Steering Committee on More Competitive Transport Industry

Mexico City, 20 April 1998

Present:

Representatives from the following economies attended the meeting:

Australia, Mexico, United States, Singapore, China, Canada, Chile, Japan and Korea.

The meeting was chaired by Ms Joanne Blackburn of Australia.

The meeting considered:

• Adoption of the agenda and the following papers issued by Australia for the 13th TPT-WG meeting:
• Proposed TPT-WG Contribution to SOM Electronic Commerce Task Force Work Program TPT/WG13/PLEN/…
• Funding proposal to assist the implementation of electronic commerce for commercial messages.

Proposed TPT-WG Contribution to SOM Electronic Commerce Task Force Work Program

Australia introduced the paper it prepared entitled Proposed Contribution to SOM Electronic Commerce Task Force Program. The purpose of the paper is to propose possible initiatives for a contribution by the TPT-WG to the SOM Electronic Commerce Task Force work program in response to the request by Leaders for Ministers to develop an electronic commerce work program for the region. The paper was prepared in consultation with the Australian Department of Foreign Affairs and Trade (co-chair of the SOM Task Force), the Australian Department of Telecommunications and the Arts (a member of the Telecommunications Working Group, TEL) and Australian Customs Service (a member of the CTI SCCP).

The main features of the proposal were described to the meeting. In summary, Australia proposes that the TPT-WG agree to make a contribution to the work of the SOM Electronic Commerce Task Force through:

• Agreeing to develop action priorities for member economies with a defined timetable, taking into account the needs of member economies, to promote the uptake of electronic commerce in the region;
  
• Submission of an issues paper to the Task Force on barriers to paperless trading, building on the work the TPT-WG has already been doing in this area;
  
• Extension of the current commercial messages trials project to a wider range of businesses and including the full range of electronic commerce options as outlined in the new project proposal submitted by Australia;
  
• Establishment of a TPT-WG website; and
  
• Giving priority to a human resources development program through the Human Resources Steering Committee to equip businesses to use electronic commerce and explore the opportunities for internet based delivery of training.

Australia further proposed that the TPT-WG make a statement of contribution to the SOM Task Force on Electronic Commerce including its commitment to these proposals and suggesting further action to be taken by Leaders to progress the uptake and use of electronic commerce in the region. (A draft statement is at Appendix E to the Australian paper).

OUTCOME OF DISCUSSION AT THE MEETING

TPT-WG Statement of contribution to the SOM Task Force on Electronic Commerce.

All economies represented at the meeting supported the TPT-WG making a significant contribution to the work of the SOM Task Force on Electronic Commerce and agreed that the TPT-WG should make a statement to the Task Force setting out the nature of that contribution.

It was agreed that the draft statement prepared by Australia (at Appendix E to the Australian paper) should be amended following consideration of separate activities proposed by Australia by the Steering Committee and the Plenary to reflect what the TPT-WG has agreed to do as its contribution to this work.

The meeting noted that the draft statement includes proposed recommended actions by leaders which would build on the work undertaken in the TPT-WG.

Recommendation: It is recommended that the Steering Committee agree that

(a) the TPT-WG make a contribution to the SOM Electronic Commerce work program;

(b) the details of that contribution be set out in a statement to be submitted by the TPT-WG to the SOM Task Force on Electronic Commerce;

(c) the statement include the recommendations for action by leaders as set out in draft at Attachment E;

(d) the text of the statement be finalised by Australia following the decisions of Plenary on the proposed contributions by TPT-WG to the work program.

Development of Action Priorities

Australia has proposed the development of action priorities for economies, with defined timetables. A draft action priorities document would be developed for consideration at the 14th TPT-WG meeting, based on responses by economies to the questions posed at page 5 of the Australian paper. These questions are to obtain information on the state of implementation of electronic commerce in the customs, quarantine and banking sectors in each economy, explore the contribution economies could make to a TPT-WG electronic commerce work program and include advice on what economies would see as most important for TPT-WG to do in this area.

Following a query from Japan, it was noted that work in an economy to improve the use of electronic communication between or within agencies in an economy would be a contribution which an economy could make to such a work program.

Mr James Goh from the United States provided advice to the meeting on the use of a collective action program developed in the SSCP which enables those economies which are able to move more quickly to undertake work which is then able to be used as a best practice or assistance to other economies as they become able to do the work.

