Hostname: page-component-cd9895bd7-fscjk Total loading time: 0 Render date: 2024-12-24T05:34:20.176Z Has data issue: false hasContentIssue false

Global E-Commerce Talks at the WTO: Positions on Selected Issues of the United States, European Union, China, and Japan

Published online by Cambridge University Press:  14 May 2021

Simon Abendin
Affiliation:
International Economics and Trade, Zhengzhou University, Zhengzhou450001, China
Pingfang Duan*
Affiliation:
International Economics and Trade, Zhengzhou University, Zhengzhou450001, China

Abstract

There is a broad consensus that global electronic commerce needs the World Trade Organization (WTO) trade rules to govern it. The current mandate of the WTO is merely to examine the various trade-related aspects of e-commerce. Nevertheless, in recent years, some WTO members have put forward a proposal to begin negotiations for global e-commerce rules which was impeded due to the differing positions of developed and developing members. This paper examines the positions of the United States, the European Union, Japan, and China on the e-commerce multilateral rules negotiation issues. It then takes a look at the prospect of the WTO being able to reach an agreement on e-commerce. The analysis shows that the United States and the European Union have varying views on consumer privacy, information protection, and internet taxation. Although Japan sides with the United States on these issues and China is on the same page as the European Union regarding consumer privacy, China holds a different position from the United States and the European Union on the other two matters. China is not making commitments on data localization, free data flow, and forced transfer of source codes. Therefore, the outlook of the current e-commerce talks is not favorable for concluding WTO e-commerce agreements.

