Digital Product Classification Issues In E-commerce Analysis

Classification of digital products holds pivotal status in WTO E-Commerce negotiation. Butbecause of much controversy exist in this area;the classification issue has blocked the wholenegotiation on regulation of E-Commerce. For the substantial points, the only consensusbetween the parties is to prolong the moratorium on "electronic transmission" for many times.But in the opinion of the writer, this can only be a temporarily substitute method. Negotiatingon resolution of the classification issue, and applying corresponding WTO rules to the digitalproduct commerce will be a meaningful way. The proposal of "reference paper" onE-Commerce is also a valuable one. At present, China keeps ahead in the international trade inICT products, but still at an underway stage in the trade in digital products. Therefore, we arein dire need of giving more attention in this area, make more effort on legislation and study onWTO rules, and join in the negotiation for digital product more actively. In the E-Commercenegotiation under WTO framework, promoting and helping the developing country to activelyjoin in and gain more from international E-Commerce is not only meaningful for developingcountries, but also should be the basic standpoint jointly stuck to by the parties. Further more,"cultural exception" principle possesses important realistic meaning for the digital productregulation of WTO parties, especially in developing countries;its active meaning deserves tobe used for reference. For the trade in digital products, the application of GATT or GATS willbrings different degree of trade liberalization and different scope of permission for the partiesto control and restrict relative trade. Based on the status quo of the trade development ofdigital products, application of these two rules possesses different advantages anddisadvantages. Therefore, the writer attempt to propose that applying GATS, and in themeantime absorbing the more comprehensive "special and different treatment" for developingcountries in the GATT system to regulate the trade in digital products.