Negotiating Services Market Access under the E-commerce Joint Statement Initiative: A development perspective
Summary
This policy brief analyzes the services market access negotiations under the WTO E-commerce Joint Statement Initiative (JSI). It highlights a significant trade imbalance, where developed nations are net exporters of the targeted digital services while developing nations are net importers. The brief identifies key challenges, including the 'technological neutrality' of GATS, the undecided legal architecture of the JSI, and a lack of gender and social inclusion considerations. It recommends that developing countries pursue a 'built-in development dimension' through progressive liberalization and multi-stakeholder national assessments.
Key insights
- Proponents of the E-commerce JSI—specifically China, Chinese Taipei, the EU, and the US—have requested market access and national treatment commitments with limitation levels of "none" or "make/improve" across 37 specific sectors. These requests cover 13 sub-sectors within five broad services sectors for Modes of Supply 1, 2, and 3, while Mode 4 (presence of natural persons) is requested to remain "unbound."
- There is a significant trade imbalance in the e-commerce-related service sectors under negotiation. Developed country JSI members are net exporters of these services, while most developing country members (excluding some Asian economies) are net importers. For example, in 2017, developed JSI members had a trade balance surplus of 701,223 million USD, whereas developing JSI members had a deficit of 371,332 million USD.
- The negotiations face a 'challenge of scope' due to the principle of 'technological neutrality' in the General Agreement on Trade in Services (GATS). Because GATS does not distinguish between electronic and other means of supply, a market access commitment for an electronically supplied service may inadvertently grant rights for supply through all delivery means unless specifically limited in schedules.
- The legal architecture of the JSI outcome remains undecided, leading to conflict between members. The EU prefers the provisions to be a reference paper for GATS/GATT schedules on a Most Favoured Nation (MFN) basis. In contrast, China and the US favor a plurilateral agreement that limits benefits to JSI participants. India and South Africa have criticized the JSI for contradicting fundamental WTO principles, particularly regarding the modification of schedules without multilateral consensus.
- The E-commerce JSI negotiations lack substantive consideration of Gender Equality and Social Inclusion (GESI). The December 14, 2020, Consolidated Negotiating Text contains only two gender-inclusive provisions, both proposed by Canada. The document notes that market access commitments can affect women and men differently depending on firm size and the labor equation within specific sectors.
- To address the digital divide, the document suggests a 'built-in development dimension' for the JSI outcome. This could include progressive liberalization linked to assistance, similar to the Trade Facilitation Agreement (TFA). A proposal by Côte d’Ivoire suggests allowing developing countries to define three categories of liberalization: immediate access, gradually established schedules, and access they cannot currently provide but will commit to within 10 years.
Cite the original document
- APA
- Ismail, Y. (2021). Negotiating Services Market Access under the E-commerce Joint Statement Initiative: A development perspective. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-07/negotiating-services-market-e-commerce-joint-statement-en.pdf
- Chicago
- Ismail, Yasmin. Negotiating Services Market Access under the E-commerce Joint Statement Initiative: A development perspective. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-07/negotiating-services-market-e-commerce-joint-statement-en.pdf.
- Wikipedia
- {{cite report |last1=Ismail |first1=Yasmin |title=Negotiating Services Market Access under the E-commerce Joint Statement Initiative: A development perspective |publisher=International Institute for Sustainable Development |date=June 2021 |url=https://www.iisd.org/system/files/2021-07/negotiating-services-market-e-commerce-joint-statement-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{ismail2021negotiating, author = {Ismail, Yasmin}, title = {{Negotiating Services Market Access under the E-commerce Joint Statement Initiative: A development perspective}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = jun, url = {https://www.iisd.org/system/files/2021-07/negotiating-services-market-e-commerce-joint-statement-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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