The digital transformation has led to significant reductions in the costs of engaging in international trade, changing both how and what is traded (Lopez-Gonzalez and Jouanjean, 2017). Along with the rise of digitally enabled or delivered services trade, digitalisation is also driving increased trade in physical goods. However, measuring trade in digitally enabled, digitally ordered, and potentially, with the emergence of 3D printing, digitally delivered goods, is challenging. Page 9.6 outlines related efforts in this regard.
With growing digitalisation, the measures affecting trade in goods are changing (Lopez-Gonzalez and Ferencz, 2018). “Smart” goods, such as smart speakers, e-readers and Internet of Things devices, combine characteristics of goods and services and require Internet access. They are affected by measures such as tariffs or at-the-border costs, but also by issues traditionally associated with trade in services and access to digital networks.
Effectively applied tariffs provide an illustration of direct market access barriers for ICT goods (notwithstanding other technical measures). Across OECD countries, the average effectively applied tariff on ICT goods was 2.07% in 2005, falling to 0.73% in 2017. Applied tariffs in OECD partner countries, though also falling, remain high. They were were almost 12%, in Argentina and Brazil in 2017, and around 6% – nearly ten times the OECD average – in China and India.
E-commerce is leading to increased international trade in parcels, which makes de minimis thresholds increasingly important, especially for SMEs and individuals buying online. It also raises issues for the efficiency and management of customs procedures. De minimis regimes vary widely. Australia and the United States have the highest thresholds at around USD 800. In contrast, China and Switzerland set levels below USD 10, while in EU countries, India and Colombia they are closer to USD 200 (see Lopez-Gonzalez and Ferencz, 2018 for a discussion).
The delivery of goods ordered online remains subject to physical connectivity constraints. As trade costs can represent a sizeable share of the value of small consignments, how fast and at what cost a parcel can clear a border can considerably impact the engagement of individuals and smaller firms in digital trade. Simplification and streamlining of border processes and controls, as well as automation of procedures, can help speed the movement of goods through customs. Other areas such as the transparency of trade-related information and predictability of border procedures also support smooth trade. Technology itself, in the form of automation and dematerialisation of border processes, can also assist in faciltitating this expanded trade. The OECD Trade Facilitation Indicators (TFIs) capture elements of all such measures. The performance of the OECD and emerging economies in 2017 in areas such as transparency and predictability, streamlining procedures or automating border processes reflects significant implementation efforts. Across the board, the most challenging areas relate to co-ordinated border management.
