e-commerce & global trade initiatives)
TRANSCRIPT
-
8/3/2019 E-Commerce & Global Trade Initiatives)
1/31
Dr. Malawer ... (2008) 1
INTERNET COMMERCE & TRADE POLICY:
International Initiatives for E-Trade
Stuart S. Malawer
-
8/3/2019 E-Commerce & Global Trade Initiatives)
2/31
Dr. Malawer ... (2008) 2
The Internet in the U.S.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
3/31
Dr. Malawer ... (2008) 3
Web & E-Commerce in the News .
Global Transactions in a Multijurisdictional World.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
4/31
Dr. Malawer ... (2008) 4
-
8/3/2019 E-Commerce & Global Trade Initiatives)
5/31
Dr. Malawer ... (2008) 5
[E]lectronic commerce creates new challenges and opportunities for trade for
members at all stages of development, and we recognize the importance of creating
and maintaining an environment which is favourable to the future development of
electronic commerce..WTO / DOHA Declaration (Nov. 2001).
-
8/3/2019 E-Commerce & Global Trade Initiatives)
6/31
Dr. Malawer ... (2008) 6
Electronic commerce (business transactions on the Web) and the
information technology (IT) industries that make e-commerce
possible are growing and changing at breathtaking speed,
fundamentally altering the way Americans produce, consume,
communicate and play.
. The Emerging Digital Economy II(1999)
-
8/3/2019 E-Commerce & Global Trade Initiatives)
7/31
Dr. Malawer ... (2008) 7
(T)he Internet will make trade and international business far easier than
ever before . In trade policy we are developing broad principles through
specific objectives at the WTO .
. E-Commerce in American Trade Policy, (June 1999)
-
8/3/2019 E-Commerce & Global Trade Initiatives)
8/31
Dr. Malawer ... (2008) 8
The pace of technological development and the borderless environment created
by the Internet drives a new paradigm for government and private sector
responsibilities. Creating the optimal conditions for the new digital economy to
flourish requires a new, much less restrictive approach to the setting of rules.
.Emerging Digital Economy (1998)
-
8/3/2019 E-Commerce & Global Trade Initiatives)
9/31
Dr. Malawer ... (2008) 9
Todays global economic landscape is defined by two main features
-- the vast impact of the information technology revolution and the
dramatic expansion of international trade. The Internet is redefining
business models worldwide and creating new paradigms and economic
transactions.
. Former Governor James S. Gilmore, III, Governor of Virginia and
Chairman, Federal Commission on Internet Taxation (1999).
-
8/3/2019 E-Commerce & Global Trade Initiatives)
10/31
Dr. Malawer ... (2008) 10
Aspects of the Internet & Global Trade
One transaction subject to multiple jurisdictions.
Uncertainty in national legal & tax systems.
Global & transborder.
Decentralized.
Inability of one state to regulate.
Network of Networks.
Helps to communicate & conduct business.
Revamping domain name process & resolving trademark conflict.
States, nations, regional and international institutions are now only beginning to assess
and reevaluate the state of governance.
State budget crisis in the United States is driving states to tax the expanding online
sales as a means of alleviating budgetary deficits.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
11/31
Dr. Malawer ... (2008) 11
Private sector favors a market-led, market-driven & self-regulatory environment.
General consensus emerging that need some global governance to avoid chaotic &
divergent national regulation. No consensus as to application of trade rules or WTO disciplines to Internet trade &
commerce. (Internet-trade specific or technologicallyneutral.)
Basic Problems for the WTO:
Definition of Internet trade -- Trade in Goods or Trade in Services?
Revise the existing agreements or a new unique one (Trade Related to EconomicCommerce / TREC)?
Newer IssueWhere states are enforcing national policies at odds with the policies of
the home states of Internet companies. E-Gambling (new 2006 U.S. legislation & EUs threat to bring WTO claim.
Continuing Issue-- Regarding the backbone of the InternetGlobaltelecommunications still primarily American (ICANN)but have growing interest inchanging this through international institutions (ITC).
-
8/3/2019 E-Commerce & Global Trade Initiatives)
12/31
Dr. Malawer ... (2008) 12
U.S.
