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No More Strategical Neutrality on Technological Neutrality: Technological Neutrality as a Bridge Between the Analogue Trading Regime and Digital Trade

Published online by Cambridge University Press:  04 May 2021

Dongchul Kwak
Dongchul Kwak*
Affiliation:
School of Economics and Trade, Kyungpook National University
*
Email: kwakdc@knu.ac.kr
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Abstract

The World Trade Organization (WTO), a unique multilateral trading regime, has failed to establish its relevance to the digital nature of trade. This article revisits the ‘principle of technological neutrality’ to make the cross-border supply of services by electronic means subject to the current rules-based trading regime. I argue that the principle of technological neutrality could help resolve a number of thorny legal issues: confirming the applicability of the General Agreement on Trade in Services (GATS) rules to the delivery of services by electronic means; providing a guideline to determine the likeness of services in the era of digital trade; and backing up an evolutionary approach to interpreting the GATS schedules of commitments. However, the WTO adjudicatory bodies have been reluctant to rely on the principle of technological neutrality, which is referred to as strategic neutrality in this article. This article urges the WTO adjudicatory bodies to abandon their strategically neutral position on technological neutrality immediately. It also explores ways to incorporate the principle of technological neutrality into the world trading system at the bilateral, plurilateral, and multilateral levels.

Keywords

Technological neutralityinternational trade lawdigital tradeGATSlikeness
Type
Original Article
Information
World Trade Review , Volume 21 , Issue 1 , February 2022 , pp. 18 - 32
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press

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Footnotes

*An earlier version of this paper was presented at the Society of International Economic Law's Asian International Economic Law Network (AIELN) 6th Biennial Conference on 26–27 October, 2019. I would like to thank Professor Dukgeun Ahn and Professor Shin-yi Peng for their valuable comments on earlier draft.

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