The Case for International Digital Standards for Interoperability of Trade in Digital Services

Trade in digital services is a fundamental aspect of the world’s shared digital economic future. At the core of the digital transformation of services lie data, which flow with services transactions across borders. Trade agreements seek to ensure that privacy and cybersecurity are preserved when data flows cross borders, and that interoperable standards are put in place. This is a challenge as governments are increasingly adopting divergent national standards, including on privacy, cybersecurity, artificial intelligence (AI), and cloud computing. This disrupts the cross-border technology ecosystem. This Policy Brief calls for increased attention from the G20 to developing international privacy and security standards, given the importance of trade connectivity for an inclusive, digitally transformed services sector. It calls on G20 members to support multilateral efforts towards creating interoperable standards. Policy recommendations include capacity-building to align digital regulatory regimes with international standards, and assistance for small businesses.