By TIOL News Service

PARIS, MAY 24, 2019: ADDRESSING the gathering at the OECD Ministerial Council here yesterday, the Director General of the World Trade Organization, Mr Roberto Azevêdo, emphasized upon how technology was changing the way of conducting trade and business in the present day and how the trade in digital products and services was being facilitated. While observing the rapid growth of e-commerce as well as its potential, he also acknowledged existence of some challenges, such as the need to address the digital divide.

Mr Azevêdo observed the growing interest of the WTO in discussing e-commerce issues and stated in this regard that the test of success in responding to this revolution would be the extent to which it is used as a tool for greater inclusion. He referred to the latest data on this issue, pertaining to 2017, which showed the annual growth in global e-commerce sales of 13% reaching around USD 29 Trillion. The number of online shoppers has registered a similar increase. One quarter of the world's population purchased goods and services online in 2017. And importantly, the share of those buying from abroad rose from 15% in 2015 to 21% in 2017.

These statistics do not separate out goods or services purchased online. Nonetheless the upward trend is clear. This presents countless opportunities to reach a broader network of buyers, access the most competitive suppliers, tap into global markets and participate in global value chains. A recent WTO study found that by lowering costs and increasing productivity, digital technologies could provide an additional boost to trade by up to 34% by 2030.

But while it is clear that e-‑commerce can unleash great potential, Mr Azevêdo underscored the need to be aware of the challenges involved as the digital divide yet posed a big barrier. According to the ITU, the proportion of households with Internet access at home in developed countries is twice as high as in developing countries. Digital gaps are also manifested within countries. Men, urban residents and young people are more likely to be online than women, rural dwellers and older people, he added.

While he stated the need to address such gaps, Mr Azevêdo also mentioned that being connected was insufficient per se on account of other obstacles such as inadequate regulatory frameworks or lack of appropriate skills can still pose big barriers. Without the right framework in place, there is a clear risk that big players will increasingly dominate, leaving smaller businesses behind. In respect of e-commerce, he stated that at the multilateral level, members are continuing the exploratory work under the existing Work Programme on Electronic Commerce. Here an important focus is assessing the impact and scope of the moratorium on customs duties on electronic transmissions. He acknowledged that e-commerce issues range widely in their level of complexity and ambition. Hence he invited all countries, including those which were economically weak, to participate in such discussions.