The Missing Chapter: Integrating WTO-Aligned Digital Trade Rules into Future FTAs of Developing Countries

Abstract

The rapid expansion of digital trade has transformed global commerce, yet many developing countries’ Free Trade Agreements (FTAs) lack comprehensive and WTO-aligned digital trade rules. This omission—the “missing chapter”—creates regulatory uncertainty, limits market access, and impedes these countries’ integration into the global digital economy. This study examines the gap in digital trade provisions within developing countries’ FTAs by analysing existing agreements and the evolving WTO framework on digital trade. Employing doctrinal and comparative analysis, the research identifies key areas where WTO disciplines, such as cross-border data flows, data localization restrictions, electronic commerce facilitation, and cybersecurity, remain underrepresented in FTAs involving developing nations. The study proposes a framework for integrating WTO-consistent digital trade rules into future FTAs, emphasizing development-sensitive flexibilities, capacity building, and policy space preservation. Key findings highlight that aligning digital trade chapters with WTO standards can enhance regulatory coherence, promote digital inclusion, and strengthen developing countries’ participation in the digital economy. This article contributes to the discourse on digital trade governance by offering actionable recommendations for negotiators seeking to bridge the digital trade divide in developing countries through more robust, harmonized trade agreements.