TEXT: DALEY 11/22 REMARKS TO THE APEC MINISTERS
(Electronic commerce most important cooperation issue)

Vancouver, British Columbia -- On no issue is cooperation more important than electronic commerce, according to Secretary of Commerce William Daley.

In remarks to the ninth annual meeting of ministers from the 18 economies that make up the Asia-Pacific Economic Cooperation (APEC) forum November 22, Daley said: "I am pleased that the Ministers' Statement will call for a work plan on electronic commerce. This effort should include an understanding of a tariff-free environment on the Internet; continuing work on electronic authentication; and consultation with the OECD on tax issues. This plan should emphasize the importance of private sector leadership on electronic authentication, privacy, content, and technical standards."

"I can't emphasize strongly enough how important this effort is to the continued growth of the APEC economies," Daley said. "The time is now to harness the power of information technology and build a global electronic marketplace that will increase efficiency, reduce the need for capital, and cut costs for businesses and consumers alike. We must not delay."

Following is the official text of Daley's remarks to the APEC Ministers, as prepared for delivery:

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Intervention on Electronic Commerce by
U.S. Secretary of Commerce William M. Daley
APEC Ministerial in Vancouver, Canada

Saturday, November 22, 1997

Mr. Chairman, I would like to join my colleagues in underscoring the importance of Economic and Technical Cooperation activities to the diverse economies of the Asia-Pacific region. On no issue, perhaps, is cooperation more important than electronic commerce.

The growth of information technology is staggering. In Asia, Internet hosts have more than quintupled during the last two years. It only makes sense that this medium will revolutionize the way we do business. This year, in the U.S. alone, the value of goods and services traded between companies will grow to &8 billion, up 1000% from 1996. By 2002, it is estimated that more than $300 billion will be spent on these business-to-business transactions.

As our Australian colleague indicated yesterday, smaller, isolated firms may gain the most from the "anytime, anywhere" nature of electronic networks. The Internet can place even the smallest, newest firms before customers all over the world and within arms' reach of potential business partners, a fact which should appeal to all APEC economies, especially those with a strong entrepreneurial spirit.

Creating an environment that allows electronic commerce to flourish will make it a major force for economic growth for APEC economies in the 21st century.

We should make clear to our business communities that we support the globalization of electronic commerce and the avoidance of barriers that impede its growth. We can do so by committing to some basic guiding principles.

First, the private sector should lead. Governments should refrain from imposing undue regulation and legislation, while supporting a predictable, consistent, and simple legal environment.

Also, the marketplace -- not governments -- should determine technical standards. We should redouble support for private sector-led efforts on a common approach to electronic authentication, an approach that would allow a full range of commercial options and discourage the imposition of bureaucratic structures. We must also strike the proper balance between privacy rights and the common interest in a free flow of information.

Of course, electronic commerce will only be as successful as the information infrastructure that supports it. APEC must take the lead in encouraging member nations to adopt telecommunications policies that foster private investment.

I am pleased that the Ministers' Statement will call for a work plan on electronic commerce. This effort should include an understanding of a tariff-free environment on the Internet; continuing work on electronic authentication; and consultation with the OECD on tax issues. This plan should emphasize the importance of private sector leadership on electronic authentication, privacy, content, and technical standards.

I can't emphasize strongly enough how important this effort is to the continued growth of the APEC economies. The time is now to harness the power of information technology and build a global electronic marketplace that will increase efficiency, reduce the need for capital, and cut costs for businesses and consumers alike. We must not delay.

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