international and regional bodies: activities and ... · this co-operation is international...

INTERNATIONAL AND REGIONALBODIES: ACTIVITIES AND INITIATIVES

IN ELECTRONIC COMMERCE

OECD Emerging Market Economy Forumon Electronic Commerce

Dubai, U.A.E, 16-17 January 2001

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TABLE OF CONTENTS

Section I: International Bodies ......................................................................................................4

Summary of activities and initiatives .............................................................................................9

A. Building Trust for Users and Consumers ..............................................................................9Protection of privacy and personal data ...............................................................................10Secure infrastructures and technologies: authentication and certification ............................12Consumer protection............................................................................................................14Other trust-related issues.....................................................................................................15

B. Establishing Ground Rules for the Digital Marketplace........................................................16Commercial law....................................................................................................................17Taxation ...............................................................................................................................19Financial issues, electronic payment and movement of goods.............................................20Trade facilitation and market access....................................................................................22Intellectual property..............................................................................................................28

C. Enhancing the Information Infrastructure for Electronic Commerce ....................................32Access to and use of the information infrastructure..............................................................33Internet governance / domain names system.......................................................................38Standards.............................................................................................................................40

D. Maximising the Benefits ......................................................................................................42Economic and social impact.................................................................................................43Small and medium-sized enterprises (SMEs).......................................................................47Skills development ...............................................................................................................49Ensuring global participation ................................................................................................52

Section II. Regional Bodies.........................................................................................................58

Summary of activities and initiatives ...........................................................................................60

A. Building Trust for Users and Consumers ............................................................................60Protection of personal data and privacy ...............................................................................60Interoperable and secure infrastructure................................................................................61Consumer protection............................................................................................................61Other trust-related issues.....................................................................................................62

B. Establishing Ground Rules for the Digital Marketplace........................................................63Commercial law....................................................................................................................63Financial issues....................................................................................................................64Trade facilitation and market access....................................................................................65Intellectual property..............................................................................................................65

C. Enhancing the Information Infrastructure for Electronic Commerce ....................................66Access to and use of the information infrastructure..............................................................66Internet governance / domain names system.......................................................................67Standards.............................................................................................................................67

D. Maximising the Benefits ......................................................................................................68Economic and social impacts ...............................................................................................68Small and medium-sized enterprises (SMEs).......................................................................69Skills development ...............................................................................................................69Ensuring global participation ................................................................................................69

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INTERNATIONAL AND REGIONAL BODIES:ACTIVITIES AND INITIATIVES IN ELECTRONIC COMMERCE

This report is the third annual overview, prepared by the Secretariat of the OECD, of the activitiesand initiatives in electronic commerce of most of the principal international and regional bodies active in thisarea. It does not cover the activities of the OECD itself, which is the subject of a separate document. It isan update of the first edition prepared for the Ottawa Ministerial Conference held in 1998 and the firstupdate document SG/EC(99)5, prepared for the OECD Forum on Electronic Commerce held in Paris inOctober 1999. The OECD contacted a number of international and regional bodies, who were invited toprovide up-to-date information on their activities related to electronic commerce.

The report is divided into two sections. Each begins with an updated general description of thevarious organisations/bodies, and goes on to list their existing contributions and areas of possible futurework. Organisations and bodies that appear below in italics have not been able to supply updatedinformation for various reasons.

Section I focuses on the following international bodies:

− Bank for International Settlements (BIS);

− International Electrotechnical Commission (IEC);

− International Labour Organization (ILO);

− International Organization for Standardization (ISO);

− International Telecommunication Union (ITU);

− International Trade Centre (ITC);

− UN/CEFACT United Nations Centre for Trade Facilitation and Electronic Business under theauspices of the United Nations Economic Commission for Europe (UN/ECE);

− United Nations Commission on International Trade Law (UNCITRAL);

− United Nations Conference on Trade and Development (UNCTAD);

− United Nations Educational, Scientific and Cultural Organization (UNESCO);

− Universal Postal Union (UPU);

− The World Bank;

− World Customs Organization (WCO);

− World Intellectual Property Organization (WIPO); and

− World Trade Organization (WTO).

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Section II focuses on the following regional bodies:

− Asia Pacific Economic Cooperation (APEC);− Council of Europe (CoE);− European Free Trade Association (EFTA);− European Union (EU), and− Free Trade Area of the Americas (FTAA).

The information provided by the various bodies is organised along the following thematic lines:

A. Building Trust for Users and Consumers

1. Protection of privacy and personal data

2. Secure infrastructures and technologies, authentication and certification

3. Consumer protection

4. Other trust-related issues

B. Establishing Ground Rules for the Digital Marketplace

1. Commercial law

2. Taxation

3. Financial issues, electronic payment and movement of goods

4. Trade facilitation and market access

5. Intellectual property

C. Enhancing the Information Infrastructure for Electronic Commerce

1. Access to and use of the information infrastructure

2. Internet governance / Domain Names System

3. Standards

D. Maximising the Benefits

1. Economic and social impacts

2. Small and medium-sized enterprises

3. Skills development

4. Ensuring global participation

Each organisation has described its existing contributions and future work in electronic commerceaccording to the specific issues relevant to its mandate, and may include proposed as well as ongoingwork.

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SECTION I: INTERNATIONAL BODIES

BISBank for International Settlements http://www.bis.org/about/index.htm

The Bank for International Settlements is an international organisation fostering co-operation among centralbanks, international financial institutions and, increasingly, other regulators and supervisors. A key aim ofthis co-operation is international monetary and financial stability. The BIS provides secretariat support for anumber of key groups such as the Basel Committee on Banking Supervision and the Committee onPayment and Settlement Systems, and hosts the Secretariat for the International Association of InsuranceSupervisors. It is also a centre for economic research, particularly on monetary and financial issues. At thesame time the BIS is a bank for central banks, providing a broad range of financial services for managingtheir external reserves.

IECInternational Electrotechnical Commission http://www.iec.ch

The International Electrotechnical Commission is the world organisation that prepares and publishesinternational standards for all electrical, electronic and related technologies. The membership consists ofmore than 50 participating countries, including the world’s major trading nations and a growing number ofindustrialising countries. The IEC’s mission is to promote international co-operation on all questions ofelectrotechnical standardisation and related matters, such as the assessment of conformity to standards.The IEC charter embraces all electrotechnologies, including electronics, magnetics and electromagnetics,electroacoustics, telecommunication, and energy production and distribution, as well as associated generaldisciplines such as terminology and symbols, measurement and performance, dependability, design anddevelopment, and safety and the environment.

ILOInternational Labour Organization http://www.ilo.org

The International Labour Organization is a specialised agency of the United Nations founded in 1919 andbuilt on the constitutional principle that universal and lasting peace can be established only if it is based onsocial justice. The ILO provides the institutional framework for the formulation of international policies andprogrammes to promote basic human rights, improve working and living conditions, and enhanceemployment opportunities. This involves the creation of international labour standards backed by a uniquesystem to supervise their application; an extensive programme of international technical co-operation andtraining; and education, research and publishing activities. The ILO is unique among world organisations inthat employers' and workers' representatives – the “social partners” of the economy – have an equal voicewith those of governments in shaping its policies and programmes. The International Labour Conference,which meets annually, provides an international forum for discussion of world labour and social problemsand sets minimum international labour standards and broad policies of the Organization. Every two yearsthe Conference adopts the ILO's biennial work programme and budget which is financed by memberStates. Between Conferences, the work of the ILO is guided by the Governing Body, comprising28 government members and 14 worker and 14 employer members. The International Labour Office inGeneva is the Organization's secretariat, operational headquarters, research centre and publishing house.Administration and management are decentralised in regional, area and branch offices in more than40 countries.

The ILO's general role in electronic commerce is to analyse and monitor the impact of information andcommunication technologies (ICT), including their use in electronic commerce, on employment (loss and

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creation of jobs), enterprise development, work organisation, working time arrangements, workingconditions and industrial relations. In this context, key issues for ILO policy development are teleworking,protection of workers’ personal data, and protection of the rights of categories of workers particularlyaffected by ICT, as well the role of ICT in globalisation and restructuring of national economies and theopportunities or restrictions created in terms of access and participation in the emerging world economy.

ISOInternational Organization for Standardization http://www.iso.ch

The International Organization for Standardization is a worldwide federation of national standard bodies. Itsmission is to promote the development of standardisation with a view to facilitating the internationalexchange of goods and services, and to develop co-operation in the spheres of intellectual, scientific,technological and economic activity. The ISO covers all standardisation fields except electrical andelectronic engineering, which is the responsibility of the IEC. Work in the information technology field iscarried out by a joint ISO/IEC committee (JTC1). The technical work of ISO is decentralised. There areover 2 700 technical committees, subcommittees and working groups. In these committees,representatives of industry, research institutes, government authorities, consumer bodies and internationalorganisations from around the world come together to resolve problems of global standardisation.

ITUInternational Telecommunication Union http://www.itu.int

The International Telecommunication Union is an intergovernmental organisation, within which public andprivate sectors co-operate for the development of telecommunications. The ITU adopts internationalregulations and treaties governing all terrestrial and space uses of the frequency spectrum within whichcountries adopt their national legislation. It also develops standards to facilitate the interconnection oftelecommunication systems on a worldwide scale regardless of the type of technology used. In addition,the ITU fosters the expansion of telecommunications services and infrastructure in developing countries byrecommending medium-term policies and strategies to national administrations.

ITCInternational Trade Centre http://www.intracen.org

The International Trade Centre is the technical co-operation agency of the United Nations Conference onTrade and Development (UNCTAD) and the World Trade Organization (WTO) for operational aspects oftrade promotion and export development. ITC works to create sustainable improvements in the tradeperformance of developing and transition economies by promoting exports and improving importoperations. ITC’s role in e-commerce is to improve the trade performance and internationalcompetitiveness of enterprises in developing and transition economies through e-facilitated trade. Itdevelops practical products and services for national governments, trade support institutions andenterprises, and thereby raises awareness, builds knowledge and creates the requisite e-competencies tosucceed in this new trade environment. ITC’s e-trade programme combines traditional and Internet-enabledservices. These include e-mail forums, conferences linking stakeholders in the public and private sectors,training in e-trade techniques, brokering advice and information, the promotion of new market developmentapproaches, and assisting partner countries to develop national e-trade strategies.

