interoperable data standards in trade

TENTH TRIENNIAL REVIEW

Proposal from Australia

Revision

The following submission, dated 28 June 2024, is being circulated at the request of the delegation of Australia.

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1  Background

1.1.  Digitalisation and digital technologies may facilitate access to international markets and reduce the costs of entry and barriers to trade, especially for MSMEs. A number of thematic sessions arising from recommendations under the 9^th Triennial Review explored matters relevant to digital trade within scope of the TBT Agreement. A recurring theme in all these sessions was the importance of interoperability and the value of international standards for achieving it. This proposal explores these topics and proposes building upon them in the context of data standards.

1.2.  In this digital age, goods increasingly rely on or generate data. This presents challenges and opportunities which are relevant to implementation of the TBT Agreement. Technical regulations across a range of sectors increasingly include expectations around data, and its management. A range of technical regulations notified to and discussed in the TBT Committee set expectations around data management, sharing, storage, protection, provision of information to consumers through digital labelling, and more. Digital tools also offer significant opportunities for the transparency, shareability and traceability of conformity assessment data – something which was recently highlighted in the European Union Commission's 5 June 2024 presentation to the TBT Committee.

1.3.  However, traders and regulators will struggle to access the benefits of the growth of digital trade and access the benefits digital data can provide for meeting conformity assessment requirements if faced with divergent data standards. Trade barriers may arise where regulatory requirements are not based on international standards (as per Articles 2.4 and 5.4 of the TBT Agreement) and are not designed to facilitate the interoperability of regulatory systems.

1.4.  This can pose particular challenges for MSMEs who may struggle to meet multiple different data standards (whether for products themselves or to provide the necessary information for conformity assessment procedures) at once. In the absence of interoperable data standards, large companies with resources for digital transformation and greater capacity to meet fragmented requirements can gain an unfair competitive advantage.

1.5.  We make particular reference to the importance of interoperable data standards in light of the significant role data plays in the development and implementation of regulatory systems intended to ensure sustainability credentials in trade. Sustainability goals are driving changes that will profoundly affect trade and the role of trade-related data. Support for sustainability outcomes would be an important area of focus to highlight the value of interoperable data standards in trade.

2  Proposal

2.1.  Australia proposes a thematic session to explore the importance of interoperable data standards for digital trade, with a view to:

a._    Supporting the reduction of barriers to trade;

b._    Supporting sustainable trade outcomes; and

c._    Supporting a better understanding of the significance of interoperability in a data context.

2.2.  Topics and areas of focus could include:

a._    The cross-sectoral relevance and application of data standards, particularly in the context of cross-sectoral sustainability goals;

b._    The opportunity interoperability presents to maximise the potential transparency, and traceability benefits of digital data in conformity assessment procedures, including establishing sustainability credentials.

c._    Presentations by interested stakeholders, including Members, industry, international organizations, or non-government organizations, that have introduced or are in the process of introducing systems or regulations having cross-sectoral and cross-jurisdictional application that leverage interoperable data standards, particularly in relation to sustainability outcomes, with a view to identifying the necessary prerequisites for interoperability, any implementation challenges and the potential for further extension.

2.3.  These discussions would be framed in the context of the role of data standards in technical regulations under the TBT Agreement and the opportunities which may arise from adoption of interoperable data standards for implementation and management of conformity assessment procedures. This proposal is intended to encourage information exchange in a similar vein to previous digital trade thematic sessions.

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