The digital transformation greatly affects trade. In particular, the Internet has made it easier to buy, sell and deliver certain services, such as telecommunications and audiovisual content, across borders. It has also enabled cross-border electronic delivery of financial, business and knowledge services, such as sales and marketing, management, administration, and back office services, engineering, R&D, and education (UNCTAD, 2015). Furthermore, the Internet has also led to new categories of services, such as web search.
Extended Balance of Payments Services (EBOPS) statistics allow trade in a number of “potentially ICT-enabled services” (UNCTAD, 2015) to be examined. Of these, Telecommunications, computer and information services – which includes many services inextricably linked with digital technologies such as software production and database services – is a key component in many countries, comprising 8% of services imports and 10% of services exports on average in the OECD area.
The Internet, secure networks, synchronised databases and other ICTs are a crucial enabler of financial services trade. Financial services are a particularly key component of services trade in Luxembourg, comprising over half of both services imports and exports, and are also particularly notable exports in the United Kingdom (24% of services exports) and Switzerland (17%).
Charges for the use of intellectual property rights are a particularly notable component of imports in both Ireland and the Netherlands (41% and 28% of services imports, respectively), with the latter having a similar share of intellectual property in services exports (25%). While these payments are often digitally facilitated, the extent to which the contracts granting rights are delivered in digital form is unknown, as is the extent to which the property rights relate to digital properties.
The Internet can facilitate access to global markets, creating new opportunities for consumers and businesses. Key factors affecting the uptake of cross-border e-commerce include IT infrastructure, regulatory frameworks and economic integration. In 2018, 45% of enterprises in the EU28 made cross-border e-commerce sales. Of these, 43% made sales to customers in other EU countries and 26% made sales to customers outside the European Union. The proportion of cross-border sellers to other EU countries was highest in Austria (67%) and Luxembourg (64%). Greece and Ireland had the highest shares of sellers to customers in non-EU countries (almost 40%). Meanwhile, Sweden stands out because 15% of firms there make cross-border e-commerce sales to customers outside the EU only; this share is 5% or lower in other countries and 1.5% on average.
