TRANSFER OF NORMS IN GLOBAL DIGITAL TRADE FLOWS

Efficient global trade demands a framework of aligned global and national norms. Norm alignment depends on the transfer and successful absorption of commonly accepted multilateral trade norms, from international organisations to and by nation-states. This is especially important in changing conditions and trends in multilateral trade both in terms of the type of goods and services being traded and channels through which they are exchanged. Digital technologies have enabled the development of new products and services and increased the efficiency of trade. Digital trade volume has been increasing, yet monitoring and governing digital trade flows remains a global challenge. Customs duties on the electronic transmission of data, goods and services, non-discriminatory treatment of goods and services, domestic regulation, electronic authentication and data protection are a small part of regulatory framework that needs to be defined and preferably agreed upon at the multilateral level. This paper studies digital trade norm transfer in a complex multilateral trading system governed and coordinated by the World Trade Organisation (WTO). Confronted with global shifts of power and diminishing trust, and changes in global value chains, business models and industry structures led by the rise of the digital economy, the WTO's role is being re-examined in terms of its effectiveness to successfully define global digital trade norms and enable their transfer to nation-states. The contribution of this paper is twofold. Firstly, it identifies key trends and issues that affect the transfer and absorption of digital trade norms between the WTO and its members. Secondly, it provides a foundation for discussion about the implications of the WTO's role in the global digital economy, as regulatory challenges and recommendations for the adjustment of global trade norms are described. The emergence of new forms of trade has immediate implications not merely for trade policy, but also for understanding of the very character of trade.