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Law360 (May 5, 2020, 3:59 PM EDT) -- The World Trade Organization says the novel coronavirus outbreak has exposed the "glaring need" to address developing countries' exclusion from the global digital economy as more essential services move online.
With so many people under lockdown orders, individuals' computer access and the reliability of their internet and electricity services have determined who can enter online markets to purchase medical supplies and home goods, according to a WTO information note released Monday.
But since the coronavirus has triggered the physical closure of schools and businesses, technology access has also determined who can complete their education or work remotely, the trade body said.
"Many traditional obstacles have been accentuated and have continued to hamper greater participation in e-commerce activities by small producers, sellers and consumers in developing countries," the WTO said.
Communities in rural areas or with low incomes already have limited access to technology services, but that access is further strained by prohibitive trade barriers. Tariffs in some countries go as high as 35% on computers and 40% on telecommunications devices, according to the WTO.
Those barriers are exacerbated as network capacity struggles to accommodate the congested online traffic. According to the trade body, Facebook says its online messaging, voice and video call services have risen more than 50%, and the government of Thailand reports that Zoom Video Communications use has multiplied eightfold.
Some companies have already taken steps to keep their services going despite strained telecommunications infrastructure, with the WTO reporting that Netflix and YouTube have reduced video quality to keep from turning off consumers from their platforms.
In the past few years, WTO members have enacted measures to facilitate access to the digital economy, including introducing network, cybersecurity and fifth-generation, or 5G, regulation and standards. But vulnerabilities exposed by the pandemic may foster further global cooperation in the field, according to the WTO.
"The implications of the COVID-19 pandemic may last for a long time, and e-commerce in goods and services will need to continue to adapt to the new environment," the WTO said.
--Editing by Stephen Berg.
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