Case #1 -- Place of Contract (Contract).
Case #2 -- Place of Publication (Tort).
Case # 3Place of Sale (Tax).
Location of Server & Company in U.S.
EU
Case #1Consumer accesses websites.
Case #2 -- Individual claims libel action.
Case # 3Requires payment of sales tax.
Transnational Transactions &
Multijurisdictional Legal Issues
Private Transactions & Litigation.
Suit filed in EU
Online sale
Publication of article
Server Located in Third Country?
ISSUES:
Jurisdictional Issue.
Choice of Law.
Judgment Enforcement.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
13/31
Dr. Malawer ... (2008) 13
Newer Internet Issue.
Global Web Transactions & Foreign Law Compliance.
(A Growing Foreign Policy Issue.)
U.S. France
U.S.
AustraliaU.S.
China
Advertising Sale of Good
News Articles
News Articles
Foreign criminal law
restricts sales specified of
specified goods.
Foreign civil law subjects
news coverage to jurisdiction
& liability.
Foreign criminal law restricts
certain coverage (censorship).
Yahoo Case
WSJ Case
Pending
Problem.
Issues: The impact of national law on global Internet transactions? What is
the role of domestic law in restricting such transactions? This is a growing & major foreign
policy issue. Clash of local & global interests. Problem of a
decentralized legal system in dealing with global actionsno final arbiter.
Newer 2007 Case: YouTube & Copyright of clips
(Belgium court case).
-
8/3/2019 E-Commerce & Global Trade Initiatives)
14/31
Dr. Malawer ... (2008) 14
Past Present Future
Technical
Commercial
Legal
Scope of
ServicesIncreasing
Demand
Critical Issues Confronting Global Internet Trade.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
15/31
Dr. Malawer ... (2008) 15
Government Debate & Discussion.
Global trade institutions are only now beginning to address the dramatic challenges of
Internet trade and electronic commerce.
Framing policy issues and contending principles by various international institutions
are now only in its infancy.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
16/31
Dr. Malawer ... (2008) 16
U.S. Government
Some Early Documents:
A Framework for Global Electronic Commerce (July 1997). First Annual Report of the U.S. Government Working Group on Electronic Commerce
(November 1998).
The Emerging Digital Economy (1998, 1999, 2000).
States have been active in considering a broad range of legislation impacting Internet
transactions, such as the Uniform Computer Information Technology Act (UCITA) that
concerns licensing of software. Virginia is one of the few states to have adopted it. (2000).
Some recent federal legislation:
E-signatures (digital signatures) now authorized. Electronic Signatures in Global and
National Commerce Act.(2000).
The 1998 Digital Millennium Copyright Actimposes new restrictions on violating
digital copyrights extraterritorially.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
17/31
Dr. Malawer ... (2008) 17
Current U.S. Law on Taxation of Online Sales.
The federal commission on Internet taxation was unable to reach a consensus on federal or
state taxation of Internet transactions. (Suggested extending moratorium on new taxes on theInternet.)
Federal moratorium on new taxation of the Internet (for example, access charges). (InternetTax Freedom Act,1998), and extended to Nov. 2003). In November 2004 this was extended toNovember 2007.
Issue of extension was caught up with considering VoIP as part of Internet.
U.S. Supreme Court (Quill Case, 1992) refuses to obligate firms to collect sales taxes for otherjurisdictions unless the sellers has a presence in that jurisdictions.
Buyers may still be required to pay their own states the sales taxes for online purchases.(Never happens.)
Granholm v. Heald(S. Ct. 2005) The Wine Case held that states cannot restrictforeign shippers if they did not so restrict state sellers of wine for selling directly toconsumers. Big win for Internet sales.
States are attempting to change this in light of gigantic budget deficits since the demise of theNew Economy & the Internet / Telecom bubble.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
18/31
Dr. Malawer ... (2008) 18
Welcome to our Web Store! Please be 18+ to shop with us, we care about the law.
Hello and welcome to dirtcheapcig.com, "The Last Refuge of the
Persecuted Smoker!"
We can save you money because we sell quality fresh cigarettes at "Dirt
Cheap" prices!
