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Adapting to the Digital Trade Era: Challenges and Opportunities

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Adapting to the Digital Trade Era: Challenges and Opportunities WTO Chairs Programme Adapting to the digital trade era: challenges and opportunities Edited by Maarten Smeets Print ISBN 978-92-870-4302-3 | Web ISBN 978-92-870-4303-0 WTO Online Bookshop http://onlinebookshop.wto.org World Trade Organization 154, rue de Lausanne CH-1211 Geneva 2 Switzerland Tel: +41 (0)22 739 51 11 WTO Publications Email: [email protected] www.wto.org Printed by the World Trade Organization. Report designed by Touchline (touchline.com) Image credits: Cover: © Gorodenokoff; Page 14: © Courage007; Pages 16-17: © kung_tom; Pages 36-37: © Kobe611; Pages 54-57: © Jono Erasmus; Pages 70-71: © Diego Servo; Pages 92-93: © i_am_zews; Pages 116-117: © i_am_zews; Pages 140-141: © GaudiLab; Pages 158-159: © Ahmad Saifulloh; Pages 178-179: © wavebreakmedia; Pages 194-195: © Grigvovan; Pages 214-215: © Andre Nery; Pages 232-233: © Drazen Zigic; Pages 254-255: © Soundtrap; Pages 280-281: © Chansom Pantip; Pages 300-301: © Bloom Productions; Pages 322-323: © Gorodenkoff; Pages 336-337: © asharkyu © World Trade Organization 2021 Disclaimer The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the WTO or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the WTO concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. Adapting to the digital trade era: challenges and opportunities Edited by Maarten Smeets 4 CONTENTS Contents Foreword 6 Note on the WTO Chairs Programme 8 Note on contributors 10 Acknowledgements 15 Introduction 16 The digital trade era – challenges and opportunities for developing countries 1 Chapter 1 The impact of digital technologies on developing countries’ trade Eddy Bekkers, Robert Koopman, Giulia Sabbadini and Robert Teh 36 Strategic directions and policy implications for developing countries 2 Chapter 2 Global value chains in the age of internet: what opportunities for Africa? Leila Baghdadi and Insaf Guedidi 54 Comments: Richard Newfarmer 66 Chapter 3 Opportunities and challenges of e-commerce in Mauritius Boopen Seetanah, Kesseven Padachi, Sheereen Fauzel, Vinesh Sannassee and Sunil Boodoo 70 Comments: Trudi Hartzenberg 88 Chapter 4 The digital trade era – opportunities and challenges for developing countries: the case of Kenya Tabitha Kiriti Nganga and Mary Mbithi 92 Comments: Nassim Oulmane and Mustapha Sadni Jallab 110 Chapter 5 E-commerce in Africa: issues and challenges Charlemagne Igue, Alastaire Alinsato and Toussaint Agadjihouédé 116 Comments: Pierre Sauvé 132 Chapter 6 China’s e-commerce development and policy relevance Yue Jiang, Lei Zhang and Yunhang Jin 140 Comments: Qing Ye 154 Chapter 7 Engaging in the digital economy: issues and agenda in the quest to adopt of Indonesia’s e-commerce roadmap Riza Noer Arfani, Maharani Hapsari and Putra Perdana 158 Comments: Marcelo Olarreaga 174 CONTENTS 5 Chapter 8 Taxation of international e-trade: Russian particularities Alexander Pogorletskiy and Sergei Sutyrin 178 2 Comments: Désirée van Gorp 192 Chapter 9 Assessing trade facilitation implementation in the era of e-commerce: a comparative analysis of Jordan, Oman and Hong Kong, China Taleb Awad-Warrad, Houcine Boughanmi and Youwon Hwang 194 Comments: Alexandros Sarris 210 Chapter 10 The new rules on digital trade in Latin America: regional trade agreements Dorotea López, Bradly Condon and Felipe Muñoz 214 Comments: Rohinton P. Medhora 228 Chapter 11 Convergence on e-commerce: the case of Argentina, Brazil and MERCOSUR Vera Thorstensen and Valentina Delich 232 Comments: Mark Wu 250 Chapter 12 The digital creative economy and trade: strategic options for developing countries Keith Nurse 254 Comments: Wolf R. Meier-Ewert 274 Making the most of the digital trade era – inclusiveness, gender and development 3 Chapter 13 Are digital advances and inclusive growth compatible goals? Implications for trade policy in developing countries Ali Parry, Adelia Jansen van Rensburg, Wilma Viviers and Emmanuel Orkoh 280 Comments: Roberta Piermartini 296 Chapter 14 Blockchaining international trade: a way forward for women’s economic empowerment? Amrita Bahri 300 Comments: Emmanuelle Ganne 316 The ways forward 4 Chapter 15 Data regulation in trade agreements: different models and options ahead Henry Gao 322 Chapter 16 Converging thoughts on digital trade in preparing for the future Maarten Smeets 336 6 FOREWORD Foreword We are pleased to deliver preliminary is no more: consumer choices are remarks to this compilation of research no longer restricted by and limited to work on digital trade prepared by the the goods found in local stores or in WTO Chairholders, Advisory Board nearby