Trade Rules for Industry 4.0 Why the Technical Barriers to Trade Agreement Matters Even More

Abstract

The convergence of AI, robotics, 3D printing, blockchain and the Internet of Things into digitally connected networks of production, communication and consumption is driving the Fourth Industrial Revolution. Recent notifications of draft regulations to the TBT Committee show that Industry 4.0-related regulations are increasing in number and variety. There is a risk that the interconnectivity and interoperability required by Industry 4.0 could be hampered by discriminatory or unnecessarily divergent standards and regulations. This chapter discusses how the existing principles and disciplines in the TBT Agreement as well as practices and guidance developed by the WTO TBT Committee could help avoid unnecessary regulatory diversity and reduce trade costs. It argues that the TBT Agreement, by promoting global regulatory coherence (harmonization via international standardization) and global regulatory cooperation and convergence (via Good Regulatory Practices, Equivalence, Mutual Recognition), will assume even greater importance as standards and regulations are developed for Industry 4.0.