The World Trade Organisation (WTO)

Electronic commerce was discussed at the meeting of the WTO General Council held on 19 February 1998. There was general support for work on electronic commerce in the WTO from a large number of members. Members recognise that electronic commerce raised a number of issues of relevance to the WTO such as intellectual property, government procurement, import duties on information technology products and services in general. The Secretariat will be releasing its paper on electronic commerce and the role of the WTO soon.

Stressing that electronic commerce was growing in importance and that the WTO needed to send a positive message to business the US has put forward a proposal that members agree to continue the current practice of non-imposition of customs duties on electronic transmissions, that is, duty free cyberspace trade. No decision has been made on the US proposal and discussions are in progress. Eqypt has also tabled a paper focusing on the development dimension, including financing of the infrastructure needs of developing countries.

Members are currently discussing issues including the focus for electronic commerce in the WTO (technical assistance/development versus duty free trade), the appropriate forum for WTO discussion (the General Council or the Committee on Trade and Development), and joint exercise with or information gathering on work by other international fora.

The World Customs Organisation (WCO)

The focus of the WCO is to harmonise and simplify Customs procedures on a global basis. Over 140 Customs administrations are members and a considerable part of the WCO's agenda is devoted to information technology and electronic commerce. Electronic commerce at the WCO has grown in importance and there is considerable liaison with the work of the WTO, the United Nations and the OECD.

The WCO coordinates the design and development of UN/EDIFACT Customs messages with the CEFACT within the UN/ECE. It is responsible for the Customs Data Mapping Guide, developing policy on Customs messaging security and has drafted a Customs data model aimed at harmonising Customs data requirements world-wide - linking in with similar work underway within the G7 and also the APEC Sub-Committee on Customs Procedures. The WCO is also encouraging its members to adopt WWW technology for circulating information on Customs procedures and, eventually, in allowing Customs transactions to be conducted over the Internet. The re-development of the Kyoto Convention for Customs Harmonisation and Simplification includes an Annex on Customs use of information technology and this will go a long way towards fostering the uptake of modernised automated Customs procedures amongst WCO members.

The European Union (EU)

In April 1997, the European Commission launched a policy paper "A European Initiative in Electronic Commerce". This initiative aims to encourage the vigorous growth of electronic commerce in Europe, provides a policy framework for future actions in electronic commerce, and seeks to raise awareness and stimulate dialogue between all stakeholders. It contains action-oriented proposals to advance electronic commerce in Europe, addressing access to the global marketplace, legal and regulatory issues, and promoting a favourable business environment. The initiative also aims to establish a common European position to achieve global consensus on developing an enabling environment for electronic commerce through international negotiations. The Commission aims to implement this framework by the year 2000.

One of the European electronic commerce initiatives is the Bolero Project, covering electronic negotiable documents. The Bolero Project team comprises the Through Transport Club representing carriers, freight forwarders and port authorities and SWIFT (Society for Worldwide Interbank Financial Telecommunications), a bank owned co-operative. The Bolero project has been underway for a number of years during which a range of complex problems have been identified. To deal with these problems, a Business Requirements Specification was completed in the second half of 1997. The objective of Bolero is to remove the requirement for original paper documents in international trade. Communications is provided by SWIFT (a bank network) using a private network. The key document is the Bill of Lading and the objective is for the holder of an electronic Bill of Lading to be able to claim the goods without having to present the original paper document. To resolve the security issue a central registry of transfers of title is operated by SWIFT.

The OECD/MTC

The Organisation of Economic Cooperation and Development (OECD) has an ongoing program of work on electronic commerce and will be holding a conference in Ottawa this October to construct a framework to realise the potential of global electronic commerce. The OECD is working on the need to address law enforcement, revenue and regulatory problems arising out of electronic commerce. The organisation has prepared guidelines for the security of information systems designed to raise awareness of the issue, provide a broad framework across all sectors to assist those responsible for developing and implementing information systems and promote international cooperation in achieving security.

