit trade and calls for e-commerce platforms to take a proactive role in eliminating such activities.

Additionally, the need to identify and profile entities for control in e-commerce transactions is underscored, with a focus on using credit analysis processes to differentiate trustworthy entities. Overall, these discussions contribute to the ongoing efforts in improving e-commerce practices and ensuring their alignment with the sustainable development goals.

Arguments

Importance of data to identify high-risk traffics and smuggling

Supporting facts:

• Data helps to reduce risks by identifying illegal or suspicious activities

• Customs authorities can protect traders’ reputations from fraudulent activities via data insights

• Data sharing between departments can speed up clearance process

Topics: Data Analysis, Security, Customs Control

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Use of anti-patterns to detect anomalies

Supporting facts:

• Understanding companies’ normal behavior through data helps customs authorities to detect any changes which might indicate illegal activities

Topics: Data Analysis, Security

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Preventing incidents through data

Supporting facts:

• Data can help prevent smuggling of dangerous items like firearms and drugs

• Customs can protect parcel post workers from dangerous substances like fentanyl

Topics: Data Analysis, Security, Protection

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Requirement to put links to sellers’ websites under review

Supporting facts:

• There have been conversations with HMRC

• The process is starting and being continued one by one

• The EU has put pressure on marketplaces to be responsible for data

Topics: Sellers’ Websites, UK Legislation, Online Marketplaces

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Entities willing to share data and cooperate with customs help maintain their own reputation and identify problem clients.

Supporting facts:

• An entity’s reputation may be at risk if there’s a pattern of seizures at their warehouse.

• The compliance with data sharing helps the customs better understand the trade body, maintaining a balance.

• Entities which do not share data or seem purposefully unhelpful may have to face stricter inspection, hampering businesses.

Topics: Risk Management, Trade Compliance, Data Sharing

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Report

The provided information highlights the significance of data in customs control and security. Data analysis plays a critical role in reducing risks and identifying illegal or suspicious activities. By analysing data, customs authorities can effectively safeguard traders’ reputations from fraudulent activities.

Additionally, data sharing among different departments can expedite the clearance process, enhancing overall efficiency. Another important aspect emphasized is the use of data to comprehend companies’ normal behaviour. By analysing data patterns, customs authorities can more easily detect changes that may indicate illegal activities.

This approach enables the use of anti-patterns to identify anomalies, facilitating the identification of potential risks and threats. The stance on stringent control over firearm imports is presented due to the presence of strict gun laws in the UK. Incidents involving the smuggling of Scorpion machine guns into the country, resulting in the loss of innocent lives, underscore the significance of maintaining strict control measures.

Data analysis also plays a crucial role in preventing the smuggling of dangerous items such as firearms and drugs. By leveraging data, customs authorities can effectively identify and prevent such incidents. Furthermore, data insights can help protect parcel post workers from hazardous substances, such as fentanyl.

Regarding online marketplaces, discussions with HMRC are underway, leading to a review of the requirement to include links to sellers’ websites. The EU has exerted pressure on marketplaces to assume responsibility for data. This development highlights the necessity of ensuring responsible data management practices within online marketplaces.

While the future policy direction remains uncertain, progress in this regard has been influenced by the ongoing pandemic and other global events. It is too early to determine the specifics of where the policy is heading, as the process is still in the planning stages.

Entities that willingly share data and cooperate with customs not only help maintain their own reputation but also assist in identifying problematic clients. Conversely, entities that do not share data or purposefully impede the process may face stricter inspections, resulting in potential disruptions to their businesses.

To aid in risk management, the suggestion of implementing a system within trade bodies or associations for sharing information about problematic companies is proposed. This system would enable companies to avoid engaging with entities that have a history of non-compliance or other issues.

The idea is that even if a problematic entity switches carriers, their reputation will follow them, allowing for proactive risk management. In cases where entities exhibit deliberate non-compliance, stringent measures and stricter regimes may be necessary and implemented. These measures serve to protect against illicit transactions, uphold trade law and order, and act as a deterrent.

Failure to provide necessary data or cooperation could result in damaging repercussions for the non-compliant entity. In conclusion, the information highlights the vital role of data in customs control and security. Data analysis enables the identification of risks, helps prevent illegal activities, and promotes efficient processes.

