The Importance of E-commerce, Digital Trade, and Maintaining the WTO E-commerce Customs Duty Moratorium

Publications

31 Oct 2020

Trade & Macro

External Publications

Karolina Zubel

Karolina Zubel

Environment, Energy and Climate Change Director
Karolina Zubel holds an MSc from the London School of Economics and Political Science and BA from the University of Warsaw and Sciences Po Paris. Currently, she is a PhD student at the Warsaw School of Economics, focusing her research endeavours on smart cities developments. Her work has been at the intersection of sustainability, low-carbon … <a href="https://case-research.eu/publications/the-importance-of-e-commerce-digital-trade-and-maintaining-the-wto-e-commerce-customs-duty-moratorium-2/">Continued</a>

Articles from this author:
- Cancer: Repository of Regional Prevention and Detection Policies
- Affordable Sustainable Housing in the EU
  The study commissioned by the European Economic and Social Committee, examines strategies to address the pressing challenges of housing affordability and sustainability across the EU. It focuses on two key areas: the role of digitalization in the housing sector and the contribution of social economy initiatives. Key findings include: Digitalization's Role: The study highlights how tools like Building Information Modelling (BIM) and AI can streamline planning, improve energy efficiency, and enhance building management. Case studies from Denmark, France, and the Netherlands illustrate successful digital solutions. Social Economy Contributions: Localized, community-oriented housing solutions, like cooperatives and social rental agencies, demonstrate the value of non-profit initiatives in creating affordable, resilient, and sustainable living environments. Examples include projects in Austria, Poland, and Spain. Policy Recommendations: Medium-term goals (by 2030) include harmonizing EU-wide housing policies and integrating digital platforms. Long-term strategies (by 2050) emphasize developing inclusive housing models and leveraging digital innovations. The study concludes that addressing housing issues requires a holistic approach, combining economic, environmental, and social strategies while fostering cooperation among local, national, and EU stakeholders.
- The means for cities and regions to support the energy transition in the Mediterranean
  The Mediterranean region is warming 20% faster than the global average, and population growth, tourism, and industrialisation are increasing pressure on its energy resources, which remain heavily reliant on fossil fuels. Despite vast renewable energy potential, Southern and Eastern Mediterranean countries use only a small share of RES. Decarbonisation is essential to addressing the climate crisis and promoting sustainable growth. Local and regional authorities (LRAs) are key to accelerating an inclusive energy transition. Recommended actions include: - Developing tailored energy transition plans aligned with national and international goals. - Investing in capacity-building and training for local energy management. - Expanding beyond solar energy to include wind, bioenergy, and offshore renewables. - Collaborating across networks to share expertise and promote decentralised solutions. - Engaging communities through awareness campaigns and participatory decision-making. - Offering incentives to attract private investment and streamline processes. - Fostering international cooperation to share resources and innovation. By empowering local actors and promoting collaboration, the Mediterranean can lead a just and sustainable energy transition.
Author’s articles

This report shows GTIPA members’ perspectives on e-commerce and digital trade in light of negotiations on new rules World Trade Organization (WTO) member nations are deliberating regarding the moratorium on cross-border electronic transmissions customs duties (i.e., duties on digital products). This volume aims to demonstrate how GTIPA member countries—including Argentina, Colombia, Germany, Ghana, Greece, Italy, Jordan, Mexico, Poland, South Africa, and the United States—benefit from and support e-commerce and digital trade, and how keeping tariffs off the Internet drives domestic and transnational growth, fosters global integration, sparks innovation, narrows the digital divide, and creates employment opportunities.

Information and communication technologies (ICT), such as the Internet, have transformed the economic exchange of goods, services, data, and information, which collectively constitute e-commerce and digital trade. The United Nations Conference on Trade and Development (UNCTAD) reported that e-commerce sales hiked to $25.6 trillion globally in 2018, up 8 percent from 2017. From e-files, blueprints, data-hosting systems, and software solutions to websites, emails, music, and movies, electronic transmissions and the content and services they constitute are critical to today’s global economy.

Moreover, the current global health crisis accentuates the importance of maintaining and developing a global digital marketplace. E-commerce and digital trade are lifelines people rely on during COVID-19-induced forced isolations. More broadly, the pandemic has accelerated businesses’ digital transformation in all sectors, from healthcare and retail to manufacturing and financial services. This growing reliance on digital technologies and connectivity makes it clear that the international community should enact new rules to support digital free trade and e-commerce, including by refraining from passing customs duties on electronic transmissions.

The benefits of e-commerce and digital trade are clear, abundant, and undebatable. Not only does the 21st-century economy enable more trade to occur, but it also connects the previously unconnected to the global marketplace. Electronic transmissions undoubtedly promote Internet penetration and mobile connectivity. In Jordan, the nation’s robust information and communications technology (ICT) infrastructure has permitted several start-ups to flourish, including the famous incubator Oasis500. Consumers have an increased ability to access a comprehensive set of goods and services at reduced prices and higher quality. Businesses (especially small and medium-sized enterprises (SMEs)) can easily enter new markets around the world, often through the use of platforms. This diversifies their sales and thus increases their profitability and likelihood of survival. In effect, e-commerce and digital trade shrink the distance between buyer and seller—by nearly one-third. Easing online transactions expands efficiency and 6 speed while lowering operational costs and bureaucratic procedures. Academic research has shown that e-commerce reduces transaction or trade costs by a substantial margin.

Greater use of digital tools and engagement in international e-commerce and digital trade unlocks more resources for investments in intangible assets (i.e., research and development (R&D), staff training, intellectual property (IP), and branding), hence sparking more innovation. With the digital economy at an all-time high, it is natural that intangible assets continue to flourish. According to the McKinsey Global Institute, intangible assets have more than doubled as a share of global revenue, from 5.5 to 13.1 percent since 2000. In short, an open and tariff-free Internet leads to global economic growth as it makes trade more accessible, dynamic, and innovative. (…)

Introduction by: Yamel Sarquis, Information Technology and Innovation Foundation

Chapter on Poland (pp. 73-81).

By: Krzysztof Głowacki and Karolina Zubel

Poland has many of the key components in place that together have led to its emergence as a dynamic and growing digital economy. It has already shown enormous potential in not only growing its market share within the European Union but also developing sectors which have proven overwhelmingly successful in the global digital economy, including the video game industry. An ambitious outcome at the WTO would benefit Poland’s ability to engage in cross-border digital trade and e-commerce. But likewise, failure to achieve an agreement would likely lead to more barriers that would prevent its firms from benefiting from the economies of scale that come from an open, rules-based global digital economy. (…)

The Global Trade and Innovation Policy Alliance (GTIPA) is a global network of over 40 independent, like-minded think tanks from 26 economies throughout the world that believe trade, globalization, and innovation—conducted on market-led, rules-based terms—can maximize the welfare of the world’s citizens. The Alliance exists to collectively amplify each member’s voice and enhance their impact on trade, globalization, and innovation policy issues while bringing new scholarship into the world on these subjects.

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The Importance of E-commerce, Digital Trade, and Maintaining the WTO E-commerce Customs Duty Moratorium

Karolina Zubel

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