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New rules for the digital economy and multilateral cooperation

  • Author Kyu Yub Lee
  • Date2020-03-18

New rules for the digital economy (WTO e-commerce, BEPS) call for multilateral cooperation and coordination. The bottom line for new rules should stem from balance and fairness considerations in a comprehensive way. New rules for digital trade should embrace consumers, small-and-medium-sized firms, and developing countries, while new taxation rules should be designed as least distortive as possible. Also, new rules for digital trade and digital tax should not discourage innovators and inventors from developing digital technology as general purpose technology aimed at global economic prosperity. Digital technology has been observed to enhance environmental and financial issues in Africa, Southeast Asia and elsewhere. Multilateral cooperation and coordination towards new rules for digital trade and digital tax enable us to reap full benefits from the digital economy and share them across developed and developing countries. I hope that the upcoming developments we will see in digital technology, together with the new rules we will eventually agree upon, can expedite the era of the 4th industrial revolution, digital disruption, or digital transformation - whichever term you choose.

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