[2024-09] The Effectiveness of Digital Trade Agreements : Upholding the status quo or Paving the way forward?

Young Lo Ko    
Moon Soul Graduate School of Future Strategy, KAIST

Abstract
This working paper examines the effectiveness of contemporary trade agreements addressing behind-the-border measures, with particular focus on services, investment, and digital trade agreements. Despite the proliferation of over 350 preferential trade agreements notified to the WTO, many function primarily as mechanisms for confirming existing regulatory status quo rather than catalyzing meaningful behavioral change among parties. This study develops an analytical framework that evaluates effectiveness through ex ante legal design features rather than traditional ex post behavioral assessments. Through systematic analysis of agreement texts and commitment structures, the research reveals that most contemporary commitments fall into "status quo" or "status quo minus" categories, prioritizing compliance ease over transformative impact. The findings have significant implications for understanding why trade negotiations often fail to achieve their liberalization objectives and suggest alternative approaches to international economic cooperation.

Keywords: Trade agreements, effectiveness, legal design, behind-the-border measures, digital trade, services trade