The meeting agreed that:

(a) the TPT-WG should seek to develop action priorities for economies;

(b) the collective action plan approach used by the SSCP should be used as the model to develop these action priorities;

(c) economies should provide information in response to the three questions at page 5 of the Australian proposal to Australia by 1 June 1998;

(d) from that information, Australia will develop a draft action priorities document for circulation before the 14th TPT-WG meeting;

(E) the 14th TPT-WG meeting should consider the draft action priorities document.

Recommendation: That the Steering Committee note these agreed actions and recommend that the TPT-WG proceed with this proposed approach.

Establish a TPT-WG website

The details of the proposal to establish a TPT-WG website are at Appendix D to the Australian paper. The important elements of the proposal are that it would be used to disseminate information to economies about TPT-WG meeting arrangements, the outcomes of TPT-WG meetings, the results of TPT-WG projects and would include links to other relevant sites and, if possible, an interactive area which can be used to communicate between economies intersessionally on work of the TPT-WG.

Australia has offered to fund the development of the website and undertake its initial management, but welcomed offers from other economies to undertake this work. Canada offered to be of assistance in developing the website.

It was noted that both the Telecommunications Working Group and the SSCP have websites which are used for these kinds of communication.

The meeting noted that the Intermodal Task Force has an activity to develop a website, that the Intelligent Transport Systems Group has a proposal to develop a method, using internet, of exchanging interoperability information which Canada has offered to develop. In addition, the United States has a project the substantive action of which will not proceed but which included unused funds for the development of a TPT website by the APEC secretariat.

All delegations represented at the meeting supported the proposal to develop the website, particularly, Korea and Chile which are responsible for hosting the next two meetings of the TPT-WG.

The meeting agreed that:

(a) there should only be one TPT-WG website

(b) a TPT-WG website should be developed and trialled for the 14th meeting in Korea.

(c) a small group including delegates responsible for the other website proposals mentioned above should work on the design, development and implementation of the website for the 14th meeting;

(d) from the Electronic Commerce meeting, delegates from Canada, Korea, Chile and Australia would participate in that group;

(e) the small group should decide which economy will develop and manage the website and then work with that economy to design and implement the website noting that it is important for Korea as host economy for the next meeting to be comfortable with the arrangements being made as they affect the next meeting.

Recommendation: That the Steering Committee agree that there should be a TPT-WG website; agree to these proposed actions to progress the development of the TPT-WG website and seek nominations from economies responsible for the Intermodal Task Force, Intelligent Transport Systems and TPT Website project to participate in the small group.

Issues Paper for the SOM Electronic Commerce Task Force on Paperless Trading

The meeting considered the Draft Issues Paper at Appendix C of the Proposed TPT-WG Contribution to SOM Electronic Commerce Task Force Work Program. The issues paper is a response to the request of the SOM Electronic Commerce Task Force, made at its meeting in Penang in February 1998, for all economies and working groups to submit issues papers to the Task Force. The Task Force has asked for papers to be submitted by the end of April. The papers will be placed on the SOM Electronic Commerce Task Force website for all economies to consider and comment on. The issues papers, and the comments will then be used by the Task Force to prepare a report to Trade Ministers in June on a possible work program on electronic commerce to be presented to leaders at their next meeting in November 1998.

The meeting noted that the paper draws on the work already done in the TPT-WG to identify the institutional and regulatory barriers to paperless trading in the transport and related trade sectors. Attached to the paper is a summary of these barriers in all economies. At its 12th meeting, TPT-WG acknowledged that it could not progress its goal of achieving paperless trading in the transport and related trade sectors by 2005 without assistance from other working groups as some of these barriers are in areas not managed by delegates to TPT-WG meetings. The CTI has been asked to help. The paper proposes that to achieve this outcome we should seek commitment by leaders to achieving this goal.

Singapore stated its support for submitting the paper.

Canada also noted the potential interest in electronic exchange of transport data as part of this initiative.

The meeting agreed that TPT-WG should submit an issues paper on paperless trading to the SOM Electronic Task Force but agreed that, to enable delegates to further consider the draft, the text be settled based on any comments received by the end of TPT-WG work on Wednesday 22 April.

