Digitalization of International Trade

The question this article addresses is how the WTO supports and deals with digital trade. The article then analyzes how existing WTO agreements have dealt with digital trade. The article also addresses recent trade agreements particularly the USMCA

Global Networks of Trade and Bits

Considerable efforts have been made in recent years to produce detailed topologies of the Internet. Although Internet topology data have been brought to the attention of a wide and somewhat diverse audience of scholars, so far they have been overlooked by economists. In this paper, we suggest that such data could be effectively treated as a proxy to characterize the size of the "digital economy" at country level and outsourcing: thus, we analyse the topological structure of the network of trade in digital services (trade in bits) and compare it with that of the more traditional flow of manufactured goods across countries. To perform meaningful comparisons across networks with different characteristics, we define a stochastic benchmark for the number of connections among each country-pair, based on hypergeometric distribution. Original data are thus filtered by means of different thresholds, so that we only focus on the strongest links, i.e., statistically significant links. We find that trade in bits displays a sparser and less hierarchical network structure, which is more similar to trade in high-skill manufactured goods than total trade. Lastly, distance plays a more prominent role in shaping the network of international trade in physical goods than trade in digital services.Comment: 25 pages, 6 figure

The CPTPP and Digital Trade: Embracing E-Commerce Opportunities for SMEs in Japan and Canada

One of the most innovative features of the CPTPP is its material on digital trade, especially its chapter on e-commerce which contains a number of provisions aimed at enhancing this vital sector of the economy by eliminating distortive trade barriers such as restrictions on data transfer and data localization requirements. Such provisions should be important to the CPTPP’s two largest parties: Canada and Japan, both of which are highly advanced economies seeking to enhance their digital trade capacity across the Pacific Rim. This paper explores the main features of the CPTPP concerning digital trade from the perspective of Small and Medium Sized Enterprises (SMEs) in Canada and Japan. Such businesses have a poor track record of e-commerce uptake and may be disadvantaged relative to their larger competitors which enjoy dominance in the online marketplace. Whether or not the CPTPP will assist these businesses while striking the right balance between an open internet and safeguarding of issues such as privacy is a matter of some debate

Trading Cultural Goods in the Era of Digital Piracy

The issue of digital piracy is a hot button among governments around the world. Piracy rates may significantly affect both internal and international trade of cultural goods. This paper aims to empirically assess the effect of digital piracy on bilateral trade in cultural goods. We focus on trade in music, films and media. Analysing an 11-year panel of 25 countries, we find that piracy does affect bilateral trade, but to varying extents.trade; trade; cultural goods; piracy; spatial filtering; network autocorrelation

Trading Cultural Goods in the Era of Digital Piracy

The issue of digital piracy as violation of intellectual property rights is a hot button among many governments around the world. Until now, nor legislation or its enforcement have managed to keep up with the most recent technologies facilitating piracy. Piracy rates may significantly affect both internal demand and international trade of cultural goods. This paper aims to empirically assess the effect of digital piracy on bilateral trade in cultural goods. We focus on trade in music and media. Analysing an 11-year panel of 25 countries, we find that piracy does affect negatively bilateral trade, although to a varying extent.trade; cultural goods; piracy; spatial filtering; network autocorrelation

Intrinsically Legal-For-Trade Objects by Digital Signatures

The established techniques for legal-for-trade registration of weight values meet the legal requirements, but in praxis they show serious disadvantages. We report on the first implementation of intrinsically legal-for-trade objects, namely weight values signed by the scale, that is accepted by the approval authority. The strict requirements from both the approval- and the verification-authority as well as the limitations due to the hardware of the scale were a special challenge. The presented solution fulfills all legal requirements and eliminates the existing practical disadvantages.Comment: 4 pages, 0 figure

Evaluating the Impacts of Information and Communication Technology (ICT) on Trade in Fruit and Vegetables within the APEC Countries

