Digital trade: Opportunities and actions for developing countries

WTO Aid for Trade WorkshopDIGITAL CONNECTIVITY AND ECONOMIC DIVERSIFICATION7 February 2022

Torbjörn FredrikssonHead, E-commerce and Digital Economy BranchUNCTAD

Trade in ICT goods reversed downward trend in 2020With highest growth noted for electronic components

ICT goods imports, by product

Source: Impacts of the COVID-19 Pandemic on Trade in the Digital Economy (https://unctad.org/system/files/official-document/tn_unctad_ict4d19_en.pdf)Notes: current prices. Not adjusted for re-exports/re-imports due to data availability.

Trade in ICT goods reversed downward trend in 2020

• Global exports of ICT goods were just shy of $2.3 trillion in 2020, having grown almost 4%

• Exports of ICT goods are concentrated: East and South-east Asia (led by China) account for four-fifths of the total

• Among large developing-economy exporters 2020:High growth: China, Hong Kong SAR China, Malaysia, Singapore, Chinese

Taipei, Viet NamNegative growth: India, Mexico, Turkey

• Big variation across regions and development groups

Source: UNCTAD based on UNCTADstat (https://unctadstat.unctad.org)

But LDCs and Africa saw steep declines in trade in enabling technologiesIn 2020, ICT goods trade rose almost 10% in East and Southeast Asia but fell in other regions – with Africa and LDCs most negatively affected

Source: Impacts of the COVID-19 pandemic on trade in the digital economyhttps://unctad.org/webflyer/impacts-covid-19-pandemic-trade-digital-economy

Shares of ICT services and Digitally Deliverable services in services trade shot up in 2020ICT-enabled component resilient against an unprecedented -20% fall in services trade

Source: Impacts of the COVID-19 pandemic on trade in the digital economyhttps://unctad.org/webflyer/impacts-covid-19-pandemic-trade-digital-economy

Digitally deliverable vs Digitally delivered services

• Measuring the share of services actually digitally delivered entails collecting additional information

• UNCTAD collaborated with partner countries (Costa Rica, India, Thailand) to develop a pilot

• targeted at resident service-exporting enterprises (excl. financial and insurance)

Suggest 80+% of digitally deliverable are digitally deliveredUNCTAD can support and collaborate with more countries

to implement surveys

Source: adapted from Implementing a survey on exports of ICT-enabled services (https://unctad.org/system/files/official-document/tn_unctad_ict4d11_en.pdf)

Digitally deliverable services % of services exports

Case of Costa Rica (1)

«Potentially ICT-enabled»

Case of Costa Rica (2)

«Actually ICT-enabled»

Costa Rica (3)

Policies make digital trade more inclusive (1)

• Affordable and reliable ICT connectivity for people and enterprises• Open, transparent telecoms market to attract domestic & foreign investment• infrastructure-sharing, effective spectrum management and reduced taxes

and duties on ICT equipment and services

• Education, skills and awareness• Integrate ICT at all levels of education, collaborate with PS when developing

curricula• Reform teaching methods to promote complementary non-cognitive skills• Support worker and teacher retraining and skills upgrading• Conduct awareness campaigns on opportunities and risks of digital trade

Policies make digital trade more inclusive (2)

• Trade facilitation• Adapt to e-commerce larger numbers of small parcels• Implement WTO TFA and modernize and streamline customs processes (ASYCUDA)

and single windows • Simplify export processes for shipments of low physical weight and value

• Support MSMEs• Boost ICT use among smaller firms, to enable integration in global value chains• Training and capacity-building to build skills for e-commerce and digital delivery• Adapt trade promotion by leveraging online platforms and online marketing channels• Support businesses in meeting various standards applicable in target markets

Policies make digital trade more inclusive (3)

• Bridge the gender-based digital divide• Establish networks for women entrepreneurs in digital economy, to influence

policy developments• Showcase women role models in digital business growth and trade

• Improve regulatory frameworks and measurement• Recognize legal equivalence of paper-based and electronic forms of exchange• Enshrine internationally compatible standards for privacy and data protection • Protecting both buyers and sellers against cybercrime• Grant consumer rights and provide channels for recourse• Collect statistics on e-commerce and trade in digitally delivered services

UNCTAD offers support

• eTrade Readiness Assessments• E-commerce strategies• E-commerce and law reform• Measuring e-commerce and the digital economy• Empowering women digital entrepreneurs

• In partnership with eTrade for all

eCommerce Week 2022 KEY INFORMATION

WHEN- 25 - 29 APRIL 2022

WHERE- Mainly online but with some hybrid sessions• High-Level sessions will be held both online and in the Palais des Nations,

with accessibility to the Geneva-based registered participants.• Thematic sessions will be fully virtual.

WHAT- Overall theme: Data and Digitalization for Development

WHO- public and private sector representatives as well as civil society and academia with an interest in the development dimensions of the digital economy

#UNCTADeWeek

HOW- 2 tracks: High Level sessions & Thematic sessions

SESSION PROPOSALS• 130 Proposals were submitted online, i.e. + 60% compared to the previous editions• 1/3 of these proposals have been submitted by an eTrade for all partner. • Screening is underway to establish the final programme

34%

11%15%

6%

29%

5%

Distribution per stakeholder group

International Organizations

Government

Private Sector

Business Associations

Civil Society/NGOs

Academia

Sessions proposed by key stakeholders, including:• World Bank, ITU, ICAO• ILO, ITC, WTO, EIF, South Centre• UPU, UNCDF, ERIA, BSI,• ECLAC, ESCWA, ESCAP, ECA,• OECD, UNDP,• EU Commission, Switzerland, GIZ, Japan, UK,

Canada• Russia, Korea, Saudi Arabia, • Rwanda, Cambodia, PIFS• Dominican Republic, Bolivia• ICC, CIGI, IJPN• And many others (…)

THANK YOU!