Regional trade agreements
Foreword
Technology has always propelled trade. From the invention of the steam engine and steamship in the 1700s the popularization of the standard shipping container in the 1950s and the rise of the internet in the 1990s technology has over the centuries profoundly changed the way we trade. Today emerging technologies and digitalization are changing trade at a speed much faster than before – leading to both opportunities and challenges.
The promise of TradeTech
TradeTech – the set of technologies that enables global trade to become more efficient inclusive and sustainable – is multifaceted from trade facilitation to efficiency gains and reduced costs to greater transparency and resilience of supply chains. Although technological innovation exists the major challenge to the global adoption of TradeTech will be building international policy coordination. Trade agreements can play a key role. Despite ongoing efforts to introduce digital trade provisions in trade agreements many unseized opportunities and unexplored policies remain. This joint World Economic Forum and WTO publication explores how trade agreements could be leveraged to advance the adoption of digital technologies and trade digitalization.
Global interoperability of data models for trade documents and platforms
In a digital environment for parties to seamlessly exchange data and documents all information needs to be clearly defined and unambiguous (World Economic Forum/UNECE 2017). Reaching agreement on both the semantic content (i.e. data definitions such as whether the ‘port of unlading’ is the same as the ‘port of discharge’) and the syntax of data (i.e. data structure or format) is critical to ensure trading partners wanting to exchange information understand it in the same way.
Conclusion
In the Fourth Industrial Revolution technological development and adoption is growing exponentially. The recent COVID-19 pandemic has accelerated the societal adoption and acceptance of digital technologies and has made one thing clear – the future of trade is digital and the 5 Gs of TradeTech are the engines.
Executive summary
The promise of TradeTech – the set of technologies that enables global trade to become more efficient inclusive and sustainable – is multifaceted from trade facilitation to efficiency gains and reduced costs to greater transparency and resilience of supply chains. Of particular interest for this publication is the potential of artificial intelligence (AI) blockchain and distributed ledger technology (DLT) and the internet of things (IoT) to shape the global trade ecosystem.
Global legal recognition of electronic transactions and documents
On average a cross-border transaction requires the exchange of 36 documents and 240 copies (Fletcher 2019). A shipment of roses from Kenya to Rotterdam can generate a pile of paper 25 cm high and the cost of handling it can be higher than the cost of moving the containers (Allison 2016).
Global digital identity
Identity and trust lie at the core of each trade interaction. As global value chains become increasingly digital organizations need to ensure that they can trust the digital identity of legal and physical persons1 or products they deal with and can efficiently link that digital identity with a real organization specific product or device (see Box 17).
Global trade rules access and computational law
Businesses operate in an environment of increasing legal complexity. At a global level trade compliance is particularly time consuming and costly as enterprises need to be aware of and comply with rules under different international agreements as well as meet their contractual obligations.
The Evolution of Gender-Related Provisions in Regional Trade Agreements
Regional Trade agreements (RTAs) are sometimes considered as laboratories in which new types of provisions are negotiated to address recent trade-related issues. Although the inclusion of gender-related provisions in RTAs is not a recent phenomenon only a limited but increasing number of RTAs refer explicitly to gender-related issues. These gender-related provisions are highly heterogeneous and differ in terms of location in the RTA language scope and commitments. Some of the most detailed gender-related provisions are found in stand-alone chapters on gender. Cooperation provisions on gender-related issues including labour health and social policy remain the most common type of gender-related provisions found in RTAs.
Hold the Line: The Evolution of Telecommunications Provisions in Regional Trade Agreements
Based on the first comprehensive mapping of telecommunications provisions telecommunications in regional trade agreements (RTAs) this paper shows that telecommunications provisions in RTAs have evolved and expanded significantly over the years. While some provisions focus on information and communications technologies (ICT) infrastructure policy and investment other provisions address telecommunications services as well as standards and conformity assessment procedures of ICT equipment. The most detailed and comprehensive telecommunications provisions are found in stand-alone chapters sections or annexes on telecommunications services. A network analysis further reveals that telecommunications provisions remain highly heterogenous.
The Treatment of Medical Products in Regional Trade Agreements
The WTO Secretariat has published a new report on the treatment of medical products in regional trade agreements (RTAs) amid current supply shortages caused by the COVID-19 pandemic. The report examines the extent medical products are traded among preferential partners and the difference in liberalization rates within and outside these trade agreements.
Investment Provisions in Preferential Trade Agreements: Evolution and Current Trends
Our analysis covers 230 PTAs of which 111 contain substantive provisions on investment. Over the past 60 years or so States have created an extensive network of Bilateral Investment Treaties (BITs) that govern and protect international investment. The number of BITs concluded annually continues to increase although this rate has tapered off over the past decade.
Competition policy, trade and the global economy: Existing WTO elements, commitments in regional trade agreements, current challenges and issues for reflection
Competition policy today is an essential element of the legal and institutional framework for the global economy. Whereas decades ago anti-competitive practices tended to be viewed mainly as a domestic phenomenon most facets of competition law enforcement now have an important international dimension. Examples include: the investigation and prosecution of price fixing and market sharing arrangements that often spill across national borders and in important instances encircle the globe; multiple recent prominent cases of abuses of a dominant position in high-tech network industries; important current cases involving transnational energy markets; and major corporate mergers that often need to be simultaneously reviewed by multiple jurisdictions.
How Does the Regular Work of WTO Influence Regional Trade Agreements?
This paper illustrates how the work of the WTO's standing committees is fuelling regulatory cooperation between WTO members and inspiring RTA negotiators.