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Governing Digital Trade

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  • MELTZER, JOSHUA P.

Abstract

As global data flows and digital technologies transform international trade, governments and regulators have to determine how to benefit from these developments while maintaining the integrity of their domestic regulations. Currently, governments are increasingly restricting global data flows and requiring data localization, undermining the economic benefits of digital trade. To address this trend will require a system of digital trade governance that has two key elements. One element is new digital trade rules, some of which exist in the WTO and others which are being developed in free trade agreements. The other is international regulatory cooperation to develop standards and mutual recognition agreements in areas such as privacy and consumer protection that gives domestic regulators confidence that allowing data to leave their jurisdiction will not undermine achievement of domestic regulatory goals. In the absence of such regulatory cooperation, governments are likely to continue to restrict data flows, relying on the exceptions provisions to their digital trade commitments.

Suggested Citation

  • Meltzer, Joshua P., 2019. "Governing Digital Trade," World Trade Review, Cambridge University Press, vol. 18(S1), pages 23-48, April.
    • Handle: RePEc:cup:wotrrv:v:18:y:2019:i:s1:p:s23-s48_00
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    Cited by:

    1. Hellen Mukiri‐Smith & Laura Mann & Shamel Azmeh, 2022. "A DC State of Mind? A Review of the World Development Report 2021: Data for Better Lives," Development and Change, International Institute of Social Studies, vol. 53(6), pages 1421-1439, November.
    2. Keman Huang & Stuart Madnick & Nazli Choucri & Fang Zhang, 2021. "A Systematic Framework to Understand Transnational Governance for Cybersecurity Risks from Digital Trade," Global Policy, London School of Economics and Political Science, vol. 12(5), pages 625-638, November.
    3. Yik-Chan Chin & Jingwu Zhao, 2022. "Governing Cross-Border Data Flows: International Trade Agreements and Their Limits," Laws, MDPI, vol. 11(4), pages 1-22, August.
    4. Lijuan Yang, 2023. "Recommendations for metaverse governance based on technical standards," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    5. Alan A. Ahi & Noemi Sinkovics & Rudolf R. Sinkovics, 2023. "E-commerce Policy and the Global Economy: A Path to More Inclusive Development?," Management International Review, Springer, vol. 63(1), pages 27-56, February.
    6. Ferracane,Martina Francesca & Van Der Marel,Erik Leendert, 2021. "Regulating Personal Data : Data Models and Digital Services Trade," Policy Research Working Paper Series 9596, The World Bank.
    7. Lingduo Jiang & Shuangshuang Liu & Guofeng Zhang, 2022. "Digital trade barriers and export performance: Evidence from China," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1401-1430, April.
    8. Qinqin Wu & Mengjie Bi & Faiza Siddiqui & Yao Tang, 2023. "Assessing the Impact of Digital Trade on Enterprise Competitiveness: Evidence from Chinese A-Share Listed Companies," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 329-362, December.
    9. Junli Shi & Tingdong Wang, 2022. "The Siphon Effect of Consumption End on Production End in the Value Chain under the Data Factor Flow: Evidence from the Regional Comprehensive Economic Partnership Region," Sustainability, MDPI, vol. 14(21), pages 1-22, October.

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