UN/CEFACTUnited Nations Centre for Trade Facilitation and http://www.unece.org/cefact/Electronic Business

The UN/CEFACT United Nations Centre for Trade Facilitation and Electronic Business is an organisationunder the Economic Commission for Europe (UN/ECE). It was created in recognition of the fact that theUN/ECE’s activities in trade facilitation are global in nature.

UN/CEFACT provides a forum for institutional co-operation in formulating and recommending internationaltrade facilitation strategies, and for reconciling official governmental and commercial requirements. The

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Centre strives not only to ensure global participation in its work but also to encourage an analyticalapproach to the technical and policy areas of trade facilitation.

The participation of many private-sector associations in UN/CEFACT’s work at the policy level, and ofhundreds of private-sector technical experts in UN/CEFACT’s working groups, is a unique feature of theCentre, which is forging new co-operative relationships between private business and public organisations.

The Centre’s vision is “Simple, transparent, effective processes for global commerce”, and it is dedicated tofacilitating international transactions through the development of recommendations and tools that simplifyand harmonise information flows. Its ultimate objective is to improve the ability of business, trade andadministrative organisations to exchange products and services effectively, thus contributing to the growthof global commerce and welfare.

UNCITRALUnited Nations Commission on International Trade Law http://www.uncitral.org

The United Nations Commission on International Trade Law was established by the United Nations GeneralAssembly in 1966. The Commission is the core legal body of the United Nations system in the field ofinternational trade law, and the main vehicle by which the United Nations can play a more active role inreducing and removing obstacles to the flow of trade. The general mandate of the Commission is to furtherthe progressive harmonisation and unification of international trade law and to remove unnecessaryobstacles to international trade caused by inadequacies and divergence in national legislation affectingtrade. The Commission has carried out work in eight different areas of trade law, including: internationalsale of goods and related transactions (Convention on Contracts for the International Sale of Goods);international transport of goods (Hamburg Rules); international payments (Legal Guide on Electronic FundTransfers, Model Law on International Credit Transfers); banking law (Convention on IndependentGuarantees and Stand-by Letters of Credit); international commercial arbitration (Model Law onInternational Commercial Arbitration); procurement (Model Law on Procurement of Goods, Constructionand Services); insolvency (Model Law on Cross-border Insolvency); and electronic commerce (Model Law).To develop the preparatory work on topics within the Commission's programme areas, UNCITRALestablished three Working Groups, currently named the Working Group on International ContractPractices, the Working Group on Insolvency Law and the Working Group on Electronic Commerce.

UNCTADUnited Nations Conference on Trade and Development http://www.unctad.org

http://www-partners.unctad.ch/http://www.gtpnet-e.com

The United Nations Conference on Trade and Development, established in 1964, is the principal organ ofthe United Nations General Assembly in the field of trade and development. The main goals of UNCTADare to maximise the trade, investment and development opportunities of developing countries, and to helpthem face the challenges arising from globalisation and integrate into the world economy. In 1992,UNCTAD launched its Trade Efficiency Initiative, the main objective of which is to facilitate the integrationand participation of developing countries and SMEs in international trade. This objective is pursued bysimplifying and harmonising trade procedures worldwide, and providing traders or potential traders withaccess to information networks and better business practices. UNCTAD has approached the subject oftrade efficiency by combining a wide range of sectors and programmes, including the Automated Systemfor Custom Data (ASYCUDA), the Advance Cargo Information System (ACIS), the Trade Point Programand programmes in banking and insurance.

The Plan of Action adopted at UNCTAD X provides a specific mandate on electronic commerce. It requiresUNCTAD to inform international debates on the development impact of global information networksaddressing, in particular, developing countries’ specific problems – such as access to informationtechnology, infrastructure constraints and build-up of human resource capacity. Particular importanceshould be given to their impact on the enterprise sector, including corporate structures and the role ofSMEs in global competition, as well as international trade and investment flows.

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UNCTAD’s Division of Services Infrastructure for Development and Trade Efficiency has conducted aseries of regional workshops and roundtables on e-commerce and development. These have allowedexchanges of experiences among enterprises on all aspects of e-commerce. They have also led to a widerange of conclusions and recommendations that developing countries can adopt, so as to be able to use e-commerce as an engine for trade and development. It has also launched a series of publications, the first ofwhich is Building Confidence: Electronic Commerce and Development. This will be followed by an annualpublication that will provide information on and analyse e-commerce matters that are of interest todeveloping countries.

UNESCOUnited Nations Educational, Scientific and Cultural Organization http://www.unesco.org

According to its Constitution, the United Nations Educational, Scientific and Cultural Organization’s mainobjective is to contribute to peace, security and common welfare in the world by promoting collaborationamong nations through education, science, culture and communication in order to further universal respectfor justice, for the rule of law and for human rights and fundamental freedoms. In conformity withResolutions 29C/36 and 30C/35, UNESCO is implementing a plan of action to stimulate internationalreflection and debate on the ethical, legal and societal aspects of the information society, gather anddisseminate relevant information and data, and promote consensus-building on ethical and legal principlesapplicable in cyberspace. UNESCO has launched a Series on Cyberspace Law, and its first volume on thepossibilities of a legal framework for cyberspace was been published in 2000.

UPUUniversal Postal Union http://www.upu.int

The Universal Postal Union was founded in 1874 and brought into relationship with the United Nations in1948. The UPU unites member countries into a single postal territory and fixes international postal rates.As a Specialised Agency of the United Nations, the UPU aims to organise and improve postal servicethroughout the world and to ensure international collaboration in this area. Among the principles governingits operation as set forth in the Universal Postal Convention and the General Regulations, two of the mostimportant were the formation of a single territory by all signatory nations for the purposes of postalcommunication, and uniformity of postal rates and units of weight.

The World Bank http://www.worldbank.org/icthttp://www.ifc.org/ict

http://www.infodev.org

The International Bank for Reconstruction and Development – “the World Bank” – was established in 1944at the United Nations Monetary and Financial Conference. The World Bank's goal is to reduce poverty andimprove living standards by promoting sustainable growth and investment in people. The Bank Groupcomprises five organisations: the International Bank for Reconstruction and Development (IBRD); theInternational Development Association (IDA); the International Finance Corporation (IFC); the MultilateralInvestment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes(ICSID). These agencies raise most of their money on the world’s financial markets through selling publicor private bonds and other debt securities to pension funds, insurance companies, corporations and otherbanks, and individuals around the world. It has been estimated that in recent years the World Bank Groupfunding for information and communication technology (ICT) has been between $1 billion and $2 billion peryear.

On 1 January 2000, the telecommunications groups of the IFC and the World Bank merged into a newGlobal Information and Communication Technologies Group in order to generate synergies that couldbetter accomplish the Bank’s group mission, and deliver its vision of a world free of digital disparities, whereequal access to communication networks is a vehicle for development. ICT projects involve the design andimplementation of sector reform, the promotion of private investments in Internet and telecommunications,as well as pilot initiatives, and knowledge-sharing activities. The global ICT portfolio of the World BankGroup includes sovereign loans, technical assistance, investments and partnerships with the private sector,IFC promotion of private investments in the Internet sector, and grants awarded by the infoDev program,

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that promote innovative projects on the use of information and communications technologies for economicand social development, with a special emphasis on the needs of the poor in developing economies.

WCOWorld Customs Organization http://www.wcoomd.org

The World Customs Organization is an independent intergovernmental body with worldwide membershipwhose mission is to enhance the effectiveness and efficiency of customs administration for the facilitationof international trade. To fulfil its objectives the WCO establishes, maintains, supports and promotesinternational instruments for the harmonisation and uniform application of simplified and effective customssystems and procedures governing the movement of commodities, people and conveyances acrosscustoms frontiers. The WCO reinforces Members’ efforts to secure (through control and enforcement)compliance with national legislation to maximise the effectiveness of Members’ co-operation with eachother and with international agencies to combat customs offences. It also assists Members in their effortsto meet the challenges of adapting to changing circumstances, by promoting communication and co-operation among Members and with other international organisations, and by fostering human resourcedevelopment, improvement in the management and working methods of customs administration, and thesharing of best practices.

WIPOWorld Intellectual Property Organization http://www.wipo.org

The World Intellectual Property Organization is an intergovernmental organisation responsible forpromoting the protection of intellectual property throughout the world. WIPO administers over16 multilateral treaties dealing with the related legal and administrative aspects.

WIPO’s work involves the development of new international treaties dealing with intellectual property andan extensive programme of co-operation for development under which technical assistance is extended todeveloping countries. The Organization’s work also includes services directed to the private sector underinternational arrangements that provide for simplified and cost-effective means of obtaining internationalprotection for patents, trademarks and industrial designs. The Organization also offers dispute resolutionservices to private parties involved in international disputes concerning intellectual property. The feesgenerated by WIPO in the provision of services to the private sector account for about 88% of theOrganization’s budget.

WTOWorld Trade Organization http://www.wto.org

The World Trade Organization is an international body that deals with the rules of trade between nations.WTO agreements provide the legal ground rules for international commerce. The agreements are bindingcontracts which are signed by the bulk of the world’s trading nations to keep their trade policies withinagreed limits. Although the agreements are negotiated and signed by governments, the goal is to helpproducers of goods and services, exporters and importers conduct their business. The WTO agreementsdeal with trade in goods, services and intellectual property. They outline the principles for liberalisation, andthe permitted exceptions. The agreements include individual countries’ commitments to lower customstariffs and other trade barriers, and commitments to open (and keep open) service markets. They also setprocedures for settling disputes and require governments to make their trade policies transparent.

