WTO e-commerce negotiations
New Zealand and other World Trade Organisation (WTO) members have confirmed intentions to launch negotiations on e-commerce.
The volume of international trade in goods and services that is occurring via e-commerce continues to grow exponentially. Recent research by McKinsey (external link) estimated that cross-border data flows (used as a proxy for digital trade) grew by 45 times between 2004 and 2014 and generated $2.8 trillion in global economic revenue in 2014 alone.
Digital technology is impacting on New Zealand and the rest of the world in many different ways. It is driving the creation of new products, services and business models. It is disrupting the way that whole industries do business. It is changing how people live their lives. And it is also changing how government makes decisions and interacts with society.
These changes provide both challenges and opportunities for the global trading environment, traditional trade rules and architecture, as well as domestic policy approaches. So it’s important that international trade rules are developed to govern these areas as they evolve.
This includes finding a balance that facilitates economic growth for both individuals and businesses, while ensuring adequate safeguards for quickly evolving policy areas online, such as personal privacy, consumer protection, cyber security, customs procedures and taxation structures.
Given this importance, New Zealand, together with over 70 members at the WTO, confirmed intentions in January 2019 to launch negotiations on e-commerce. This announcement followed a year of exploratory discussions which had been agreed in a joint statement [PDF, 63 KB] by Ministers in December 2017 at MC11 in Buenos Aires. The WTO deals with the global rules of trade. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible between its members. More information about why New Zealand is participating in this negotiation is set out in a Briefing to the Minister of Trade and Export Growth [PDF, 896 KB].
Since the launch of negotiations was announced in January 2019, there have been three meetings of the Joint Statement Initiative, in May, June and July. The first three meetings provided an opportunity to discuss the text proposals that had been made by participating WTO Members at that time.
A second phase in the process began in September and will continue in further meetings schedule for 22-25 October and 19-22 November. This new phase has seen us move to discussions of consolidated texts on an issue-by-issue basis. This is helpful as a way to better compare similarities and differences between proposals and for participating Members to express general preferences in terms of options. We are not yet at the point of agreeing to specific language.
All WTO Members are able to participate in the discussions, and the breadth of participation has ranged from small to large, and developed to least developed country Members. Text proposals are able to be made at any stage, and continue to be received.
The key focus areas under discussion in the initiative include:
- Enabling digital trade/e-commerce:
- Customs, digital trade facilitation and logistics
- Facilitating electronic transactions
- Customs duties on electronic transmissions
- Openness and digital trade/e-commerce:
- Market access (for both services and goods trade)
- Flow of information
- Access and non-discrimination
- Trust and digital trade/e-commerce:
- Business trust
- Consumer trust
- Intellectual property
- Cross cutting issues
- Infrastructure gaps/digital divide
New Zealand has so far proposed targeted texts on:
- Consumer protection [PDF, 87 KB]
- Customs duties on electronic transmissions [PDF, 79 KB]
- Paperless Trading and E-Invoicing [PDF, 169 KB]
- E-Invoicing revision (joint proposal with Singapore [PDF, 64 KB])
In addition to these text proposals, we have also circulated a note [PDF, 103 KB] proposing that the future negotiating text be made publicly available. This will be discussed for the first time at our October meeting.
New Zealand businesses and consumers are active users of e-commerce, from selling and buying goods (both physical and digital) via electronic platforms to providing cloud-based storage or processing services.
Digital technologies and services greatly help New Zealand to overcome the challenges posed by our small scale and distance from major markets. Despite unprecedented growth in this market, the development of international trade rules has not kept pace. The ability to move data between jurisdictions is also increasingly crucial to businesses involved in international trade and is an inevitable feature of the modern economy.
To help drive robust international rules and provide greater certainty for New Zealand businesses and consumers online, we are a member of the Joint Statement Initiative and co-sponsored the Ministerial statement confirming intention to launch e-commerce negotiations in 2019.
We want to ensure our trade policy settings facilitate growth in this area, will contribute towards achieving the government’s economic diversification goals - as well as the transition to a low carbon economy, and protect areas of specific interest.
A key focus of our interventions and work at the WTO has been to try to achieve an outcome that is inclusive and commercially meaningful. We also want an outcome that ensures we have necessary public policy safeguards to address issues such as consumer protection and the protection of personal information in the digital environment.
We appreciated the responses we received from New Zealanders when we sought public submissions on this negotiation in early 2019. We are always interested to hear your views on issues regarding the negotiation as it progresses, so get in touch and let us know about:
- what New Zealand should prioritise in future WTO e-commerce negotiations
- trade barriers you may face, or are concerned about, in trading online
- specific industries, businesses or products that you think could benefit from an outcome on e-commerce at the WTO
- other outcomes that will make it easier for New Zealanders to do business online
- any concerns you or your business have with a possible WTO outcome on e-commerce or that should be reflected in New Zealand’s approach to negotiations.
Email us at firstname.lastname@example.org to share your views and register your interest in future engagement opportunities.
For more information on WTO e-commerce, visit the WTO website (external link).
For details on our upcoming trade policy events, see our public engagement on trade page.