Recommendation: That the Steering Committee agree that the TPT-WG submit an issues paper on paperless trading to the SOM Task Force on Electronic Commerce and that the text be finalised by Australia based on the draft at Appendix C and including comments received by the end of work on Wednesday 22 April.

Funding Proposal to Assist the Implementation of Electronic Commerce for Commercial Messages.

The purpose of the paper is to secure TPT-WG approval for the new project and agreement to seek APEC funding of US$70,000 for 1999, for Phase 1 of the proposed project. The full project is expected to run for a total of three years. Separate bids, estimated at US$70,000 for each of Phases 2 & 3, will

be submitted for the years 2000 and 2001 following the successful completion of Phase 1. Phase 1 is a self contained activity which can proceed even if Phases 2 and 3 do not.

The meeting noted that the proposed project forms part of the TPT-WG contribution to the SOM Task Force electronic commerce work program. The project reinforces the identified need for pilot projects to demonstrate the benefits of electronic commerce.

At the previous TPT-WG meeting the proposal received unanimous support from delegations that attended the pre-plenary meeting on 29 September 1997 These delegations were from China, Indonesia, Thailand, Japan, Malaysia, Singapore, USA, Chinese Taipei and Australia. In accordance with the TPT-WG requirements for new project proposals, Indonesia and Malaysia agreed to co-sponsor the project.

• Australia has also circulated an additional paper covering the proposal in the format required for submission to the BAC. Subject to the TPT-WG's agreement, the funding application that will be submitted to the BAC will need to be signed by the project overseer and the Lead Shepherd of the TPT-WG.

The proposal has been discussed with delegates to the Sub Committee on Customs Procedures, which has advised that it does not duplicate the work of that Committee and is complimentary to that work.

Phase 1 of the proposal is a self contained education and awareness program designed to prepare participants for the task of implementing electronic commerce, including trialing messages during Phase 2 and 3. It will be a matter for participating businesses to decide what type of electronic commerce system best suits their needs. This could include EDI or E-forms, internet based systems, use of E-Bureaus or some combination of these systems.

A particularly important aspect of the Phase 1 course will be an explanation of the technology available to link EDI with other less costly forms of electronic commerce such as E-forms and to introduce participants to the range of options available to them.

The project proposal envisages that, in addition to the five day course, participants and their economies will arrange for a local project coordinator and appropriate follow up work. The provision of funds for these elements of the project will need to be considered by each of the participating economies and businesses.

Businesses that decide to participate in the project will need to be fitted with appropriate EC facilities. It was noted that good suppliers of EC services will generally include ongoing technical support and advice for the facilities they provide. This should assist the participating businesses to undertake follow up work needed to take full advantage of the courses provided under Phase 1.

Also, the proposal notes that economies wishing to obtain assistance under the project will need to notify the APEC Secretariat, by October 1998, of participating businesses and their local coordinator. This will be essential in order to allow the specifications for the tender document (to select a consultant for Phase 1) to be completed at the TPT WG's 14th meeting.

Delegates to the meeting from Australia noted that the project proposal does not require the use of EDI nor pre-empt any decision on the form of electronic commerce to be used. That would be a commercial decision for the participating businesses in the project. It is also noted that the project is about commercial messaging between businesses, not consumer purchasing over the internet. It is accepted that the major growth area for electronic commerce is in business to business communication. Australia further noted that the proposed training is to break the cycle of businesses not taking up electronic commerce because they have insufficient demonstration of the options available to them and information on how they would be implemented in an individual business and what benefits it would bring to the individual business. Delegates from the United States also noted that the proposal enables the decision on the form of electronic commerce to be made by the participating businesses based on the training and knowledge which would be provided by the project.

Canada noted the growing reliance on the Internet as the medium of electronic commerce and the important advantages it offers in terms of efficiency and cost, and that this should not be overlooked in conducting the project.

The meeting agreed to recommend the project to the Steering Committee.

Recommendation: That the Steering Committee agree that the project proposal go forward as a TPT-WG project to the Budget Advisory Committee for consideration for funding.

Proposal to develop a Human Resource Development Plan with priority for electronic commerce training.

The meeting did not consider this part of the proposed TPT-WG contribution to the SOM Task Force on Electronic Commerce as it is properly a matter for consideration by the Human Resources Steering Committee which is expected to discuss the proposal at its meeting on Wednesday 20 April.

