Nations Agree On E-Commerce Rules Recognizing Digital Documents

More than 90 countries have signed an e-commerce agreement that sees them recognizing one another’s e-documents and e-signatures, putting an end to most paper documents and forms.

The World Trade Organization agreement, led by Japan, Australia, and Singapore, follows five years of negotiations. Once in force, it will require participants to maintain an electronic transactions framework, electronic authentication and e-signatures, electronic contracts, electronic invoicing, paperless trading, the creation of “single windows” for data submission and electronic payments.

It will also permanently ban customs duties on digital content, strengthen consumer protection online and extend collaboration on cybersecurity risks.

Digital trade accounts for around 25% of all international trade, and has been growing at a faster pace than traditional trade. “Global digital trade is already estimated by the OECD to be worth around £4 trillion and counting, but no common set of global rules exist,” said U.K. business and trade secretary Jonathan Reynolds.

Other provisions of the deal include the introduction of legal safeguards against online fraudsters and misleading claims about products. And there will be a series of initiatives aimed at making it easier for consumers and companies from developing countries to engage in digital trade—for example a grace period of up to seven years to implement provisions that they might find problematic, along with financial support.

Finally, the agreement bans national telecommunications regulatory authorities from holding a financial interest in, or maintain an operating or management role, a supplier of public telecommunications networks and services.

“These rules, once integrated into the WTO framework, will be fundamental for the development of global digital trade, setting a common ground and avoiding fragmentation,” said Valdis Dombrovskis, European Commission executive vice-president and commissioner for trade.

“This agreement will benefit businesses and consumers, contribute to integrating developing and least developed countries in the global digital economy, and help bridge the digital divide. The EU sees great value in the agreement published today, and will work with all involved parties towards its incorporation into the WTO framework.”

But while 91 countries have signed the deal, the U.S. has chosen not to do so. Describing the agreement as “an important step forward for the WTO in a sector of growing importance to the global economy”, ambassador María Pagán nevertheless said the U.S. wasn’t happy with certain provisions, particularly those around security interests.

“As the United States has repeatedly communicated to the co-conveners and participants, the current text falls short and more work is needed, including with respect to the essential security exception,” she said. “We look forward to working with interested members in finding solutions to all remaining issues and moving the negotiation to a timely conclusion.”

Several other countries, including Brazil, Indonesia and Türkiye, have also expressed reservations, particularly over the requirement to scrap import duties on digital products—despite the fact that such a ban has been in force already for more than twenty years.

The deal will be incorporated into the WTO legal framework, which will require consensus by all WTO members, and regularly reviewed. The co-conveners say they recognize that some issues haven’t been addressed, and that future negotiations will include them.