WTO, IDB and World Bank Report Highlights Untapped Digital Trade Potential in Latin America and the Caribbean

·         A new joint report by the WTO Secretariat, Inter-American Development Bank (IDB) and World Bank, titled “Digital Trade in Latin America and the Caribbean: Connecting Markets, Powering Growth,” examines how digital trade is reshaping the region’s integration with global markets.

·         Digitally delivered services exports have increased fivefold in LAC economies over the past two decades.

o    Growth has outpaced both goods exports and other services exports.

o    Despite this expansion, LAC accounts for only 2% of global digitally delivered services exports, indicating substantial untapped potential.

·         Further digitalisation could accelerate exports:

o    Greater adoption of digital technologies, combined with improvements in the policy environment of lower-performing economies, could increase LAC exports of digitally deliverable services by an estimated 4.5% annually on average.

·         Regional digital integration remains weak:

o    Intra-regional digital trade in LAC is significantly lower than in Europe, Asia and North America.

o    It is also well below the region's level of intra-regional goods trade.

o    This indicates considerable scope to expand cross-border digital services and activities within LAC.

Key Factors Affecting Digital Trade

The report identifies several areas that determine an economy's ability to participate effectively in digital trade:

·         Digital infrastructure and connectivity

·         Openness of markets for backbone digital inputs

·         Regulatory policies

·         Cross-border payment systems

·         Logistics and customs procedures

·         Export promotion

·         Firm-level capabilities

·         Digital skills

·         Access to finance

Policy Recommendations

·         The report provides governments with a menu of practical policy actions rather than a one-size-fits-all approach.

·         Individual LAC economies can develop customized digital-trade strategies based on their specific constraints and priorities.

·         Such strategies can help governments:

o    Prioritize reforms;

o    Mobilize financial and other resources; and

o    Coordinate with key stakeholders.

Key Takeaway

LAC has rapidly expanding digital-service exports but remains a small player in global digital trade. With stronger digital infrastructure, enabling regulations, efficient customs and payments, better skills and improved access to finance, the region could substantially increase digital exports and deepen intra-regional economic integration.

 

<The Full Report>

[ABS News Service/09.09.2026]

A new report by the WTO Secretariat, the Inter-American Development Bank (IDB) and the World Bank examines how digital trade is transforming the way Latin American and Caribbean (LAC) economies connect to international markets and identifies opportunities to unlock further growth, inclusion and development for the region.

The report, entitled "Digital Trade in Latin America and the Caribbean: Connecting Markets, Powering Growth", notes that, over the past two decades, exports of digitally delivered services have expanded fivefold in LAC economies, outpacing the growth of both goods and other services exports. At the same time, the region currently accounts for just 2% of world exports of digitally delivered services, pointing to considerable untapped growth potential.

The report estimates that further digitalization and new technologies, accompanied by stronger improvements in the policy environment of the relatively lower-performing economies, could raise the LAC region's exports of digitally deliverable services by 4.5% per year on average.

Digital trade also offers opportunities to deepen regional integration, the report notes. At present, intra-regional digital trade in LAC economies is limited compared to Europe, Asia and North America, and well below the level of intra-LAC goods trade, suggesting sizeable scope for expanding cross-border digital activity within the region.

The report examines the factors that play a critical role in shaping an economy's participation in digital trade. These include digital infrastructure and connectivity, market openness for backbone inputs, regulatory policies, cross-border payments, logistics and customs processes, export promotion and firms' capabilities, digital skills, and access to finance. Drawing on available information, the report assesses the position of LAC economies across these dimensions.

Based on the analysis, the publication presents a menu of practical policy actions that governments can pursue to enhance their participation in digital trade. Depending on their specific circumstances, challenges and priorities, LAC economies have a choice of initiatives that best fit their needs and may develop a customized plan that supports the prioritization of actions, the mobilization of resources, and the engagement of key stakeholders. The WTO, IDB and the World Bank can continue to play an important role in supporting their efforts by providing technical assistance, policy advice and financing in accordance with their specific mandates.