The regulation of cross-border e-commerce in Latin American trade agreements (University of Chile)

Arguments

Address issues to move towards a more secure, resilient, inclusive and sustainable Latin American digital market

Supporting facts:

• Review the main advances in the creation of a regional digital market in Latin America.

• Discuss the achievements in the regulations of cross-border electronic commerce in trade agreements in the region.

Topics: digital trade, resilience, digital market, Latin America

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Fabiola Wüst Zibetti expresses gratitude for the participation and involvement of multiple stakeholders in the discussion about cross-border e-commerce regulation in Latin America.

Supporting facts:

• Multiple stakeholders including the private sector, academic sector, ECLAC sector, and the public sector were involved in the session.

• Discussions also included trade agreements and electronic commerce issues.

Topics: Regulation of Cross-border e-commerce, Multi-stakeholder perspective, Latin America

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Report

During the discussion, the speakers, including Juliana Domingues, Nicolás Albertoni, Ximena Olmos, Inácio Sánchez, and Sofia Canevesi, expressed their gratitude for their valuable presence. The focus of the discussion was on the main advances in creating a regional digital market in Latin America and the achievements in regulating cross-border electronic commerce in trade agreements.

The speakers highlighted the importance of addressing issues to move towards a more secure, resilient, inclusive, and sustainable Latin American digital market. They acknowledged the progress made in the region in terms of digital trade, resilience, and digital market development.

This is in alignment with SDG 9: Industry, Innovation, and Infrastructure, SDG 10: Reduced Inequalities, and SDG 17: Partnership for the Goals. The session also involved multiple stakeholders, including the private sector, academic sector, ECLAC sector, and the public sector. It was encouraging to see the involvement of these diverse stakeholders, as it signifies a collaborative approach in addressing cross-border e-commerce regulation in Latin America.

The discussions also covered trade agreements and electronic commerce issues, emphasizing the importance of a multi-stakeholder perspective. SDG 8: Decent Work and Economic Growth and SDG 9: Industry, Innovation, and Infrastructure are relevant to these discussions. Fabiola Wüst Zibetti expressed gratitude for the participation and involvement of multiple stakeholders in the discussion on cross-border e-commerce regulation.

She emphasized the need to continue these discussions and indicated an open and continuing stance towards dialogue on cross-border e-commerce and its regulations. This highlights the importance of ongoing collaboration and knowledge-sharing in advancing cross-border e-commerce in Latin America. In conclusion, the discussion session focused on the main advances in creating a regional digital market and the achievements in regulating cross-border electronic commerce in trade agreements in Latin America.

The presence of multiple stakeholders and the interest expressed by Fabiola Wüst Zibetti in continuing the discussions signifies the commitment towards further developing these issues. It is evident that there is a shared vision for a more secure, resilient, inclusive, and sustainable Latin American digital market, and ongoing dialogue and collaboration are crucial in achieving this goal.

Arguments

Stresses the importance of discussing regulation of cross-border e-commerce in Latin America from different multi-stakeholder perspective

Supporting facts:

• Stressed that the discussions included perspectives of private sector, academic sector, ECLAC sector, and public sector represented by Nicholas Albertoni

Topics: Regulation, cross-border e-commerce, Latin America, multi-stakeholder perspective

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Report

The discussions regarding the regulation of cross-border e-commerce in Latin America emphasized the importance of approaching the topic from a multi-stakeholder perspective. It was stressed that including various sectors in these discussions, such as the private sector, academic sector, ECLAC sector, and the public sector as represented by Nicholas Albertoni, was crucial for a comprehensive understanding and effective regulation.

By engaging stakeholders from different sectors, a wide range of perspectives and expertise were brought to the table. This multi-stakeholder approach ensured that the discussions were inclusive and representative of various interests and concerns. It also helped foster collaboration among different actors involved in cross-border e-commerce regulation in Latin America.

Furthermore, there is significant interest in further developing issues related to the integration of electronic commerce into trade agreements and internet governance. This indicates an acknowledgment of the growing importance of e-commerce in international trade and the need to address the associated legal and regulatory challenges.

By highlighting this interest, it is evident that stakeholders recognize the potential benefits of integrating e-commerce into trade agreements and the significance of effective internet governance for its sustainable growth. From an analytical perspective, these discussions align with several Sustainable Development Goals (SDGs), including SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), and SDG 16 (Peace, Justice and Strong Institutions).

This suggests that stakeholders recognize the potential of regulating cross-border e-commerce to contribute to achieving these goals. It also reflects the growing recognition of the interconnectedness between economic development, innovation, and the establishment of effective institutional frameworks. In conclusion, the discussions on regulating cross-border e-commerce in Latin America took into account the viewpoints of different stakeholders, ensuring a comprehensive understanding and collaboration among various sectors.

