Digital Trade

Policy Brief 77, May 2020

COVID-19 and WTO: Debunking Developed Countries’ Narratives on Trade Measures

By Aileen Kwa, Fernando Rosales and Peter Lunenborg

In response to the COVID-19 pandemic, developing countries at the World Trade Organization (WTO) are faced with demands to i) permanently liberalize their markets in health products, and also in agriculture; ii) ban export restrictions in agriculture; and iii) conclude new digital trade rules including liberalizing online payment systems, and agreeing to free data flows. There seems to be a confusion between short-term and long-term responses. For the short-term, governments must take measures needed to address the crisis, including liberalizing needed health products. However, permanently bringing tariffs to zero for the health and agricultural sectors will not support developing countries to build domestic industries. Export restrictions in agriculture cannot be given up. They can be a very important tool for stabilizing domestic prices and for food security. New digital trade rules at the WTO would foreclose the possibility for countries to impose data sovereignty regulations, including data localization requirements that can support their infant digital platforms and industries.

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Book by the South Centre, 2019

The Politics of Trade in the Era of Hyperglobalisation: A Southern African Perspective

 

About the Book:

Matters of international trade are increasingly widely recognised as major shapers of global politics. News bulletins are giving more and more coverage to matters like the so-called “trade wars” between the United States and China. These are, indeed, increasingly defining relations between the two largest economies in the world and could well underpin a multi-dimensional rivalry that could be a central feature of international relations for many years to come. Brexit is dominating and indeed re-shaping politics in the United Kingdom. By definition a rejection of a regional integration arrangement, Brexit has also revealed under-currents profoundly shaped by the outcome of a broader trade-driven process called “globalisation”. Just as regional integration is weakening in Europe, African countries have taken decisions that could lead to the most profound and ambitious step forward in African regional integration – the establishment of an African Continental Free Trade Area (AfCFTA). This study seeks to present an analysis of the political economy of trade negotiations over the past quarter century on two main fronts: the multi-lateral and those pertaining to regional integration on the African continent.

Author: Rob Davies is former South African Minister of Trade and Industry.

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CARICOM E-Commerce Panel Discussion, April 2019

Title:              Setting Global Trade Rules on Electronic Commerce (E-Commerce) – Opportunities, Challenges, Perspectives and the impact on developing countries, specific to Small, vulnerable economies (SVEs), small island developing States (SIDs), and Least Developed Countries (LDCs).

Date:              1 April 2019

Venue:           Palais des Nations, Geneva, Switzerland

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Research Paper 93, March 2019

Regulating the Digital Economy: Dilemmas, Trade Offs and Potential Options 

By Padmashree Gehl Sampath

The digital economy has been growing exponentially in recent years thanks to new technologies that are promoting a global transformation. Key technologies responsible for this transformation have become the subject of intense discussions under the umbrella term ‘fourth industrial revolution’. This paper offers a discussion on the differentiated impact of digital technologies on unemployment, capabilities building and technological catch-up for developing countries. It articulates some of the key issues and tradeoffs for developing countries that should be considered in policy discussions and deliberations.

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