The importance of strict control over firearm imports and responsible data management practices are emphasised. Additionally, the significance of sharing data, cooperating with customs, and implementing risk management systems within trade bodies or associations is underscored.

Arguments

Chavarria emphasizes the importance of a standardised global data model to facilitate e-commerce processes and improve data exchange, as well as for pre-arrival information for customs processes.

Supporting facts:

• He discusses the WTO data model and its goal of creating interoperability and a ‘customs language’ for exchanged data.

• He mentions the existence of reference data sets from China, the EU, and the US that can serve as standards.

• Chavarria identifies the issue of differing data set comprehensiveness among countries, resulting in a balance between too much and too little information.

Topics: Data standardization, E-commerce, WTO Data Model

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He mentions the establishment of e-commerce framework standards by the WTO, which are continuously updated to stay relevant.

Supporting facts:

• WTO has developed an e-commerce framework of standards, guided by eight principles and sixteen standards.

• The framework was approved in 2018, updated although since, and set to be reviewed every four years.

• Chavarria stresses that the framework isn’t static and must accommodate changes in technology and data management.

Topics: WTO, E-commerce, Standards

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Chavarria discusses the roles and responsibilities of different stakeholders in e-commerce.

Supporting facts:

• The last part of the WTO document Chavarria discussed allocates roles and responsibilities to all stakeholders involved in e-commerce.

• WCO aims to balance between imposing facilitation measures and defining responsibilities for the different stakeholders.

Topics: WTO, E-commerce, Stakeholders

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The definition of e-commerce can be complex and ever-evolving.

Supporting facts:

• WCO has a different approach to defining e-commerce compared to OECD, focusing more on goods.

• The concept of e-commerce is not always simple and is continually changing.

Topics: e-commerce, WCO, OECD, definitions

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Report

In a recent discussion, Chavarria highlights the importance of having a standardized global data model to enhance e-commerce processes and facilitate data exchange for customs procedures. He specifically mentions the WTO data model, which aims to establish interoperability and a common “customs language” for exchanging data.

Chavarria acknowledges that there are existing reference data sets from China, the European Union (EU), and the United States (US) that can serve as standards in this regard. However, he notes the challenge of differing data set comprehensiveness among countries, which requires finding a balance between providing too much or too little information.

The World Trade Organization (WTO) has also taken steps to address the need for standards in e-commerce through the development of an e-commerce framework. This framework is guided by eight principles and sixteen standards and was approved in 2018. Chavarria emphasizes that these standards are not static but are continuously updated to adapt to changes in technology and data management.

The framework is set to be reviewed every four years to ensure its relevance in the rapidly evolving e-commerce landscape. Furthermore, Chavarria discusses the roles and responsibilities of different stakeholders involved in e-commerce. The WTO document he refers to aims to allocate these roles and responsibilities among the relevant parties.

The World Customs Organization (WCO) plays a crucial role in this process by striking a balance between imposing facilitation measures and defining responsibilities for the various stakeholders. The definition of e-commerce itself is a complex and ever-evolving concept. Chavarria highlights that the WCO and the Organization for Economic Co-operation and Development (OECD) have differing approaches to defining e-commerce, with the WCO focusing more on the movement of goods.

This underscores the need to continually update and refine the definition to incorporate new developments and methodologies. The WCO’s commitment to staying up to date with the evolving nature of e-commerce is evident through their specific process for reviewing and updating the definition every four years.

This working group within the WCO is highly active, ensuring that the definition remains relevant in light of new technologies and methodologies. In conclusion, Chavarria’s discussion sheds light on the importance of a standardized global data model in improving e-commerce processes and data exchange for customs procedures.

The WTO’s development of an e-commerce framework, continuously updated standards, and the allocation of roles and responsibilities to stakeholders further support this goal. However, the complex and evolving nature of e-commerce necessitates the WCO’s commitment to regularly reviewing and updating the definition to ensure its relevance in a rapidly changing landscape.

Arguments

Data plays a vital role in ensuring safety, security, and customs compliance of the parcel delivery networks, reducing the environmental burden caused by returns and the destruction of e-commerce goods.

Supporting facts:

• 65% of e-commerce shipments entering the European Union were undervalued

• Data is required for customs control

Topics: e-commerce, Parcel Delivery Networks, Customs Compliance

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E-commerce has provided SMEs an opportunity to trade internationally, but access to tools, training, and systems often remains difficult and costly.

