Trump’s ‘Agreements on Reciprocal Trade’ (ARTs) threaten equitable access to the internet in Global South

The recently signed "Agreements on Reciprocal Trade" (ARTs) by the U.S. with 10 countries, including Malaysia, Cambodia, and Indonesia, could pose a threat to equitable internet access in the Global South. These deals include a provision that requires these nations to avoid using ICT suppliers that might compromise security, safeguards, and intellectual property of their infrastructure, including 5G, 6G, communication satellites, and undersea cables.

This move effectively allows the U.S. to exclude Chinese ICT suppliers like Huawei and ZTE from the signatory countries, potentially giving U.S. companies like Cisco and Hewlett Packard a competitive edge. Consequently, this could hinder network rollout and development in these countries, exacerbating digital divides and hindering economic growth.

Many of these nations already face significant digital divides, with internet penetration rates as low as 53.4% in Bangladesh and 68.5% in Cambodia. The absence of essential ICT infrastructure only exacerbates these issues, with many schools in countries like Indonesia and Guatemala lacking internet connectivity. While China has filled the ICT infrastructure investment gap by providing funding at below-market rates and through its Belt and Road Initiative, reliance on Chinese equipment may lead to technological dependencies and concerns over foreign state surveillance.

The U.S. and EU competitors may also struggle to meet the growing demand for ICT equipment in developing countries due to factors like Chinese control over supply chains, large subsidies, and access to manufacturing processes.