Modernising Digital Trade Rules: Addressing the Digital Governance Gap in WTO Rules

In the context of the deep integration of the global digital economy, digital trade has become the core engine of international trade growth. However, the current rule system of the World Trade Organisation (WTO) is ill-equipped to address the challenges posed by new trade forms such as artificial intelligence and cross-border data flows, with the digital governance divide becoming increasingly evident. This paper takes 'modernisation of digital trade rules as its core theme, employing case law analysis to systematically examine the institutional shortcomings of WTO rules in the field of digital trade and propose targeted improvement pathways. The study identifies three core issues with the current rules: first, the absence of a dedicated digital trade agreement has resulted in institutional gaps; second, rule provisions lag behind the development of emerging technologies; and third, the abuse of security exception clauses has created enforcement challenges. Based on an analysis of typical WTO cases, this paper proposes reforms in three areas: improving existing rules, establishing a dedicated digital trade mechanism, and innovating dispute resolution methods. These reforms aim to achieve a balance between data free flow and security regulation, thereby safeguarding the development rights of developing countries in digital trade.