WTO Members Advance First-Ever Digital Trade Rules Despite Opposition
Members of the World Trade Organization (WTO) have moved forward to introduce the world’s first digital trade rules, overcoming opposition. A major breakthrough was achieved at the 14th Ministerial Conference held in Cameroon, marking the first time in WTO history that progress has been made toward establishing regulations for digital trade. At the meeting, 66 member countries agreed to implement a digital trade agreement among themselves, although its formal inclusion in the WTO rulebook remains pending.
Reuters reported the development on Saturday, 28 March, citing the WTO.
Efforts to incorporate an e-commerce agreement into WTO rules had previously failed twice in recent years due to objections from India. India maintains that such agreements are only valid if adopted by consensus. However, the participating countries—representing nearly 70 percent of global trade—have now decided to bypass the deadlock and proceed with implementing the agreement among themselves.
Japan’s State Minister for Economy and Industry, Kenji Yamada, described the move as a “historic step.” UK Secretary of State for Business and Trade, Peter Kyle, also stated that it would make global trade faster, more affordable, and more secure for businesses worldwide.
The United States has not yet joined the agreement, as it remains under review within its administration. Meanwhile, India has also blocked another proposed multilateral agreement aimed at increasing investment in developing countries.
According to a European diplomat, the agreement sends a clear message to India that if any country uses consensus rules to stall reform or progress, others will move ahead independently.
At the ongoing meeting in Cameroon, India has also held up another multilateral initiative known as the International Facilitation for Development Agreement, which aims to boost investment in developing nations. India fears that such an agreement could weaken its bargaining power, placing its stance on both digital trade and investment at the center of global discussions.
The agreement has effectively evolved from a separate e-commerce moratorium, which prohibits the imposition of tariffs on digital downloads and streaming. That issue, too, remains in a stalemate between the United States and India.
The development is significant for Bangladesh’s technology and business sectors, as the implementation of global digital trade rules would make online transactions more transparent, secure, and competitive.
To this end, a delegation led by Commerce Minister Khandaker Abdul Muktaadir is representing Bangladesh at the 14th Ministerial Conference (MC-14) in Cameroon. The country has called for reforms while preserving the core principles of developed nations.
DBTech/SMEH/MUM/OR
