The WTO "breakthrough" on e-commerce

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WTO’s e-commerce milestone | Vietnam and "market economy status" | Ending Investor-State Dispute Settlement (ISDS)? | Remittances, trade, and economic development | New WTO resources | More research from Hinrich Foundation

WTO’s e-commerce milestone

The WTO issues a press release along with the stabilized text and a statement from the co-convenors. The UK Department for Business and Trade publishes guidance on the WTO joint initiative. Peter Ungphakorn in his Trade β Blog asks what we should make of the new text on e-commerce. Bloomberg reports that the new text signals progress on digital trade.

Mentioned publications 

1. Joint Statement Initiative on E-commerce (press statement) and Joint Statement Initiative on Electronic Commerce (full statement by co-conveners, Australia, Japan and Singapore) – World Trade Organization, July 26, 2024
   The WTO publishes key statements and the stabilized text on E-commerce. 

2. WTO Joint Initiative on E-Commerce guidance – UK Department for Business and Trade, July 26, 2024
   The UK provides guidance on the recently published e-commerce text. 

3. What should we make of the new text on e-commerce in the WTO? – Peter Ungphakorn, Trade β Blog, August 5, 2024
   Peter Ungphakorn argues that the stabilized text will be the first set of WTO rules on digital trade, but the agreement still has a long road ahead to reach formalization. 

4. WTO Members Signal Progress on Draft E-Commerce Deal – Brendan Murray, Bloomberg, July 27, 2024
   Bloomberg reports progress on e-commerce despite lack of agreement from the US and several other economies. 
   
   Read more analysis from Peter Ungphakorn's Getting to yes: What's behind the e-commerce standoff at the WTO; and Hinrich Foundation Head of Trade Policy Deborah Elms: Getting to yes: The e-commerce JSI reaches landmark at the WTO  

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Vietnam and "market economy status"

Last week, the US rejected Vietnam’s request for "market economy status", per the Financial Times, potentially jeopardizing efforts to tighten trade ties between to two countries. The Congressional Research Service explains what "market economy status" means and why Vietnam is considered a "non-market" economy. Murray Hiebert of CSIS argues that it’s high time for the US to graduate Vietnam from non-market economy status. The Atlantic Council analyzes how both the US and China are vying for Vietnam’s "friendship" in supply chains.

Mentioned publications 

1. US rejects Vietnam’s bid for ‘market economy’ status in blow to trade ties – A. Anantha Lakshmi, Financial Times, August 3, 2024
   The FT considers whether failure to grant Vietnam market economy status will affect US-Vietnam trade relations. 

2. Vietnam’s Nonmarket Economy (NME) Status – Congressional Research Service, March 4, 2024
   CRS presents a primer on Vietnam’s NME status and what NME status means for Vietnam and the US. 

3. High Time for the United States to Graduate Vietnam from Its Nonmarket Economy Status – Murray Hiebert, Center for Strategic and International Studies, April 22, 2024
   CSIS gives an overview of what “market economy status” means and an argument for graduating Vietnam. 

4. China and the US both want to ‘friendshore’ in Vietnam – Stanley Zhengxi Wu, The Atlantic Council, June 26, 2024
   The Atlantic Council finds that Vietnam serves as a bridge for supply chains between the US and China.

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Ending Investor-State Dispute Settlement (ISDS)?

ISDS, an important and controversial part of investment agreements, has been the subject of debate among policymakers and activists for decades. Some parties in current negotiations are arguing for carveouts from ISDS for policy priorities like climate change mitigation. How is ISDS evolving and changing in the present era? The European Parliament introduces the state of play for ISDS and prospects for reform. The UN Commission on International Trade Law maintains a repository of information on debated ISDS reforms. CSIS examines ISDS in the context of the Americas Partnership for Economic Prosperity and potential carveouts for climate policies.  IISD considers what a climate carveout from ISDS might look like.

Mentioned publications 

1. Investor-State Dispute Settlement (ISDS) State of play and prospects for reform – Briefing for the European Parliament, January 2015
   An introduction to ISDS and the issues at stake in considering reforms. 

2. Working Group III: Investor-State Dispute Settlement Reform – United Nations Commission On International Trade Law
   The United Nations compiles all resources on ongoing ISDS reform discussions. 

3. The Debate on ISDS Climate Carve-Outs: Insights from APEP – David Korn, Thibault Denamiel, and William Alan Reinsch, Center for Strategic and International Studies, July 31, 2024 
   CSIS examines criticisms of ISDS in the context of the Americas and considers whether policies to mitigate climate change should be subject to ISDS.  

4. Investor–State Dispute Settlement and Fossil Fuels: What role for a carveout? – Lukas Schaugg, Suzy H. Nikièma, and Nathalie Bernasconi-Osterwalder, International Institute for Sustainable Development, March 8, 2024
   IISD looks at what provisions a climate-related carveout from ISDS should contain.  

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Remittances, trade, and economic development

Dilip Ratha of the International Monetary Fund explains what remittances are, while the World Bank Group reports on remittance flows in 2023 and expectations for 2024. The WTO Thematic Seminar on Remittance Services considers how trade rules might ease remittance flows. The World Bank Group’s World Development Report 2023 includes a chapter analyzing remittances. Sena Kimm-Gnangnon writing in the Quarterly Review of Economics and Finance finds a correlation between WTO Membership and positive economic development impact of remittances. Ralph Chami, Ekkehard Ernst, Connel Fullenkamp, and Anne Oeking of the International Monetary Fund ask "is there a remittance trap?"

Mentioned publications 

1. What Are Remittances? – Dilip Ratha, International Monetary Fund
   The IMF presents a brief overview of what remittances are and why they are important. 

2. Remittances Slowed in 2023, Expected to Grow Faster in 2024 – World Bank Group, June 26, 2024
   The World Bank finds that remittance flows moderated in 2023 after strong growth in 2021-22. 

3. WTO Thematic Seminar on Cost of Remittance Services – World Trade Organization, March 25, 2024
   The WTO considers its role regarding remittances and remittance services. 

4. World Development Report 2023: Migrants, Refugees, and Societies – World Bank Group, 2023
   The World Bank Groups publishes an in-depth report on the role of migration in social and economic development, including a chapter on remittances. 

5. Duration of membership in the world trade organization and investment-oriented remittances inflows – Sena Kimm-Gnangnon, Quarterly Review of Economics and Finance, April 2023
   WTO Membership can have a positive impact on the economic effects of remittance flows. 

6. Is There a Remittance Trap? – Ralph Chami, Ekkehard Ernst, Connel Fullenkamp, Anne Oeking, International Monetary Fund, September 2018
   The IMF examines whether remittances fuel economic growth and development in the recipient country.  

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New WTO resources

Lastly, the WTO’s 2024 annual report is out and highlights 2023 Ministerial outcomes. The WTO also publishes a new tool for presenting trade statistics.

Mentioned publications 

1. WTO Annual Report 2024 – World Trade Organization
   In its latest annual report the WTO highlights the 2023 Ministerial and trade’s intersection with climate policy. 

2. World Trade Statistics 2023 – World Trade Organization, July 31, 2024
   The WTO presents a new tool presenting data and trends in trade. 

More related analysis from HF:

• Getting to yes: What’s behind the e-commerce standoff at the WTO?
• Getting to yes: The e-commerce JSI reaches landmark at the WTO
• E-commerce deal at the WTO is suddenly back in play 

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