This article explores
sustainability issues in the context of the growing digital trade globally.
Increasing digital trade is leading to digital transformation of economies
across the globe. Governments are emphasizing on the development and adoption
of digital tools and technologies. Digital technologies are considered engines
of growth that help in increasing productivity, reducing transaction costs, and
achieving economies of scale through access to a larger population. However,
increasing digital trade is also leading to enhanced concerns for environmental
sustainability due to higher amounts of carbon emissions and enhanced demands
for electricity in the use of new-age technologies, such as the blockchain. In
addition to ‘environmental sustainability’, growing digital trade is also
creating challenges for ‘economic sustainability’ and ‘social sustainability’,
the other two dimensions of sustainability. Several countries are signing
digital economy partnership agreements (DEPA) that have provisions to promote
digital trade and look at the entire economy from the perspective of ‘digital
trade’. However, sustainability issues arising out of rising digital trade
remain primarily untouched in government policies and these new age trade and
digital economy agreements. Without sustainabilityfocused policies, the
environmental, economic, and social costs of digital trade could reduce the
benefits of the digital revolution. Therefore, while it is important to promote
digital trade, the sustainability aspects should not be ignored.