In this special edition of Current Accounts, the Hinrich Foundation’s podcast on global trade, the US Association of Foreign Press Correspondents interviews Deborah Elms on the WTO’s landmark e-commerce agreement.

In July, The Joint Statement Initiative (JSI) on Electronic Commerce achieved a historic milestone in global trade, as 82 World Trade Organization (WTO) members released a “stabilized text”, potentially setting the first digital trade rules. This is a significant development, addressing the WTO's previous lack of a digital trade framework and aiming to create unified, consistent regulations for e-commerce. This agreement, remarkably, was reached without the participation of United State, with major players like China and the European Union joining forces with smaller nations such as Benin and Laos.

The JSI's impact is particularly significant for developing countries, which face significant challenges due to regulatory fragmentation. By addressing these challenges, the JSI aims to foster a more equitable digital trade landscape worldwide. The initiative’s inclusive approach includes commitments for cooperation and development, helping them integrate into the global digital economy. The agreement also aims to facilitate trade for smaller firms by allowing electronic paperwork and signatures, simplifying cross-border transactions.

Despite the progress, achieving consensus at the WTO remains a challenge. Although 82 WTO members have endorsed the JSI’s text, some remain dissatisfied, complicating the integration of these rules into the broader WTO framework. Any dissenting member, including the US, can block progress, leaving the signatories to navigate these disagreements and determine the path forward.

Tune in to this special episode as Deborah Elms, Head of Trade Policy at the Hinrich Foundation, dissects the WTO's historic e-commerce agreement and its potential impact on the future of digital trade.

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Tune into the Hinrich Foundation’s podcast series for insights on international trade.

In this special edition of Current Accounts, the Hinrich Foundation’s podcast on global trade, Patrícia Vasconcellos from the US Association of Foreign Press Correspondents and Robert York, Director of Regional Affairs at the think tank Pacific Forum, delve into how shifting oil trade dynamics are fueling global fragmentation.

Following Russia’s invasion of Ukraine in February 2022, the West imposed stringent sanctions on Russia to cripple its oil exports and economy. Despite these efforts, Russian oil shipments have remained resilient, mainly due to new buyers entering the market.

Russia has surpassed Saudi Arabia as the primary oil supplier to China. This shift in the global oil markets, driven by falling oil prices and Western sanctions, has significantly influenced global trade dynamics. While the European Union’s reduced dependence on Russian oil is seen as a positive outcome, the increase in oil imports by India pose a challenge, as the US is concerned about strengthening trade ties between India and Russia.

In response to Western economic pressures, Russia has strategically increased its oil exports to Africa and Asia. This move highlights the need for the US to bolster its diplomatic efforts in the Global South to counterbalance the influence of Russia and China. Furthermore, the environmental risks associated with oil transportation, particularly through poorly maintained "shadow tankers," pose substantial threats of oil spills and ecological damage.

These insights were highlighted in the Association of Foreign Press Correspondents’ interview with Robert York, Director of Regional Affairs at Hawaii-based think tank Pacific Forum.

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Tune into the Hinrich Foundation’s podcast series for insights on international trade.

In this special edition of Current Accounts, the Hinrich Foundation’s podcast on global trade, Patrícia Vasconcellos from the US Association of Foreign Press Correspondents interviews Hinrich Foundation Research Grant recipient Rodrigo Fagundes Cezar about the impact of unilateral green rules and voluntary standards on Brazil’s green transition.

Amid efforts to promote sustainability through trade, import policies have taken centerstage. The European Union (EU), for example, has unilaterally launched the Renewable Energy Directive (RED) and the EU Deforestation Regulation (EUDR) to help the single market achieve its ambitious climate goals by 2030. As a result, several countries have established or plan to adopt private standards and certifications, such as Brazil's sugar agency Bonsucro, to ensure compliance with these new regulations.

In Brazil, however, the results of adopting these voluntary standards have been mixed. While the country’s exports of sugar and ethanol to Europe have generally increased, these gains are often limited to municipalities with established trade ties with the EU. On the other hand, areas with fewer prior trade ties have seen declining exports. Furthermore, compliance with these standards may inadvertently lead to land concentration, favoring larger agricultural units and potentially exacerbating land inequality within Brazil.

This special episode delves into the findings of a report titled ‘Unilateral green rules and voluntary standards: A balancing act for Brazil’, commissioned under the Hinrich Foundation Research Grant, which supports up-and-coming academics. Rodrigo Cezar and his team analyze the impact of these voluntary standards on Brazil’s sugar and ethanol exports and land concentration. They also discuss the heterogeneous effect and history of trade across Brazilian municipalities. The research highlights the role of policymakers in developed nations can mitigate adverse spillover effects to achieve their sustainability goals.

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Tune into the Hinrich Foundation’s podcast series for insights on international trade.