Handbookon Measuring
Digital Trade
IMF, OECD, UNCTAD and WTO

UNESCAP WEBINAR, 6 MARCH 2024

BackgroundOECD definition of e-commerce
for measurement purposes(2001, 2009)
Work on ‘readiness’measures – WB, ITU, WEF(2016 – onwards)
Handbook on Measuring Digital
Trade (2019)=> Statistical definition andconceptual framework established

WTO work program one-commerce (1998)
UNCTAD-led work on
defining and measuring ICTenabled services trade(2015 - onwards)
G20 Toolkit on Measuring
the Digital Economy (2018),
OECD Going Digital Project(2017 – onwards)

Handbook on Measuring Digital tradesecond edition (2023)

Policy drivers• Digital technologies are an important enabler for international trade• The ability to place and receive orders digitally and to deliver services digitally ‘shrinks the space’

between supply and demand and ‘creates’ more international trade• Acceleration in uptake after COVID-19• Businesses account for the bulk of international trade transactions, and by extension theyaccount for the bulk of digital trade• BUT: digital trade provides more opportunities for SMEs, households and governments to engage ininternational trade both as exporters and importers (with policy as well as statistical implications)• Digital ordering and delivery have an impact on trade policy (market access, tradefacilitation...) as well as on other policy areas (competition, taxation…)

Need for accurate, comprehensive and internationally comparable statistics, measured
as a subset of and consistently with official international trade statistics

Key concepts
What makes aninternational
trade transactiona digital tradetransaction?

Source: IMF, OECD, UNCTAD and WTO (2023)

The statistical framework

Source: IMF, OECD, UNCTAD and WTO (2023)

Digitally ordered trade“The international sale or purchase of a good or service,conducted over computer networks by methods specificallydesigned for the purpose of receiving or placing orders”.
Digital ordering = e-commerce Digitally ordered trade = international e-commerce•

Goods and services (incl. some digitally delivered services)•

Orders placed via:





•

The seller’s own web sites or apps

Third party web sites or apps
(e.g. online marketplaces/platforms)
Machine generated/readable messages(EDI)
Voice commands issued to virtualassistants
Chatbots

All economic sectors can be buyers and sellers:•••

Telephone calls
Fax
Manually typed messages(e.g. email, WhatsApp, Telegram)
Offline transactions formalised using
digital signatureBusinesses
Households / individuals••

Government units
Non-profits (NPISH)

Key starting points:•

Digitally ordered exports (and imports) by businesses•

Digitally ordered trade in goods

Digitally ordered tradeby businesses• Businesses are main players in e-commerce sales (andpurchases) – including international• Build upon ICT surveys used to measure e-commerce

uptake to measure the value of digitally orderedtransactions•

Both sales (exports) and purchases (imports)•

Both domestic and international e-commerce transactions
measured together•

Data can also be collected through “core” business surveys• Some countries collect more detailed information•

Partner country/region•

Product (good, digitally delivered service, other service)Digitally ordered trade in goods
Digitally ordered trade in goods, China• In many countries, cross-border trade

Digitally ordered exports (goods)

is mainly in goods (rather thanservices)• Likely also for digitally ordered trade

10050

Digitally ordered imports (goods)

US$ billions, current prices
050
100150200250

2019• Several countries have modified

customs reporting requirements andprocesses to identify merchandise
shipments that are digitally ordered digitally ordered trade integrated withexisting goods trade measurement

2020

2021

2022
Source: IMF, OECD, UNCTAD and WTO, based on China Customs case study (ch6)Digitally delivered trade“All international trade transactions that are delivered
remotely over computer networks”
Digitally delivered trade equivalent to Mode 1 (cross-bordersupply) for services that are digitally deliverable• Only services can be digitally delivered (no “digital goods”)• May also be digitally ordered• Key steps for statistical compilers
1.

Identify digitally deliverable services (in existing statistics)

2.