The OECD also undertakes work on issues of individual electronic trading over networks, in particular the potential for profiling spending patterns and use of electronic cash. Other OECD working groups are looking at the tax implications of the use of the Internet and privacy, security and intellectual property issues arising in the global information infrastructure. The OECD also has an ad hoc group of experts to draft cryptography policy guidelines which will provide internationally comparable criteria for policy makers.

Australia (Maritime Transport Group) has put forward a proposal for the OECD Maritime Transport Committee (MTC) to include electronic commerce in its 1999 work program which will be discussed in April. The proposed activity is titled "Electronic Commerce in Maritime Transport" with the theme "Commercial Developments in Maritime Transport". The objective of this new work program is to examine the extent to which electronic commerce is in use within the maritime industries of OECD member countries, to catalogue barriers encountered in its use, and to analyse the potential benefits available through its extensive implementation. There is potential for MTC electronic commerce work to link up with electronic commerce work in the OECD Trade Committee.

United Nations Commission on International Trade Law

In order to address legal issues raised by electronic commerce, the United Nations Commission on International Trade Law (UNCITRAL) is working on a draft Model Law on Legal Aspects of Electronic Data Interchange and Related Means of Communication. An electronic commerce expert group is addressing issues including the application of electronic communications of statutory provisions which mandate paper or paper-based concepts such as "an original", "writing", "record" and "signature", questions relating to the formation of contracts electronically and admissibility of electronic evidence.

United Nations Economic Commission for Europe (UN/ECE) Working Party for Facilitation of International Trade Procedures

This Working Party works on developing UN/EDIFACT international messaging standards and implementation guidelines, a model interchange agreement and other trade facilitation projects. The United Nations Economic Commission for Europe expanded its role to focus on trade facilitation and electronic commerce, and recently established a new body, the new Centre for Facilitation of Procedures and Practices for Administration, Commerce and Transport.

Electronic Commerce in ASEAN

Recognising the need for implementing better methods of electronic communication to facilitate maximum efficiency within the community, ASEAN Senior Economic Officials recently agreed to the establishment of an ASEAN Coordinating Committee on electronic commerce. One of ASEAN's founding members, Malaysia, is promoting the idea of a regional forum to coordinate and extend the concept of electronic commerce.

Malaysia has developed a national information technology agenda to support the country's vision of fully developed status by the year 2020. The Malaysian Government is promoting a multi-media corridor south of Kuala Lumpur by providing incentives such as tax breaks, intellectual property protection and unrestricted access to recruit skilled foreign workers. The Malaysian project is a world first in its holistic approach by government to create an enabling legal and physical environment within which private enterprise can take full advantage of electronic commerce. Microsoft, Intel and Oracle are significant multinational corporations contributing to the Multimedia Super Corridor.

The United States' Framework for Global Electronic Commerce

The USA has been taking a leading role in promoting electronic commerce and is hoping to work with international trading partners to develop a free and open global electronic marketplace. On 1 July 1997, President Clinton released "A Framework for Global Electronic Commerce". The paper sets out the US Government's vision of the emerging electronic marketplace; outlines the principles that will guide the US Government's approach to electronic commerce; and suggests an agenda for international discussions and agreements to facilitate the growth of electronic commerce.

The US believes in the following principles for electronic commerce:

• the private sector should lead
• governments should avoid undue restrictions on electronic commerce.
• where governmental involvement is needed, its aim should be to support and enforce a predictable, minimalist, consistent and simple legal environment for electronic commerce.
• Governments should recognise the unique qualities of the Internet.
• electronic commerce over the Internet should be facilitated on a global basis.

The paper identifies nine areas where international agreements are needed to preserve the Internet as a non-regulatory medium, one in which competition and consumer choice will prevail. These areas are customs and taxation, electronic payment systems, uniform commercial code for electronic commerce, intellectual property protection, privacy, security, telecommunications infrastructure and information technology, content and technical standards. They fall into three main subgroups: financial, legal and market access issues.

This page was last updated on 10 Aug, 2006