A Study on the Performance and Limitations of Regional Trade Agreements in the Liberalization of Digital Trade

Abstract

Purpose - The purpose of this research is to examine how regional trade agreements are being utilized as alternative means to achieve digital trade liberalization, and whether digital trade-related provisions of regional trade agreements can be generalized as global rules for digital trade liberalization. Design/methodology/approach - To analyze the relationship between digital trade liberalization and regional trade agreements, this paper uses literature research and investigates the statistics and agreement documents in the WTO RTA database. In addition, it proposes alternatives to address the limitations of digital trade liberalization through regional trade agreements. Findings - The results of this study can be summarized as follows: First, the number of regional trade agreements that include digital trade-related provisions is steadily increasing. Regional trade agreements are used as an alternative means to achieve the liberalization of digital trade, and provide international standards for establishing digital trade rules. Second, Regional trade agreements have problems such as discrimination against non-member countries, spaghetti-bowl phenomenon, and these problems can be an obstacle to the development of digital trade. Thus, measures should be taken to address these limitations of regional trade agreements so that global digital trade liberalization can be achieved. Research implications or Originality – Regarding the liberalization of digital trade, Korea should also actively participate in international discussions related to digital trade, and improve the domestic systems that meets international standards.