The global food marketing network is being constantly reshaped, providing opportunities and challenges to the use of information and communication technology (ICT) to develop international trade in food products. ICT is likely to be especially important for food products such as fresh fruit and vegetables that are differentiated and sensitive to timeliness in supply, possess varied quality dimensions, and involve considerable supply accumulation and assortment. Digital ICT (Internet and mobile phones), in particular, is expected to facilitate international trade and encourage efficiency in the fruit and vegetables marketing system in two main ways. First, it reduces communication and search costs through cheaper and more effective media. Second, it improves market information and corrects information externalities along the supply chain, by promoting greater price transparency and enabling consumer preferences and tastes to be more precisely met. We employed a gravity model of international trade to test the hypothesis that ICT positively affects bilateral international trade in fruit and vegetables between member Asia-Pacific Economic Cooperation (APEC) economies in the period from 1997 to 2006. Explanatory variables include the usage of the Internet, mobile telephones and fixed telephone lines, and a broad range of factors that might determine the value of bilateral trade such as income per capita, population, distance between trading partners and common language. A Poisson pseudo-maximum likelihood model was estimated in order to handle zero trade observations and reduce biases caused by heteroskedasticity. Empirical results were not quite as expected, with relatively minor impact of digital ICT. They suggest that using digital ICT has significant positive effects on trade in fruit and vegetables between APEC countries only for the Internet in exporting countries. A stronger positive impact was discerned for the traditional form of ICT, fixed telephone lines in exporting importing countries. Nevertheless, fostering the development of digital ICT infrastructure and its diffusion should make exporters in APEC countries more competitive in the fruit and vegetables supply chain through the Internet effect, and boost their trade values in these products.International Relations/Trade,

E Pluribus Unum – Out of Many, One Common European Sales Law?

In light of the fragmentation due to the nationalization of civil and commercial law and the growing intensity of cross-border trade in manufactured goods, arguments for the unification of private law surfaced already from the early 20th century. Such attempts resulted in, among others, the CISG, the UPICC or the PECL. In line with this pattern, as an attempt to make Out of Many, One Common European Sales Law, a Proposal for a Regulation on a Common European Sales Law (CESL) was published in 2011. The aim of the present contribution is to explore the background of the Proposal and to assess its significance for the future, with specific attention to the challenges of the digital age. Section I of the paper provides an overview of the process in the first decade of the 21st century leading to the publication of the Proposal, identifying the various stages of making an instrument. This is followed by the description of the Proposal and its evaluation in Section II. Although the immediate implementation and application of the instrument are not feasible, the text contains some promising elements to build on. According to the main findings of the paper, in the new millennium no longer merely international trade in manufactured goods is a chief factor triggering the implementation of international instruments of contract law. The innovations which pose new challenges and regulatory needs, also addressed in the CESL, are trade in digital content and e-commerce. Considering a digital key to the success of regulatory aspirations, the paper thus outlines ways European and international legislation might go in terms of regulating cross-border trade in the age of information technology. Accordingly, the areas to focus on for a start are transactions for the supply of digital content and e-commerce transactions

Software Provision and the Impact of Market Integration: A Note

Both deeper market integration and advances in digital technology have driven particularly large decreases in the costs of inter-market software provision. In this note, we first explain the mechanism of how trade costs in uence the software provision decision of software firms. Then, we investigated the transformation of production/trade patterns given gradually decreasing trade costs for software products.

Regulating Digital Trade

Under § 337 of the Tariff Act, the International Trade Commission (ITC) has jurisdiction over articles that enter the country and infringe intellectual property rights. Recently, the ITC vastly expanded its powers, asserting jurisdiction over imported digital files that infringe intellectual property rights. This Article examines the limits of the ITC’s authority, arguing that it lacks jurisdiction over digital information, because information in the abstract cannot be controlled by a court or an agency. It maintains that the ITC has misconstrued the breadth of its statutory authority under the Tariff Act and that the traditional tools of statutory interpretation show that Congress intended for the term “articles” to be limited to tangible personal property. Finally, this Article discusses how interest groups including the Motion Picture Association of America are attempting to use the ITC to block information at the U.S. border, and considers the significant risks that this poses to the public welfare