While digital trade has become a vital element of global trade discussions, the world economy remains far from achieving full global digital trade integration and openness, according to a new OECD database.
A new OECD Index of Digital Trade Integration and Openness (INDIGO) provides a comprehensive view of how countries are engaging in international digital trade discussions. Covering developments in 193 countries from 2000 to 2024, it tracks policy discussions, pinpoints where progress is being made, where gaps remain, and how countries can work together to create a more seamless global digital economy.
The index highlights that, while global discussions on digital trade are expanding, overall progress remains limited. As of 2024, the world economy is only 8.5% of the way toward what could be considered full global digital trade integration and openness.
It also shows that, although digital trade provisions in trade agreements are growing fast, they account for a modest share, 10%, of existing digital trade integration and openness. Multilateral efforts at the WTO remain the primary force behind openness, given their broad participation and scope.
The index captures how far countries have progressed in aligning rules, reducing barriers, and engaging in international cooperation. It ranges between zero, no digital trade integration and openness, and one, full digital trade integration and openness. The index reveals significant variation across countries in their level of international digital trade engagement. Singapore stands out as the most integrated and open country with 0.17 points, while most non-WTO member countries score zero.
The Index also offers forward-looking analysis, helping assess the potential impact of future policy developments. For example, it shows that the adoption of the World Trade Organization (WTO) Agreement on E-commerce between its 71 current supporters would increase digital trade integration and openness by 21%. Countries participating in such efforts stand to strengthen their digital integration, while those remaining outside risk falling behind.
By providing transparency on where progress is being made and where gaps remain, the OECD INDIGO supports informed policymaking and international dialogue aimed at reducing fragmentation and building a more open and coherent digital trade environment. Users can explore the database and can also simulate different agreements to identify how these would affect their OECD INDIGO scores.
For further information on OECD work on digital trade, see: https://www.oecd.org/en/topics/policy-issues/digital-trade.html
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