towns. E-commerce platforms members and the WTO Chairs provide consumers with access to Programme (WCP) team of the world markets in real time. Likewise, WTO Secretariat. producers can reach consumers for the supply of goods and services The measures of lockdown and social almost instantly and in ways that were distancing that governments around the previously unimaginable, all thanks world have adopted to mitigate the to new technologies. effects of the COVID-19 pandemic have led to increased online shopping and The world economy has changed teleworking, making this book even significantly since the World Trade more relevant and timely. The book Organization (WTO) was founded, adds significant value to the debate on amongst other due to digitalization. digital trade by combining academic We need to ensure that our trade perspectives with policy relevance system is up to date so that we can and recommendations. exploit new opportunities and address challenges of the present world. The digital trade and information There is a need to reform the rules technologies that characterize today’s that govern trade, and this should society provide countries around the be done in an inclusive manner. globe with access to markets that were Hence the relevance of the central previously considered unreachable. question addressed in the book – The barrier of geographical distance how can members ensure that the FOREWORD 7 changes brought by digital comprehension of the stakes of digital technologies benefit all and support trade through academic research. inclusive growth? We thank the WCP team for their hard work and commitment to making This book presents a sample of the the programme what it is today. We work achieved so far within the equally thank the Chairholders for their framework of the Chairs programme, continuous support and dedication to which finances Chairs in universities the programme and the Advisory Board located in developing countries. While members for having used their not necessarily endorsing all views knowledge and skills in service to the expressed1, France and the Netherlands community and in support of the WTO encourage enhanced and operational multilateral trading system. Sigrid Kaag Franck Riester Minister for Foreign Trade and Development Minister Delegate for Foreign Trade and Cooperation of the Kingdom of Economic Attractiveness, attached to the Netherlands the Minister for Europe and Foreign Affairs of France 1 For instance regarding the status of EU Privacy Protection in the digital era. 8 NOTE ON THE WTO CHAIRS PROGRAMME Note on the WTO Chairs Programme The WTO Chairs Programme speaking least-developed countries (WCP) was launched in 2010 as (LDCs) in the WCP. a capacity-building project. It aims to enhance knowledge and The current chairholders are: understanding of the trading system among academics and Buenos Aires, Argentina policymakers in developing countries Latin American Faculty of Social through curriculum development, Sciences (FLACSO) research and outreach activities by universities and research institutions. Bridgetown, Barbados Information on the WCP is available at University of the West Indies, www.wto.org/wcp. Cave Hill Campus Following the conclusion of the first Cotonou, Benin phase of the WCP (2010-2013), it University Abomey-Calavi was extended for a second period of four years in 2014. After the São Paulo, Brazil conclusion of the second phase in Getulio Vargas Foundation, São Paulo 2018, the WCP underwent an School of Economics independent external evaluation in 2019, which led to the WTO’s Santiago, Chile management decision to extend the University of Chile program and launch a third phase of the WCP in the fall of 2020 for Shanghai, China implementation in 2021. Shanghai University of International Business & Economics WCP chairholders are selected through a competitive process. Yogyakarta, Indonesia Currently, there are 19 active chairs. Universitas Gadjah Mada, Center for World Trade Studies The programme has provided financial support of up to CHF 50,000 per Amman, Jordan annum per institution for a period University of Jordan, Faculty of up to four years to each newly of Business selected chair. The WCP in its second phase was funded by the Nairobi, Kenya Netherlands with co-funding by University of Nairobi, School France, in support of the two French- of Economics NOTE ON THE WTO CHAIRS PROGRAMME 9 Réduit, Mauritius Dakar, Senegal University of Mauritius, Faculty of Law Cheikh Anta Diop University, Faculty and Management of Economics and Management Mexico City, Mexico Singapore Autonomous Institute of Technology, National University of Singapore, Centre for International Economic Law Faculty of Law Rabat, Morocco Potchefstroom,
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