International business leaders, including UPS, have welcomed a move by leading WTO members to agree new e-commerce rules for global trade.
About 76 WTO members, including the USA, the EU, Japan and significantly also China, declared at the World Economic Forum in Davos on Friday that they would push ahead with multilateral talks to try to agree international regulations governing e-commerce.
The WTO as a whole has been unable so far to reach any overall agreements to update and expand its limited regulations on the fast-growing business sector. Back in December 2017, a group of 71 countries (excluding China) already said they would start working on new WTO rules for digital commerce.
In their latest joint statement, the countries said: “We confirm our intention to commence WTO negotiations on trade-related aspects of electronic commerce. We will seek to achieve a high standard outcome that builds on existing WTO agreements and frameworks with the participation of as many WTO Members as possible.”
They continued: “We continue to encourage all WTO Members to participate in order to further enhance the benefits of electronic commerce for businesses, consumers and the global economy."
The statement was issued by trade ministers from a wide range of countries, including Argentina; Australia; Brazil; Canada; Chile; China; the European Union; Hong Kong (China); Japan; Korea (South); Mexico; New Zealand; Nigeria; Norway; Russian Federation; Singapore; Switzerland; Chinese Taipei; Thailand; Turkey; United Arab Emirates; the United States. One notable absentee from the list was India.
In response, UPS CEO David Abney welcomed the latest ministerial initiative. “As the world continues to move toward a more digitally-enabled global marketplace, we need to ensure that we are operating within a modern e-Commerce policy and regulatory framework that improves the ability of all businesses, large and small, to compete and grow,” he said.
“UPS urges all trade ministers joining in the launch of negotiations of an e-commerce framework to work together in a timely fashion in negotiating a high standard rules-based trading system that will provide for efficient customs clearance, enable fluid digital transactions, establish transparency and trust and facilitate cross-border movement of information.”
Similarly, the International Chamber of Commerce (ICC), representing more than 45 million companies in over 100 countries, welcomed the “breakthrough” in WTO e-commerce talks, describing it as “a major step forward in efforts within the WTO to enable e-commerce in support of sustainable development and small-business growth”.
ICC Secretary General John Denton said: “Traditionally, commerce over distance has come with significant costs – limiting the ability of SMEs and businesses in developing economies to benefit from global trade. In an Internet-enabled environment this does not need to be the case… but today’s trade rules, which largely reflect 20th Century patterns of trade, are not always well-suited to supporting the growth of SME e-commerce. That’s why we need an ambitious global agreement on e-commerce to tackle growing policy frictions in the digital space and – above all – empower entrepreneurs.
“With the right global policies there is an opportunity to unleash a new era of inclusive trade: one in which all companies – regardless of size, sector or location – can benefit from equal access to the global trading system. What’s more, enhanced governance of digital trade – providing greater transparency and trust – will be vital to safeguard the integrity and openness of the global internet.”
He concluded: “Today’s initiative underscores the continued importance of the WTO as a forum for trade policy-making – and we encourage governments to pursue an ambitious agreement with the minimum of delay.”
