Setting International Technical Standards to Shape Digital Trade Policy

The report examines how digital technical standards—rules ensuring interoperability and scalability of ICTs—are created and governed. It highlights a fragmented landscape where developing countries face barriers such as limited resources, intellectual property restrictions, and geopolitical competition between the US, EU, and China. The document analyzes the role of the WTO, regional trade agreements (PTAs, DEAs, DTAs), and various standards development organizations (SDOs), recommending that developing countries prioritize open development processes and collaborative engagement to bridge the 'standardization gap'.

• Digital technical standards are essential for digital trade as they provide the common specifications required for information and communication technologies (ICTs) to be interoperable and scalable, allowing cross-border transactions to occur efficiently.
• Developing countries face a 'standardization gap' characterized by an imbalance in participation due to the proliferation of fragmented forums, lack of technical expertise, and financial barriers.
• International standardization has become a tool for geopolitical influence, with major powers like China, the EU, and the US pursuing divergent strategies to anchor their leadership in technology and trade.
• Intellectual property rights (IPRs), specifically Standard Essential Patents (SEPs), can create financial and legal barriers for developing countries through licensing fees and the requirement for Fair, Reasonable, and Non-Discriminatory (FRAND) terms.
• The WTO TBT Agreement and its 'Six Principles' provide a framework for inclusive standards development, but there are significant gaps regarding digital services, as the TBT Agreement explicitly excludes them.
• Modern trade agreements, including Digital Economy Agreements (DEAs) and Digital Trade Agreements (DTAs), are emerging as a 'new model' of governance that focuses on digital-specific obligations and interoperability rather than just market access.
• China has significantly increased its influence in international SDOs, aiming to transition from a consumer of standards to a producer and exporter of standards, particularly in strategic areas like AI.
• The report recommends that developing countries prioritize Open Development Processes (ODPs) and build coalitions to increase their influence and ensure standards reflect their specific domestic realities.

APA

Atkinson, C., & Becha, H. (2025). Setting International Technical Standards to Shape Digital Trade Policy. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-11/technical-standards-digital-trade.pdf

Chicago

Atkinson, Craig, and Hanane Becha. Setting International Technical Standards to Shape Digital Trade Policy. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-11/technical-standards-digital-trade.pdf.

Wikipedia

{{cite report |last1=Atkinson |first1=Craig |last2=Becha |first2=Hanane |title=Setting International Technical Standards to Shape Digital Trade Policy |publisher=International Institute for Sustainable Development |date=November 2025 |url=https://www.iisd.org/system/files/2025-11/technical-standards-digital-trade.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{atkinson2025setting, author = {Atkinson, Craig and Becha, Hanane}, title = {{Setting International Technical Standards to Shape Digital Trade Policy}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/system/files/2025-11/technical-standards-digital-trade.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }