Australia, alongside around 80 other nations, has reached agreement on rules governing global digital commerce. 

A new World Trade Organisation (WTO) accord addresses various aspects of e-commerce, including the recognition of electronic signatures and protection against online fraud. 

Over the past five years, Australia, Japan, and Singapore have led negotiations, culminating in the release of a “stabilised text”, which the European Union has described as “historic news” and the United Kingdom has labelled “groundbreaking”. 

“We negotiated the first global rules on digital trade,” Valdis Dombrovskis, the EU trade chief, said this week. 

Britain's involvement in the agreement will see participants commit to digitising customs documents and processes, recognising e-documents and e-signatures, and establishing legal protections against online fraud and misleading product claims. 

The agreement also includes measures to limit spam, protect personal data, and support least-developed countries.

Ninety-one of the World Trade Organization’s 166 members participated in the negotiations. Countries such as China, Canada, Argentina, Nigeria, and Saudi Arabia have been involved. However, the United States did not join the agreement, saying that while the new text is a positive step, it does not fully meet their expectations, particularly regarding exceptions related to security interests.

Maria Pagan, the US WTO ambassador, has called for further discussions.

“We look forward to working with interested members in finding solutions to all remaining issues and moving the negotiation to a timely conclusion,” she said

Certain other nations, including Brazil, Indonesia, and Turkey, have also expressed reservations on minor points. 

Consensus among all WTO members is required for the agreement to become a formal WTO accord, which remains a significant challenge. 

The new e-commerce rules are expected to benefit Australians by enhancing online protection and supporting businesses in accessing new markets. Simplified transactions and increased certainty are anticipated to reduce costs for online trade.

Australian industry representatives have welcomed the agreement. 

The Global Services Coalition and Asia Pacific Services Coalition have also endorsed the agreement, describing it as a defining moment for the multilateral trading system. 

Australia continues to advocate for broader participation in this pioneering set of digital trade rules. 

The Department of Foreign Affairs and Trade (DFAT) has outlined the next steps, which involve integrating these rules into the WTO system and encouraging other members to join the agreement.

The text of the agreement can be accessed in PDF form, here.