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Trading with intelligence
How AI shapes and is shaped by international trade
Artificial intelligence (AI) is transforming the way we live, work, produce and trade. As it further develops, AI is expected to unlock unprecedented economic and societal opportunities. However, it is also a source of significant risks and challenges. This report examines the intersection of AI and international trade. It discusses how AI may shape the future of international trade by reducing trade costs, improving productivity and expanding economies' comparative advantages. The report reviews some key trade policy considerations, in particular the urgent need to address the growing AI divide between economies and between large and small firms, as well as data governance and intellectual property issues. It examines how to guarantee the trustworthiness of AI without hindering trade. The report also provides an overview of domestic, regional and international government initiatives to promote and regulate AI, and highlights the resulting risk of regulatory fragmentation. Finally, the report discusses the critical role of the WTO in facilitating AI-related trade, ensuring trustworthy AI and addressing emerging trade tensions, noting that the rapid evolution of AI is prompting questions about the implications of AI for international trade rules.
Copyright and related rights
Part II of the TRIPS Agreement sets out the substantive standards for the protection of IP that WTO members should follow. This chapter outlines the provisions of Section 1 of Part II (running from Article 9 to Article 14), which sets out the protection that members must make available in the area of copyright and related rights – specifically, for literary and artistic works, performances, phonograms (or sound recordings) and broadcasts.
Some memories of the unique TRIPS negotiations
The invitation to contribute to this book was certainly a pleasant surprise. The question for me was what I should write about: I had not been one of the negotiators and the chapter on the TRIPS negotiations from the perspective of the GATT Secretariat is dealt with by Adrian Otten, who was the Secretary of the TRIPS Negotiating Group. Several suggestions were made by my co-authors and, upon reflection, I decided to contribute with just a short compilation of some memories in respect of a diverse set of aspects, whether trade-related or not.
Why we managed to succeed in TRIPS
There have been many books and articles written about the TRIPS Agreement. Most go into great detail over the costs and benefits of the various provisions of the Agreement. As one of the negotiators of the Agreement, I will not attempt to debate such an analysis. Rather, this chapter will provide brief, personal reflections of my experiences during the negotiations, which have had a significant impact on the rest of my career as a Canadian diplomat focusing on trade issues.
The global burden of disease and global health risks
The development of effective strategies to improve global health and react to changes in the global burden of disease (GBD) requires an understanding of the GBD and of GBD-related trends, coupled with an understanding of major health risks. These are introduced in this section.
A world of opportunities and challenges
Research published by the European Parliament in 2017 claimed that Blockchain could “change our lives” (Boucher, 2017). What the various blockchain applications that are being developed in areas as diverse as trade finance, trade facilitation, trade in services, intellectual property and government procurement show is that Blockchain has the potential to impact both the traders and the government agencies involved in international trade significantly. Opportunities are multifaceted, but will only be realized if several key challenges are addressed.
Remerciements
Mes sincères remerciements vont à ma collègue Kenza Le Mentec pour ses précieux conseils. Mme Le Mentec m’a initiée au sujet et elle a apporté de précieuses contributions, en particulier pour les sections techniques décrivant la technologie et pour la section sur la facilitation des échanges. Cette publication n’aurait pas été possible sans son soutien.
Conclusion
Research published by the European Parliament in 2017 claimed that Blockchain could “change our lives” (Boucher, 2017). What the various blockchain applications that are being developed in areas as diverse as trade finance, trade facilitation, trade in services, intellectual property and government procurement show is that Blockchain has the potential to impact both the traders and the government agencies involved in international trade significantly. Opportunities are multifaceted, but will only be realized if several key challenges are addressed.
The policy context for action on innovation and access
This chapter outlines the policy framework for public health, intellectual property (IP), international trade and competition, focusing on how they intersect, with particular emphasis on medical technologies. The framework comprises the human rights dimension of access to medicines; the policy, economic and legal features of IP and innovation systems; regulation of medical products; competition policy; and relevant trade policy measures, including import tariffs, non-tariff measures, rules on trade in services, government procurement, and regional and bilateral free trade agreements (FTAs). In addition, it discusses the economics of innovation and access to medical technologies and outlines the interface between genetic resources, traditional knowledge and traditional medicine, IP and trade.
