Singapore, other WTO members aim to firm up e-commerce agreement in 2023

SOME 22 members of the World Trade Organization (WTO) have agreed to exercise “pragmatism and flexibility” in order to speed up negotiations for a key e-commerce agreement. They now aim to reach a substantial conclusion by year-end.

The WTO Joint Statement Initiative on Electronic Commerce (JSI), as the effort is called, seeks to establish a set of global rules so that digital trade can take place with more legal predictability and build consumer confidence as a result.

The members, who met on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, noted the importance of the global rules in light of the rapid digital transformation of economies.

About 70 per cent of new value created in the economy over the next decade will be based on digitally-enabled platform business models, the WEF estimates.

Singapore’s Minister for Communications and Information Josephine Teo, in a statement on Friday (Jan 20), said: “The JSI on E-Commerce will have a significant impact on the growth and inclusiveness of the digital economy.

“It will be a timely update to the current set of international trade rules, provide greater certainty and stability, and enable businesses and consumers to better benefit from the digital economy.”

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The JSI was launched in 2019. Its membership has grown from 71 to 87 today, accounting for more than 90 per cent of global trade and representing all major geographical regions and levels of development.

Participants of the JSI have committed to intensifying negotiations, said a joint ministerial statement issued by ministers of Australia, Japan and Singapore on Friday.

The ministers, including Singapore’s Minister for Trade and Industry Gan Kim Yong, said new, small negotiating groups have been formed, including those on privacy and ICT (information and communications technology) products that use cryptography.

Discussions have been initiated on wide-ranging issues, including the general provisions dealing with preambles, definitions and principles.

The statement said: “In addition, we will continue to strive towards greater convergence on provisions that enable and promote the flow of data, such as cross-border data flows, data localisation and source code, and hope to reach an agreement on a permanent ban on customs duties on electronic transmissions.”