Report titled “Trading with Intelligence: How AI Shapes and is Shaped by International Trade” released | Current Affairs | Vision IAS
News Today Logo

    Report titled “Trading with Intelligence: How AI Shapes and is Shaped by International Trade” released

    Posted 23 Nov 2024

    2 min read

    This report by World Trade Organization (WTO) examines key trade-related policy considerations raised by Artificial Intelligence (AI) and its convergence with global trade, along with WTO’s critical role in facilitating AI-related trade.

    Implications of AI on Trade

    • Regulation Fragmentation:  Differences in approaches to AI regulation may have particular impact on trade opportunities for MSMEs.
    • Concentration of Industry: Concentration of development and control of AI technology in large economies and companies creates significant trade divide.
    • Data Governance challenges: Restrictions on cross-border data flows can increase costs for firms and negatively impact trade.  

    Opportunities from AI in Trade

    • Overcoming Trade Costs by automating and streamlining customs clearance processes, border controls, and predicting risks.
    • Increase in global real trade growth by 14% until 2040 in case of universal AI adoption and high productivity growth.
    • Transforming patterns of trade in services, especially digitally delivered services and those that rely on manual processes.

    Impact of Trade on AI

    • Increasing Cost: Tariffs on Information Technology equipment affect access to and cost of essential AI hardware. 
    • Cross-border restrictions: Restrictions in both movement of experts and data can negatively impact AI innovation and development.
    • Treaty Provisions: Provisions regarding personal information and privacy included in Regional Trade Agreements has implications for data usage in AI. 

    WTO's role for Convergence of AI and Trade

    • Promoting global convergence through transparency provisions in WTO agreements and promoting constructive dialogue. 
    • Promoting AI Development: General Agreement on Trade in Services (GATS) facilitates the development and uptake of AI.
    • Minimizing International negative spillovers through non-discrimination principle and Agreement on Trade-Related Investment Measures (TRIMS). 
    • Promote Inclusiveness through special and differential treatment and technical assistance for developing economies. 
    • Tags :
    • Artificial Intelligence (AI)
    • Global Trade
    • AI and Trade
    Watch News Today
    Subscribe for Premium Features