Cybersecurity and International Trade
Understanding the policy landscape
Cybersecurity is a critical foundation for enabling secure and trusted digital flows in today's interconnected global economy. However, cybersecurity threats are growing in both scale and complexity, resulting in rising economic costs and posing significant risks to national security, political stability, and social systems. In response, governments worldwide are increasingly implementing measures and regulations justified on cybersecurity grounds.
Key Messages
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Governments are adopting more safety measures amid rising cybersecurity threats. Such measures—many of which have implications for international trade—range from data requirements to licensing schemes and technical standard requirements to outright bans on certain digital technologies and services.
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International trade rules shape how cybersecurity measures can be implemented and offer opportunities for cooperation. While some measures may conflict with WTO rules, trade agreements are also emerging as platforms for international cooperation on cybersecurity.
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Strengthening cybersecurity capacity is essential for global digital resilience. Given the interconnected nature of digital systems, weak cybersecurity in one country can create risks for all. Trade agreements should enhance support for countries to implement effective cybersecurity frameworks.
Common policies include data-related requirements, technical standards, and controls on the import and export of digital goods and services. The growing proliferation of such measures is impacting trade, including digital trade. Developing countries, in particular, are paying increasing attention to cybersecurity issues and considering how these measures affect digital trade opportunities as well as broader social and development priorities.
This policy primer provides an overview of the main types of cybersecurity measures being implemented at the national level, their underlying policy objectives, and their trade implications. It examines how different types of cybersecurity measures interact with international trade rules and explores how cybersecurity is addressed in trade agreements, including World Trade Organization (WTO) law and newer trade agreements. The paper highlights critical gaps in current trade frameworks, especially concerning capacity building and international cooperation, and concludes with policy considerations for strengthening cybersecurity governance to support inclusive digital trade and development.
This report is part of a policy primer series, funded by the Swedish International Development Cooperation Agency (SIDA), aimed at deepening understanding of the key policy and regulatory foundations that shape today's digital economy.
This is the second report of the Building Blocks of Digital Trade Regulation series. You can continue exploring the series here:
- Report No. 1: Consumer Protection and E-Commerce: Issues for developing country policy-makers
- Report No. 3: Setting International Technical Standards to Shape Digital Trade Policy: Approaches, challenges, and opportunities for developing countries
- Report No. 4: Data and Digital Trade Law: Balancing rules, policy space, and development
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