| bibo:abstract |
IF2017-38E
Promoting Trade Diplomacy through Digital Trade
July 24, 2017
LEE, Hyo-Young
Assistant Professor, Department of International Economy and Trade Studies
I. Introduction
As forms of cross-border trade is diversifying
from trade in goods to trade in services and
investment, new trade agendas are
emerging from various fields including
e-commerce, environment, labor and small
and medium-sized companies(SMEs),
necessitating an establishment of international
trade rules governing these areas. While
e-commerce is a narrowly-defined concept which
refers to a transaction of buying or selling online,
digital trade is a broader concept that includes
e-commerce, e-services, e-payment,
internet-related businesses and technologies.
International rules must be established in the field
of e-commerce/digital trade as it can provide a new
momentum for economic growth, thanks to the
development of state-of-the-art technologies and
digital innovation which enabled reduction in
transaction costs and increase in production.
The absence of international rules on
digital trade is creating uncertainty and
unpredictability among trading partners. Inconsist
ency in rules on cross-border data flows and
personal data protection, and levels of intellectual
property rights protection across countries are
representative barriers to digital trade,
undermining cross-border digital trade flows. On
top of that, data localization requirements
regarding data centers that block the cross-border
movement of data not only undermine the
economies of scale of internet-based trade but also
increase the cost of access, stunting the growth of
digital trade. Moreover, there are concerns over the
safety of personal information being traded online,
since there exists a risk of theft or collection (for the
purpose of monitoring) of personal data. This
serves as an another impediment to the growth of
digital trade. Also, there is no effective mechanism
to settle commercial disputes related to digital
trade, specifically the disputes over the transaction
of digital goods sold by small and medium-sized
companies and of relatively inexpensive digital
goods.
II. The Current Status of International Rules on Digital Trade and Related Issues
III. Recent trend of global discussions on digital trade
1. WTO
2. APEC
3. G20
III. Expanding Korea’s Role in Trade Diplomacy through Digital Trade
1. Actively participate in discussions on digital trade rules
2. Further engage in international cooperation activities related to digital trade at multilateral/regional levels
3. Increase participation in cross-border cooperaton aimed at facilitating digital trade
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