2019 G20 Ministerial Meeting on Trade and Digital Economy
Recommendations for Promoting Innovation, Digital Technologies, and Trade
Over the past decade, the way that companies do business around the world has changed dramatically.
Businesses across all sectors now rely on digital technologies to produce, move, market, and sell
products and services. The flow of data across borders underpin all of these activities, and have createdeconomic opportunities for billions of people. To facilitate the use of the digital technologies necessary
to sustain world economic growth and increase social welfare, countries should commit to open
markets by supporting global, consensus-based, industry-led standards. They should aim to reduce
discriminatory and other regulatory barriers and cooperate to develop high-standard trade rules that
promote inclusive innovation, growth, and development. Governments and businesses must also
ensure broad-based economic inclusion so that benefits accrue to as many as possible, and that policies
aimed at fostering innovation recognize the imperatives of inclusivity, closing the gender gap,
strengthening Micro, Small and Medium Enterprises (MSMEs). Creating a level playing field for all
countries, including developing economies, to compete and grow in the modern global economy mustremain a central goal of the digital trade agenda.
The G20 is a critically important setting for the world’s leading governments to outline approaches tomanaging 21st century technology policy challenges. It must be viewed as an opportunity to combat
protectionism, enhance and generate business opportunities for MSMEs, achieve the UN’s Sustainable
Development Goals (SDGs), and work toward a sustainable and inclusive vision of Society 5.0.
In 2019, global industry respectfully makes the following recommendations to governments with aview to working together to advance privacy protections, enhance national security and data security
and promote the fair development and deployment of AI and other cutting-edge technologies. The
recommendations aim to enable the digital technologies and cross-border data flows that power growth,development, entrepreneurship, job creation, and innovation in all countries:
 Facilitate the Free Flow of Data Across Borders
Data enables the digital products and services on which all industries rely, from traditional email andcustomer management software to AI, IoT, 3D printing and other cutting-edge technologies. Data isgathered, combined, analyzed, and utilized across global networks to empower companies small andlarge to provide best-in-class goods and services and to help address societal issues.
Recommendation:
1. Facilitate the free flow of data across borders and refrain from imposing localization measuresrequiring the local storage or processing of data or the use of local computer facilities.

 Ensure Trust in the Free Flow of Data
To continue to capitalize on the benefits of data-driven operations and innovation, it is essential thatdata moves in a manner that engenders the trust of users. Governments should work to identify andshare experiences related to regulatory criteria and mechanisms that allow data to flow while ensuringhigh levels of trust. In this context, attention should be paid to risk-based approaches and cooperation
among national regulators.
Recommendations:
2. Extend high-level privacy protection that ensures international interoperability and conforms with
OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data.
3. Enhance cybersecurity by utilizing risk-based approaches grounded in global, consensus-based,industry-led standards and best practices.
4. Ensure that consumers are protected from fraudulent or deceptive commercial activities on theinternet through cooperation between national consumer protection bodies.
 Enable the Adoption of Digital Technologies in the Workforce
In line with SDGs including quality education, decent work, and economic growth, government andindustry can work together to develop a workforce with the skills to use and innovate with emerging
technologies and enhance opportunities for entrepreneurship. Thoughtful policies can help prepare theworkforce of tomorrow and ensure digital technologies provide opportunities for growth andadaptation.
Recommendations:5. Partner with industry to promote access to life-long learning opportunities that increase digital
literacy.
6. Encourage the creation of new jobs in emerging business areas and promote economic growththrough the adoption of digital technologies that leverage the potential of digital trade to support
MSME’s integration into global value chains.
 Promote Responsible Artificial Intelligence (AI) and Emerging and Transformative Technology
Practices that Foster Global CompetitivenessDigital technologies like IoT, Big Data, AI, robotics, and blockchain are transforming business andsociety. These kinds of emerging technologies are improving healthcare, agriculture, government
efficiencies and so much more, generating immense benefits at the local and global levels andadvancing outcomes on all SDGs.
One key issue for industry will be how to most responsibly utilize the huge data-processing potentialof AI. Meaningful work has been undertaken at the OECD, in the EU, and in Japan to outline ethicalguidelines and human centric principles for AI. Governments can build on those efforts to craft
concrete outcomes that businesses can operationalize. Industry has a vital role to play in using AI todevelop inclusive solutions for a broad range of issues, such as energy consumption, climate change,and health care, and is committed to delivering AI-based solutions that are trustworthy, fair, explainable,secure, and interoperable. Successful dissemination of these solutions throughout society will elevate
citizens’ quality of life and help realize a sustainable society that respects diversity and the rights ofeach and every individual. These outcomes are best achieved in environments that fostercompetitiveness and facilitate the continued improvement of AI.

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Recommendations:
7. Ensure the responsible and ethical design and deployment of AI systems, including addressing
safety mechanisms, using robust and representative data, promoting transparency, and enabling
greater interoperability.
8. Support the development and use of global, consensus-based, industry-led AI standards to enable
technical interoperability, non-discriminatory market access, and innovation.
9. Facilitate data use and access to open format and machine readable data sets as a means to foster
innovation and competitiveness in AI technologies and enhance and generate business
opportunities for SMEs.
 Oppose Measures Requiring Disclosure or Transfer of Technologies or Other SensitiveInformation
Companies increasingly rely on proprietary and sensitive technology, software, and information to dobusiness globally. Ensuring that these vital assets are protected in all markets in which companies dobusiness will engender the confidence necessary to foster continued innovation and broad access tocutting-edge technology.
Recommendation:
10. Oppose measures that require companies to transfer or otherwise subvert technologies such as
forced disclosure of source code, algorithms, encryption keys, or other sensitive information as acondition of doing business.
 Support Ongoing Work at the World Trade Organization (WTO)
As the foundation of the world’s trading system, the 164-member WTO is an essential international
institution that maintains and strengthens the multilateral free trade regime. Given the major economictransformation accompanying digitalization, high-standard rules at the WTO will be vital in ensuring
inclusive access to digital technologies that contribute to socioeconomic advances, empower SMEs toparticipate in the global market and achieve the full range of SDGs.
Recommendations:
11. Reach early agreement on ambitious and inclusive international rules through the WTO Joint
Statement Initiative on E-Commerce.
12. Continue to expand participation in the Government Procurement Agreement (GPA) andInformation Technology Agreement (ITA) and pursue opportunities to broaden the productcoverage of the ITA.
 Pursue Multilateral Solutions on Digital Taxation and Avoid New Tariffs
Many countries are looking for new ways to collect revenue derived from digital commerce. Whilethese efforts are understandable given the economic transformation brought on by digitalization, manyof the ideas under consideration would create discriminatory trade barriers and inhibit the inclusive
dissemination of digital goods and services, and should be avoided.
Recommendations:
13. Make permanent the WTO moratorium on imposing customs duties on electronic transmissions.
14. Refrain from adopting unilateral actions on tax challenges arising from digitalization before amultilateral framework has been developed.

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