Type
Original Article
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Banga, R. (2019) ‘Growing Trade in Electronic Transmissions: Implications for the South’, UNCTAD Research Paper No. 29 (29), 1–48.Google Scholar
Bhandari, S. (2012) ‘The Doha Round Negotiations of the World Trade Organization: Free or Managed Trade?’, SSRN Electronic Journal, 122.Google Scholar
Bird, R. (2019) ‘Where are we Now with Data Protection Law in China?’ (updated September 2019), Lexology, 18 January 2020, www.lexology.com/library/detail.aspx?g=6f52a281-b5b7-4f9f-940d-1951a905c4e1,retrieved 18 January 2020.Google Scholar
Bughin, J. and Lund, S. (2017) ‘The Ascendancy of International Data Flows’, McKinsey Global Institute, www.mckinsey.com/mgi/overview/in-the-news/the-ascendancy-of-international-data-flows.Google Scholar
Bunn, D. (2018) ‘EU Digital Tax: A Summary of the Criticisms’ (618), https://taxfoundation.org/eu-digital-tax-criticisms/.Google Scholar
Casalini, F. and López-González, J. (2019) ‘Trade and Cross-Border Data Flows’, OECD Trade Policy Papers, No. 220, OECD Publishing, Paris, http://dx.doi.org/10.1787/b2023a47-en.CrossRefGoogle Scholar
Cheng, W. and Brandi, C. (2019) ‘Governing Digital Trade – A New Role for the WTO’, Paper Briefing, 6/2019, German Development Institute.Google Scholar
Cory, N. (2017) ‘Cross-Border Data Flows: Where Are the Barriers, and What Do They Cost?’, Information Technology & Innovation Foundation, Washington, DC, 20001 (May), 1–42. https://itif.org/publications/2017/05/01/cross-border-data-flows-where-are-barriers-and-what-do-they-cost.Google Scholar
Cory, N. (2019) ‘Why China Should Be Disqualified From Participating in WTO Negotiations on Digital Trade Rules’. Washington, DC, 2001 (May), https://itif.org/publications/2019/05/09/why-china-should-be-disqualified-participating-wto-negotiations-digital.Google Scholar
Dasgupta, P. and Mukhopadhyay, K. (2017) ‘The Impact of the TPP on Selected ASEAN Economies’, Journal of Economic Structures 6(1), 26.CrossRefGoogle Scholar
Gajdos, L. and Bendini, R. (2013) ‘The Trans-Pacific Partnership and Its Impact on EU trade’, European Parliament, Policy Department, Directorate-General for External Policies, DG EXPO/B/PolDep/Note/2013_3.Google Scholar
Garcia-Israel, K. and Grollier, J. (2019a) ‘Electronic Commerce Joint Statement: Issues in the Negotiations Phase’, CUTS International, Geneva, Note 2.Google Scholar
Garcia-Israel, K. and Grollier, J. (2019b) ‘The WTO Work Programme on Electronic Commerce: 1998–2017’, www.wto.org/english/tratop_e/ecom_e/ecom_e.htm.Google Scholar
Gregersen, C.R. (2019) ‘The US is Leaving Data Privacy to the States and that's a Problem Brink the Edge of Risk’, www.brinknews.com/the-us-is-leaving-data-privacy-to-the-states-and-thats-a-problem/, retrieved 16 January 2020.Google Scholar
Guo, M. (2012) ‘A Comparative Study on Consumer Right to Privacy in E-Commerce’, Modern Economy 3(4), 402407.CrossRefGoogle Scholar
Gupta, P. (2017) ‘Proposed E-commerce Disciplines at WTO: Implications for Government Programmes and Digital Initiatives in India’, Centre for WTO Studies Indian Institute of Foreign Trade, New Delhi (42).Google Scholar
Huang, J. (2017) ‘Comparison of E-commerce Regulations in Chinese and American FTAs: Converging Approaches, Diverging Contents, and Polycentric Directions?’, Netherlands International Law Review 64(2), 309337.CrossRefGoogle Scholar
Hufbauer, G.C. and Cimino-Isaacs, C. (2015) ‘How will TPP and TTIP Change the WTO System?’, Journal of International Economic Law 18, 679696.CrossRefGoogle Scholar
Hufbauer, G.C., Jung, E., Clyde, G., and Jones, R. (2016) The US–EU Privacy Shield Pact: A Work in Progress, PIIE Policy Brief 16–12, Peterson Institute for International Economics, Washington, DC, 110.Google Scholar
Hufbauer, G.C. and (Lucy) Lu, Z. (2018) ‘The European Union's Proposed Digital Services Tax: A De Facto Tariff’, Peterson Institute for International Economics Policy Brief 18(25).Google Scholar
Hufbauer, G.C. and Lu, Z.L. (2019) ‘Global E-Commerce Talks Stumble on Data Issues, Privacy, and More’, Policy Brief 19–14, 110.Google Scholar
Ido, V. (2019) ‘Intellectual Property and Electronic Commerce: Proposals in the WTO and Policy Implications for Developing Countries’, Policy Brief No. 62. South Centre (62).Google Scholar