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SUMMARY OF ACTIVITIES AND INITIATIVES

A. BUILDING TRUST FOR USERS AND CONSUMERS

Trust is central to any commercial transaction. Developing new kinds ofcommercial activities in the electronic environment largely hinges onassuring consumers and businesses that their use of network services issecure, reliable and verifiable. Similarly, consumers want control over thecollection and use of their personal data and assured access to appropriateredress mechanisms. Businesses need a framework that is predictableand workable for global transactions. Creating the appropriate level ofconfidence requires a mixture of trustworthy technologies, appropriatetaxation rules, self-regulatory arrangements and public education. Themechanisms for redress and the role of law enforcement must also beclarified to assure that there is an appropriate and effective response tomisuses or abuses of this new medium.

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PROTECTION OF PRIVACY AND PERSONAL DATA

A number of initiatives have been undertaken to balance the interest of protecting personal privacy andallowing business access to market information. For example, the International Telecommunication Union(ITU) has developed standards on privacy techniques; the Universal Postal Union (UPU) has established aglobal policy framework for consumer privacy and data protection acts relevant to “Global Trust” serviceprovision.

Organisation Existing Contributions Future Work

ILO - Research and publication of a series ofthree issues of the ILO Conditions of WorkDigest on workers’ privacy coveringprotection of personal data, monitoring andsurveillance in the workplace and testing inthe workplace.

- An ILO Code of Practice on the protection ofworker’s personal data adopted by aMeeting of Experts on Workers’ Privacy in1996. The Code includes general principles,collection, security, storage, use andcommunication of personal data, individualand collective rights and employmentagencies.

- Production and dissemination of informationmaterials to promote the Code of Practice onthe protection of workers’ personal dataconsisting of case studies, examples of goodpractice and privacy checklists.

ITU - Development of standards on privacy,security and encryption techniques fortelecommunication and Internet Protocol(IP)-based networks – such as ITURecommendation X.509, a referencestandard used in Public Key Infrastructure(PKI) technologies; X.842, Guidelines on theuse and management of trusted third party(TTP) services; X.843, Specification of TTPservices to support the application of digitalsignatures; H.235, Security and encryptionfor multimedia terminals, security in IMT-2000 (3rd generation) mobile systems.

- Further development of standards forelectronic commerce and multimediaterminals – inter alia, in the areas of privacy,authentication and encryption. ITU-T StudyGroup 7 is the lead Study Group oncommunication systems security, and ITU-TStudy Group 16 is the leader on e-businessand e-commerce, including security inmultimedia systems and services (e.g.Mediacom 2004 project, M.3 GII Project:Technical framework for electroniccommerce).

UNESCO - Organisation of international meetings oncyberspace law and ethics, covering issuesof privacy.

- Pursue the comparative study on theprotection of privacy in cyberspace, inconsultation with concerned internationalbodies.

- The second volume of the Series onCyberspace Law covers the issue ofprotection of privacy in the informationsociety.

UPU - Developed a Global Postal Trust ServicesFramework that incorporates a StandardCertificate Policy and future provisions for aformal implementation of a Postal PublicKey Infrastructure.

- Continue research and development.

- Specific projects focused on developingstandard solutions involving PKI, including:

- Trusted Time Stamping Service;

- Interoperability Trials for SecuredMessaging Applications;

- Future Accreditation programme forPostal Certification Authorities.

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WTO - The General Agreement on Trade inServices (GATS), Article XIV enablesMembers to take measures necessary toprotect the privacy of individuals in relationto the processing and dissemination ofpersonal data, and the confidentiality ofindividual records and accounts, subject tosafeguards that the measures would notconstitute discriminatory or disguised tradebarriers.

- The forthcoming WTO work programme onelectronic commerce is likely to include theissue of protection of privacy.

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SECURE INFRASTRUCTURES AND TECHNOLOGIES:AUTHENTICATION AND CERTIFICATION

Work is under way to enable cross-border transactions in both the public and private sectors inthe areas of electronic signatures, cryptography, authentication and certification. For example,the United Nations Commission on International Trade Law (UNCITRAL) has prepared a draftModel Law on electronic signatures. The International Telecommunication Union (ITU) hasdeveloped standards on security and encryption techniques for telecommunications and IP-based networks. The UN/CEFACT United Nations Centre for Trade Facilitation and ElectronicBusiness provides the only international standard for electronic data interchange(UN/EDIFACT).


ISO/IEC - Development of standards for electronicsignatures, cryptography, authentication andcertification.

ITU - Development of standards on privacy,security and encryption techniques fortelecommunication and Internet Protocol(IP)-based networks – such as ITURecommendation X.509, a referencestandard used in Public Key Infrastructure(PKI) technologies; X.842, Guidelines on theuse and management of trusted third party(TTP) services; X.843, Specification of TTPservices to support the application of digitalsignatures; H.235, Security and encryptionfor multimedia terminals, security in IMT-2000 (3rd generation) mobile systems.


UN/CEFACT - Provides the only international standard forelectronic data interchange: “UN ElectronicData Interchange for Administration,Commerce and Transport” (UN/EDIFACT).UN/EDIFACT incorporates a number ofimportant security features.

- Work with industry groups to ensure fullinteroperability between UN/EDIFACT andother emerging electronic commercestandards.

UNCITRAL - The Working Group on ElectronicCommerce is tasked with the preparation ofuniform rules on electronic signatures, inrecognition of the importance of, and theneed for working towards, the harmonisationof law in that area. The Uniform Ruleswould follow the media-neutral approach,and while they would not discourage the useof other authentication techniques, the focuswould be placed in the first instance on theissues of digital signatures. The Rules areexpected to provide minimum standards of“legal interoperability” to facilitate cross-border recognition of electronic signatures.

- At its meeting in September 2000, theWorking Group on Electronic Commerceadopted the draft Uniform Rules (now in theform of a draft UNCITRAL Model Law onElectronic Signatures). The Working Groupalso discussed the draft Guide to Enactmentof the UNCITRAL Model Law on ElectronicSignatures. The UNCITRAL Secretariat is toprepare a revised version of the draft Guideto reflect the decisions made by the WorkingGroup. It is intended that the UNCITRALModel Law on Electronic Signatures and thedraft Guide to Enactment be submitted tothe Commission for review and adoption atits 34th session in June 2001.

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UNESCO - The International Experts’ Meeting onCyberspace Law has adopted the “UniversalService Principle” by which “the new mediashall be accessible at community level by allindividuals, on a non-discriminatory basisregardless of geographic location”.

- Investigation on barriers to access, such asthe requirements of standardisation whichmay preclude actors of cyberspace indeveloping countries to disseminateinformation in non-standardised forms.

UPU - Established a global framework for datasecurity (encryption and digital signatureservices) and standards for global policiesand procedures.

- Established minimum standardspecifications for the global interoperabilityof digital certification services.

- Establishing global postal trust services tobe offered on top of this authentication andcertification infrastructure.

- Continuing research and development.

- Specific projects focused on developingstandard solutions involving PKI, including:

- Trusted Time Stamping Service;

- Interoperability Trials for SecuredMessaging Applications;

- Future Accreditation programme forPostal Certification Authorities.

World Bank

infoDev

Morocco: Technical Assistance for the designof a regional framework for the certification ofelectronic transaction, within the InformationInfrastructure Sector Development Loan(IISDL).

- Indonesia: “Information InfrastructureDevelopment Project" - Technicalassistance is provided to prepare thetechnical design, policy framework andbusiness model for the establishment of aNational Certification Authority and NationalMonitoring Agency.

- Marketing Partner in the inaugural GlobalInfoSec Summit hosted by WITSA/ITAA.

- Continue to participate in working groups todevelop global, public-private collaboration.

WCO - Developed Guidelines on EDI MessageSecurity for Customs.

- Developed the WCO Recommendation onthe acceptance of electronically transmittedcustoms declarations (including digitalsignatures) in courts of law.

- Comprehensive review of the EDI SecurityGuidelines in the context of the KyotoConvention Guidelines on IT in order toinclude latest developments in the area of e-commerce and Internet technology.

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CONSUMER PROTECTION

Consumers using electronic commerce need to be afforded a transparent and effective level ofprotection. While the issues surrounding consumer protection are not included in the terms of referenceof any particular organisation, many organisations recognise the need for efforts to develop awarenessand knowledge among consumers.


ITU - Development of standards related to PublicKey Infrastructure (PKI) and digital signaturetechnologies.

- Further development of standards forelectronic commerce and multimediaterminals – inter alia, in the areas of privacy,authentication and encryption. Consumerprotection is also likely to be one of theissues addressed at the “World Summit onthe Information Society”, to be held in 2003under ITU leadership in close co-operationwith other interested United NationsAgencies.

UNCITRAL - The Model Law on Electronic Commerce,although drafted without special attention toissues that might arise in the context ofconsumer protection, does not specificallyexclude consumers. It provides basic legalcertainty on a number of issues which maybe relevant to consumer transactions,including requirements for signatures andwriting. Depending on domestic consumerprotection regimes, enacting States maywish to consider whether the provisionswould be appropriate for consumerprotection.

- The issue of consumer protection has beenconsidered in the context of the draftUniform Rules on Electronic Signatures, andthe formulation adopted in the Model Law islikely to be followed in the Uniform Rules.

UPU - The certificate policy developed for digitalsignature and non-repudiation addressesconsumer protection issues for accessingsecure e-commerce services.

- Continue research and development.

WCO - Adopted the revised Kyoto Convention onCustoms procedures, which also addressesa transparent environment where all officialinformation has to be readily available andwhere the customs has to grant a right ofappeal in customs matters.

- Developed the WCO Recommendation onthe acceptance of electronically transmittedcustoms declarations (including digitalsignatures) in courts of law.

