The future of world WORLD TRADE trade: How digital REPORT technologies are 2018 transforming global commerce What is the World The World Trade Report is an Trade Report? annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system. What is the 2018 The 2018 World Trade Report Report about? examines how digital technologies are transforming global commerce. It considers the different ways in which digital technologies affect international trade and the extent of potential forthcoming changes, and discusses the consequences of this transformation for existing and future international trade cooperation. Find out more Website: www.wto.org General enquiries:
[email protected] Tel: +41 (0)22 739 51 11 CONTENTS Contents Acknowledgements and Disclaimer 2 Foreword by the WTO Director-General 3 Key facts and findings 5 Executive summary 6 A. Introduction 14 1. Technological innovations have shaped global trade 16 2. A new world in the making 19 3. Structure of the report 20 B. Towards a new digital era 22 1. The rise of digital technologies 24 2. How much digitalization? 49 3. Conclusions 59 C. The economics of how digital technologies impact trade 62 1. Lower trade costs: opportunities and challenges 64 2. Changes in trade patterns 80 3. Quantitative analysis of the impact of new technologies on trade 110 4. Conclusions 116 D. How do we prepare for the technology-induced reshaping of trade? 130 1. Main opportunities and challenges 132 2. How do governments respond? 132 3. Digital trade and international cooperation 148 4. Conclusions 193 E.