Carve out services actually digitally delivered

Digitally delivered transactions“All international trade transactions that are delivered remotely over
 Services that are inherently digital in nature: Software downloads and online software Cloud computing services
 Streaming media
 Online gaming services (and similar)
 etc.
 Services where in-personinteractions now take place online
 Telehealth consultations
 Financial/legal advice E-learning Yoga lessons
 etc.

computer networks

 Services where physical deliveryof outputs has been supplanted bydelivery in the form of digital files
 Architectural services(blueprints)
 Services where in-person
 R&D services (reports)
interactions have been replaced with
 Accounting services
self-service through online interfaces(financial reports)
 Online banking
 etc.
 Share-dealing E-learning
 etc.

Digitally deliverable
services“services which can bedelivered remotely overcomputer networks”

Measuring digitallydelivered trade••

Although a service may bedigitally deliverable, this doesn’tmean it is always digital delivered
when traded
The share of digitally delivered
services trade in total tradedepends on trade diversification,
digital infrastructure, skills, thedigital propensity of firms,
legislative environment, etc.

Totalservices
trade
Digitally
deliverable
services

But what services can bedigitally deliverable?
Digitally
deliveredservicesFor services products that are digitally deliverable:

Digitally delivered trade is equivalent to Mode 1
cross-border supply Measuring digitallydelivered trade isinterrelated withmeasuring services tradeby modes of supplyCompiling digitally delivered trade• Build upon International Trade inServices (ITS) surveys• add questions on remote/digitaldelivery (for digitally deliverable),e.g. using the UNCTAD model
questionnaire• collect sufficient product detail• Use complementary sources toensure full coverage (households,MSMEs)• Expert judgment shares can beused as a first approximation (e.g.
Eurostat-WTO model)

Digital intermediation
platforms (DIPs)“Online interfaces that facilitate, for a fee, the directinteraction between multiple buyers and multiple
sellers, without the platform taking economic
ownership of the goods or rendering the services thatare being sold (intermediated)”DIPs are key drivers in the digitaltransformation
Their impact is significant and growing
 DIPs facilitate access to theglobal marketplace (especiallyfor smaller businesses).

 Give buyers access to wider

product variety and ability tocompare prices easily.

 Also enable “new” activities

and business models such as
peer-to-peer transactions,
resource sharing between
households.

US$ billions, current prices

Transactions facilitated by DIPs
• Always digitally ordered and often digitallydelivered, but specific compilation challenges(and policy interest!)• Three actors in the transaction, residence nottrivial to establish• Need to disentangle•

supply of good/rendering of service•

provision of intermediation services• Key starting points•

Survey resident DIPs•

Collect information on exports and imports ofdigital intermediation services from ITS surveys•

Collect information on transactions made via DIPs
using ICT surveys

DIPs do not own
the goods nor
render theservices being
intermediatedSource: IMF, OECD, UNCTAD and WTO (2023)

Key take-aways• The Handbook on Measuring Digital Trade sets out key definitions, a measurement framework,and reporting template for Digital Trade statistics• The second edition is a significant development, adding important clarifications and explanations, andpresenting extensive new compilation guidance reflecting the rapid progress being made by countries• It has been endorsed by countries through global consultation• Multiple sources and methods needed for complete and coherent measure of digital trade• Key priorities:•Measuring digitally ordered transactions involving businesses (e.g. through business ICT usage surveys)•

Measuring digitally ordered trade in goods through adjustments to customs reporting requirements•

Ensuring the availability in services trade statistics of full product detail for digitally deliverable services•

Including questions on digital delivery in international trade in services surveys• Coordinated statistical capacity building to support countries in turning the Handbook into action!

Turning the Handbook into action• The IMF, OECD, UNCTAD, and WTO areworking to develop in-person, online, andblended training to support Handbookimplementation• In-person workshops of 4-5 days• First workshop took place in Nov 2023•

For Arab countries•

Funded by the Arab Monetary Fund and the WTO•

Delivered with partners UN-ESCWA, the ArabInstitute for Training and Research in Statistics,and UNSD•

Strongly positive feedback• Workshop provision is demand-led. To express

interest contact emeasurement@unctad.org;
barbara.dandrea@wto.org and pquill@imf.org

Regional Workshop on Measuring Digital Trade
20-23 November 2023
Abu Dhabi, UAE