Panel Speakers:

Dan Esty, Hillhouse Professor of Environmental Law and Policy, Yale School of the Environment and Yale Law School – on public service leave at the World Trade Organization

David Livingston, Managing Director for Clean Energy & Senior Advisor, U.S. Special Presidential Envoy for Climate John Kerry

Kelly Milton, Assistant U.S. Trade Representative for Environmental and Natural Resources, Office of the United States Trade Representative

Julio José Prado, Minister of Production, Foreign Trade, Investment and Fisheries, Ministry of Production, Foreign Trade, Investments and Fisheries of Ecuador

Ambassador Jo Tyndall, Director, Environment Directorate, OECD

Moderator: Maureen Hinman, Co-Founder, Chairman, Silverado Policy Accelerator

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This is all the more necessary that the 2019 elections have resulted in a rebalancing of political forces at the European Parliament which will necessitate to review the trade environment nexus at EU level for several reasons:

• environment protection featured prominently among the political signals sent by the voters;
• it is, by essence, a global public good issue, better dealt with at EU level;
• the EU is seen as having so far exercised a leadership role in this area of global governance;
• trade is one of the few really “federalised” EU competences;
• as such, it remains the main EU lever to influence the global agenda, starting with SDGs.

This is confirmed by noticeable developments since the elections, such as the new President of the Commission declaring that she is in favour of border carbon taxes (a first), or by the growing debate on the preservation of the rainforest that have surfaced as a result of the EU and Mercosur’s agreement reached after 25 years of bilateral trade negotiations.

Even if trade measures are not among the “first best solutions” to tackle environmental degradations, revisiting the EU stance in this area appears, both necessary and urgent, starting with climate change related aspects. This is also true about other issues such as biodiversity or ocean governance. It is a highly complex matter, necessitating deep analytical and technical investigations in several areas, new political debates, and search for operational
and implementable solutions.

To download the full paper, please click here.

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As the global leader in digital trade, the United States has a big stake in ensuring that international rules facilitating its continued expansion are put in place.

The Obama Administration’s bold agenda to establish these rules across Europe and the Asia-Pacific did not yield lasting success, with the failure of the Transatlantic Trade and Investment Partnership (TTIP) negotiations and the Trump Administration’s withdrawal from the Trans-Pacific Partnership Bodog Poker (TPP). Nonetheless, the key elements of US digital trade policy enjoy bipartisan policy support, providing a promising basis for the next Democratic administration to re-engage with Europe, our biggest digital trading partner.

Part 1 of this issue brief explains why international rules are needed to protect and facilitate digital trade. Part 2 describes the turbulent past decade in transatlantic trade relations and the growing importance of US digital trade with Europe. Part 3 explains why the US government and the European Union (EU), during TTIP negotiations, were unable to agree on a digital trade chapter, including a key provision guaranteeing the free flow of data. Finally, Part 4 suggests how two parallel sets of trade negotiations beginning early this year — between the EU and the United Kingdom (UK) and between the United States and the UK — may help a future US Administration end the transatlantic stand-off over digital trade.

To view the full report at Progressive Policy Institute, please click here

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Economies with already strong underlying information technology are proving to be more resilient than those without this infrastructure already in place.  At a recent event, I listened to officials from Cambodia and Kenya explain how their strong digital track records are paying off during the current crisis.

In Cambodia, which had previously established an enabling regulatory environment around digital financial services, citizens were already accustomed to sending and receiving payments digitally, making it possible for the government to add tax functionality on to the pre-existing digital payment platforms. Similarly, in Kenya, citizens’ relative comfort with digital payments led to a recent uptick in the use of its e-tax system. The Kenya Revenue Authority has also been able to rely on its digital systems to obtain real-time data on emergency-related shifts in consumer spending, which helps the agency to predict the impact on revenues.

But the type of digital transformation necessary to get to this level is comparable to moving a boulder to the top of a mountain. It’s a long, arduous process, and it’s possible to lose footing along the way. Many economies, especially developing countries, rely on deeply entrenched systems and fight an uphill battle when it comes to public trust. In fact, many of the world’s lowest-income economies struggle to collect enough taxes to cover basic state functions. Add a global crisis into the mix and these tenuous relationships between taxman and citizen are likely to fall apart.