Supporting facts:

• Increased data requirements for international e-commerce pose a challenge for SMEs

Topics: e-commerce, SMEs, international trade

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The landscape of e-commerce has transformed drastically, causing a shift from bulk shipments to individual shipments, making customs declarations more complicated.

Supporting facts:

• Previously, bulk shipments needed only one data set and customs declaration

• E-commerce requires individual data sets and customs clearances for each product

Topics: e-commerce, customs, transformations

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In the strive for more efficient and accurate data, environmental responsibilities should not be forgotten. Digital is demanding an increasing share of Earth’s energy and is being linked with wasteful behaviour.

Supporting facts:

• 90% of all data in human history was created between 2017-2019

• Digital could improve living standards but right now is contributing negatively to the environment

Topics: Digitalization, E-commerce, Environment

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E-commerce growth is increasing rapidly and its future impacts are still not completely known

Supporting facts:

• The business from E-commerce is expected to more than double to $3.3 trillion per annum

• 3D printing creates issue on how to tax an item produced in a specific country not necessary the country where the software image is created

Topics: E-commerce, Environmental Impact

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Effort is needed to improve data quality and consistency

Supporting facts:

• Perfection may not be achieved but let’s not throw out good data in the quest for perfection

• Current data often lacks quality, consistency and is often delayed

Topics: Improvement Efforts, E-commerce

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Report

The analysis of the speakers’ arguments highlights the importance of data in the e-commerce industry. One of the main points raised is that data plays a vital role in ensuring the safety, security, and customs compliance of parcel delivery networks.

By providing accurate and comprehensive data, the environmental burden caused by returns and the destruction of e-commerce goods can be reduced. This is seen as a positive development for the industry. However, it is also noted that increasing data requirements pose challenges for small and medium-sized enterprises (SMEs) involved in international trade.

The speakers argue that while e-commerce has provided SMEs with an opportunity to trade internationally, the access to tools, training, and systems necessary to meet these data requirements remains difficult and costly. This negative aspect highlights the need for support and resources to enable SMEs to effectively participate in the e-commerce market.

Another notable point raised is the drastic transformation of the e-commerce landscape. In the past, bulk shipments only required one data set and customs declaration. However, with the shift towards individual shipments in e-commerce, each product now requires its own data set and customs clearance.

The speakers argue that this change has made customs declarations more complicated and poses a challenge for the industry. The rapid growth of e-commerce and its future impacts are also discussed. It is mentioned that the business from e-commerce is expected to more than double, reaching $3.3 trillion per annum.

However, the exact consequences and implications of this growth are still not fully understood. This neutral sentiment suggests that there is a need for further research and analysis to fully comprehend the future impacts of e-commerce. In terms of data quality, it is pointed out that current e-commerce data is often unreliable.

The speakers argue that 18% of respondents report paying customs duties on international online orders that are too low, indicating a lack of accuracy in the data. Moreover, the cultural and language diversity, inconsistent standards, and data security concerns create confusion and inconsistency in the interpretation of e-commerce data.

Therefore, efforts to improve data quality and consistency are deemed necessary. However, it is also acknowledged that strict regulations and standards may not always be beneficial for the e-commerce industry. Enforcing more regulations could burden businesses and customers. Instead, the speakers propose global collaboration and a balanced approach that considers multiple objectives and higher standards.

This negative sentiment towards strict regulations underscores the need for a flexible and collaborative approach to regulation in e-commerce. Lastly, the negative impact of digitalization on the environment is highlighted. While digitalization has the potential to improve living standards, the speakers argue that it is currently contributing negatively to the environment.

The increasing demand for digital services is linked to an increasing share of Earth’s energy consumption, and wasteful behavior is observed. This raises concerns about the environmental responsibilities associated with pursuing more efficient and accurate data in e-commerce. In conclusion, data plays a crucial role in ensuring the safety, security, and customs compliance of parcel delivery networks in e-commerce.

However, increasing data requirements pose challenges for SMEs involved in international trade. The transformation of the e-commerce landscape towards individual shipments has made customs declarations more complex. The rapid growth of e-commerce and its future impacts are still not fully understood.