IMF (International Monetary Fund) (2019) ‘Measuring the Digital Economy’, IMF Publication 53(9), 16891699.Google Scholar
James, D. (2019) ‘Anti-development Impacts of Tax-Related Provisions in Proposed Rules on Digital Trade in the WTO’, Development 62(1–4), 5865.CrossRefGoogle Scholar
Jessop, J. (2018) ‘Why the EU's Digital Turnover Tax is a Bad Idea’, European Policy Information Center, 12.Google Scholar
Kelsey, J. (2017) The Development Implications of Future Proofing Global Trade Rules for GAFA’, Faculty of Law, the University of Auckland, Auckland, December, 1–25.Google Scholar
Kelsey, J. (2018) ‘How a TPP-style E-commerce Outcome in the WTO Would Endanger the Development Dimension of the GATS Acquis (and Potentially the WTO)’, Journal of International Economic Law. Oxford University Press, 21, 273295.CrossRefGoogle Scholar
Lee-Makiyama, H.B. and Narayanan, (2019) ‘The Economic Losses from Ending the WTO Moratorium on Electronic Transmissions’, European Centre for International Political Economy, No. 3/2019 (3), 1–20.Google Scholar
Maags, C. (2019) ‘The Limitations of the Great Firewall of China’, www.fairobserver.com/region/asia_pacific/great-firewall-china-censorship-chinese-news-today-vpn-china-38018/, retrieved 22 January 2020.Google Scholar
Mukherjee, A. and Kapoor, A. (2018) ‘Trade Rules in E-commerce: WTO and India’, Indian Council for Research on International Economic Relations, Working Paper No. 354.Google Scholar
Neeraj, R.S. (2017) ‘Trade Rules on Source Code- Deepening the Digital Inequities by Locking up the Software Fortress’, Working Paper, Indian Institute of Foreign Trade, 1–37.Google Scholar
Primo Braga, C.A. (2007) ‘E-Commerce Regulation: New Game, New Rules?’, A Handbook of International Trade in Services. Oxford: Oxford University Press. doi:10.1093/acprof:oso/9780199235216.003.0012Google Scholar
Sacks, S. and Laskai, L. (2019) ‘China Embraces Consumer Data Protection Even as Government Surveillance Increases’, www.slate.com/technology/2019/02/china-consumer-data-protection-privacy-surveillance.html, retrieved 18 January 2020.Google Scholar
Satariano, A. (2019) ‘Google Is Fined $57 Million under Europe's Data Privacy Law’, www.nytimes.com/2019/01/21/technology/google-europe-gdpr-fine.html, retrieved 16 January 2020.Google Scholar
Singh, A., Bansal, R., and Jha, N. (2015) ‘Open Source Software vs Proprietary Software’, International Journal of Computer Applications 114(18), 2631.CrossRefGoogle Scholar
Smith, S.R. (2017a) ‘Preliminary Analysis of Aspects of Some WTO Ecommerce Proposal’, Third World Network Briefings, World Trade Organization 11th Ministerial Conference, Buenos Aires, 10–13 December 2017.Google Scholar
Smith, S.R. (2017b) ‘Some preliminary implications of WTO source code proposal’, World Trade Organization 11th Ministerial conference, Buenos Aires, 10–13 December 2017, https://ourworldisnotforsale.net/2017/TWN_Source_code.pdf.Google Scholar
South Centre (2017a) ‘How to Move Forward on E-Commerce Discussions?’, Analytical Note, SC/AN/TDP/2017/6.Google Scholar
South Centre (2017b) ‘The WTO's Discussions on Electronic Commerce’, Analytical Note SC/AN/TDP/2017/2.Google Scholar
Stelly, R. (2019) ‘Countries Table Proposals, Talks Continue on WTO E-Commerce Rules – Disruptive Competition Project’, www.project-disco.org/21st-century-trade/082319-countries-table-proposals-talks-continue-on-wto-e-commerce-rules/, retrieved 15 March 2020.Google Scholar
The Japan Times. (2019) ‘Japan's info Protection Panel Considers Beefing up Protections for Internet Users’ Data’, www.japantimes.co.jp/news/2019/04/25/business/japans-info-protection-panel-considers-beefing-protections-internet-users-data/#.XiKQO8gzZPY, retrieved 18 January 2020.Google Scholar
Wang, Y., Wang, Y., and Lee, S.H. (2017) ‘The Effect of Cross-Border E-Commerce on China's International Trade: An Empirical Study Based on Transaction Cost Analysis’, Sustainability (Switzerland) 9(11), 113.Google Scholar
Wu, M. (2017) ‘Digital Trade-Related Provisions in Regional Trade Agreements: Existing Models and Lessons for the Multilateral Trade System’ (November), www.rtaexchange.org/.Google Scholar
Zhang, L. and Chen, S. (2019) ‘China's Digital Economy: Opportunities and Risks’, IMF Working Paper WP/19/16, International Monetary Fund, Washington, DC, 211218.Google Scholar