The current crisis provides an opportune moment to rework revenue strategies to be more digitally driven.  Tax administrations must shift the focus from simply processing taxpayers’ data to proactively improving compliance, policies, and efficiency. Modern revenue strategies will, to a large extent, have to run on digital platforms because they are necessary to effectively pursuing critical policy objectives such as:

• Broadening the tax base. Data-centric approaches can be used to close gaps and take advantage of missed opportunities without necessarily increasing the level of taxation. Such measures include: requiring e-commerce platforms to report sales in order to facilitate the collection of VAT and customs duties; analyzing past tax filings of citizens seeking relief under current stimulus programs to verify bodog casino compliance; and supporting the collection of property taxes by matching the land registry with the taxpayer file.
• Enhancing transparency and trust. Establishing electronic platforms for tax registration, filing, payment, and dispute resolution make processes clear for citizens, provide assurances that tax payments end up in an actual government account, and reduce the risk of officials abusing their discretion. Implementation of technologies such as the MIT-incubated OPAL (Open Algorithm) provides researches, think tanks, or any citizen the ability to independently analyze tax data without having access to personally identifiable information. This will provide unprecedented transparency.
• Reducing the compliance burden. We know from a survey of 190 economies that it is getting easier for people and businesses to pay taxes. There are now 106 economies using electronic filing systems, double the number in 2004. Digital technology is reducing the time spent on paying taxes as well as the total number of individual payments taxpayers must make each year.
• Improving administrative efficiency. As governments mature in their use of information technology, they will be able to achieve substantial efficiency gains. For countries beginning their digital transformation, AI-enabled data capture of paper-based records can speed up the digitalization and reliability of the data. Others find significant value through the simplification of procedures and matching of filing information with third-party data sets. For more advanced tax administrations, the use of advanced analytics to identify underreporting will be a key value driver. In the current crisis, some administrations are also rethinking their balance between offsite and onsite audits.
• Advancing growth and other policy objectives. As the central depository of citizen data, tax administrations play an increasing role in advancing non-tax related objectives. For example, by using taxpayer data to: verify beneficiaries under cash transfer programs, monitor the consumption of goods with detrimental health impacts (e.g., alcohol and cigarettes), model tax policy responses to curb carbon emissions, identify growth drivers in the economy, detect labor market violations, and ascertain the well-being of vulnerable groups in society.

Progress toward these objectives has been uneven and the World Bank cannot get this “modernization boulder” to the top of the mountain alone. To help countries accelerate digital transformation, we need partners with multidisciplinary expertise who can help pull while we push. To that end, we co-founded the Prosperity Collaborative. This new multi-stakeholder initiative is dedicated to helping countries create better tax systems through innovative technology. Together with EY, New America, MIT and the Boston Global Forum, we are just getting started on a journey to bring tangible benefits to developing countries.  Our current priorities are –

• Developing global solutions to build capacity among developing countries and emerging market to undertake a successful digital transformation of their tax administrations;
• Promoting thought leadership on tax and technology;
• Exploring the creation of a mechanism to identify, prioritize, fund, and implement digital public goods for use by tax administrations;

By bringing these leading organizations together under the banner of the Prosperity Collaborative, we aim to create solutions that are well-targeted and easily replicable across different country contexts. Ultimately, we aim to create digital public goods that can be built once and deployed anywhere.

To view the original World Bank Blog post, please click here

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Copyright International Centre for Trade and Sustainable Development

To read the original article published by the Centre for Trade and Sustainable Development please click  here.

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Interestingly, there is no specific SDG trade goal. Among the 169 SDG targets, there are few references to trade-related objectives, the key ones being promotion of the rules- based multilateral trading system, and implementation of duty-free and quota-free market access for least developed countries, with a doubling of their export market share.

This book comes at a timely moment. The international development community, as well as policy makers in both developed and developing countries, are currently developing road maps on how to best achieve the SDGs. At the same time, there has been a backlash against globalization, mostly in developed economies. The benefits of trade opening are being increasingly called into question. It is therefore crucial to fully understand how trade interacts with the various goals enshrined in the SDGs.

Trade integration holds many opportunities for development, but, at the same time, can have risks that need to be managed. The objective of this book is to map out a triple-win scenario: when good trade policy spurs international trade, contributes to development-friendly outcomes, and supports achieving the SDGs. This book provides guidance by leading experts on how to best achieve this.

The nexus between trade and development is not new. Traditionally, trade policy specialists have focused on the income channel, i.e., that openness to international flow of goods and services can increase national income, which in turn enables moving forward on resource- intensive development issues. This argument has been received with a certain skepticism; however, there are various other channels through which trade can contribute to achieving the SDGs.

For example, many countries use tariff and non-tariff measures on pharmaceuticals and other medical products. These policies hinder poor people’s access to those goods, and undercut the goal of promoting healthy lives in developing countries. Free trade in health-related goods and services could potentially improve developing countries’ health care access, with corresponding positive impacts on people’s lives.

Trade in health services is subject to even bigger barriers that heavily impede access to health bodog poker review care by millions of patients worldwide. The same logic applies to environmental goods and services, where tariff and nontariff barriers increase their cost, hampering the fight against climate change.

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It does the American economy no long-term good to only keep the big box factories where we are now assembling ‘American’ products that are composed primarily of foreign components…. We need to manufacture those components in a robust domestic supply chain that will spur job and wage growth.

***

© Washington International Trade Association. 

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