- Developed the WCO Recommendation onthe use of the WWW by customs, whichurges customs administrations to make allrelevant official information (regulations,tariffs, duty-free allowances, etc.) publiclyavailable on the Internet.

- Promotion of risk management basedcontrol techniques to maintain effectivesocial and environmental controls, whilefacilitating legitimate trade to the maximumpossible extent.

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OTHER TRUST-RELATED ISSUES


UNESCO - The International Experts’ Meeting onCyberspace Law has adopted the“Education Principle” by which “initiativesshould be taken to educate parents,children, teachers and other Internet userson the implications of their participation incyberspace and how to maximise theopportunities presented by the new media”,including electronic commerce.

- Dissemination of information on codes ofconduct through the Observatory on theInformation Society.

- Updating of the existing Observatory on theInformation Society. Establishment of a website for “Innocence in Danger” to protectchildren against paedophilia as an illegalpractice of electronic commerce.

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B. ESTABLISHING GROUND RULES FOR THE DIGITAL MARKETPLACE

Existing legal and commercial frameworks that govern how businessestransact with each other, with consumers and with governments weredesigned in a non-digital age. As consumers and business venture ontothis new platform, they are looking to governments to ensure that therules of the game are equivalent to those of the physical world as far aspossible, and – where it is absolutely necessary to introduce new rulesand regulations or changes to existing rules – to ensure that these aretransparent and predictable.

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COMMERCIAL LAW

A number of forums offer governments and industry the opportunity to examine various aspects ofcommercial law. One notable example of efforts in this area is the United Nations Commission onInternational Trade Law (UNCITRAL)’s “Model Law on Electronic Commerce”, an internationally adoptedmodel to enable electronic signatures and remove impediments to electronic transactions.


ITU - Development of practical handbooks fortelecommunication regulators, coveringissues related to e-commerce (in co-operation with the World Bank).

- Continue to raise awareness of the role oftelecommunication reform and regulation inthe development of e-commerce; policyadvice to governments and telecomregulators on e-commerce.

UN/CEFACT - Prepared a Recommendation onCommercial use of Interchange Agreementsfor Electronic Data Interchange and an e-Commerce Agreement.

- Recommended joint work with UNCITRALregarding implementing equivalents to“writing”, “signature” and “document” inconventions and agreements relating tointernational trade.

- Is preparing a new Recommendation on“Self-Regulation” (Model code of Conduct).

UNCITRAL - Model Law on Electronic Commerceadopted by UNCITRAL in 1996 offersnational legislators a set of internationallyacceptable rules as to how a number oflegal obstacles to the communication oflegally significant information in the form ofpaperless messages, including uncertaintyas to their legal effect or validity, may beremoved, and how a more secureenvironment may be created for electroniccommerce. The Model Law can also beused as a rule of interpretation for existinginternational conventions and otherinternational instruments that createobstacles to electronic commerce. Since itwas adopted in 1996, the Model Law hasbeen enacted in twelve countries and isbeing actively considered for adoption inmany more countries. It is generallyregarded as an essential reference fordealing with the private law aspects ofelectronic commerce.

- Refer to work under “Secure Infrastructuresand Technologies”.

18


UNCTAD - Working document “Electronic Commerce:Legal Considerations”(UNCTAD/SDTE/BFB/1) examines the legaldimensions of electronic commerce andproposes joint work with UNCITRAL.

- Such joint work has been pursued, inparticular through the holding of an Expertmeeting (July 1999) on “Capacity Building inthe Area of Electronic Commerce: LegalDimensions”. See background document“Legal Dimensions of Electronic Commerce”(TD/B/COM.3/EM.8/2) and report of themeeting (TD/B/COM.3/28).

- Joint work will be pursued with relevantinternational bodies such as UNCITRAL,WIPO and the International Chamber ofCommerce.

- Analytical work on the need for an enablingenvironment for the development ofelectronic commerce.

UNESCO - Participation in the UNCITRAL WorkingGroup on Electronic Commerce.

- The second volume of the Series onCyberspace Law deals with the legalaspects of electronic commerce.

World Bank(infoDev)

- India: Conference and workshops on globalelectronic commerce, in co-operation withthe Global Information InfrastructureCommission and the Confederation of IndianIndustry. The opportunities and constraintsof electronic commerce were illustrated torepresentatives from the private sector, thelegal community, banks and financialinstitutions, and Indian policy makers. Theworkshops also served to create a groupwhich will work closely with national andinternational organisations to foster aharmonised legal and regulatoryenvironment for global electronic commerce.

- Morocco: IISDL Project, includingelaboration of a regulatory framework forelectronic signatures (following UNICITRALlaw), and basic principles of certification andcryptography.

- Indonesia: Review of existing e-commercepolicies and regulatory framework, anddrafting of new legislation to facilitate e-commerce. Assistance/advice also providedto Government of Indonesia to enforce theUNCITRAL Model Law on e-commerce toprepare the WTO 2000 negotiations.

WIPO - The WIPO Arbitration and Mediation Centerhas developed an Internet-based, onlinedispute resolution system that can provide aneutral, speedy and inexpensive means ofresolving disputes without the need forphysical movement of persons and things.Although developed particularly for disputesconcerning domain names and trademarksand, more generally, for all intellectualproperty disputes, the system hasadvantages for the swift and efficientresolution of any international commercialdisputes arising out of electronic commerce.

- Promotion of confidence in the onlinesystem, development through conduct oftest cases, and further elaboration of thesystem to include Internet-based video-conferencing as bandwidth improves.

- Application of the extensive experiencegained by the WIPO Arbitration andMediation Center in the online conduct ofdomain name cases, to further refine theonline dispute resolution system.

19

TAXATION

There is a need to ensure that taxation does not act as a barrier to the further development of electroniccommerce, and that this new form of doing business does not undermine the tax base. Issues to beresolved include: taxpayer service, tax administration, tax treaties, transfer pricing and consumption tax.


World Bank - Ongoing policy advice in building proper taxlegislation, including issues of taxationrelated to electronic commerce.

20

FINANCIAL ISSUES, ELECTRONIC PAYMENT AND MOVEMENT OF GOODS

In the context of the emerging global electronic market-place, several international forums are exploringfinancial issues such as electronic money, payment systems, and the transborder movement of goods.Organisations such as the Bank for International Settlements (BIS), the United Nations Commission onInternational Trade Law (UNCITRAL), the United Nations Conference on Trade and Development(UNCTAD) and the World Customs Organizations (WCO) have been forums for discussion of theseimportant aspects of electronic commerce.


BIS - Paper by Committee on Payment andSettlement Systems (CPSS) and Group ofComputer Experts on “Security of ElectronicMoney” (1996).

- BIS analytical Paper on “Implications forCentral Banks of the Development ofElectronic Money” (1996).

- G10 analytical paper on "Electronic Money"(1997).

- Paper by Basel Committee on BankingSupervision (BCBS) on “Risk Managementfor Electronic Banking and Electronic MoneyActivities” (1998).

- Paper by CPSS on "Survey of ElectronicMoney Developments" (2000).

- Paper by BCBS on "Electronic BankingGroup Initiatives and White Papers" (2000).

- Continuing to monitor the development ofelectronic money and to analyse itsimplications for central banks, paymentsystems and banking supervisors.

- Continuing to consider supervisoryimplications of electronic banking.

ITU - Providing electronic commerce applicationsand services that support secure credit cardpayments to other internationalorganisations and to the private sector indeveloping countries.

- Expand secure payment and transactionservices to other international organisationsand to public and private entities indeveloping countries.

UNCITRAL - The Legal Guide on Electronic FundsTransfers (1987) identifies the legal issuesarising from the transfer of funds byelectronic means and discusses possibleapproaches for dealing with those issues.

- The Model Law on International CreditTransfers (1992) provides internationallynegotiated rules, which meet the needposed by modern funds transfer techniquesto unify the law of credit transfers. The Lawrecognises the increased use of paymentorders sent by electronic means and theshift from the generalised use of debittransfers to the use of credit transfers.

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UNCTAD - An initial study has been produced onpossible fiscal/development scenariosstemming from ongoing discussions onWTO's “standstill moratorium”(UNCTAD/ITCD/TAB/5).

- Made a major contribution to the High-LevelMeeting on Electronic Commerce and FiscalRevenue in Africa held in Abuja, Nigeria.

- Proposals to conduct quantitative studies onthe impact of trade, duties, and investmentflows (of Internet-based transactions) on thedeveloping world.

- Organising an Expert meeting on FinancialServices in the context of ElectronicCommerce.

UPU - Developed an application for secureInternational Money Orders. This applicationis already deployed in five countries.

- Developing a new International FulfilmentService identified as a Global Postal Deliveryand Payment Guarantee. It will provideDelivery and Payment Services forMerchants selling products to InternationalCustomers. The payment service willprovide additional payment options, such asPay on Delivery, PostCard, Pre-Pay at aPost Office

- Ongoing product enhancements.

- Ongoing deployment worldwide.

- The new service is at the Business Casedevelopment stage, with plans for initialproof of concept trials in late 2001.

World Bank

(infoDev)

- Ghana: Computerized Mobile Bank – Pilotproject aimed to design, deploy and operatea Computerized Mobile Bank (CMB) toprovide banking services to Susu operatorsand small to medium enterprises in Ghana.The objective of this activity is to determinethe extent to which a CMB can expand theoutreach of formal banking institutions andreduce the transaction costs of providingcomplete banking services to informalbankers (e.g. Susu operators in Ghana) andsmall to medium enterprises.

WCO - Developed in 1994 the Guidelines forconsignments, for which immediate releasehad been requested.

- Examination of parcel consignment issuesparticularly related to the development ofnew and transparent procedures to beapplied equally by private and postaloperators.

- Update and review the existing Guidelines toconvert them into “Immediate ReleaseGuidelines” applicable to all modes oftransport, in particular those related to e-commerce transactions.

- Evaluation and promotion of best practiceCustoms procedures dealing with theinternational movement of goods purchasedover the Internet.