The interest in further developing issues related to including electronic commerce in trade agreements and internet governance signifies the importance of driving economic growth and achieving sustainable development. The alignment of these discussions with relevant SDGs further strengthens the significance of the multi-stakeholder approach and the contribution of cross-border e-commerce regulation towards broader development goals.

Arguments

Strong need for transparency in data treatment and consumer protection in the digital age

Supporting facts:

• Growth of e-commerce and digital platforms

• Demand for high transparency in data treatment

• Vulnerability in digital markets across all generations, social and economic backgrounds

• Enactment of new law in Brazil regarding data protection in 2020

• Consumer data incidents handled through collaboration with Brazilian Data Protection Authority

Topics: Consumer Protection, Data Treatment, Digital Market

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Technological platforms can serve as effective tools in resolving consumer disputes

Supporting facts:

• Consumidor.gov.br, a direct communication platform between consumers and providers that resolved more than 3 million cases during the pandemic

• Effective incorporation of specific digital platforms and online marketplaces into Consumidor.gov.br

Topics: Dispute Resolution, Digital Platforms, Consumer Protection

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Report

Consumer protection and data treatment in the digital age have become increasingly important due to the growth of e-commerce and digital platforms. This has resulted in a high demand for transparency in how data is treated and protected. It is crucial to address the vulnerabilities present in digital markets, which affect individuals from all generations and social backgrounds.

In Brazil, a significant step was taken in 2020 with the enactment of a new law regarding data protection. This law aims to ensure that consumer data is treated and handled in a secure manner. To handle consumer data incidents, collaboration with the Brazilian Data Protection Authority has been established.

This collaboration is essential in resolving any issues that may arise and in upholding consumer rights. Technological platforms have proven to be effective tools in resolving consumer disputes. Consumidor.gov.uk, in particular, has facilitated direct communication between consumers and providers.

During the pandemic, this platform resolved over 3 million cases, showcasing its effectiveness in addressing consumer concerns. Incorporating specific digital platforms and online marketplaces into Consumidor.gov.uk further enhances its dispute resolution capabilities. Investing in consumer education and empowerment is of utmost importance, especially for vulnerable groups.

This investment aims to mitigate the risks associated with scams and abusive practices in digital markets. Individuals belonging to certain groups, such as elders, low-income citizens, and those with disabilities, may be more vulnerable to internet services and products. Therefore, it is crucial to provide them with the necessary knowledge and skills to navigate the digital landscape safely.

International cooperation plays a vital role in shaping a healthy digital environment. Through bilateral agreements, countries like Brazil have been able to establish technical cooperation with Uruguay and Argentina. This cooperation allows for collaborative efforts in addressing cross-border consumer conflicts.

Moreover, involving civil society in the democratic process is essential to ensure that diverse perspectives are considered and consumer rights are protected. In conclusion, transparency in data treatment and consumer protection are crucial in the digital age. The growth of e-commerce and digital platforms has heightened the need for clear regulations and secure data handling practices.

By investing in consumer education, resolving disputes through technological platforms, and fostering international cooperation, we can create a safer digital environment that protects and empowers consumers.

Arguments

E-commerce is relevant for Uruguay’s domestic business

Supporting facts:

• 91% of Uruguayan companies have an internet presence and with online sales of their products or services.

• In 2022, there was an average growth of 51% online sales companies compared to previous years.

Topics: E-commerce

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Mercosur is taking steps to establish a legal framework of e-commerce

Supporting facts:

• A decision of Mercosur in 2020 was the first step towards a legal framework

• E-commerce chapter included in Mercosur and Singapore agreement

• E-commerce is a part of conversations with the European Union and Canada

Topics: E-commerce, Legal framework, Mercosur, Trade agreement

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Report

Uruguay has witnessed a significant rise in e-commerce, with an impressive 91% of companies in the country now having an online presence and conducting online sales of their products or services. The growth in online sales has been substantial, with a remarkable 51% average increase observed in 2022 compared to previous years.

Notably, Mercosur, a regional trade bloc comprising countries in South America, is actively working towards establishing a legal framework for e-commerce. A crucial decision was made in 2020, marking the first step in this direction. It is an encouraging development, demonstrating Mercosur’s commitment to recognizing the importance of e-commerce and its potential to transform trade practices.

Moreover, Mercosur has included an e-commerce chapter in their recent agreement with Singapore, further emphasizing their focus on this aspect of trade. Additionally, ongoing discussions are taking place to include e-commerce in agreements with the European Union and Canada, highlighting the bloc’s dedication to ensuring comprehensive regulations and opportunities for e-commerce.

The increasing emphasis on e-commerce is seen as a vital factor for regional trade and innovation. The signing of the agreement with Singapore, which specifically includes an e-commerce chapter, is a clear indication of the importance assigned to this sector.

Furthermore, negotiations with the European Union and Canada further reinforce the view that e-commerce is a central feature in shaping the future of trade. Overall, the growth of e-commerce in Uruguay, coupled with Mercosur’s efforts to establish a legal framework for e-commerce, reflects a positive trajectory for the region.