Medical technologies: the fundamentals
Against the background of the global burden of disease (GBD) and global health risks, this chapter outlines the fundamental imperative for collaboration. It demonstrates the need for a coordinated approach, taking into account health, intellectual property (IP) and trade variables, to ensure coherent decision-making in the area of public health at the international, regional and domestic levels.
Preface
At the heart of the World Trade Organization (WTO), as an international organization, is a set of rules that regulate trade between nations: a body of agreements which have been negotiated and signed by governments of the majority of the world's trading nations, with the aim of promoting transparency, predictability and non-discrimination in trading relations. These agreements, covering trade in goods, trade in services and trade-related aspects of intellectual property rights, help to define and inform the multiple roles of the WTO, in administering the trade agreements, providing a forum for trade negotiations, handling trade disputes, monitoring national trade policies, providing technical assistance and capacity building for developing countries, and cooperating with other international organizations. Understanding these agreements and their practical, policy and legal contexts therefore provides significant insights into the WTO as an institution, its activities and international role, its partnerships with other organizations, and the way in which WTO Member governments identify and pursue their national interests through this intergovernmental forum.
Public health and medical technologies: The imperative for international cooperation
Health is a fundamental and universal human right. The attainment by all peoples of the highest possible level of health is the foundational objective of the WHO.
Appendix 2: Guide to TRIPS notifications
TRIPS includes a set of transparency mechanisms, which require Members to furnish extensive information about their IP laws and policies, and details about how IPRs are administered and enforced in their territories; these laws are also reviewed in detail in the TRIPS Council. The operation of these transparency mechanisms in the years since 1995 has yielded a uniquely comprehensive and systematic body of information that now covers some 130 jurisdictions (essentially all WTO Members other than LDCs, for whom these provisions do not yet apply).
La chaîne de blocs peut-elle révolutionner le commerce international ?
Les gros titres annonçant que la chaîne de blocs peut révolutionner différents domaines du commerce international, du financement du commerce aux procédures douanières, en passant par la propriété intellectuelle, sont légion. Le caractère transparent, décentralisé et immuable de la chaîne de blocs a éveillé l’intérêt des acteurs privés – et des gouvernements – qui veulent explorer le potentiel de cette technologie afin d’améliorer l’efficacité des processus commerciaux, et une multitude de preuves de concept et de projets pilotes utilisant la chaîne de blocs ont été menés dans quasiment tous les domaines du commerce international.
Conclusión
El mundo, tal como lo conocemos, ha sido definido por las innovaciones tecnológicas. Muchas personas han acogido la aparición de una nueva tecnología, la cadena de bloques (una tecnología de registro distribuido), a la que consideran el próximo gran factor de cambio, con entusiasmo y optimismo. La cadena de bloques, que permite compartir registros digitales y datos de manera segura, transparente e inalterable sin necesidad de depender de un único tercero de confianza, promete avances interesantes. Esta tecnología podría permitir a los particulares y a las empresas de todo el mundo efectuar transacciones de manera más eficiente, más barata y más rápida, preservando al mismo tiempo un elevado nivel de seguridad. Al simplificar y digitalizar procesos en los que participan múltiples partes interesadas y que hasta ahora dependían en gran medida del papel, reduciendo así los costes de procesamiento, verificación, seguimiento, coordinación y transporte, podría tener repercusiones importantes en la forma en que se realizan las operaciones comerciales, ya se trate de transacciones comerciales transfronterizas financieras o físicas. Podría reducir el fraude, mejorar la gestión de los derechos de propiedad intelectual, mejorar la rastreabilidad y la confianza en las cadenas de valor y brindar nuevas oportunidades a las pequeñas empresas.