WT/GC/W/875  
 
3 May 2023  
(23-3115) Page: 1/3 
General Council  Original: English  
 
WORK PROGRAMME ON ELECTRONIC COMMERCE  
REINVIGORATING THE WORK UNDER THE 1998 WORK PROGRAMME  ON ELECTRONIC COMMERCE : 
A DEVELOPMENT APPROACH TO THE WORK PROGRAMME  ON E-COMMERCE  
Communication from South Africa  
The following communication, dated  2 May 2023 , is being circulated at the request of the delegation 
of South Africa.  
 
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1  INTRODUCTION  
1.1.  At MC12, Ministers once more emphasized the need to reinvigorate the work under the 
Work Programme  on Electronic Commerc e, based on the existing mandate as set out in WT/L/274. 
This paper is a contribution to that directive. A revision to IP/C/W/665 will also be submitted in the 
TRIPS Council soon.  
1.2.  As digital transformation has accelerated, the e -commerce landscape has beco me increasingly 
dynamic and complex. New players have emerged at the same time that established actors have 
taken on new roles and new business models have transformed buyer -seller relationships and 
pushed  out the frontier of what it is possible to buy and  sell online. Above all, new opportunities 
have arisen to unlock the potential of e -commerce to boost growth and well -being.  However, what 
is clear is that the gains from growth in global e -commerce will not be automatic for developing 
countries. This will  require strategic interventions at all levels, including at the national and 
international levels. Policy space will be required for developing countries to adapt their productive 
capacibilities  and trade competitiveness to take account of these developme nts.  
1.3.  Although the share of firms selling online is increasing, many firms still face challenges to 
further engaging in e -commerce. In addition, a large proportion of firms struggle with high costs 
associated with delivery and returns, or logistics more br oadly. Addressing cross -border complaints 
and disputes, as well as limited language skills pose additional challenges, particularly for firms that 
engage in cross -border e -commerce. Access to payment mechanisms represents another important 
challenge for ma ny people engaging in e -commerce, and is likely to affect some groups, particularly 
low-income households, disproportionately.  
1.4.  While recognizing the importance of e -commerce in an increasingly digitalizing world, it is also 
important to understand that e -commerce affects a number of policy areas and requires careful 
analysis and understanding. This necessitates a proper examination of all trade -related issues 
relating  to global electronic commerce, taking into account the economic, financial, and developmen t 
needs of developing countries . The key policy implications of e -commerce include:  
• Industrial policy – implications for  the use of tariffs to protect domestic industries and to 
safeguard policy space to promote digital industrialization.  
• Trade policy – the lack of common understanding on the scope and definition of electronic 
transmissions  can result in legal and regulatory uncertainties for firms participating in 
cross-border e -commerce. Clarity on the scope and definition of e -commerce i s also critical 
to understand the revenue  implications of the e -commerce moratorium.  Member s are at WT/GC/W/875  
 
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  different levels of dependence on tariff revenues to finance their budgets and  provide public 
goods and services . 
• Environmental policy – the net effect of e -commerce on the environment requires analysis. 
There can be a positive impact with decreased pressure on physical infrastructures 
(e.g., lower electricity use). On the other hand, increased residential deliveries may reduce 
transportation efficiency, whil e increased e -commerce may also increase e -waste.  
 
1.5.  The digital economy has not been static, and many Members are still coming to grips with what 
appears will be very profound changes brought on by digital transformation to which e -commerce is 
integral. He nce, the evolution of the sector makes it necessary to continue work under the 
Work Programme  with a view to ensuring inclusivity and broadening the benefits of e -commerce, 
especially to developing countries. The work of the Facilitator, Ambassador Usha Dw arka-Canabady , 
and the contribution of Members in the structured discussions is welcomed. Having said this, the 
relevant committees  must continue their examination of the issues identified in the Work Programme  
as mandated by Ministers.  
1.6.  Importantly, the di scussion must explore ways of enhancing the participation of developing 
countries, including LDCs , in electronic commerce not only as consumers but also meaningful 
participants as producers so as to broaden the benefits and promote a development and inclus ive 
approach to e -commerce.  
2  DEVELOPMENT  APPROACH TO THE E -COMMERCE WORK PROGRAMME   
2.1.  The approach to the e -commerce Work Programme  requires a development oriented and 
inclusive approach that promotes understanding of the complexities of e -commerce and takes proper 
account of developing country interests. This is not a matter of being for or against digitization . It is 
about what kind of digital economy we should have. A development agenda needs to be based 
inter alia on the following:  
• Outcomes that support digital industrialization .  
• Addressing the digital divide, including by providing a level playing field to domestic 
small digital industry in developing countries vis-à-vis big digital platforms.  
• Policy space to develop enabling legal  and regulatory frameworks based on developing 
countries ' needs and priorities. The importance of this is well -recognized  by most 
countries, and necessary frameworks are either already in place or being developed.  
• A supportive environment to promote domest ic digital sectors and small digital firms 
that have begun to emerge in developing countries. Developing countries ' digital 
start-ups and industries must be recognized  for their peculiarities and unique needs, and 
their great national importance. This is b ecause they have a unique characteristic of 
localness of their key resource i.e., data. But they still need to compete with global 
businesses, with huge financial muscle, that are entering every country's digital space. 
They also need to be protected from unfair terms of the monopolistic digital 
platforms/ecosystem – both for them, and for the larger economy.  
• Building national and regional digital platforms in order to provide competitive and fair 
market access to SMEs engaging in e -commerce in developing countries.  
• Public management of digital/data infrastructures to provide support to domestic digital 
industry.  
• Preserving critical policy tools that Governments can utilize to protect the interests of all 
economic actors in the economy, including strategi c deployment of tariffs to promote 
industrialization.  
• Technology transfer and equitable and affordable access to new technologies  
• Sharing of good practices in terms of digitally transforming economies and building the 
requisite digital infrastructure.  
 
2.2.  Digital transformation presents challenges for developing countries but also at the same time 
presents opportunities for growth and development which can be realized with appropriate strategies 
and policies.  WT/GC/W/875  
 
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  3  CONCLUSION  
3.1.  The Work Programme on E -Commerce states that the General Council shall play a central role 
in the whole process and keep the Work Programme under continuous review through a standing 
item on its agenda. In view of the need to deepen the discussion on all the trade -related aspects of 
e-commerce i n accordance with the mandate and in view of the work of the Facilitator which will 
continue through the thematic sessions, it is recommended that the Work Programme be a standing 
item under the G eneral Council  and the Facilitator reports through this item on her activities and 
progress made . 
3.2.  Similarly, the E -Commerce Work Programme should be a standing item in the relevant 
WTO bodies given a mandate as set out in WT/L/274.  
3.3.  The General Council should undertake a  review of the discussions in the mandated bodies to 
examine progress made in the relevant bodies on the development dimension of the 
Work Programme.  
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