World Politics: International Politics on the World Stage, Brief, 4/e

John T. Rourke, University of Connecticut - Storrs
Mark A. Boyer, University of Connecticut - Storrs

The International Economy: A Global Road Map

E-Commerce and the WTO

Visit the following Web sites to learn how the World Trade Organization is dealing with e-commerce

http://www.wto.org
home page of WTO

http://www.wto.org/english/tratop_e/tratop_e.htm
trade topics currently being discussed at WTO--from this page, go to the link for electronic commerce
or to the link for information technology products in order to focus on the issues in e-commerce

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. The ten benefits of the WTO trading system, as stated in the online description of its purpose are:

1.The system helps promote peace
2. Disputes are handled constructively
3. Rules make life easier for all
4. Freer trade cuts the costs of living
5. It provides more choice of products and qualities
6. Trade raises incomes
7. Trade stimulates economic growth
8. The basic principles make life more efficient
9. Governments are shielded from lobbying
10. The system encourages good government

In reviewing these ten benefits of the WTO, it becomes obvious that the issue that has not been adequately addressed is that of e-commerce. The first difficulty in dealing with e-commerce is the definition of goods and services. For example, is a book produced online (an e-Book) a good or a service? Other issues concern the availability of software and infrastructure for all countries including LDCs. And political issues develop out of this situation and many others. For example, how does the imposition of trade sanctions by one country on another impact on the use of particular software for encryption purposes? Who makes the rules that govern the taxation, regulation, and distribution of online goods and services? How are these rules enforced?

Examine the key issues surrounding e-commerce found in the Web sites of the WTO listed above and respond to the following questions in the space provided.


1		What are the primary international and domestic political problems generated by the advent of e-commerce?



2		How does the advent of e-commerce change the way we generally conceive of trade in the international system?



3		What implications does e-commerce have on the effectiveness of the WTO as an international organization?

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