We deliver anywhere in the United States, smokes conveniently brought
to your front door.
http://www.dirtcheapcig.com
State Taxes & Online Sales.
http://www.dirtcheapcig.com/
http://www.dirtcheapcig.com/http://www.dirtcheapcig.com/http://www.dirtcheapcig.com/http://www.dirtcheapcig.com/http://www.dirtcheapcig.com/CatList.Asp?Family=Fly&Category=Lowest -
8/3/2019 E-Commerce & Global Trade Initiatives)
19/31
Dr. Malawer ... (2008) 19
Multijurisdictional Tax Issue (U.S.).
N.Y. Virginia
BuyerSeller
Seller has no
physical presence
in N.Y.
Online Sale.
Problem: Collection of Sales Tax.
[States need the money. Budget
crisis.]
S. Ct. does not require out-
of-state collection of another
states sales tax.
Consumer is to pay own state.
States proposing sales tax
simplification & congressional
change of law.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
20/31
Dr. Malawer ... (2008) 20
Six Emerging Principles as to Global Governance.
Private sector should lead.
No undue market restrictions.
Simple legal environment.
Recognize uniqueness of Internet.
The Internet changes everything, business models and government.
Facilitate globalization of E-Commerce and E-Trade via Internet, for
example, greater liberalization of markets (telecommunications).
-
8/3/2019 E-Commerce & Global Trade Initiatives)
21/31
Dr. Malawer ... (2008) 21
Nine General Issues.
Customs & taxation.
UCC for electronic commerce.
Electronic payment systems.
Intellectual property protection.
Privacy (data transfers).
Cyber Security.
Content.
Technical standards.
Newer Trade (& Foreign Policy).--Telecommunications Infrastructure,Information Technology & Internet.
Telephone access, connection charges & other restrictions as trade issues(U.S. complaints concerning Japan & Mexico to the WTO / DSU).
FDI into domestic telecom & Internet industries. (Many foreign telecoms arestill state owned.)
-
8/3/2019 E-Commerce & Global Trade Initiatives)
22/31
Dr. Malawer ... (2008) 22
European Union.
Some early documents:
Then Need for Strengthened International Cooperation(1998).
E-Commerce -- 1st Communication(1999).
Lisbon Conference --Internet(2000).
Major points:
Issues concerning the Internet have progressed from technical to commercial to legal.
Consumer jurisdiction.
The electronic marketplace requires an appropriate framework.
Global uncertainty (with different subnational, national and regional responses) willhamper the electronic marketplace.
Want the WTO to give this comprehensive consideration:
Electronic transmissions across borders.
Data protection systems.
Competition.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
23/31
Dr. Malawer ... (2008) 23
Some Recent Developments:
The U.S. & the EU have agreed upon an accord as to electronic data privacySafe
Harbor . EU commences taxing some Internet transactions.
Lisbon Summit (2000) set reforms to counter U.S. domination of Internet Revolution.Internet Management, 1998-2000,(Commission Communication)
Provisions for consumer jurisdiction in Internet litigation.
*EU Web site for E-Commerce:http://europa.eu.int/information_society/topics/ebusiness/ecommerce/index_en.htm
*E.U. Web site on Legal Aspects of E-Commerce:http://europa.eu.int/information_society/topics/ebusiness/ecommerce/8epolicy_elaw/law_ecommerce/index_en.htm
European Union:http://europa.eu.int/index_en.htm
http://europa.eu.int/information_society/topics/ebusiness/ecommerce/index_en.htmhttp://europa.eu.int/information_society/topics/ebusiness/ecommerce/8epolicy_elaw/law_ecommerce/index_en.htmhttp://europa.eu.int/information_society/topics/ebusiness/ecommerce/8epolicy_elaw/law_ecommerce/index_en.htmhttp://europa.eu.int/index_en.htmhttp://europa.eu.int/index_en.htmhttp://europa.eu.int/information_society/topics/ebusiness/ecommerce/8epolicy_elaw/law_ecommerce/index_en.htmhttp://europa.eu.int/information_society/topics/ebusiness/ecommerce/8epolicy_elaw/law_ecommerce/index_en.htmhttp://europa.eu.int/information_society/topics/ebusiness/ecommerce/index_en.htm -
8/3/2019 E-Commerce & Global Trade Initiatives)
24/31
Dr. Malawer ... (2008) 24
World Trade Organization.
