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Adapting to the digital

trade era: challenges and opportunities

WTO Chairs Programme

Edited by Maarten Smeets

Print ISBN 978-92-870-4302-3 | Web ISBN 978-92-870-4303-0

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© World Trade Organization 2021

Disclaimer

The opinions expressed in this publication are those of the authors. They do not purport to

re ect 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

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

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

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
1 2

4 CONTENTS

Making the most of the digital trade era - inclusiveness, gender and development 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

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

Chapter 8

Taxation of international e-trade: Russian particularities

Alexander Pogorletskiy and Sergei Sutyrin 178

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
2 3 4

CONTENTS 5

Foreword

We are pleased to deliver preliminary

remarks to this compilation of research work on digital trade prepared by the

WTO Chairholders, Advisory Board

members and the WTO Chairs

Programme (WCP) team of the

WTO Secretariat.

The measures of lockdown and social

distancing that governments around the world have adopted to mitigate the effects of the COVID-19 pandemic have led to increased online shopping and teleworking, making this book even more relevant and timely. The book adds signi?cant value to the debate on digital trade by combining academic perspectives with policy relevance and recommendations.

The digital trade and information

technologies that characterize today's society provide countries around the globe with access to markets that were previously considered unreachable.

The barrier of geographical distance

is no more: consumer choices are no longer restricted by and limited to the goods found in local stores or in nearby towns. E-commerce platforms provide consumers with access to world markets in real time. Likewise, producers can reach consumers for the supply of goods and services almost instantly and in ways that were previously unimaginable, all thanks to new technologies.

The world economy has changed

signi?cantly since the World Trade

Organization (WTO) was founded,

amongst other due to digitalization.

We need to ensure that our trade

system is up to date so that we can exploit new opportunities and address challenges of the present world.

There is a need to reform the rules

that govern trade, and this should be done in an inclusive manner.

Hence the relevance of the central

question addressed in the book - how can members ensure that the

6 FOREWORD

Sigrid Kaag

Minister for Foreign Trade and Development

Cooperation of the Kingdom of

the Netherlands

Franck Riester

Minister Delegate for Foreign Trade and

Economic Attractiveness, attached to

the Minister for Europe and Foreign Affairs of France changes brought by digital technologies bene?t all and support inclusive growth?

This book presents a sample of the

work achieved so far within the framework of the Chairs programme, which ?nances Chairs in universities located in developing countries. While not necessarily endorsing all views expressed 1 , France and the Netherlands encourage enhanced and operational comprehension of the stakes of digital trade through academic research.

We thank the WCP team for their

hard work and commitment to making the programme what it is today. We equally thank the Chairholders for their continuous support and dedication to the programme and the Advisory Board members for having used their knowledge and skills in service to the community and in support of the WTO multilateral trading system. 1 For instance regarding the status of EU Privacy Protection in the digital era.

FOREWORD 7

The WTO Chairs Programme

(WCP) was launched in 2010 as a capacity-building project. It aims to enhance knowledge and understanding of the trading system among academics and policymakers in developing countries through curriculum development, research and outreach activities by universities and research institutions.

Information on the WCP is available at

www.wto.org/wcp.

Following the conclusion of the ?rst

phase of the WCP (2010-2013), it was extended for a second period of four years in 2014. After the conclusion of the second phase in

2018, the WCP underwent an

independent external evaluation in

2019, which led to the WTO's

management decision to extend the program and launch a third phase of the WCP in the fall of 2020 for implementation in 2021.

WCP chairholders are selected

through a competitive process.

Currently, there are 19 active chairs.

The programme has provided ?nancial

support of up to CHF 50,000 per annum per institution for a period of up to four years to each newly selected chair. The WCP in its second phase was funded by the

Netherlands with co-funding by

France, in support of the two French-speaking least-developed countries (LDCs) in the WCP.

The current chairholders are:

Buenos Aires, Argentina

Latin American Faculty of Social

Sciences (FLACSO)

Bridgetown, Barbados

University of the West Indies,

Cave Hill Campus

Cotonou, Benin

University Abomey-Calavi

São Paulo, Brazil

Getulio Vargas Foundation, São Paulo

School of Economics

Santiago, Chile

University of Chile

Shanghai, China

Shanghai University of International

Business & Economics

Yogyakarta, Indonesia

Universitas Gadjah Mada, Center

for World Trade Studies

Amman, Jordan

University of Jordan, Faculty

of Business

Nairobi, Kenya

University of Nairobi, School

of Economics

Note on the WTO

Chairs Programme

8 NOTE ON THE WTO CHAIRS PROGRAMME

Réduit, Mauritius

University of Mauritius, Faculty of Law

and Management

Mexico City, Mexico

Autonomous Institute of Technology,

Centre for International Economic Law

Rabat, Morocco

Mohammed V University - Souissi

Muscat, Oman

Sultan Qaboos University

St. Petersburg, Russian Federation

St. Petersburg State University,

Faculty of Economics, Department

of World Economy Dakar, Senegal

Cheikh Anta Diop University, Faculty

of Economics and Management

Singapore

National University of Singapore,

Faculty of Law

Potchefstroom, South Africa

North-West University

Tunis, Tunisia

University of Tunis, ESSECT

Istanbul, Turkey

Istanbul Bilgi University

NOTE ON THE WTO CHAIRS PROGRAMME

9

Editor

Maarten Smeets

Head of Section, Knowledge and

Information Management, Academic

Outreach and WTO Chairs

Programme Division, WTO,

Geneva, Switzerland

Contributing authors

Toussaint Agadjihouédé

Faculty of Economics and

Management, University of Abomey-

Calavi, Faculté des Sciences

Économiques et de Gestion,

Cotonou, Benin

Alastaire Alinsato

Faculty of Economics and

Management, University of Abomey-

Calavi, Faculté des Sciences

Économiques et de Gestion,

Cotonou, Benin

Riza Noer Arfani

Director, the Institute of International

Studies (IIS) and Lecturer at the

Department of International Relations

UGM; Director and Researcher,

CWTS UGM, Indonesia; Chairholder,

WTO Chairs Programme at the Center

for World Trade Studies (CWTS),

Universitas Gadjah Mada (UGM)

Taleb Awad-Warrad

Professor, University of Jordan

WTO Chairholder

Leila Baghdadi

Professor of Economics, University of

Tunis, Ecole Supérieure des Sciences

Economiques et Commerciales de Tunis (ESSECT), DEFI Research Unit,

Tunisia; WTO Chairholder

Amrita Bahri

Assistant Professor of Law, Instituto

Tecnológico Autónomo de México

(ITAM), Mexico; WTO Co-Chairholder

Eddy Bekkers

Research Economist, Economic

Research and Statistics Division,

WTO, Geneva, Switzerland

Sunil Boodoo

International Trade Division, Ministry of

External Affairs, Regional Integration

and International Trade, Mauritius

Houcine Boughanmi

Associate Professor, Sultan Qaboos

University, Oman; WTO Chairholder

Bradly Condon

Professor, Faculty of Law, ITAM,

Mexico; WTO Chairholder

Valentina Delich

Academic Director, FLACSO,

Argentina; WTO Chairholder

Sheereen Fauzel

University of Mauritius

Emmanuelle Ganne

Senior Analyst, Economic Research

and Statistics Division, WTO,

Geneva, Switzerland

Henry Gao

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