“Digital trade” in this report means both U.S. domestic commerce and international tradein products and services delivered via the Internet. Digital trade has grown exponentiallyover the past two decades as part of the broader transformation in global economicactivity associated with the Internet. In fact, the impact of the Internet on the globaleconomy has been recognized as even more fundamental than that of the globalization ofproduction and investment alone. 1 The Internet has changed—and continues to change—how people interact; how consumers shop; how products and services are designed,developed, marketed, and delivered; and how firms operate and interact with oneanother.