E-COMMERCE: AN INTERNATIONAL EFFORT

The development of electronic commerce clearly has a head start in the United States. However, leading international organizations are actively engaged is such e-commerce issues as intellectual property, Internet security, and taxation to help ensure that business conducted over the Internet is free from trade restrictions and that electronic business opportunities are available to developing and industrial countries alike. Following are some of the e-commerce efforts undertaken by these organizations.

ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD)

The OECD has promulgated a number of guidelines and policy reports aimed at examining the implications of electronic commerce for governments, business, and the general public and at providing recommendations for further actions. The following reports and guidelines may be accessed from the Internet at http://www.oecd.org/dsti/sti/it/ec/index.htm.

    Guidelines for Consumer Protection in the Context of Electronic Commerce (December 1999): Assists governments, businesses, and consumer representatives in developing and implementing online consumer protection mechanisms.

    Global Information Infrastructure-Global Information Society: Policy Recommendations for Action (May 1997): Encourages the development of policies that fully exploit the contributions of advances in information technology.

    Guidelines for Cryptography Policy (March 1997): Guides countries in formulating their own policies and legislation relating to the use of cryptography.

    Guidelines for the Security of Information Systems (November 1992): Addresses the safety of cross-border electronic commerce, including electronic money transactions and Internet payments.

    The Declaration on Transborder Data Flows (April 1985): Promotes access to and protection of information affecting transborder data flows.

    Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data (September 1980): Seeks harmonization of national privacy legislation and provides a framework for facilitating international flows of data, while upholding human rights.

WORLD TRADE ORGANIZATION (WTO)

On September 30, 1998, the WTO General Council established a formal work program to address a number of e-commerce issues of relevance to the WTO, such as intellectual property, government procurement, import duties on information technology products, and services. An agreement also was brokered not to impose customs duties on electronic transmissions. The moratorium on taxation is still in effect. Different WTO committees are conducting the current work program, and initial reports were submitted in July 1999. The committees and the Web addresses for the initial reports are as follows:

    The Council for Trade in Services: Examines e-commerce issues related to most-favored-nation treatment, transparency, competition, privacy, national treatment, access to public telecommunications transport networks, and customs duties. http://www.wto.org/wto/ecom/e_cts.htm

    The Council for Trade in Goods: Examines market access for products related to electronic commerce, valuation issues, standards, and rules of origin. http://www.wto.org/wto/ecom/e_ctg.htm

    The Council for Trade-Related Intellectual Property: Examines protection and enforcement of copyrights and trademarks. http://www.wto.org/wto/ecom/e_trips.htm

    The Committee for Trade and Development: Examines the effects of electronic commerce on the trade and on the economic prospects of developing countries, and how to enhance developing country participation in electronic commerce. http://www.wto.org/wto/ecom/e_ctd.htm

UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW (UNCITRAL)

UNCITRAL, the central legal body of the United Nations system in the field of international trade law, has formulated a model electronic commerce law, endorsed by the UN General Assembly, that supports the commercial use of international contracts in electronic commerce. This model law establishes rules and norms that validate and recognize contracts formed through electronic means, sets default rules for contract formation and governance of electronic contract commerce, defines the characteristics of a valid electronic writing and an original document, provides for the acceptability of electronic signatures for legal and commercial purposes, and supports the admission of computer evidence in courts and arbitration proceedings. The Model Law is being implemented in many countries and is generally regarded as a useful reference by legislators throughout the world. UNCITRAL also was responsible for a Model Law on International Credit Transfers in 1992, and it published a legal guide on electronic funds transfers in 1987. http://www.uncitral.org/en-index.htm

ASIA-PACIFIC ECONOMIC COOPERATION FORUM (APEC)

Ministers to the 11th APEC ministerial meeting in New Zealand, September 9-10, 1999, issued a statement noting the potential for electronic commerce to provide "extraordinary stimulus to regional growth and trade." The statement provides the following guidelines and measures for further work, with the aim of achieving paperless trading by 2005 for developed economies and by 2010 for developing economies.

    red bullet The private sector has the key role in driving change and innovation, while the public sector must ensure a favorable regulatory environment for e-commerce to flourish.

    red bullet APEC economies are encouraged to consider the UNCITRAL model law in developing their regulatory framework.

    red bullet Member countries are to initiate work on consumer protection.

    red bullet Officials are to develop an APEC-wide plan to support use of e-commerce by small and medium-sized enterprises.

WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO)

In September 1999, WIPO member states approved the Digital Agenda, the key goals of which are to:

    red bullet Broaden the participation of developing countries in electronic commerce through the use of WIPOnet.

    red bullet Facilitate e-commerce by extending the principles of the World Performances and Phonograms Treaty to audiovisual performances, adapting broadcasters' rights to the digital era, and making progress on an international agreement on the protection of databases.

    red bullet Aim to curb the abuse of trademarks on the Internet by determining the appropriate balancing of rights between holders of domain names and intellectual property rights owners.

    red bullet Seek rules for determining the intellectual property liability of online service providers.

    red bullet Promote the online licensing of the digital expression of cultural heritage and the online administration of intellectual property disputes.

    red bullet Develop online procedures for the filing and administration of international applications for the Patent Cooperation Treaty, the Madrid System, and the Hague Agreement at the earliest possible date.

See http://www.wipo.org/eng/pressrel/1999/p185r.htm

FREE TRADE AREA OF THE AMERICAS (FTAA)

A joint government-private sector committee of experts, meeting under FTAA auspices, issued recommendations to ministers in September 1999 calling for enhanced telecommunications infrastructure development, lower telecommunication costs, increased skills training related to digital technologies, and effective intellectual property protection. Specifically, the report urged:

    red bullet Greater private sector competition in telecommunication services to facilitate lower costs.

    red bullet Access by governments to public telecommunications networks on a non-discriminatory basis.

    red bullet Expansion of Internet services open to the public, such as in schools, libraries, community centers, and public phone centers.

    red bullet Support for standards setting within international, voluntary, and consensus-based bodies.

    red bullet Identification and removal of legal barriers to the recognition of electronic records and transactions.

    red bullet Adoption of an effective electronic payment system readily available to the business community and consumers.

The report may be accessed on-line at http://www.ecommerce.gov/PressRelease/ecom-01.html.

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