WTO adopting world's first baseline on digital trade rules
What's the story
A group of World Trade Organization (WTO) members have agreed to bypass adoption hurdles for the world's first baseline on digital trade rules. The decision was made at the 14th WTO Ministerial Conference in Cameroon. The pact seeks to create an open environment for digital trade and will be implemented among consenting participants, according to a statement by the WTO.
Agreement
Interim arrangement agreed upon by 66 members
The push to fast-track the agreement comes from members representing 70% of global trade, who are frustrated by previous roadblocks. Under the WTO rules, plurilateral agreements among subsets of members require consensus. However, this time, 66 members have agreed on an interim arrangement to implement the deal in their respective countries while working toward its broader incorporation into the WTO framework.
International response
Japan and UK officials welcome deal
Japan's State Minister of Economy, Trade and Industry, Yamada Kenji, called it a "historic step" toward global digital trade rules. UK's Business and Trade Secretary Peter Kyle also welcomed the move. He said, "As the first global digital trade deal, this will make trade cheaper, faster and more secure for businesses around the world."
Opposition
India has been blocking the deal
India has been one of the main countries blocking an agreement, arguing that trade agreements should be adopted multilaterally by consensus. The deal is a strong message to India and others that if they use consensus to block any reform process or advancements forward, action will be taken anyway, a senior European diplomat said.
US involvement
United States has not signed agreement
The United States has not signed the agreement, with the matter currently under review by the US administration. The agreement is separate from an e-commerce moratorium that bans customs duties on digital downloads and streaming.