DIGITAL TRADE Digital technologies and the Internet are key drivers of economic growth and innovation. The digital economy has shifted from a niche sector to an essential part of the economy. The line between traditional goods and digital goods is blurring. The Internet makes it easier for consumers and businesses to trade goods, services and information around the world. Digital trade is not just about buying and selling goods and services online, it is also the transmission of information and data across borders. It relies on the use of digital technologies to facilitate trade and improve productivity, for example through simplified customs procedures. While flows of information and data may not always be for profit, they are essential enablers of digital trade. Nowhere is the potential for digital trade greater than in our region. For the first time, in 2017 more than 50 per cent of global Internet users were located in the Indo-Pacific. Yet, only 46.4 per cent of households in the Indo‑Pacific were connected to the Internet in 2016, so there are vast untapped opportunities for digital trade. Successfully harnessing this opportunity promises economic growth for countries in the region as well as new market opportunities for Australian businesses. However, this potential can only be realised if countries cooperate to establish an enabling environment for digital trade. Governments must work with the private sector and consumer groups to ensure digital trade policies and norms and rules foster economic growth and security. This work must be practical, evidence-based and consensus driven. It should be coupled with international efforts to expand participation in digital trade across the Indo‑Pacific, which will grow markets for Australian businesses and broaden economic development opportunities for all. 13