TPT-WG Response to the SOM Electronic Commerce Task Force

The SOM Electronic Commerce Task Force has asked Working Groups to nominate a contact point and representative for the Working Group to attend further meetings of the SOM Electronic Commerce Task Force. The next meeting will be held in Kuching 12-15 June in conjunction with the Trade Ministers meeting.

The meeting noted that the TPT-WG working group representative should be a person with knowledge of the TPT-WG work program and interests in electronic commerce and able to participate effectively in the Task Force to advance the TPT-WG12s program.

Recommendation: It is recommended that the Steering Committee agree to the nomination of a representative from the Working Group to attend the Task Force meetings and call for nominations for that position.

Matters not considered at the meeting.

Progress report on EDI Commercial Messages Project

Australia has circulated a progress report providing information on the current status of the EDI Commercial Messages Project being managed and funded by Australia. Due to time limitations the meeting did not discuss the report.

The report notes that progress with the project has been slower than anticipated. Nevertheless the process of managing this project has provided valuable lessons which have been taken into account in designing the new EC project submitted for approval at this meeting.

For various reasons mentioned in the Progress Report, the companies participating in this project (Cadbury Schweppes, Murray Goulburn and BHP) have suspended further work on the project for the time being.

Australia proposes that a report be prepared for TPT-WG 14 on the lessons learned from this project as a valuable contribution to progressing the new project. Any unfinished aspects of the current limited EDI messaging trials project could be continued in conjunction with the new project proposal, but under the existing funding arrangement for the messaging trials.

Australia as manager of the project would like to seek assistance from delegates to the meeting to confirm the list of local coordinators for the project attached to the paper.

Summary of Recommendations to Steering Committee

1. The Steering Committee recommend the following actions to TPT-WG in relation to the development of action priorities in relation to electronic commerce:

• the TPT-WG should seek to develop action priorities for economies;
  
• the collective action plan approach used by the SSCP should be used as the model to develop these action priorities;
  
• economies should provide information in response to the three questions at page 5 of the Australian proposal to Australia by 1 June 1998;
  
• from that information, Australia will develop a draft action priorities document for circulation before the 14th TPT-WG meeting;
  
• the 14th TPT-WG meeting should consider the draft action priorities document.

2. That the Steering Committee agree that there should be a TPT-WG website and agree to the following proposed actions to progress the development of the TPT-WG website:

• there should only be one TPT-WG website
  
• a TPT-WG website should be developed and trialled for the 14th meeting in Korea
  
• a small group including delegates responsible for other website proposals (the Intermodal Task Force, Intelligent Transport Systems and the US project for a TPT page) should work intersessionally to design, develop and implement the website for the 14th meeting;
  
• from the Electronic Commerce meeting, delegates from Canada, Korea, Chile and Australia would participate in that group
  
• the small group should decide which economy is to develop and manage the website and then work with that economy to design and implement the website noting that it is important for Korea as host economy for the next meeting to be comfortable with the arrangements being made as they affect the next meeting.

3. That the Steering Committee recommend to Plenary that the TPT-WG submit an issues paper on paperless trading to the SOM Task Force on Electronic Commerce and that the text be finalised by Australia based on the draft at Appendix C and including comments received by the end of work on Wednesday 22 April.

4. That the Steering Committee agree to recommend the Australian project proposal to assist the implementation of electronic commerce for commercial messages to go forward as a TPT-WG project to the Budget Advisory Committee for consideration for funding.

5. That the Steering Committee agree to the nomination of a representative from the Working Group to attend the Task Force meetings and call for nominations for that position.

6. That the Steering Committee agree to the TPT-WG making a statement to the Taskforce setting out its agreement to make the contribution to the electronic commerce workprogram as set out above. The text of this statement to be based on the draft at Appendix D to the Australian Paper and reflecting the final decision on TPT-WG at this meeting on the contribution it is to make to the SOM Electronic Commerce Taskforce workprogram.

Prepared by Australia and including comments from delegates who attended the meeting held on Monday, 20 April.

P:/ecom1/apec/briefs/report of pre prenary meeting
P:/ecom1/apec/briefs/report 13 DATE 21/04/98

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