New Industrial Revolution: Upgrading Trade and Investment Frameworks for Digitalization

17 Pages Posted: 17 Feb 2020

See all articles by Ricardo Meléndez-Ortiz

Ricardo Meléndez-Ortiz

Independent Adviser

Axel Berger

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Shuaihua Cheng

International Centre for Trade and Sustainable Development (ICTSD)

Santiago Diaz de Serralde

affiliation not provided to SSRN

Christian von Haldenwang

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Tobias Henze

affiliation not provided to SSRN

Lucia Tajoli

Politecnico di Milano - Dipartimento di Ingegneria Gestionale

Akihiko Tamura

Research Institute of Economy, Trade and Industry (RIETI)

Wei Wenfang

affiliation not provided to SSRN

Date Written: August 21, 2018

Abstract

This policy brief was produced by the T20 Task Force on Trade, Investment and Tax Cooperation under the G20 Presidency of Argentina in 2018. The task force was set up to examine how to encourage a rules-based multilateral trade system that broadens the benefits of economic integration while providing the tools to protect those that are hurt by globalisation. The policy brief provides analysis and specific policy recommendations for G20 leaders and other government officials in the G20 process:

• Multilateral progress on the governance of the digital economy and trade remains sluggish, with possible serious consequences for the global economy and development. Processes currently in course, such as those at WTO, need strengthening. Such attention also needs to effectively address the risks of a widening digital divide. Plurilateral and regional approaches raise the potential for innovation in this domain, but such approaches must be understood systemically in relation to their sustainable development impacts.

• New gaps in trade governance have been exposed as the digital economy continues to grow and new technologies emerge and are rapidly deployed. Policymaking in this area requires more and effective international interagency coordination and greater involvement of country capitals.

• Misallocation of taxable profits is exacerbated by lack of adequate frameworks that address the digitalization of economy and trade, and there is lack of consensus about political and technical solutions.

Keywords: Digital Economy, Trade, WTO, e-commerce, development, global economic governance

Suggested Citation

Meléndez-Ortiz, Ricardo and Berger, Axel and Cheng, Shuaihua and Diaz de Serralde, Santiago and von Haldenwang, Christian and Henze, Tobias and Tajoli, Lucia and Tamura, Akihiko and Wenfang, Wei, New Industrial Revolution: Upgrading Trade and Investment Frameworks for Digitalization (August 21, 2018). Available at SSRN: https://ssrn.com/abstract=3493608 or http://dx.doi.org/10.2139/ssrn.3493608

Ricardo Meléndez-Ortiz (Contact Author)

Independent Adviser ( email )

Geneva
Switzerland

Axel Berger

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany

HOME PAGE: http://www.die-gdi.de

Shuaihua Cheng

International Centre for Trade and Sustainable Development (ICTSD) ( email )

International Environmental House 2
Chemin de Balexert 7
Chatelaine, Geneva, GE 1219
Switzerland

HOME PAGE: http://ictsd.org

Santiago Diaz de Serralde

affiliation not provided to SSRN

Christian Von Haldenwang

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany

Tobias Henze

affiliation not provided to SSRN

Lucia Tajoli

Politecnico di Milano - Dipartimento di Ingegneria Gestionale ( email )

via Lambruschini 4b
Milan, 20156
Italy
++390223992752 (Phone)

Akihiko Tamura

Research Institute of Economy, Trade and Industry (RIETI) ( email )

1-3-1 Kasumigaseki
Chiyoda-ku
Tokyo 100-8901
Japan

Wei Wenfang

affiliation not provided to SSRN

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