WTO - The GATS provides a legal framework for alltrade in financial services, including thatconducted electronically. 102 Membershave undertaken binding commitmentsunder the Agreement, which covers bothcross-border and establishment trade.

22

TRADE FACILITATION AND MARKET ACCESS

Issues related to the applicability of existing international trade rules, and obligation to digital goods andservices, are the subject of intense discussion. In late 2000 and early 2001, the WTO General Council isdiscussing how to proceed with further work on e-commerce both from a procedural and a substantivestandpoint. A number of other international bodies are involved in the area of trade facilitation, includingthe United Nations Conference on Trade and Development (UNCTAD), through its Trade EfficiencyInitiative; the World Customs Organization (WCO), through its revised customs convention and a newplan to facilitate the international movement of goods purchased over the Internet; the InternationalTelecommunication Union (ITU), through its technical assistance to developing countries to facilitate theset-up of electronic commerce operations to enhance market access worldwide. The United NationsEconomic Commission for Europe (UN/ECE), through the UN/CEFACT Centre for Trade Facilitation andElectronic Business, also plays a major role in developing trade facilitation and electronic commercesolutions that create predictability, stability and trust. The World Bank, through the loan and technicalassistance activities managed by its Telecommunications Unit of the Global ICT Department and throughthe grants from the infoDev program, focuses on market access and enhancement of the regulatoryenvironment, fostering the conditions for the unhampered growth of e-commerce.


ITC - Offshore Back Office Operations: SupplyingSupport Services to Global Markets is arecent ITC publication focusing on e-tradeissues and issues of market access forservices firms in developing countries andnational trade strategy makers.

- Market Analysis Portals (MAPs) providedetailed export and import profiles of184 countries online as well as informationon the most competitive export sectors andproducts, the dynamics of imports, and thepotential for product and marketdiversification.

- Shifting market power from buyer to seller:activities include the Market News Service,Virtual Exhibition Centre for ArtisanalProducts and Agribusiness InformationCentre (Market AG).

- Product MAPs are being developed toprovide trade information on 84 productclusters covering around 5 000 products andservices.

23


ITU - Technical assistance and support tofacilitate the set-up of electronic commerceinfrastructure and services in developingand least developed countries, so as toopen markets abroad for their localproducts.

- Work with Chambers of Commerce, WorldTrade Centres and other trade organisationsin the establishment of e-commerce market-places in developing and industrialisedcountries.

- Conducting national studies in selectedAfrican countries on constraints andopportunities for the development of e-commerce.

- Collaboration with UNCTAD, UNDESA, andWorld Bank/EDI in the organisation of threesub-regional seminars in Africa during 1999on electronic commerce and other issues inpreparation for subsequent service tradenegotiations.

- Broaden existing technical assistanceinitiatives to other countries.

- Extend such initiatives to more tradeorganisations. Work with other UN agencies(UNCTAD, ITC) to implement joint projects.

UN/CEFACT - Has published 27 Trade FacilitationRecommendations, five of which havebecome ISO Standards. All are reviewedand updated on an ongoing basis. Some ofthem aim to reduce the complexity ofexisting procedures, others to harmoniseand standardise trade transaction data ormethods for transmitting the data.

- Application of structured modellingtechniques to the analysis of internationaltrade transactions; identification of bestpractices and development of simpleelectronic commerce solutions.

UNCTAD - Trade Point Programme – key component ofthe trade efficiency initiative which facilitatesaccess to the latest information andtelecommunication technologies by makingthem available to trade operators indeveloping countries and to SMEs.

- UNISTE recommendations for enhancingthe ability of developing countries toimplement cost reduction measures intrade-supporting sectors, including: tradefacilitation, trade information, customs,transport, financial services, andtelecommunications.

- A new Trade Point Programme strategyadopted in October 1999 aims toconsolidate the Programme’s services andto strengthen Trade Points, both individuallyand collectively. This strategy is beingimplemented over a period of three years.

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World Bank- The World Bank is leading the process of

liberalising telecommunications marketsand fostering private participation in allregions. The Bank also assists countries inthe establishment of adequate regulatoryframeworks for the telecommunicationssector. Activities have been promoted inseveral countries in all regions, includingMorocco, Algeria, Lebanon, Jordan, Chad,Benin, Cameroon, Tanzania, Uganda,Malawi, Niger, South Africa, Zimbabwe,Rwanda, Indonesia, India, Thailand, SriLanka, Nepal, Bangladesh, Latvia,Romania, Bulgaria, Moldova, Georgia,Ukraine, Russia, Kyrgyz Republic, Bosnia,Peru, Bolivia, Nicaragua, DominicanRepublic, and Honduras. Informationregarding each of these projects can befound at: www.worldbank.org/ict.

- Indonesia: Extension of informationinfrastructure to facilitate sustainableregional development and economic growththrough use of information services andthrough new value added services usingexisting postal and electronic networks.

- Cameroon: A regional meeting of localentrepreneurs will be carried out in Douala,to help them address the region’s businessweaknesses in its capacity to use effectivelyinformation technologies and e-commerce.The meeting will be accompanied byworkshops on the same subject for womenentrepreneurs.

- Malawi: Elaboration of key policies,establishment of appropriate regulatoryarrangements for the sector and of a plan toimprove rural communications.

- Mali and Mauritania: To increase access totelecommunications services, widen therange of services, movetelecommunications tariffs towards a cost-oriented structure, help the deployment ofnew and cost-effective technologies byattracting private commercial and technicalmanagement and expertise.

- The International Trade Team of theDevelopment Research Group hasconducted research on the implications ofthe WTO Decision on Duty-Free ElectronicCommerce for tariff revenue and security ofmarket access – World Bank PolicyResearch Working Paper No. 2380.

- Studies on the implications of internationalfinancial transactions by electronic means.World Bank Financial Sector DiscussionPaper No. 4.

- Extension of Technical Assistance to othercountries in regulatory reform to promoteinformation infrastructure development.

- Continued awareness-raising seminars anddissemination of results and best practicesvia infoDev.

25


- The World Bank is leading a multi-yearresearch and capacity building effort onstandards and regulation. This includesconstruction of a global database on non-tariff, technical barriers. Data will includecoverage of the information technology andtelecommunications equipment sector. Theresearch under way also extends toquestions related to best practice instandards development, and costs ofprotection via regulatory barriers in IT andtelecommunications infrastructures. Theprojects also include seminars, researchpublications and other material on trade,development, and standards, including workrelated to multilateral and regional tradedialogues. For additional information:www1.worldbank.org/wbiep/trade/Standards.html.

World Bank(infoDev) - Dissemination of best practices and lessons

learned with regard to liberalisation ofmarkets, development of networkinfrastructures, global connectivity andconvergence, etc.

- Linking poor producers to global markets.This project gauged the capacity of grassroots NGOs to benefit poor artisans all overthe world through e-commerce. It focusedon the ability of craft-exporting NGOs tocommunicate and conduct businesselectronically, and detailed the equipmentand training activities adequate forparticipation in e-commerce.

- Uganda and Tanzania: AcceleratingElectronic Commerce. The project will twin10 local small start-ups with experienced e-commerce non-profit enterprises in westerncountries for training and assistancepurposes, thus creating a uniqueopportunity for developing Internet-basedbusiness in Uganda and Tanzania tocompete effectively with foreign enterprisesin the rapidly developing e-commercearena.

- Pilot project for the development of user-friendly data products for sale anddistribution to agricultural data users inCentral America and the Caribbean.

- Group of 77/China: Workshops for theTrade Information Network of theChambers of Commerce and Industry andAssimilated Institutions of the UN-Activitieswill focus on capacity building, to facilitatethe emergence of the Chambers’ new roleas information brokers, and on theenhancement of their Internet proficiency.

26


WCO - Adopted in 1999 the revised InternationalConvention on the Simplification andHarmonisation of Customs procedures (theKyoto Convention).

- Develop “Immediate Release Guidelines” toensure expedited treatment of, in particular,low-value and non-dutiable consignments.

- Active participation in the G7 Customs DataHarmonisation Initiative to develop acommon set of data elements for customsclearance formalities, including electronicdeclarations.

- Regularly holds seminars addressingawareness, promotion and implementationof customs reform and modernisation, withparticular emphasis on:

o the Kyoto Convention;

o information technology and;

o e-commerce.

- Promote the revised Kyoto Convention.

- Probable transfer of the G7 Initiative to theWCO to continue the simplification of thecommon sets and to promote worldwideimplementation.

- Complete the “Immediate ReleaseGuidelines” and promotion of these newhighly facilitative procedures to deal with theinternational movement of goods purchasedover the Internet.

- Continue to hold seminars on the KyotoConvention, IT and e-commerce.

27


WTO - The General Agreement on Trade inServices (GATS) provides a legal frameworkfor trade in all services, includingtelecommunications. In February 1997,69 WTO Member countries made GATScommitments on basic telecommunicationsin sectoral negotiations extended beyondthe Uruguay Round. Since then, anadditional 14 countries have madecommitments on basic telecom. Many ofthese were submitted in the context ofaccession protocols of new Members.

- Under the Information TechnologyAgreement (ITA) of March 1997,40 countries representing over 90% of worldtrade in information technology productsagreed to remove tariffs and customs dutieson a wide range of such products by theyear 2000. More than 50 countries have nowjoined the ITA.

- In the Declaration on Global ElectronicCommerce adopted at the WTO MinisterialConference in May 1998, WTO Membersagreed to refrain from imposing customduties on electronic transmissions. Whilethe current status of the understanding is inquestion, there is no evidence that WTOmembers are moving to impose any suchduties.

- A work programme on trade-related issuesarising from electronic commerce began inSeptember 1998. The work programmecovered issues arising from trade inservices, trade in goods, the protection ofintellectual property rights and enhancementof participation of developing countriesincluding their small and medium-sizedenterprises. The WTO Councils on Goods,Services, and Intellectual Property Rightshave submitted progress reports to theWTO General Council for its consideration.The reports noted a general sense Membershad that e-commerce is already covered byexisting principles and provisions of WTOagreements.

