Digital trade could soon be faster, cheaper, and more secure thanks to a landmark agreement with the World Trade Organisation (WTO).

Australia, Japan, Singapore, and a number of WTO members voted to adopt an interim set of rules, the WTO E-Commerce Agreement, that will make it easier for local exporters to do business around the globe.

The interim agreement adopted by the participating 66 WTO members will provide a pathway to bring the WTO Agreement on Electronic Commerce (E-Commerce Agreement) into force, while continuing to work towards its incorporation into the WTO legal framework.

eCommerce boom

Currently, digital transactions account for over 60 per cent of global GDP and the WTO members adopting the agreement cover approximately 70 per cent of world trade.  The agreement marks an important next step toward ensuring the sector’s security.

It will provide a platform for global cooperation in areas like privacy and cyber security; making global online marketplaces safer and simpler. It will also support the development of more effective regulations to protect consumers and their personal data online.

Big win for regional and rural exporters

Assistant Minister for Foreign Affairs and Trade, Matt Thistlethwaite said the agreement will deliver tangible benefits to businesses and consumers.

“It will boost productivity and growth, reduce costs, deliver easier access to global markets for Australian businesses and provide safer and more secure online marketplaces.”

Small businesses and sole traders in remote and rural areas are often disproportionately impacted by cross-border regulatory barriers, and Thislethwaite says the agreement will ease the “tyranny of distance” that has hindered rural and regional business owners.

“It’s a game changer for Australian businesses, workers and consumers across sectors.

“This agreement demonstrates the WTO’s crucial, ongoing role in setting rules for global trade, and we look forward to seeing it incorporated into the WTO framework,” he said.

Global rewards

While Australia’s regional businesses are set to benefit, the agreement will also allow developing countries to share fully in the benefits of the digital economy, boosting stability and predictability for businesses and consumers around the world.

President of the Australian Services Roundtable, Holly Dorber, described the agreement as an important step in strengthening services exports and supporting micro and small business participation in the global economy.

“By securing core principles for digital trade and promoting regulatory alignment across borders, Australia is well positioned to capture the trade and productivity benefits of a more modern global framework,” Dorber said.

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