Autonomous Vehicle Standards under the Technical Barriers to Trade Agreement Disrupting the Boundaries?

Abstract

This chapter uses the case of CAV standards to explore how this “disruptive innovation” may alter the boundaries of international trade agreements. Amid the transition to a driverless future, the transformative nature of disruptive innovation renders the interpretation and application of trade rules challenging. The chapter focuses on two issues – the goods/services boundaries, and the public/private sector boundaries. Considering the data-driven business models and the integrated technical features, CAV-related safety standards may disrupt the scope of coverage of the TBT Agreement. As CAVs evolve from level 0 to level 5, how should CAV standards be reclassified? In addition, for levels 1–4, in which humans and CAVs are co-drivers, the industry-led voluntary standards provide a baseline for judges in the evaluation of appropriate levels and evidence of CAV safety prior to deployment, which may become a strong incentive for CAV manufacturers to comply with “guidance,” “best practice,” or “codes of conduct.” To what extent should a WTO tribunal assume the responsibility of members with regard to CAV safety standards prepared and published by a private entity? The development of disruptive innovation involves changes in governance frameworks and calls for new governance approaches that break the boundaries of existing trade disciplines.