- Negotiations on a Second phase of theInformation Technology Agreement (ITA II)were suspended in July 1997.

- A new round of trade liberalisingnegotiations covering all service sectorsbegan in 2000. By the end of 2000, WTOmembers had begun to table proposals ontheir negotiating priorities in specific areassuch as telecommunications and electroniccommerce. Additional Members areexpected to circulate proposals in early2001. Negotiations among Members toimprove market access, including byelectronic supply, for specific services in theSchedules of commitments could begin bythe end of 2001.

- In relation to the e-commerce workprogramme, in late 2000 and early 2001, theWTO General Council is discussing how toproceed with further work on e-commerce,both from a procedural and a substantivestandpoint.

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INTELLECTUAL PROPERTY

Protection of intellectual property plays a key role in encouraging creativity, investment, and theavailability of a critical mass of content necessary to enable electronic commerce. The World IntellectualProperty Organization (WIPO) is the intergovernmental organisation responsible for developinginternational agreements to ensure the protection of intellectual property and for the administration ofvarious multilateral treaties. The World Trade Organization (WTO)’s Agreement on Trade RelatedAspects of Intellectual Property Rights (TRIPS) is the most comprehensive agreement covering all formsof intellectual property including copyrights, trademarks, patents, and undisclosed information (i.e. tradesecrets and test data).


ILO - Ongoing monitoring of the impact ofdigitalisation on the protection of the rights,performances, works and remuneration ofperformers and journalists.

- Servicing of the IntergovernmentalCommittee of the International Conventionfor the Protection of Performers, Producersof Phonograms and BroadcastingOrganisations (the Rome Convention), aspart of the ILO/UNESCO/WIPO jointSecretariat.

- Sponsored studies on the social situation ofartists in Africa, Asia and Latin America andon the impact of digitalisation, technologicaland market convergence on actors and theinternational production industry.

- Contributed to world survey on theemployment and working conditions offreelance journalists during 1998-99.

- Organised a symposium on “InformationTechnologies in the Media andEntertainment Industries: Their Impact onEmployment, Working Conditions andLabour-Management Relations” (28 Feb. - 3March 2000)

UNCTAD - Promoting awareness of the subject throughregional/national seminars on “ElectronicCommerce and Development” and deliveryof a TRAINFORTRADE course on LegalAspects of Electronic Commerce.

- UNCTAD, in co-operation with WIPO, willwork to develop awareness andunderstanding of IP issues in developingcountries.

UNESCO - Organisation of international and regionalmeetings on the protection of intellectualproperty rights in the digital environment.

- Pursue the study on intellectual propertyand public information in cyberspace, inconsultation with concerned internationalbodies.

29


World Bank - Hosting of infoDev and TechNet seminarsand discussion groups on promoting andstrengthening Intellectual Property Rightsprotection in developing countries.

- Indonesia: Technical assistance provided forthe institutional development of theDirectorate General of Intellectual Property(DGIP). The project aims at improving theadministrative and information systems ofthe DGIP, to systematically disseminateinformation on IP laws and regulationsamong Indonesian stakeholders. It alsodevelops teaching curricula on IPR withinuniversities and training centres ofenforcement agencies.

- Brazil: science and technology loans alsosupporting the implementation of IPRservices in the country.

- Mexico: Science and Technologyinfrastructure project supporting themodernization of the Mexican Patent Office.

WCO - Developed the WCO IPR Programme(MOUs with trade bodies) to improve theeffectiveness of Customs controls byproviding real-time access to commercialdata to identify counterfeits.

- Developed a joint customs/business IPRtraining programme to help WCO membersto improve their effectiveness and efficiencyin their role of enforcing IPR.

- Signed MOU with the “Business SoftwareAlliance” to improve the enforcement workon IPR on software.

- Strengthen the co-operation with business.

- Continue to sign MOUs with key tradebodies.

30


WIPO - WIPO Copyright Treaty (WCT) adoptedDecember 1996.

- WIPO Performances and PhonogramsTreaty (WPPT) adopted December 1996.

The treaties introduce a number ofadjustments to copyright law, the rights ofperformers in aural performances, and therights of producers of sound recordings, allof which are necessary in the digital age.

- The 1996 Diplomatic Conference at whichthe WPPT was adopted resolved thatpreparatory work should continue with theobjective of extending the coverage of theWPPT through the adoption of a protocol onthe audio-visual aspects of performances.

- In accordance with that resolution, theWIPO Standing Committee on Copyrightand Related Rights has considered thepossible content of a protocol to the WPPTon the audio-visual aspects ofperformances, and will convene aDiplomatic Conference to consider thisissue.

- Promotion and implementation of WCT andWPPT. Each of the WCT and WPPT mustbe ratified or acceded to by 30 states toenter into force. As of 15 October 2000, thesituation of ratifications or accessions wasas follows:

WCT – nineteen (19)WPPT – sixteen (16)

- On 7-20 December 2000, WIPO convened aDiplomatic Conference to consider theadoption of new international norms for theprotection of audio-visual performances, byway of a possible protocol to the WPPT.

- The agenda of the 1996 DiplomaticConference at which the WCT and WPPTwere adopted included a draft treaty on a suigeneris system of protection for databasesthat envisaged the protection of the rights ofmakers of databases in respect of theutilisation or extraction of the contents of bothoriginal and non-original databases, undercertain conditions. The Conferencerecommended further preparatory work onthe draft treaty. Discussions on this subjectare currently taking place in the StandingCommittee on Copyright and Related Rights.

- Further examination and consideration ofthe possible adoption of an internationalinstrument for the protection of the rights ofmakers of databases that goes beyond theprotection of original databases by copyrightthat is already provided by the BerneConvention, the WTO TRIPS Agreementand the WCT.

- Preliminary examination has taken place invarious WIPO symposia of the need forinternational harmonisation and updating ofexisting norms relating to the rights ofbroadcasting organisations and the rights ofdistributors of cable-originated programmes.The Standing Committee on Copyright andRelated Rights is discussing this issue onthe basis of a proposal submitted byWIPO’s member states.

- Further preparatory work to determine theneed for a new international instrument onthe rights of broadcasting organisations andof distributors of cable-originatedprogrammes and, ultimately, the adoption ofa new international instrument.

31


- Ongoing work in WIPO StandingCommittees on the examination of existingindustrial property norms to ascertain theneed, if any, to adjust them or to developnew norms to deal with the impact ofelectronic commerce. In September 1999,WIPO’s member states adopted a jointrecommendation by the StandingCommittee on the Law of Trademarks,Industrial Designs and GeographicalIndications concerning protection of well-known marks (also covering conflictingdomain names).

- Further work in the Standing Committee onthe Law of Trademarks, Industrial Designsand Geographical Indications on the use oftrademarks and signs on the Internet,including discussion on the draft Provisionon the Protection of Marks and OtherIndustrial Property Rights in Relation to Useof Signs on the Internet. Ongoing work inthe Standing Committee on the Law ofPatents concerning implications ofdisclosure of information on patentability.

WTO - The comprehensive Agreement on Trade-Related Aspects of Intellectual PropertyRights (the TRIPS Agreement) came intoeffect in 1995. It covers all main IPRs –copyrights and related rights (i.e. protectionof performers, producers of phonogramsand broadcasting organisations),trademarks, geographical indications,industrial designs, patents, layout designs ofintegrated circuits and undisclosedinformation (i.e. trade secrets and test data).

- The WTO Work Programme on ElectronicCommerce adopted by the General Councilon 25 September 1998 provided that theCouncil for TRIPS shall examine and reporton the intellectual property issues arising inconnection with electronic commerce. Theissues to be examined shall include:

- protection and enforcement ofcopyright and related rights;

- protection and enforcement oftrademarks; and

- new technologies and access totechnology.

- The TRIPS Council has submitted aprogress report to the WTO GeneralCouncil. In 2001, the General Council willconsider how to proceed with further workon e-commerce both from a procedural anda substantive standpoint.

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C. ENHANCING THE INFORMATION INFRASTRUCTURE FOR ELECTRONIC COMMERCE

The growth of electronic commerce clearly relies on universal andaffordable access to the information infrastructures. Effective competitionin telecommunication markets depends on appropriate telecommunicationpolicies and regulatory frameworks.

33

ACCESS TO AND USE OF THE INFORMATION INFRASTRUCTURE

Governments and industry are working to identify infrastructure requirements for electronic commerce,including high-speed core network capacity and local loop access. Review of regulatory issues thataffect infrastructure development is also under way in various international forums. Organisations such asthe World Bank offer financial assistance to help build information and communication infrastructures indeveloping countries. The World Bank, through the full range of its financial instruments, providesassistance to developing countries for both the development of information and communicationinfrastructure and legal and regulatory reform in the telecommunications sector. These efforts support amodern, competitive telecommunications environment that promotes growth and encourages privatesector participation and the introduction of, and access to, a broad range of affordable services. TheWorld Trade Organization has done much to liberalise world trade in information technology products.


ITC - Market Development for IT Products.Programme provides advice on exportstrategies for technology products; alsofeatures business round tables, marketstudies and business matching oftechnology importers and exporters.

ITU - Development of standards for the overallarchitecture of the Global InformationInfrastructure, including integration of PublicSwitched Telephone Network and InternetProtocol (IP)-based networks.

- Provision of spectrum for the new-generation satellite and cellular technologiesthat will provide wireless access toelectronic commerce services.

- Forums where government and industrydiscuss key policy and regulatory issues intelecommunications and IP-based networks.

- Active programme of policy research andanalysis on the implications of Internet,multimedia, and telecommunicationdevelopments for electronic commerce (seehttp://www.itu.int/ti; http://www.itu.int/treg).

- Development of case studies on issuesrelated to the use of telecommunicationsand the Internet in e-commerce.

