In this non-paper, we introduce a deductive approach rather than the traditional inductive approach to the discussion of issues of the digital trade. Rather than starting with business surveys or Member-specific problem identification, which is the inductive approach that has been employed previously, we should try using the deductive approach model to clarify the fundamental problems of digital trade versus traditional trade. Using the deductive approach, we see that the atoms/bits transformation and the static/mobile Negroponte switch change the trade pattern significantly. This deductive approach helps us condense the existing diversified topics being discussed in WTO into 5 or 6 specific ones, which we shall cover in our companion technical reports.
We encourage Members to use new concepts such as the deductive approach and Negroponte transformations to facilitate future policy discussions on e-commerce and digital trade.