# Digital trade and the Sustainable Development Goals: A dynamic agenda

- Link: https://www.thailand-business-news.com/tech/ecommerce/156329-digital-trade-and-the-sustainable-development-goals-a-dynamic-agenda
- Published: 2024-08-23T10:04:57+07:00
- Author: News Desk

The rapid growth of digitalization has fundamentally altered commerce, impacting
production and facilitating the movement of goods. The_ _[_2023 Asia-Pacific Trade and Investment Report (APTIR)_](https://www.unescap.org/kp/APTIR2023)_,_
has pointed out that although digital trade revenues of Asia and the Pacific account
for a significant share of global trade, this growth is uneven, with trade concentrated
in a few areas, leading to disparities across the region.

Studies show a[ positive relationship between digital trade and progress on the Sustainable Development Goals (SDGs)](https://www.unescap.org/kp/2024/harnessing-digital-trade-advance-sustainable-development-goals-empirical-study).
These linkages among digital trade policy and the social and economic pillars of
the SDGs may appear more indirect, but they do manifest through economic channels.

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Various facets of the relationship between sustainable development and digital trade
are evident, such as the [impact of digital trade on wealth inequality](https://www.unescap.org/kp/2024/digital-trade-and-wealth-inequality-evidence-asia-pacific-region?_gl=1*1izjzox*_ga*MTYxMzA2NzU3MS4xNjk4OTY2MTYw*_ga_SB1ZX36Y86*MTcyMjUzNTc2My4xMi4wLjE3MjI1MzU3NjUuNTguMC4w)
in the region, the role of the Internet in export expansion, how e-commerce facilitates
small and medium-sized enterprises (SMEs), and [how digital trade can help achieve the ambitious agenda behind the SDGs.](https://www.unescap.org/kp/2023/promoting-sustainable-development-through-digital-trade-and-digital-trade-policies)

However, better digital infrastructure does not necessarily engender competition
and instead requires active measures from the government to [promote linkages between export superstars and domestic suppliers.](https://www.unescap.org/kp/2024/does-internet-expansion-matter-export-concentration)

Additionally, [robust regulatory frameworks on digital trade can help eliminate “monopolistic and restrictive” trade policies](https://www.unescap.org/kp/2024/e-commerce-and-indias-retail-and-manufacturing-sectors-some-lessons-ensuring-sustainable),
contributing significantly to a more equitable distribution of wealth.

## Examples of good practices  

Different policy measures to establish an inclusive digital trade and e-commerce
landscape have been used across the region. For example, [research on internet courts in China](https://www.unescap.org/kp/2024/how-online-courts-effectively-supplement-digital-trade-and-contribute-sustainable)
showed how such public and digitized judicial systems benefit smaller and medium-
sized firms compared to private dispute resolution mechanisms, which are highly 
costly. Similarly, research on the Pacific Alliance’s trade policies, particularly
its binding agreements and work instruments, provided a framework to [incorporate net neutrality in the promotion of equitable digital development.](https://www.unescap.org/kp/2024/net-neutrality-exceptionality-look-pacific-alliance-countries-during-covid-19-pandemic-and)

[Indonesia’s introduction of single submission for freight transport applications](https://www.unescap.org/kp/2024/sustainability-supply-chain-analysing-efficiency-and-effectiveness-single-submission#:~:text=The%20Single%20Submission%20of%20Freight%20Transport%20Application%20(SSm%20Pengangkut%20or,by%20using%20single%20window%20technology)
and its impact on sustainability in supply chains was another case study. This policy
instrument has had significant impacts across multiple domains, such as increasing
time effectiveness, reducing costs, and increasing transparency in shipping and 
port clearances.

## Lessons learned and the way forward

There is a need to understand the specific digital trade policy instruments that
promote sustainable development. It is critical to acknowledge key differences and
similarities between trade and digital trade policy to strategically leverage their
interlinkage to achieve the SDGs. Social development works in tandem with economic
progress.

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A key concern is the lack of data on cross-border e-commerce in the Asia-Pacific
and Latin America regions, which hinders the implementation and evaluation of programs
designed to promote the participation and productivity of small and medium enterprises(
SMEs).

More concerted efforts to improve data measurement through private-public partnerships
could be a possible policy intervention to address this issue. States should establish
effective monitoring systems by improving the availability of economic statistics
and third-party evaluations for measuring the progress and impact of SME support
programs. However, given the diversity in operations of SMEs across sectors, it 
is essential to devise and tailor policies that cater to their specific needs and
realities.

There is also a need for sharing real-world examples of successful government initiatives
and SME support programs so neighboring countries can draw lessons from them. There
are doubts about the long-term usefulness of stand-alone Digital Economy Agreements(
DEAs) due to the lack of stringent legal provisions for possible breaches, unlike
market-access free trade agreements (FTAs). 

Lastly, the United States, which has played a pivotal role in advocating for an 
open global trade environment, gradually step back from its position, it is time
to rethink the leadership that would guide the establishment of digital trade provisions
in the future. This involves showcasing how digital trade rules will be established
and enforced moving forward. Who will provide such public goods for digital trade
is a major question facing the global economy. 

Given its rapid digital-economy growth, significant market size, and increasing 
influence in global digital trade, _should that leadership come from the Asia-Pacific
region?_

—

Authors: 

Witada Anukoonwattaka, Economic Affairs Officer, Trade Investment and Innovation
Division, ESCAP

Preety Bhogal, Consultant, Trade Investment and Innovation Division, ESCAP