The substantial increase in online sales and the high percentage of companies with an online presence underscore the relevance and potential of e-commerce in Uruguay. With the integration of e-commerce chapters in trade agreements and ongoing discussions with key partners, the groundwork is being laid for a comprehensive and thriving e-commerce ecosystem.

This is likely to have far-reaching implications for trade practices, regional integration, and innovation in the future.

Arguments

MercadoLibre has strong content policies in place to prevent illicit or unsafe products from being listed on the platform.

Supporting facts:

• MercadoLibre opreates a marketplace in 18 Latin countries, making it one of the top 10 most visited e-commerce platforms worldwide.

• Prohibited product policy, intellectual property policy and a code of conduct are key user content policies implemented by MercadoLibre.

Topics: ecommerce, product safety, policy enforcement

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Report

MercadoLibre, one of the top 10 most visited e-commerce platforms worldwide, has implemented robust content policies to ensure the safety and integrity of its marketplace. These policies include a prohibited product policy, an intellectual property policy, and a code of conduct, which aim to prevent illicit or unsafe products from being listed on the platform.

By strictly enforcing these policies, MercadoLibre aims to provide its users with a secure and reliable online shopping experience. The efforts made by MercadoLibre in collaboration with supervisory authorities have proven effective in combating illicit trade on the platform. In 2022, more than 5.5 million listings were removed from the platform due to policy infractions.

Notably, 96% of these listings were proactively detected by MercadoLibre’s internal efforts, demonstrating the company’s commitment to maintaining a safe and trustworthy marketplace. The remaining 4% of the listings were detected either based on user reports or with the assistance of governmental agencies.

This collaboration between MercadoLibre and supervisory authorities highlights the importance of regulatory compliance and public-private partnerships in combating illegal activities. By working closely with authorities, MercadoLibre has strengthened its efforts in identifying and removing illicit listings from its platform. This not only protects the interests of buyers but also promotes peace, justice, and strong institutions, in line with SDG 8 (Decent Work and Economic Growth), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 17 (Partnerships for the Goals) of the United Nations Sustainable Development Goals.

The implementation of strong content policies and the successful collaboration with supervisory authorities demonstrate MercadoLibre’s commitment to creating a safe and reliable e-commerce environment. By continuously refining and enforcing these policies, MercadoLibre aims to maintain its position as a trustworthy platform for online shopping while contributing to the achievement of the sustainable development goals.

Arguments

e-commerce as a tool to advance inclusive trade and development in Latin America and the Caribbean

Supporting facts:

• E-commerce in the region has grown significantly, especially since the pandemic.

• Brazil and Mexico are the main markets.

• Cross-border sales represented only 14 percent of total online sales in the region in 2022.

Topics: e-commerce, inclusive trade, development, Latin America and the Caribbean

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Governments supporting SMEs going online

Supporting facts:

• Countries have developed special programs to promote e-commerce.

• Initiatives are more concentrated on national markets.

• Only a few strategies targeting digital exporters or women were identified.

Topics: SMEs, government support, digital strategy

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Report

The analysis highlights the impact of e-commerce on inclusive trade and development in Latin America and the Caribbean. It emphasizes that e-commerce has experienced significant growth in the region, particularly since the outbreak of the pandemic. The main markets for e-commerce in this region are Brazil and Mexico.

However, cross-border sales remain relatively low, accounting for only 14 percent of total online sales in 2022. The analysis suggests that there is a need for trade agreements that specifically address e-commerce in order to further promote inclusive trade and development in the region.

It mentions that there are two groups of countries in Latin America and the Caribbean, each with different types of trade agreements. These agreements typically include a cooperation article that outlines the issues to be jointly addressed in the future.

Some Latin American countries have even included data protection provisions in their trade agreements. Furthermore, the analysis examines the opportunities for women-led businesses in the e-commerce sector. It highlights the existing gender gap in the digital economy, with women having fewer opportunities to participate compared to men.

However, it also notes that women-led export companies with a digital channel have shown greater resilience during the pandemic. These businesses are often found in sectors such as food and beverage, clothing and textiles, as well as service industries like tourism and travel-related services.

Additionally, the analysis explores the role of government support in promoting e-commerce among small and medium-sized enterprises (SMEs). It mentions that many countries in the region have implemented special programs to encourage SMEs to embrace e-commerce. However, these initiatives seem to be more focused on national markets, with few strategies specifically targeting digital exporters or women-led businesses.

In conclusion, the analysis underscores the potential of e-commerce to advance inclusive trade and development in Latin America and the Caribbean. It emphasizes the need for trade agreements that address e-commerce, highlights the opportunities for women-led businesses, and stresses the importance of government support for SMEs going online.

While there has been substantial growth in e-commerce in the region, policies and strategies need to be more inclusive and targeted to fully harness its potential for economic growth and reduced inequalities.