Important Documents:
DOHA Agenda concerning E-Commerce (Ministerial Declaration of Nov. 2001).
WTO General Council & E-Commerce Program, (Dec. 2000) Electronic Commerce & The Role of the WTO,(March 1998).
Declaration on Global Electronic Commerce,(May 1998).
Important Issues:
Is E-commerce trade in goods or trade in services or a new specific agreement?
U.S. positionTechnology Neutral.
Major problems as to data transfer and taxation and privacy.
(data transfers, sales tax, customs, byte )
Telecom has followed a highlyregulatedmodel. The Internet has developed in anunregulatedenvironment.
How to increase global governance of the Internet by not imposing unnecessarygovernmental restrictions & disincentives at all levels.
-
8/3/2019 E-Commerce & Global Trade Initiatives)
25/31
Dr. Malawer ... (2008) 25
E-commerce link on the WTO Website:
http://www.wto.org/english/tratop_e/ecom_e/ecom_e.htm
Declaration on Global Electronic Commerce (May 1998) requests work program (&moratorium / standstill on customs tax on electronic transmissions.
http://www.wto.org/english/tratop_e/ecom_e/mindec1_e.htm
General Council established work program (Sept. 1998).
Issues not resolved at Seattle Ministerial (Nov. 1999) or DOHA Ministerial (Nov. 2001). E-
Commerce is part of DOHA agenda.
http://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_e.htm#electronic
EU believes that e-commerce can be enhanced if WTO members makedeeper market
opening commitments on commercial services generally (greater liberalization).
WTO held a seminar in 2002 on the revenue aspects of global e-commerce and impact on
development for LDCs.
http://www.wto.org/english/tratop_e/ecom_e/ecom_e.htmhttp://www.wto.org/english/tratop_e/ecom_e/mindec1_e.htmhttp://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_e.htmhttp://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_e.htmhttp://www.wto.org/english/tratop_e/ecom_e/mindec1_e.htmhttp://www.wto.org/english/tratop_e/ecom_e/ecom_e.htm -
8/3/2019 E-Commerce & Global Trade Initiatives)
26/31
Dr. Malawer ... (2008) 26
ITU / WIPO / UNCTAD.
International Telecommunications Union (ITU) -- responsible for the infrastructure (radiospectrum) & telecom standardization.
World Intellectual Property Organization (WIPO)concerned with intellectual property rights.Issued its final report concerningdomain names and resolving disputes (April 1999) and now hasan active arbitration system.
WIPO and ITU are coordinating efforts concerning dispute resolution (WIPO Arbitration& Mediation Center).
Intellectual property has become a central element in economic and cultural policy in aworld in which markets are distributed across the globe. (Domain Name Process, April1999).
WIPO is one of the arbitrators under the ICANN Rules (UDRP) for resolving domainname & trademark disputes.
ICANNInternet Corporation for Assigned Names & Numbers possible model forgreater global governance (private / public cooperation in one entity). But ran intogovernance trouble recently.
See:Primer on E-Commerce & IP Issues(May 2000).
UNCTAD issues annual reports on E-commerce and developing countries. E-Commerce &Development Report (UNCTAD, annual report).
http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1http://www.unctad.org/Templates/StartPage.asp?intItemID=2629&lang=1 -
8/3/2019 E-Commerce & Global Trade Initiatives)
27/31
Dr. Malawer ... (2008) 27
Emerging Transnational Lobbying.
Private sector (computer and telecommunication firms) beginning to organize
transnationally to influenceglobal institutions -- as toglobal governance initiatives
concerning E-commerce & trade.
The GBDe (Global Business Dialogue on Electronic Commerce), one of the first such
transnational alliances, was formed in early 1999. It consists of the worlds leading
computer and telecommunication firms.
Attempting to reach a joint approach on behalf of U.S., European and Asian firms
concerningself-regulation of all aspects ofonline commerce.
