The links between and among digital trade, development, and inequality are multifaceted and ever evolving. They depend on what is understood as development and as inequality, concepts that transcend the North-South divide, and the fora in which these issues arise. Conceptually, development and inequality are intrinsically intertwined as the measures to address both are often complementary or even the same. In this essay, we consider development and inequality as pertaining to the ability of developing countries and least-developed countries (LDCs) to shape and participate in the digital economy, and particularly, the regulatory framework for digital trade. We explore how the relationships between digital trade, development, and inequality are addressed in the main venues for digital trade rulemaking: the World Trade Organization (WTO) and Preferential Trade Agreements (PTAs). We then examine two contentious issues in digital trade: the customs duty moratorium and data governance.

African trade and investment relations have been shaped by external partners and institutions, as well as Africa’s own aspiration for European Union-style regional economic integration. The continent’s economic trajectory has been mainly underpinned by economic liberalization. However, African countries have generally conservatively followed mainstream trade models, rules, and institutions, while being more activist and innovative in investment rulemaking for sustainable development. Unlike investor disputes, African countries also have limited experience in international trade disputes within their regional economic communities and at the World Trade Organization. The African Continental Free Trade Agreement offers African countries an opportunity to forge an ambitious and robust continental economic regime and to facilitate African economies’ industrialization. While progress has been steady in recent years, the fate of Africa’s economic integration within the continent and into the global economy largely hinges on the successful implementation of this agreement.

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