RRU Professor lends digital trade expertise to future-ready framework
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It is a fraught time for international commerce. Sparked by the tariff-first tactics of the US administration, trade wars have erupted, and formerly friendly partners are seeking new trading avenues and alliances.
That’s why a team of experts – including Royal Roads Associate Faculty Juan Navarro – contributed to a report which outlines the path to building a digital trade framework fit for the future.
The report, published by the Pacific Economic Cooperation Council, addresses next-generation digital trade matters such as AI governance, cybersecurity and digital inclusion, among other topics.
The document presents 13 actionable recommendations aimed at making digital trade within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) more inclusive, sustainable and secure says Navarro, one of only three academics from Canadian universities who worked on the report along with researchers and leaders from the public and private sectors.
AI, cybersecurity top digital trading issues
The CPTPP entered into force in late 2018 and a great deal of digital trade has changed since then Navarro says. Updating the agreement is essential to ensure it remains relevant for businesses across all 12 member economies, including Canada.
The report recommendations cover a variety of areas, including:
- enhancing digital trade facilitation by strengthening provisions on e-payments and paperless trading;
- strengthening cross-border data flow rules to ensure a balance between enabling seamless digital trade and safeguarding cybersecurity and national security; and
- introducing AI governance principles to promote alignment with international conventions such as the Council of Europe’s Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law while also supporting AI use and innovation in trade.
“Everybody is aware of the huge impact AI is having in business and in society,” says Navarro. “We need clear rules that both protect users and ensure AI can be used safely and effectively by businesses and consumers.”
Similarly, cybersecurity remains a top priority to guarantee the safety of businesses as they move money and data electronically, he says, noting that both rules and penalties are necessary to ensure different countries and sectors follow consistent standards.
“It's such an evolving landscape, especially with the new tools the criminals are using,” Navarro says.
Digital Trade Framework critical for future
Navarro notes that creating an international monitoring body within the CPTPP may be one way to track progress on digital trade issues like AI and cybersecurity and facilitate communication among the 12 member governments: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United Kingdom.
“I think the development of this report sends a strong message about the relevance of digital trade in these complex and uncertain times,” Navarro says.“The message from all the experts who contributed to this report is clear: we believe that collaboration, dialogue and trade facilitation are essential to supporting resilient supply chains. At the same time, each country must retain the independence to determine what is in its best interest and to discuss solutions that allow us to keep making progress together.”
Adds Navarro: “It's encouraging to see the CPTPP members and other major trading blocks, such as ASEAN and the European Union, engaging in open dialogue in recent weeks to exchange experiences, support more business and reaffirm their commitment to free, fair and open markets and a rules-based trading system.”