Global rule making in digital trade

For those following ecommerce trade/digital trade rule making, one knows the glacial speed it takes to reach agreement due to the conflicting national positions, sensitivities and differing perceptions on the need for rules in this sphere.

The World Trade Organization is the primary multilateral rule-making organization that results in enforceable, legal obligations. Rule making in ecommerce involve standard setting in cross border data flow, data localization, cyber security, esignatures and the governance of the internet. Business interests, national security and digital access are all issues that are impinged upon. Efforts to presently stitch a coalition is reflected in the Joint Statement Initiative on Ecommerce undertaken by a few WTO members.

This piece titled "The WTO Joint Statement Initiative on E-Commerce: Navigating Digital Trade Rules in a Fragmented World" by Andrew D.Mitchell and Elizabeth Chin captures the state of play on the initiative, the advantages the initiative brings to the table, the significant challenge of perspectives that it faces and the bumpy road ahead. They conclude:

The JSI remains a promising avenue for updating e-commerce trade rules. Within six years of its inception, the JSI has made more progress than the WPEC has in 24 years. The Services Domestic Regulation's conclusion represents the JSI's viability to conclude meaningful, plurilateral trade agreements. Moreover, hopes that a similar success will emerge in the realm of e-commerce through the JSI are further bolstered by the consensus which has already been achieved on several vital issues, including e-signatures and paperless trading. 

Nevertheless, there remain significant hurdles that the JSI will have to overcome before the conclusion of plurilateral digital trade rules can be realised. To resolve the negotiating deadlock on hotly contested issues such as data localisation and market access, the JSI must find a way to balance its Members’ competing national interests against their trade obligations. Further, more would have to be done to bolster the development dimension should the JSI hope to resolve the legal challenge of incorporating its digital trade text into the WTO regime.

While bilateral and plurilateral trade agreements have e-commerce chapters with binding commitments with varying degrees of ambition, no global solution is in sight yet. Will global trade rules ultimately enhance the digital economy or will digital growth across countries over the coming years fuel rule making at a later stage? Who sets the standards and when? Who benefits and how? Is there a global good we are missing or is it just national, business interests? Or is there a middle path?