Efforts are needed to improve data quality and consistency as the reliability of current e-commerce data is questioned. Balancing strict regulations and higher standards is important to avoid burdening businesses and customers. The negative environmental impact of digitalization is also a concern.

Overall, there is a need for further research, support, and collaboration to effectively navigate the complex landscape of data in e-commerce.

Arguments

Tony Magniston is the head of research at Cross Border Research Association, a Swiss based research institute focusing on supply chain security and trade facilitation research.

Supporting facts:

• Tony Magniston is introducing himself and the purpose of his organisation during the presentation

Topics: Cross Border Research Association, research, supply chain security, trade facilitation research

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The association is currently working on project Parsec aimed at countering the abuse of parcel and letter security for postal and express services for criminal and terrorist activities.

Supporting facts:

• Parsec is a 4.7 million euro project that will last 36 months

• There has been a massive increase in the volume of international parcels over the past two decades making it difficult to prevent crime and terrorism

Topics: postal security, express services, parcel

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The enforcement architecture developed involves a three-layer screening for imported international parcels, and data-driven risk assessment for the targeted parcels.

Supporting facts:

• The process will involve multi-energy photon-counting detector, X-ray diffraction and neutron-induced gamma-ray spectroscopy

• Facilities would be designed for optimal flow of parcels with selective controls for parcels that present the highest risk

Topics: parcel screening, risk assessment, customs compliance

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External data sources could add value to customs risk assessment in six identified ways, including enhanced cross-validation of information, early data access, and company information.

Supporting facts:

• Some identified sources include International Post Corporation, Orbis, Dan and Bradstreet, Universal Postal Union

Topics: customs risk assessment, external data sources

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Existing system collects price information and provides it to customers to determine appropriate value for imported goods

Supporting facts:

• Project with IBM developed a web crawling system to study price information

• Information collected from online platforms but not directly

Topics: e-commerce, custom declarations, importation

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Report

Tony Magniston is the head of research at the Cross Border Research Association, a renowned Swiss-based research institute that specializes in supply chain security and trade facilitation research. The association is currently undertaking a significant project called Parsec, which has a budget of 4.7 million euros and aims to address the misuse of parcel and letter security for criminal and terrorist activities in postal and express services.

This project comes as a response to the escalating volume of international parcels over the past two decades, which has made it increasingly challenging to prevent crime and terrorism in this field. To enhance parcel screening and minimize the risks associated with imported international parcels, the enforcement architecture being developed involves a three-layer screening process.

This process utilizes sophisticated technologies such as multi-energy photon-counting detectors, X-ray diffraction, and neutron-induced gamma-ray spectroscopy. The objective is to ensure the optimal flow of parcels while implementing selective controls for parcels that pose the highest risk. In addition to advanced screening techniques, the Cross Border Research Association highlights the value of leveraging external data sources for customs risk assessment.

Noteworthy sources identified include the International Post Corporation, Orbis, Dun and Bradstreet, and the Universal Postal Union. By incorporating external data, customs risk assessment can be further enhanced through enhanced validation of information, early access to data, and gaining valuable company information.

Männistö, a proponent of data-driven approaches to improve parcel screening, advocates for the use of external data sources, even going as far as suggesting that government agencies should be willing to invest in data access. This perspective acknowledges the potential challenges that arise from procurement rules, data privacy concerns, and data quality.

However, Männistö believes that utilizing data outweighs these barriers and presents significant benefits for improving parcel screening and overall security. Furthermore, an existent system has been developed, in collaboration with IBM, that collects price information from online platforms. The purpose of this system is to provide customers with the necessary information to determine the appropriate value for imported goods.

This contributes to efficient trade and ensures fairness in importation processes. Lastly, it is worth noting that Belgian customs may be particularly advanced in dealing with foreign online merchants. While no specific supporting facts were mentioned, this observation indicates that Belgian customs have likely implemented effective strategies and measures to address the challenges associated with cross-border e-commerce and maintain efficient operations.

Overall, the Cross Border Research Association, led by Tony Magniston, plays a crucial role in promoting supply chain security and trade facilitation research. Through initiatives like the Parsec project and the exploration of data-driven approaches, they aim to combat criminal and terrorist activities, enhance parcel screening, and support efficient trade practices.

The notable involvement of Belgian customs in dealing with foreign online merchants further highlights the importance of continuous innovation in adapting to the rapidly evolving landscape of international trade.