The international trade system is evolving rapidly. The COVID-19 pandemic has spurred countries to accelerate their digital strategies, yet there is also a trend toward restrictive policy measures in the international trade realm. The Visa Economic Empowerment Institute (VEEI) will investigate the importance of international data flows, and examine how to both enable digital trade and to address the costs of trade.
International trade rules that are designed for the pre-digital era must evolve to unlock the opportunities of internet-enabled commerce to help small businesses flourish—especially those lead by women. Because helping women succeed in exporting is not only good for women-led businesses, but also for global development more broadly. Working together we can find the right balance to ensure that the digital trade realm is competitive, seamless, and secure.
On March 1, Dr. Ngozi Okonjo-Iweala of Nigeria took the helm as Director General of the World Trade Organization (WTO). Dr. Okonjo-Iweala faces a challenging slate of issues. Among these is upgrading the organization’s efforts on inclusive trade. A fundamental way to support women in trade, particularly through the pandemic, is to maintain openness to digital trade. We offer a call to action for the new Director General for enhancing inclusive trade.
The current COVID crisis is fueling rapid growth in digital services as more and more businesses move online in order to reach their customers. This transformation is enabling businesses to reach new markets, making digital trade critical to global economic recovery. This paper finds that in order to modernize trade policy to reflect the needs of the digital economy, future trade agreements must address issues related to small business access, data flows, digital tariffs, digital financial services, and market access restrictions, while also encouraging greater international cooperation.
VEEI provides insights on current global trends and suggests ways policymakers can work with the private sector to foster an innovative, open, and resilient digital trade ecosystem. Our work will assess current trends in the rapidly changing digital trade and data flows landscape, including how the pandemic has altered and accelerated developments. VEEI research will examine best practices in digital trade agreements, emphasizing emerging principles for fostering a robust trade landscape. Our research will also highlight how individuals and businesses can benefit from increased access to international digital trade and explore suggestions to optimize these opportunities.
