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What Are We Talking about When We Talk about Digital Protectionism?

Author

Listed:
  • Susan Aaronson

    (George Washington University)

Abstract

For almost a decade, executives, scholars, and trade diplomats have argued that filtering, censorship, localization requirements, and domestic regulations are distorting the cross-border information flows that underpin the internet. Herein I use process tracing to examine the state and implications of digital protectionism. I make five points: First, I note that digital protectionism differs from protectionism of goods and other services. Information is intangible, highly tradable, and some information is a public good. Secondly, I argue that it will not be easy to set international rules to limit digital protectionism without shared norms and definitions. Thirdly, the US, EU, and Canada have labeled other countries policies’ protectionist, yet their arguments and actions sometimes appear hypocritical. Fourth, I discuss the challenge of Chinese failure to follow key internet governance norms. China allegedly has used a wide range of cyber strategies, including distributed denial of service (DDoS) attacks (bombarding a web site with service requests) to censor information flows and impede online market access beyond its borders. WTO members have yet to discuss this issue and the threat it poses to trade norms and rules. Finally, I note that digital protectionism may be self-defeating. I then draw conclusions and make policy recommendations.

Suggested Citation

  • Susan Aaronson, 2018. "What Are We Talking about When We Talk about Digital Protectionism?," Working Papers 2018-13, The George Washington University, Institute for International Economic Policy.
  • Handle: RePEc:gwi:wpaper:2018-13
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    References listed on IDEAS

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    1. Hosuk Lee-Makiyama, 2011. "Future-proofing world trade in technology: Turning theWTO IT Agreement (ITA) into the International Digital Economy Agreement (IDEA)," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 66(03), pages 279-322, September.
    2. Wunsch-Vincent, Sacha, 2006. "The Internet, cross-border trade in services, and the GATS: lessons from US–Gambling," World Trade Review, Cambridge University Press, vol. 5(3), pages 319-355, November.
    3. Susan Ariel Aaronson & Patrick Leblond, 2018. "Another Digital Divide: The Rise of Data Realms and its Implications for the WTO," Journal of International Economic Law, Oxford University Press, vol. 21(2), pages 245-272.
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    Cited by:

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    2. Frederic Boissay & Torsten Ehlers & Leonardo Gambacorta & Hyun Song Shin, 2021. "Big Techs in Finance: On the New Nexus Between Data Privacy and Competition," Springer Books, in: Raghavendra Rau & Robert Wardrop & Luigi Zingales (ed.), The Palgrave Handbook of Technological Finance, pages 855-875, Springer.
    3. Susan Aaronson, 2021. "Can Trade Agreements Solve the Wicked Problem of Disinformation," Working Papers 2021-12, The George Washington University, Institute for International Economic Policy.
    4. Lijuan Yang, 2023. "Recommendations for metaverse governance based on technical standards," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    5. G. M. Aubakirova & F. M. Isatayeva, 2021. "New Approaches to the Construction of a Diversified Economy: the Experience of Kazakhstan," Studies on Russian Economic Development, Springer, vol. 32(6), pages 712-718, November.

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    More about this item

    Keywords

    data; internet; e-commerce; digital trade; data flows; WTO; protectionism;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F6 - International Economics - - Economic Impacts of Globalization

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