Technology – Dozens of WTO member states agree on global rules for online commerce

World Trade Organization logo at headquarters in Geneva Photo: AFP

After years of negotiations, dozens of World Trade Organization member states have agreed on rules for online trade. These rules aim to make online trading “faster, cheaper, fairer and safer.”

After years of negotiations, dozens of World Trade Organization member states have agreed to rules for online commerce. Britain said on Friday that the rules would make online trading around the world “faster, cheaper, fairer and safer.” The draft is due to be presented later today at the WTO’s headquarters in Geneva. It was not initially clear how many countries involved in the negotiations had agreed.

Online commerce is growing rapidly and, according to the OECD, now accounts for a quarter of total world trade – an estimate as of 2020. That would be worth $5 trillion. However, there are currently no global rules, Great Britain confirmed on Friday.

The planned agreement aims to address the situation. For example, it provides for the global recognition of electronic signatures and contracts, protection of consumers from fraud and the permanent elimination of customs duties on digital transactions. It is also planned to provide preferential treatment for developing countries.

Negotiations on the common rules began in 2019 and involved about 90 of the WTO’s 164 members, where 90 percent of global trade is conducted online — including heavyweights such as the United States, China and the European Union. Australia, Japan and Singapore led the negotiations.

For the agreement to become part of the WTO rules, it must be approved by all WTO members – even those that have not signed the agreement. This can take years. Some countries, notably India and South Africa, have criticized the increase in multilateral agreements that are then incorporated into the WTO. Another option is to place the agreement in another organization, but then the WTO’s dispute settlement system would not apply.

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