Digital Trade
How data flows, e-commerce, and digital services are creating a new frontier in international trade that existing rules cannot govern.
The Scale of Digital Trade
Cross-border data flows have grown roughly 50 times since 2010. Nearly every modern trade transaction involves digital elements -- from the email confirming an order to the GPS tracking a shipment to the cloud server processing a payment. McKinsey estimates that data flows now contribute more to global GDP growth than traditional goods trade. Yet there is no comprehensive multilateral agreement governing digital trade.
Digital trade encompasses multiple layers: e-commerce (buying and selling goods online across borders), digitally delivered services (cloud computing, streaming, remote work), cross-border data flows (the movement of data between jurisdictions), and digital products (software, digital media, AI models). Each layer raises distinct regulatory challenges, from consumer protection to privacy to national security.