- Active promotion of the use of the GlobalInformation Infrastructure for thedevelopment of human resources andknowledge on the digital economy.

- Extensive standardisation activities relatedto telecommunications, IP-based networks,integration of PSTN and IP networks, 3rd

generation mobile (e.g. IMT-2000), e-commerce(see http://www.itu.int/infocom/ip/).

- Internet strategy, policy, and pricingresearch(see http://www.itu.int/osg/sec/spu/).

- Internet naming/addressing policy andtechnical issues(see http://www.itu.int/infocom/dns/).

- 2003 World Summit on the InformationSociety (see http://www.itu.int/wsis/).

34


UNCTAD - By stimulating interest and awareness ofelectronic commerce in developingcountries, UNCTAD contributes to theidentification and mobilisation of the “criticalmass” of potential users of advancedtelecommunications infrastructure.

- Through a series of regional and inter-regional workshops on e-commerce anddevelopment – such as the one that tookplace in Kathmandu 30-31 May 2000 –UNCTAD contributes to stimulatingexchange of experiences among actual andpotential users of e-commerce, and tostrengthening co-operation betweengovernments, local business and foreigninvestors potentially interested in upgradinglocal infrastructure. Previous workshopshave taken place in Geneva, Nairobi, andColombo.

- In assessing the extent to which developingcountries and their enterprises canparticipate in e-commerce, UNCTAD has aresponsibility to evaluate and measureconnectivity and accessibility to informationnetworks and infrastructure.

UNESCO - The International Experts’ Meeting onCyberspace Law has adopted the“Education Principle” by which “all personsshould have a right to appropriate educationto read, write and work in cyberspace”.

- Development of policies, skills and trainingpackages, as well as provision of technicaland financial assistance for hardware andsoftware, in order to ensure that new ICTsare more accessible and used moreeffectively, especially in developingcountries, to facilitate education, science,culture, communication and commonwelfare.

- Expand existing technical and financialassistance.

UPU - Providing global network services for thepostal community.

- Providing the following electroniccommerce-related products and services:

- Web services- EDI services- Tracking services- Financial services- Intranet- Archival and directory services.

- Development of standards in the areasaddressed, electronic commerce and“Global Trust” service provision.

- Establishment of a global postal securecommunication infrastructure.

- Continues service provision and furtherglobal expansion to all post offices.

35


World Bank- Operations encouraging sector development

as detailed in the “Trade Facilitation andMarket Access” section above, includingfunding for information and communicationinfrastructure development and funding forlegal and regulatory reform promoting, interalia, fair and transparent regulation in acompetitive environment, investor and userconfidence, affordable, cost-based services,private sector participation in theintroduction of new services, and universalaccess to service.

- Indonesia: Loan provided to Indonesia toexpand and enhance the national IPTEKnetnetwork and to improve its reliability andsecurity. Another component of the projectfacilitates the deployment of OnlineGovernment in Indonesia.

- Dissemination of experience, good practiceand knowledge through publications,participation in international forums and co-operation with other international institutionssuch as ITU, UNCITRAL and WTO.

- Workshop on Information andCommunication Technology in RuralDevelopment in India (March 1999). Amongthe topics of the seminars, specialimportance was given to the empowermentof citizens through access to information.

- The Bank is beginning a new research andcapacity building project on trade facilitation,standards, and economic development inSub Saharan Africa in 2001. The work issupported through a Trust Fund establishedby the United States Government. The workincludes design of a new network,leveraging the Bank's and other institutions’infrastructures, to deliver (via IT and othercommunications modes) information oninternational standards and mandatorytechnical regulations. This initiative willprovide assistance via a new "StandardsAccess Africa" network, the backbone ofwhich rests upon global IT infrastructurestailored to needs in the region.

- Publication by the World Bank Institute ofthe Proceedings of the Workshop onInformation and Communication Technologyin Rural Development in India.

- Continue to focus operations in developingmarkets on legal and regulatory reformencouraging sector development, includingnew technologies and applications.

- Continue knowledge dissemination and co-operation with other internationalinstitutions.

- Investment in projects and incubators forInternet-related activities in the context ofthe Softbank Emerging Markets initiative.

36


(infoDev) - Development of tool-kit containing cost-benefit analysis and case studiesdemonstrating the rationale for liberalisingInternet services.

- Dissemination of best practices and lessonslearned with regard to liberalisation ofmarkets, development of networkinfrastructures, global connectivity,convergence, etc.

- Establishment and enhancement ofelectronic communication networks andinformation support services.

- India: Grassrooots Innovation Project, tofoster opportunities for entrepreneurship andeconomic development. Global registry ofinnovation and Knowledge Network helpingto build bridges between formal and informalscience, education and learningcommunities.

- Projects to promote information access.

- Continued awareness raising seminars anddissemination of best practices.

- Release of Handbook on Regulatory Reformdeveloped by McCarthy Tétrault, Canada.

WCO - Requires customs administrations throughthe revised Kyoto Convention (i.e.governments) to apply IT and e-commercetechnologies, including EDI, for theircustoms operations, which involvesestablishing the necessary infrastructure.

- WCO Recommendation on the use ofUN/EDIFACT from 1990.

- In many countries customs administrationswere the first to implement EDI, andtherefore established the necessary IT andtelecommunication networks to automatetheir operations.

- Promote and encourage the use of e-commerce technologies to contribute to thenecessary upgrade of existing infrastructure.

WIPO - Continued development and implementationof WIPOnet, WIPO’s global informationnetwork linking the intellectual propertyoffices of WIPO’s member states andintegrating global intellectual propertyinformation resources. In addition, two pilotprojects for the provision of computerequipment and installation of a local areanetwork and Internet connectivity at theheadquarters of the African RegionalIndustrial Property Organization (ARIPO)and the Organisation Africaine de laPropriété Intellectuelle (OAPI) have beencompleted.

- Implementation of the WIPOnet project,enabling the availability of intellectualproperty digital libraries (patent databases,databases of intellectual property law andtreaties and other applications), providing ameans for online filing of patent andtrademark applications, and providingsecure e-mail facilities and assistance tointellectual property offices of developingcountries in accessing this information andin establishing and maintaining web sites.

37


WTO - Commitments under the GATS on theliberalisation of trade in basic and value-added telecommunication services willensure better access to the essentialinfrastructure for electronic commerce (seesection on Trade Facilitation and MarketAccess).

- Under the Information TechnologyAgreement (ITA) of March 1997,40 countries representing over 90% of worldtrade in information technology productsagreed to remove, by the year 2000, tariffsand customs duties on a wide range of suchproducts, thus reducing costs and improvingaccess to the basic equipment of theinfrastructure. At present, more than50 countries have joined the ITA.

- Consultations on resuming negotiations tofurther extend the ITA are continuing.

- A new round of market-opening negotiationson services under the GATS began in early2000. These negotiations cover all services,including telecommunications and networkservices. In late 2000, Members began tosubmit proposals outlining negotiatingpriorities for telecommunications and e-commerce, and are expected to continue todo so in 2001.

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INTERNET GOVERNANCE / DOMAIN NAMES SYSTEM

Among the various efforts at the international level to examine issues surrounding the growth andgovernance of the Internet and support the work of the Internet Corporation for Assigned Names andNumbers (ICANN), the World Intellectual Property Organization (WIPO) has developed recommendationsfor issues related to trademarks/domain name disputes and the addition of new generic top-level domainnames (gTLDs). In late 1999, ICANN adopted a Uniform Dispute Resolution Policy and Rules along thelines of WIPO’s recommendations.


ITU - Participation in the Internet Corporation forAssigned Names and Numbers (ICANN):Protocol Supporting Organization (PSO) andGovernmental Advisory Committee (GAC).

- Continue participation in ICANN. Work onconvergence and synchronisation betweenITU-T Recommendation E.164: InternationalTelecommunication Numbering Plan, andthe DNS (in ITU-T Study Group 2), plannedmanagement of .int top level domain.

UPU - Formally applied for the .post TLD toICANN; not successful in the initial process.

- Will request formal discussions with theICANN Board to emphasise the value of a.post TLD providing communicationsservices from the post in a trustedenvironment.

- Will re-apply to ICANN for .post during thenext round of applications, expected in late2001.

World Bank

(infoDev)

- Support for developing country participantsat the ICANN Meetings.

WIPO - Completion of the WIPO Internet DomainName Process and publication, in April1999, of the Final Report entitled“Management of Internet Names andAddresses: Intellectual Property Issues”,which was approved by WIPO’s MemberStates in September 1999 and provided tothe Internet Corporation for AssignedNames and Numbers (ICANN). InDecember 1999, ICANN adopted a UniformDispute Resolution Policy (UDRP) andRules along the lines of the WIPOrecommendations. The WIPO Arbitrationand Mediation Center was accredited as adispute resolution service provider toadminister the UDRP.

- Continue to co-operate with ICANN on theimplementation of the recommendations, andundertake any further study required.

39


- The WIPO Arbitration and Mediation Centeradministers an online expedited arbitrationsystem for disputes in certain gTLDs and incertain country-code top-level domains(ccTLDs), by arrangement with theregistration authorities of those domains.

- Continue to administer domain name casesand co-operate with ICANN on therefinement of the UDRP and Rules. Furtherpromotion of the use of WIPO’s onlinearbitration service in the ccTLDs and gTLDs,to facilitate cheap and effective resolution ofdomain name disputes that have aninternational dimension, to detercybersquatters and prevent trademarkinfringements.

- At the request of certain Member States,WIPO in July 2000 commenced the SecondWIPO Internet Domain Name Process, toaddress conflicts outside the scope of thefirst WIPO Process – namely, the abusive,bad faith, misleading or unfair use in thedomain name system of: personal names;International Nonproprietary Names (INNs)for pharmaceutical substances; names ofinternational intergovernmentalorganisations; geographical indications,indications of source, geographical terms;and trade names. The first series ofregional consultations for the Second WIPOProcess took place in Brazil, Jamaica,Jordan, Poland and Thailand in August-October 2000.

