The panel cited some figures on the increased importance of the Internet for trade. The Internet had become a new Silk Road erasing distance and connecting businesses, particularly small ones, with world markets. The Internet was the most powerful force in the global economy; in some countries a 10 per cent increase in broadband results in a 2 per cent increase in exports. Also, 50 per cent of cross-border trade in services was enabled by the Internet.

The panel also highlighted the inadequacy of current WTO rules to address the problems of the Internet and protect its access. The General Agreement on Trade in Services (GATS) did not anticipate the growth of the Internet. The GATS framework of rules dates back to the late 1980s and early 1990s, when a lot of the current services that can be delivered through the Internet did not exist. Multilateral digital regulation lags behind innovation a great deal, he said. Trade conflicts resulting from digital issues are the main source of GATS disputes. There was the need for governments and the multilateral trade system to encourage the growth of the Internet given its importance for commerce.

Internet businesses face three problems that should be dealt with at a multilateral level: market liberalization, regulation and harmonization. Market liberalization was important as some countries did not let certain companies operate in their market. Regulation was a problem as companies had to comply with burdensome requirements to operate in a market. Harmonization was an issue since companies had to comply with different regulations. There was also the problem of ISP liability for content. The biggest barriers these days are regulations. More than 40 countries are blocking the Internet in one way or another.

What can the multilateral trading system do to maintain the free flow of information on the Internet? A basic reference paper on telecoms and the GATS annex date back to the 1990s and these need updating. A new Information Technology Agreement (ITA) is needed to cover some of the new issues. The Internet came about because of services liberalization in the GATS. The breadth of GATS Article XIV exceptions needs clarification. Mode IV liberalization is also important.

Protecting the free flow of information is not an East-West, North-South issue; all countries — developed and developing — stand to benefit. There is a business interest in getting rules on Internet trade into the WTO. Regional trade agreements could not fully address the issues although some recent ones, like the Korea-US free trade agreement, did contain provisions on Internet commerce. Regional trade agreements are very light on rules and they face the same issues and problems as the DDA but with fewer gains.

Business and governments need to work together to prevent abuses and illegal activity on the Internet but the solution was not “shooting the messenger”. Google has published an Internet transparency and traffic report to provide information on what governments are doing to restrict access to the Internet and how businesses are complying with data requests.

In conclusion, trade has moved online and trade barriers have moved with it. For Google, it is important for WTO circles to understand how crucial the Internet has become for trade and economic growth. Having this session in the Public Forum is a step forward in increasing this understanding.