Dynamic Agenda – Global Issues
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BANGKOK, Thailand, Aug 12 (IPS) – The rapid growth of digitalization has dramatically changed commerce, affecting productivity and facilitating the flow of goods. I 2023 Asia-Pacific Trade and Investment Report (APTIR)showed that although the digital trading currency of Asia and the Pacific account for a significant share of global trade, this growth is uneven, with trade concentrated in a few areas, leading to differences across the region.
Research shows a positive relationship between digital commerce and progress on the Sustainable Development Goals (SDGs). This connection between digital trade policy and the social and economic pillars of the SDGs may not seem very direct, but it can be seen through economic channels.
Different aspects of the relationship between sustainable development and digital trade are evident, such as the impact of digital trade on wealth inequality in the region, the role of the Internet in increasing exports, how e-commerce helps small and medium enterprises (SMEs). ), and how digital commerce can help achieve the ambitious agenda behind the SDGs.
However, a better digital infrastructure does not lead to competition and instead requires active steps from the government to improve the connection between the exporting stars and the domestic suppliers.
In addition, strong regulatory frameworks in digital trade can help eliminate “barbaric and restrictive” trade policies, contributing significantly to the more equitable distribution of wealth.
Examples of good practices
Various policy measures to establish an inclusive digital commerce and e-commerce landscape have been implemented across the region. For example, research on online courts in China has shown how public and digital judicial systems benefit small and medium-sized firms compared to private, more expensive dispute resolution mechanisms.
Similarly, the study of the trade policies of the Pacific Alliance, especially its binding agreements and operational instruments, provided a framework for integrating net neutrality in promoting equitable digital development.
Indonesia’s introduction of single delivery freight forwarding applications and its impact on supply chain stability was another case study. This policy tool has had significant impacts across multiple domains, such as increasing time efficiency, reducing costs, and increasing transparency in shipping and porting.
Lessons learned and way forward
There is a need to understand some digital trade policy tools that promote sustainable development. It is important to recognize the important differences and similarities between trade and digital policy in order to implement coordination strategies to achieve the SDGs. Social development works in tandem with economic progress.
The main concern is the lack of cross-border e-commerce data in the Asia-Pacific and Latin American regions, which prevents the implementation and evaluation of programs designed to promote the participation and productivity of small and medium enterprises (SMEs).
More concerted efforts to improve data measurement through private and public relations could be a potential policy intervention to address this problem. Countries should establish effective monitoring systems by improving the availability of economic statistics and third-party evaluations to measure the progress and impact of SME support programs.
However, given the diversity of SME operations across sectors, it is important to develop and adapt policies that address their specific needs and realities.
There is also a need to share real-world examples of successful government initiatives and programs to support SMEs so that neighboring countries can learn from them. There are doubts about the long-term viability of standalone Digital Economy Agreements (DEAs) due to the lack of strong legal provisions for potential violations, unlike free trade agreements on market access (FTAs).
Finally, the United States, which has played an important role in promoting an open trading environment around the world, is gradually retreating from its position, it is time to rethink the leadership that can guide the establishment of digital exchange provisions in the future.
This includes showing how digital commerce regulations will be established and enforced going forward. Who will provide these public goods for digital commerce is the biggest question facing the global economy.
Given the rapid growth of the digital economy, significant market size, and growing influence on global digital commerce, should that leadership come from the Asia-Pacific region?
Witada Anukoonwattaka he is the Economic Affairs Officer, Trade Investment and Innovation Division, ESCAP; Preety Bhogal is Consultant, Trade Investment and Innovation Division, ESCAP.
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© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service
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