Attempting to overcome national and cultural differences.
Website for GBDe (specifically for E-commerce):http://www.gbd.org/
Website for Global Economic Forum (general): http://www.weforum.org
http://www.gbd.org/http://www.weforum.org/http://www.weforum.org/http://www.gbd.org/ -
8/3/2019 E-Commerce & Global Trade Initiatives)
28/31
Dr. Malawer ... (2008) 28
It embodies the spirit and dynamic features of the digital age. Today, the
GBDe is increasingly recognized as one of the world's leading privatesector voices on e-commerce policy.
Within an extremely short period of time the GBDe has created a process
which is truly global in scope; demonstrated the willingness of the private
sector to engage seriously in the policy development process; and issued
detailed, consensus-based recommendations on crucial e-commerce
issues.
[ From GBDe website. ]
http://www.gbd.org/
http://www.gbd.org/http://www.gbd.org/ -
8/3/2019 E-Commerce & Global Trade Initiatives)
29/31
Dr. Malawer ... (2008) 29
Concluding Suggestions.
Global governance via the WTO & other global institutions.
Need cooperation of sovereign governments.
Need to ensure that global action fostersharmonization in order to ensure a restriction-free
system.
WTO to consider sufficient agreements that addresses the service / goods issue.
Private sector toorganize transnationally to engage the various international institutions.
Governments and global institutions to be an enabler of a market-driven system.
International institutions other than the WTO such as WIPO, ITU, UNCITRAL, OECD,
UNCTAD & ISO need to play complementary roles.
The role of ICANN is still undecided as to global governance (and not unilateral U.S.
governance) as relating to the Internet backbone and domain names. [World Summit on
Information Society -- ITU.]
-
8/3/2019 E-Commerce & Global Trade Initiatives)
30/31
Dr. Malawer ... (2008) 30
Several Articles.
Malawer, "The Digital Global Economy." (NYSBA 1998).
Malawer, "Internet Commerce & Trade Policy," 48 Virginia Lawyer 46 (June /July 1999). (Click here)
Malawer, "Domain Names & Global Trade." (May 2000). (Click here)
Malawer, "Global Governance of E-Commerce & Internet Trade: Recent
Developments," 50 Virginia Lawyer 14 (June / July 2001). (Click here.) "Who Controls the Internet? Foreign Affairs (Nov. / Dec. 2005).
http://www.global-trade-law.com/Malawer,%20Digital%20Global%20Economy%20(Int'l%20Practicum%201998)..htmhttp://www.global-trade-law.com/Malawer,%20Digital%20Global%20Economy%20(Int'l%20Practicum%201998)..htmhttp://www.vsb.org/images/feature2.pdfhttp://www.global-trade-law.com/Domain%20Names%20(Article.Dr.%20Malawer).dochttp://www.vsb.org/publications/valawyer/june_july01/malawer.pdfhttp://www.global-trade-law.com/Article.Who%20Controls%20the%20Internet%20(FA%20Nov.-Dec.%202005).htmhttp://www.global-trade-law.com/Article.Who%20Controls%20the%20Internet%20(FA%20Nov.-Dec.%202005).htmhttp://www.vsb.org/publications/valawyer/june_july01/malawer.pdfhttp://www.global-trade-law.com/Domain%20Names%20(Article.Dr.%20Malawer).dochttp://www.vsb.org/images/feature2.pdfhttp://www.global-trade-law.com/Malawer,%20Digital%20Global%20Economy%20(Int'l%20Practicum%201998)..htmhttp://www.global-trade-law.com/Malawer,%20Digital%20Global%20Economy%20(Int'l%20Practicum%201998)..htm -
8/3/2019 E-Commerce & Global Trade Initiatives)
31/31
Dr. Malawer ... (2008) 31
In conclusion, the inherently transnational nature ofglobal computer networks and the Internet must lead to
greater and more creative international cooperation .
(A)s Internet trade enters a more legalistic era, newer rules
need to be clearly enunciated. Those rules should followand reflect market forces.
.. Malawer, Internet Commerce & Trade Policy,(July 1999)