- Around 80 countries agreed on Friday on a new pact aimed at modernising global digital commerce, but some other countries including the US had reservations.
- The pact aims to streamline e-commerce, protect consumers, and boost global economic integration but faces challenges in becoming a WTO accord due to the need for unanimous consent.
OUR TAKE
Achieving a common consensus is essential to create a cohesive framework that can effectively regulate and promote fair and secure digital trade worldwide. Without it, the potential benefits of these rules could be undermined, leaving the global digital economy fragmented and less efficient.
–Ashley Wang, BTW reporter
What happened
Around 80 countries agreed on Friday to new rules governing global digital commerce, including the recognition of e-signatures and enhanced protections against online fraud. The agreement, reached after five years of negotiations, was coordinated by Australia, Japan, and Singapore and has been described as “historic” by the European Union and “groundbreaking” by Britain.
The new pact aims to modernise trade practices by committing participants to digitising customs documents and processes, recognising e-documents and e-signatures, and implementing legal safeguards to protect against online fraudsters and misleading product claims. Additionally, the agreement addresses the need to limit spam, protect personal data, and support least-developed countries in adapting to these new digital trade norms.
Despite broad international support, the United States did not fully endorse the agreement, citing the need for further work on certain provisions, including those related to exceptions for essential security interests. Other countries, such as Brazil, Indonesia, and Turkey, also expressed reservations, mostly on minor points.
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Why it’s important
The pact aims to streamline e-commerce, protect consumers, and boost global economic integration, all crucial in today’s digital era.
However, the biggest challenge currently remains in transforming the agreement into a formal World Trade Organization (WTO) accord, which requires unanimous consent from all 166 WTO members. Countries like India and South Africa have been particularly critical of trade deals that do not include all members, adding another layer of complexity to the process.
Moreover, the dissent from other countries, including Brazil and Indonesia as well as the major powers like the US, reveals underlying tensions and scepticism about whether such deals truly benefit all parties equally. As the digital economy grows, so does the need for comprehensive, inclusive rules. This deal was a chance to set a cohesive, forward-looking agenda, but the reluctance of some to commit fully highlights the challenges of global consensus.
