Saudi Arabia and 80 Countries Reach Historic Agreement on Global Digital Commerce
In a groundbreaking development, approximately 80 countries, including Saudi Arabia, have come to a momentous agreement on regulations governing global digital commerce. The agreement includes provisions for e-signatures and protection against online fraud.
EU trade chief Valdis Dombrovskis hailed the deal as the negotiation of the first-ever global rules on digital trade after five years of discussions in Geneva. He emphasized that the agreement will streamline e-transactions, drive innovation, and help integrate developing countries into the digital economy.
According to Britain, the agreement will require all participants to transition to digital customs documents and processes, recognize e-documents and e-signatures, and establish legal protections against online fraud and deceptive product claims.
Once implemented, the agreement is expected to enhance the speed, affordability, fairness, and security of global trade, as stated by a British official.
The agreement also aims to address issues such as spam limitation, personal data protection, and support for least-developed countries. 91 out of the World Trade Organization’s 166 members participated in the negotiations, underscoring the importance and urgency of regulating digital commerce.
Digital commerce has been outpacing traditional trade significantly. In 2020, e-commerce accounted for a quarter of global trade, with a value of nearly $5 trillion, according to the OECD group of economically developed nations.
British Trade Secretary Jonathan Reynolds highlighted the lack of a common global framework for digital trade and expressed optimism that the agreement would benefit British businesses once finalized.
The negotiations, initiated in 2019, involved around 90 countries representing 90% of the WTO membership, including major players like the US, EU, and China. Australia, Japan, and Singapore, leading the Initiative on Electronic Commerce talks, confirmed the achievement of a stabilized text after five years of negotiations.
Although the deal marks a significant advancement, its full implementation could still be years away, with some key countries yet to sign on. The US expressed the need for further work, citing concerns over security exceptions.
The agreement also includes preferential treatment for developing countries, along with efforts to digitalize customs processes and make the moratorium on customs duties for electronic transactions permanent.
The ultimate goal is to incorporate the digital trade rules into the WTO’s legal framework, requiring unanimous support from all members. However, challenges may arise as some countries question the proliferation of plurilateral agreements within the WTO.
Overall, the agreement signifies a major step forward in regulating digital commerce on a global scale, with the potential to revolutionize international trade dynamics and foster economic growth in the digital era.
(With Agencies)