Australia, Japan and Singapore release post-negotiation statement on JSI milestones

The WTO Joint Statement Initiative on Electronic Commerce (JSI) co-convenors - Australia, Japan and Singapore - have released a joint statement of support following the last negotiating round of the year at the WTO. 

WTO Director-General, Dr Ngozi Okonjo-Iweala, said: “The JSI on E-Commerce offers a unique opportunity for participants to design shared global rules that will enhance stability and predictability and lower costs for businesses in this fast-growing area of cross-border trade. Participants are demonstrating how they can deliver practical, everyday benefits for businesses and consumers whilst building a digital economy that aims to benefit people everywhere.”

In December, JSI members reached conclusions on a number of global digital trade rules, covering three broad areas of digital trade facilitation; open digital environment; and business and consumer trust. These rules will facilitate the ability of JSI participants to ride the rapid growth of digital trade and deliver tangible benefits to governments, businesses and consumers.

Convergence on outstanding issues is an aim for 2024. It covers including customs duties on electronic transmissions, development, e-payments, ICT products that use cryptography, and telecommunications services. JSI participants will also focus on horizontal provisions and legal architecture.

Singapore Minister for Trade and Industry Gan Kim Yong said: “Singapore welcomes the substantial conclusion of a set of meaningful rules in the JSI on e-commerce. This is a significant milestone after five years of negotiations. These rules will bring important commercial value and impact for governments, businesses and consumers by helping participants integrate into the global digital economy, reap the benefits of digital trade, and foster interoperability and predictability. 

"Importantly, for Singapore, as a strong supporter of the rules-based multilateral trading system, this milestone also sends a strong positive signal on the WTO’s continued credibility and ability to forge meaningful rules.”

Australian Minister for Trade and Tourism Don Farrell said: “We have an opportunity to set a strong baseline of digital trade rules with this historic deal.”

Japan’s Minister for Foreign Affairs, Kamikawa Yoko noted: “Japan, as one of the co-convenors along with Australia and Singapore, welcomes the substantial conclusion made on the 13 articles to date. These rules will contribute to facilitating digital trade further and represent the outcome of intense negotiations conducted by the participants over the last five years. Japan is committed to working with the participants to achieve an early conclusion of this negotiation.

Japan’s Minister of Economy, Trade and Industry, Saito Ken, commented: “I welcome this significant step, crystallising our joint efforts for as long as five years to shape the inaugural global rulebook for digital trade. These substantially concluded rules herald the promising outcome that deliver enhanced predictability and increased opportunities for consumers and businesses, including SMEs, to thrive in the growing digital economy. Japan is committed to reaching milestone achievements to promote Data Free Flow with Trust (DFFT) in that it helps create an integrated digital economy of the participating members.”

China Minister of Commerce Wang Wentao, said: “Promoting the digital and green development of trade has become an international consensus. Digital trade is a new engine of global trade growth in the 21st century.

"The WTO JSI on E-Commerce is the core platform for global digital trade rule-making. China hopes that this initiative can reach high-standard, balanced and inclusive digital trade rules at an early date, so as to assist developing members seize and benefit from relevant development opportunities.”

Kazakhstan Vice-Minister of Trade and Integration Zhanel Kushukova, said: “In the dynamic digital era, Kazakhstan acknowledges substantial progress in WTO e-commerce negotiations, reflecting a collaborative spirit. Notably, in 2022, Kazakhstan experienced a surge in e-commerce, with nearly 50 million online purchases constituting 8.2% of retail trade turnover. 

"Taking into account the growing presence of women entrepreneurs, who now constitute 45% of total SME owners in Kazakhstan, it is vital to recognise the important role women play in shaping the landscape of e-commerce. This growth underscores the increasing significance of online commerce in our region, driven by commendable digitalisation efforts. The JSI aligns with Kazakhstan’s commitment to building a regulatory framework conducive to innovation, inclusivity, and fair competition, while also contributing to providing additional support and opportunities for women entrepreneurs.”

UAE Minister of State for Foreign Trade, HE Dr Thani bin Ahmed Al Zeyoudi said: “The United Arab Emirates welcomes the substantial conclusion of the Joint Statement Initiative negotiations on e-commerce as a significant contribution to the progressive development of global trade rules. We commend the collaborative spirit demonstrated by all participants in crafting this framework, which lays the groundwork for enhanced facilitation, predictability, and transparency for digital trading environment.”

The JSI has 90 participants today, accounting for over 90% of global trade and representing all major geographical regions and levels of development. The co-convenors remain committed to ensuring that the JSI remains inclusive and commercially meaningful, and will continue to work with participants to achieve the timely conclusion of negotiations on this agreement.

Details

The co-convenors' joint statement:

We, the Co-convenors, together with participants, are pleased to announce the substantial conclusion of negotiations on a number of global digital trade rules that will facilitate electronic transactions, promote digital trade facilitation, and foster an open and trusted digital economy.

Following the strong political endorsement and support on the sidelines of the World Economic Forum Annual Meeting in Davos, Switzerland, in January 2023, the JSI Membership intensified negotiations this year and made excellent progress. This was the result of great flexibility and compromise demonstrated by the Membership, and the adroit shepherding of negotiations by the respective small group Facilitators.

As of 20 December 2023, participants have substantially concluded negotiations on 13 articles, viz. e-authentication and E-signatures; E-contracts; Paperless trading; Open government data; Online consumer protection; unsolicited commercial electronic messages; Transparency; Electronic transactions framework; cybersecurity; Open Internet access; E-Invoicing; Single Windows; Personal data protection. 

Members continue to strive for convergence on provisions of ICT products that use cryptography, Telecommunication services and E-Payments. These commitments will help to enhance consumer welfare, support businesses especially micro, small and medium enterprises to cut costs, and support governments’ digital transformation and greater integration into the global digital economy.

Most participants have also advocated the importance of an ambitious commitment on customs duties on electronic transmissions, and we encourage other participants to join the emerging consensus on this issue. This will add to the commercial impact of the agreement.

The JSI has also strongly prioritised and made good progress in the development provision, including with a view to ensure that the JSI remains open and inclusive for all WTO Members, especially least developed countries (LDCs). Since the launch of negotiations in January 2019, the JSI has grown in membership from 71 to 90 participants today, accounting for over 90% of global trade across all major geographical regions and levels of development. All participants support the development provision as a critical component of the eventual JSI outcome.

A number of challenging proposals, including data flows and localisation, and source code, represent important issues for many participants, but they will require substantially more time for discussions as divergent approaches and sensitivities remained.

As Co-Convenors, we will work in coming weeks to prepare a Chairs’ text that reflects our best assessment of a viable and commercially meaningful package.

Looking ahead in 2024, the JSI membership will focus on resolving outstanding issues, including those related to horizontal provisions (e.g. preamble and exceptions) and legal architecture, in relation to the integration of the JSI outcome in the WTO framework. The JSI membership will strive to conclude negotiations in a timely manner in 2024.

*Organisation for Economic Co-operation and Development (OECD), Making Digital Trade Work for All, October 2023