Australia leading WTO talks on e-commerce


By Dylan Bushell-Embling
Tuesday, 29 January, 2019


Australia leading WTO talks on e-commerce

Australia will help drive talks at the World Economic Forum aimed at establishing a new set of global rules governing digital trade.

The proposed World Trade Organisation (WTO) e-commerce initiative seeks to update international trade rules to reflect technological and economic developments.

At an informal meeting to discuss the WTO e-commerce initiative, hosted by Australia, Japan and Singapore on the sidelines of the forum, Ministers exchanged views on how the negotiations can unlock new e-commerce opportunities for business, consumers and the global economy.

The Ministers also discussed the importance of working in an innovative, inclusive and open manner during the negotiations, as well as the unique opportunities and challenges faced by member nations at different stages of economic development, as well as micro, small and medium enterprises.

Following the meeting, 76 WTO members representing over 90% of global trade issued a joint statement confirming the intention to commence WTO negotiations on trade-related aspects of e-commerce.

“Commencing WTO negotiations on e-commerce is a significant step towards updating international trade rules in line with how modern business is done,” Minister for Trade, Tourism and Investment Simon Birmingham said.

“Through these negotiations we will demonstrate the importance of the multilateral trading system in helping reduce barriers, remove red tape and increase global trade.”

During an interview with the ABC’s Radio National on Friday, Birmingham said the planned negotiations have three expected outcomes. The first involves protecting consumers by ensuring common standards around privacy and giving people confidence when they are trading online.

The second involves streamlining international e-commerce processes, such as invoicing and payment systems, as well as developing common standards for digital trade.

The third involves reducing barriers to global trade by amending rules focused on the storage, sovereignty and transfer of data between borders. According to a report released at the forum last week, the ability to move data across borders has improved global GDP by 10% in the past decade.

New Zealand has also thrown its support behind the global negotiations. According to the nation’s Minister for Trade and Export Growth, David Parker, e-commerce is particularly important to the economy of nations like New Zealand, where smaller businesses are the norm.

“As a small trade-dependent country distant from our key markets, we are continually looking at ways to improve our global connectedness,” he said.

“The expansion of e-commerce offers the potential to help businesses overcome the challenges of scale and distance, selling products direct to consumers online and offering more choice for consumers.”

During a presentation at Brussels-based economic think tank the Bruegel Institute in Brussels during the lead-up to the WEF annual meeting, Birmingham said Australia’s commitment to the negotiations is in line with the government’s policy of addressing the shortcomings in the current WTO system.

“Australia and the EU have been on a unity ticket on this issue,” he said. “We have co-sponsored an EU proposal — as well as initiating our own — on reform of the WTO’s dispute settlement system.”

Pictured: Minister for Trade, Tourism and Investment Simon Birmingham. Courtesy Australian Government.

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