Industrial Digital Transformation and A Proposal to Rebuild Digital Trade Agenda

Abstract

With the Fourth Industrial Revolution, a digitally connected global era has begun. Leading global companies are harnessing innovative technologies such as internet of things, big data, artificial intelligence, robotics and digital twin to revolutionize manufacturing process. This transformation is resulting in the creation of new business models and value-added products. It is time to shift the paradigm of trade by reforming the old mindset dominated by tangible goods. While current trade agreements contain some rules on digital trade, the scope of discussions lag behind the business reality of industrial digital transformation. This article purports to rebuild the objectives and priorities of global digital trade negotiations, by reflecting recent hyper-connectivity and hyper-intelligence. It proposes eight items for digital trade negotiations: digital transformation (DX) in trade, digital manufacturing services, internet access and traffic cost sharing, data trust for interoperability, artificial intelligence (AI) governance, cybersecurity and trade, big-tech platform regulations, and digital business taxation. digital transformation, digital trade, digital service, data flow, artificial intelligence, cyber security, big-tech platform