Technological advances have made it easier for firms to trade services internationally, especially through digital channels. SMEs benefit from new opportunities, but fragmented regulations creating higher trade costs remain barriers. As digitalisation blurs the lines between goods and services, holistic policies and international co-operation are increasingly important.
Digital STRI
Digital services trade is the fastest growing segment of international trade, and this upward trend is expected to continue. However, outdated or unnecessarily burdensome regulations risk constraining countries’ abilities to reap the benefits of growing digital trade.
The OECD Digital Services Trade Restrictiveness Index (Digital STRI) captures regulations that restrict cross-border digital services. It catalogues and compares regulations on a Most Favoured Nation (MFN) basis, providing a unique perspective on the regulatory landscape for digital services trade.
The Digital STRI is widely used by policy makers, trade negotiators and researchers to benchmark and analyse existing regulation, while also being capable of simulating the impact of reforms. Its extended country coverage (129 countries) and annual database updates make it an essential tool for policy analysis.
Key messages
Digitalisation is profoundly affecting international trade, changing its scale, scope and speed. It has led to more traditional trade, more digitally ordered parcels, more digitally delivered services, more "smart" and connected goods, and more data crossing international borders.
Lower restrictiveness to digital trade, as measured by the Digital STRI and the computer services STRI, is associated with higher access and use of communication networks and increased trade in digitally enabled services. Open digital markets lower trade costs for businesses, increase competitiveness, and lower prices for consumers. Multilateral trade rules and open commitments on services can lock in these benefits and provide certainty to firms seeking to access foreign markets.
Context
Substantial disparities in digital trade openness persist
The Digital STRI scores show broad heterogeneity in the level of regulatory restrictiveness between countries and regions. The Digital STRI ranges from zero to one, where zero reflects a fully open economy and one a fully restrictive one. The score of a country sometimes reflects highly restrictive regulations and at other times reflects the absence of adequate regulation, such as an absence of regulation that would protect businesses against unlawful competition, protect intellectual property or personal data.
Trends in digital trade policy: a decade of important changes to the regulatory landscape of digital trade
The digital trade regulatory landscape has experienced important changes in the last decade for most countries. The average digital trade restrictiveness in Africa and the Americas has decreased in the last decade, while restrictions have increased in Europe and Asia-Pacific.
Recent years have seen a surge in privacy and data protection regulations, with many jurisdictions introducing or revising rules on cross-border data flows. These reforms often set conditions for transferring personal data abroad, such as requiring adequate protection, notification, or specific safeguards. Some economies mandate local storage of critical information or restrict cross-border transfers entirely, especially for large digital platforms. While these changes aim to build trust in digital services, the diversity and complexity of regulations make compliance challenging for businesses. Finding common ground and engaging in international dialogue is increasingly important for facilitating digital trade.
Digital STRI goes global: Wider coverage, deeper insights
The Digital STRI currently covers 129 economies. The OECD continues its efforts to expand the country coverage of the Digital STRI to provide information on applied regulations globally.
The Digital STRI also benefits from an annual update that ensures the quality and relevance of its information. The suite of online tools allows easy access and use, including the possibility of simulating policy reforms, downloading data, and preparing visuals.
Tools
Digital STRI Regulatory database
The online Digital STRI regulatory database displays the detailed information used to develop the index, along with sources and comments for all countries and sectors. This qualitative database also provides the source of the regulation, along with the title of the law, relevant articles, a web link to the law, and a comment if additional explanations are required.
The Digital STRI Policy Simulator allows policy makers and experts to explore the impact of a change at a detailed level for each measure, and to compare a specific country with a range of other selected countries in a particular sector.
Digital STRI Regulatory Heterogeneity Indices
