BANGKOK, Thailand, Aug 12 (IPS) – The rapid growth of digitalisation has fundamentally changed trade, affecting production and facilitating the movement of goods. 2023 Asia Pacific Trade and Investment Report (APTIR)has pointed out that while Asia and the Pacific region’s digital trade revenues account for a significant share of global trade, this growth is uneven and trade is concentrated in a few areas, leading to disparities across the region.
Research shows that Positive relationship between digital trade and progress towards the Sustainable Development Goals (SDGs)These links between digital trade policy and the social and economic pillars of the SDGs may seem more indirect, but they do manifest themselves through economic channels.
Several facets of the relationship between sustainable development and digital trade are clearly visible, such as the impact of digital commerce on wealth inequality in the region, the role of the Internet in export expansion, how e-commerce facilitates small and medium-sized enterprises (SMEs), and how digital trade can help achieve the ambitious agenda behind the SDGs.
However, better digital infrastructure does not necessarily lead to competition, but requires active government measures to promoting connections between export superstars and domestic suppliers.
Additionally, Robust regulatory frameworks for digital trade can help eliminate ‘monopolistic and restrictive’ trade policieswhich contributes significantly to a fairer distribution of wealth.
Examples of good practices
Several policy measures to create an inclusive digital trade and e-commerce landscape have been used in the region. For example, investigation into internet courts in China showed how such public and digitalised justice systems bring benefits to smaller and medium-sized businesses, compared to private dispute resolution mechanisms, which are very costly.
Similarly, research into the Pacific Alliance’s trade policies, particularly its binding agreements and working instruments, provided a framework for Integrate net neutrality into the promotion of fair digital development.
Indonesia introduces single filing for freight transport applications and its impact on sustainability in supply chains was another case study. This policy instrument has had significant effects in multiple domains, such as increasing time efficiency, reducing costs and increasing transparency in shipping and port clearances.
Lessons Learned and the Way Forward
There is a need to understand the specific digital trade policy instruments that promote sustainable development. It is crucial to recognize important differences and similarities between trade and digital trade policy in order to strategically exploit their interlinkages to achieve the SDGs. Social development works hand in hand with economic progress.
A major concern is the lack of data on cross-border e-commerce in the Asia-Pacific and Latin America regions. This hampers the implementation and evaluation of programmes designed to promote the participation and productivity of small and medium-sized enterprises (SMEs).
More concerted efforts to improve data measurement through public-private partnerships could be a possible policy intervention to address this issue. States should establish effective monitoring systems by improving the availability of economic statistics and third-party evaluations to measure the progress and impact of SME support programs.
However, given the diversity of SME activities across sectors, it is essential to develop and tailor policies to their specific needs and realities.
There is also a need to share real-world examples of successful government initiatives and SME support programmes so that neighbouring countries can learn from them. There are doubts about the long-term usefulness of standalone Digital Economy Agreements (DEAs) due to the lack of strict legal provisions for potential infringements, unlike Free Trade Agreements with Market Access (FTAs).
Finally, the United States, which has played a crucial role in advocating an open global trading environment, is gradually taking a step back. It is time to rethink the leadership that will guide the implementation of digital trade provisions in the future.
This involves showing how digital trade rules will be established and enforced in the future. Who will provide such public goods for digital trade is a key question for the global economy.
Given the rapid growth of the digital economy, the significant size of the market, and its increasing influence on global digital trade, should the Asia-Pacific region take the lead?
Witada Anukoonwattaka is Economic Affairs Officer, Trade, Investment and Innovation Department, ESCAP; Beautiful Bhogal is an advisor at the Trade, Investment and Innovation department of ESCAP.
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© Inter Press Service (2024) — All rights reservedOriginal source: Inter Press Service
