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Future-proofing world trade in technology: Turning theWTO IT Agreement (ITA) into the International Digital Economy Agreement (IDEA)

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  • Hosuk Lee-Makiyama

Abstract

Although the InformationTechnologyAgreement (ITA) in theWorldTrade Organization (WTO) is a sector agreement tailored for the fast-moving ICT industry, the signatories have failed to re-negotiate its scope since 1996. In the meantime, the digital economy has reshaped the industry with emergence of Internet and a range of new products, where many of themare dependent on network services. Supply chain fragmentation has integrated the developing economies in the ICT trade, and they stand to enjoy most of its trade, welfare and efficiency gains. Despite proliferation of bilateral free trade agreements (FTAs) in recent years, they cannot replace a plurilateral 'critical mass' agreement under the auspices of the WTO. This article proposes the creation of an International Digital Economy Agreement (IDEA) by augmenting the ITA through full coverage on trade in goods; including non-tariff barriers (NTBs) and trade in telecommunication and computer and related services in all modes of delivery (including Mode 4); and six priority economies that are currently not signatories of the ITA - Argentina, Brazil, Chile, Mexico, South Africa and the pending WTO accession of the Russian Federation. Under its new and full scope, IDEA would achieve a trade coverage that exceeds 40% of the current trade under the ITA,making both developed and developing economies as key beneficiaries.

Suggested Citation

  • Hosuk Lee-Makiyama, 2011. "Future-proofing world trade in technology: Turning theWTO IT Agreement (ITA) into the International Digital Economy Agreement (IDEA)," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 66(03), pages 279-322, September.
    • Handle: RePEc:usg:auswrt:2011:66:03:279-322
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    File URL: http://ux-tauri.unisg.ch/RePEc/usg/auswrt/AW_66-03__01_Lee-Makiyama.pdf
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    References listed on IDEAS

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    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
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    Cited by:

    1. Nakatomi, Michitaka, 2013. "Plurilateral Agreements: A Viable Alternative to the World Trade Organization?," ADBI Working Papers 439, Asian Development Bank Institute.
    2. Susan Aaronson, 2021. "Can Trade Agreements Solve the Wicked Problem of Disinformation," Working Papers 2021-12, The George Washington University, Institute for International Economic Policy.
    3. Aaronson, Susan Ariel, 2019. "What Are We Talking about When We Talk about Digital Protectionism?," World Trade Review, Cambridge University Press, vol. 18(4), pages 541-577, October.
    4. Gary Hufbauer & Cathleen Cimino, 2013. "What Future for the WTO?," The International Trade Journal, Taylor & Francis Journals, vol. 27(5), pages 394-410, December.

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    More about this item

    Keywords

    World Trade Organization; Information Technology Agreement; Trade in Information Technology; Customs Classification; Dispute Settlement; Trade in Services;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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