Navigating the digital divide: challenges and strategies for Latin American countries in the regulation of electronic commerce and data governance

Abstract

In recent years, growing concern has emerged over the concentration of the benefits of the digital economy among a limited number of countries and actors, widening the gap between developed and developing economies. This divide is particularly acute in Latin America, where structural asymmetries related to infrastructure, data governance, and technological capabilities persist. The United States, China, and the European Union dominate the data economy and have adopted distinct regulatory approaches, amid increasing pressures to assert digital sovereignty and rising geopolitical tensions. Despite its relatively modest performance in the digital economy, Latin America has been highly active in negotiating digital trade agreements, yet it lacks a regionally defined regulatory model and largely replicates external frameworks, particularly the U.S. liberal approach. This article argues that the current geopolitical and regulatory reconfiguration creates an opportunity for Latin American countries to reassess their strategies and advocates for the inclusion of binding, development-oriented provisions aimed at promoting digital inclusion, reducing inequalities, and strengthening local capacities in digital trade governance.