Digital Trade, Development, and Inequality

The links between and among digital trade, development, and inequality are multifaceted and ever evolving. They depend on what is understood as development and as inequality, concepts that transcend the North-South divide, and the fora in which these issues arise. Conceptually, development and inequality are intrinsically intertwined as the measures to address both are often complementary or even the same. In this essay, we consider development and inequality as pertaining to the ability of developing countries and least-developed countries (LDCs) to shape and participate in the digital economy, and particularly, the regulatory framework for digital trade. We explore how the relationships between digital trade, development, and inequality are addressed in the main venues for digital trade rulemaking: the World Trade Organization (WTO) and Preferential Trade Agreements (PTAs). We then examine two contentious issues in digital trade: the customs duty moratorium and data governance.