- The Second WIPO Process will beconducted via Internet-based Requests forComments, as well as regional andspecialised consultations. The secondseries of regional consultations will be heldin February-May 2001. The final Report willbe published in mid-2001, submitted toWIPO’s Member States and provided to theInternet community, including ICANN.

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STANDARDS

Several international bodies support the development and adoption of voluntary, market-drivenconsensus standards. The ITU is working on the development of standards on the overall architecture ofthe Global Information Infrastructure. The UN/CEFACT United Nations Centre for Trade Facilitation andElectronic Business is responsible for the international standard for electronic data interchange,UN/EDIFACT.


ITU - Development of standards for the overallarchitecture of the Global InformationInfrastructure, including integration of PublicSwitched Telephone Network and InternetProtocol (IP)-based networks.

- Provision of spectrum for the new-generation satellite and cellular technologiesthat will provide wireless access toelectronic commerce services.

- Extensive standardisation activities relatedto telecommunications, IP-based networks,integration of PSTN and IP networks, 3rdgeneration mobile (e.g. IMT-2000), e-commerce (seehttp://www.itu.int/infocom/ip/).


- Telecommunications/Internetnaming/addressing policy/technical issues(see http://www.itu.int/infocom/dns/ andhttp://www.itu.int/infocom/enum/).

.

ISO / IEC - Development of new standards orenhancement of existing voluntary,consensus standards to meet the particularneeds of electronic commerce.

UN/CEFACT - Is responsible for the international standardfor electronic data interchange,UN/EDIFACT, which is steadily gaining inimportance for exchanging trade andtransportation data and thus enablingautomation of many administrativeprocedures.

− Has also developed a number of standardswith regard to trade data elements andcodes.

- Is co-ordinating the standards developmentfor electronic business through theMemorandum of Understanding betweenUN/ECE, ISO, IEC and ITU.

- Is working closely with other stakeholders inelectronic and Web-based commerce inorder to ensure interoperability betweenUN/EDIFACT and XML applications.

- Is developing the methodology for object-oriented technology electronic datainterchange.

- UN/CEFACT and the Organization for theAdvancement of Structured InformationStandards (OASIS) have joined forces toinitiate a worldwide project to standardiseXML (Extensible Mark-up Language)business specifications (ebXML).

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UNCTAD - Implementation of specific softwaresolutions to promote internationally agreedstandards (e.g. EDIFACT, EU SAD).Enhance the ability of member states toimplement and adapt to internationallyagreed standards.

- Continue implementation of specificsoftware solutions to promote internationallyagreed standards.

- Continue to help developing countries toadapt and implement internationally agreedstandards.

UPU - Established several standards for EDImessaging within the postal industry,currently applied worldwide.

- Established postal standards for the globalinteroperability of certification andauthentication services.

- Development of postal standards is ongoing.

- Investigating the use of XML for developingstandards based on electronic businesstransactions between posts and otherorganisations such as customs authorities

World Bank - Brazil: Support for improvement of BrazilianStandards Organization within the Scienceand Technology Loan.

WCO - Developed the UN/EDIFACT customsmessages.

- Established and recommends the WCOData Mapping Guide for UN/EDIFACTcustoms messages for the harmonisedimplementation of the UN/EDIFACTstandard.

- Participates in the G7 Customs DataHarmonization Initiative to develop astandard for customs data requirements andelectronic declarations.

- Continue to contribute to the maintenance ofthe UN/EDIFACT standard.

- Initiate a common customs standard in thearea of Internet data communication suchas XML.

- Prepare for the eventual transfer of the G7Customs Initiative to the WCO in order toglobally expand its application.

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D. MAXIMISING THE BENEFITS

The full economic potential of electronic commerce will only be realisedthrough its widespread use by businesses, consumers, and institutions.The information infrastructure and electronic commerce also have thepotential to link citizens to each other and to the world, and to foster socialcohesion. A clear understanding of the needs of enterprises and citizens inboth developing and developed countries is needed to ensure that afacilitating environment is in place as the impacts of electronic commercebegin to be felt throughout the economy and society.

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ECONOMIC AND SOCIAL IMPACTS

Maximizing the benefits of electronic commerce requires a deeper understanding of its impact on growth,business, productivity, international trade, and employment. A number of intergovernmentalorganisations have begun to contribute to the research and analysis in this field. For example, theInternational Labour Organization (ILO) is conducting research on the impact of telework on employmentopportunities; the International Telecommunication Union (ITU) has undertaken analyses of the role oftelecommunications in electronic commerce, focusing on the developing world; and the United NationsConference on Trade and Development (UNCTAD) has continued to examine the potential of e-commerce for economic and social development.


ILO - Sponsored studies on the social situation ofartists in Africa, Asia and Latin America andon the impact of digitalisation, technologicaland market convergence on actors and theinternational production industry.

- Ongoing research on the growth and impactof telework on employment opportunities,work organisation and industrial relations.Co-operation with UNTEC on teletrade andtelework with a focus on developingcountries, countries in transition andcountries with large sparsely populatedregions.

- Report of the Director General on“Globalizing Europe: Decent Work in theInformation Economy” for the 6th EuropeanRegional Meeting (12-15 December 2000).

- International Institute for Labour StudiesConference on “Decent Work Dotcom:Policies and Institutions for the Digital Age”(11 December 2000).

- 2001 World Employment Report: DecentWork in the Information Society.

ITU - Collecting and analysing data on the currentuse of electronic commerce in various ITUmember countries.

- Publication of studies and reports on theregulatory and legal aspects oftelecommunications in electronic commerce,and on the development of the Internet indeveloping countries.

- Performance of feasibility studies toevaluate the impact of e-commerce in thedevelopment of the ICT infrastructure and itsbenefit to economic development.

- Extension of the benefits of e-commerce todeveloping countries and economies intransition (analyses, meetings and technicalassistance activities).

- Increase the number of publicationsanalysing the role of telecommunicationinfrastructure, services, and regulation inelectronic commerce.

- 2003 World Summit on the InformationSociety (see http://www.itu.int/wsis/).

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UNCTAD - Enabling developing countries andeconomies in transition to benefit fromelectronic commerce (analyses, meetingsand technical assistance activities) – e.g.Columbus Summit (United NationsSymposium on Trade Efficiency of October1994, and subsequent recommendations).

- UNCTAD held the First Meeting of “Partnersfor Development” (Lyon, France, 9-12 November 1998). The theme of this firstmeeting was “Markets and Development”,the focus on concrete partnerships andpractical solutions to economic and socialdevelopment. A major component of theMeeting was the GET UP segment (GlobalElectronic Trade UN Partnership).

- Under the “Development Account” heading,UNCTAD has organised national, regionaland interregional workshops whichcontributed to sensitise governments andbusiness to the potential economic andsocial benefits of e-commerce. Experts fromcountries and organisations havingexperience and competence in e-commercehave contributed.

- A book entitled Building Confidence:Electronic Commerce and Development (inhard copy and CD-Rom) was published. Anexpert meeting on electronic commerce andtourism was held in September 2000 inorder to advance the policy debate on e-commerce to particular sectors of interest todeveloping countries.

- “Development Account”-related activities willbe pursued; training as well as theproduction of policy-oriented studies andsurveys will be priorities.

- A common web site on “E-commerce andDevelopment” is being set up in co-operation with ITU and WIPO, which shouldallow decision makers of developingcountries to access rapidly and easily alarge array of information sources related toelectronic commerce.

- More regional workshops and seminars onelectronic commerce are scheduled later in2000 and 2001.

UNESCO - Establishment of a World Commission onEthics of Scientific Knowledge andTechnology (COMEST) covering, inter alia,the ethics of the information society.

- Continue research and studies

UPU - The UPU is currently producing marketintelligence reports and studies to facilitatedeeper understanding of electroniccommerce within the postal community.

- Continue market intelligence research andknowledge facilitation to the postalcommunity.

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World Bank/infoDev

- Provide assistance to countries in thedesign and implementation of regulations toliberalise their telecommunications markets– highlighting how enhanced informationinfrastructure can benefit economic andsocial development.

- infoDev Symposiums on “Information andCommunication Technologies forDevelopment: Lessons from Experience”,Cairo, October 2000.

- Information Infrastructure Indicators, 1990-2010: infoDev financing of the constructionof a comprehensive set of economic andtechnological indicators to gauge and trackthe evolution of the InformationInfrastructure.

- Characterising the Challenges andOpportunities Arising from the NetworkingRevolution in the Developing World - Theproject will develop a range of feasiblescenarios for the evolution ofcommunications infrastructure and services,and the evolving effect of communicationson economic and social development.

- In co-operation with the Government ofCanada and the Asia Pacific Foundation ofCanada, the Bank sponsored a seminar withthe 21 member governments of the AsiaPacific Economic Cooperation (APEC) inSeptember 2000. The Bank commissionedresearch on trade facilitation anddevelopment, including the developmentchallenges in electronic commerce indeveloping member economies of APEC.Case studies were prepared on thesesubjects, with a focus on Vietnam andThailand among other APEC members.Summary reports and other backgroundmaterial were produced.

- Continue to provide grants that promoteeconomic and social development throughICT applications.

- Serve as the Secretariat for the G8 dot forcein partnership with UNDP to help develop astrategy for bridging the digital divide.

WCO - Organises “Open Days for Trade” to identifythe expectations, needs and necessities ofthe business community for customs toaddress the e-commerce challenge.

- Established the WCO/ICC ContactCommittee to regularly exchange views withbusiness and to assess impacts of rules andregulations on business.

- Organised a symposium with the expresscarrier industry to identify the impact of e-commerce on transport and how customsshould respond.

- Contributed to the preparation of the “Worlde-Customs Summit” held on 14-15December 2000 in Brussels.

- Continue to organise “Open Days for Trade”.

- Continue to work with trade circles in thefurther assessment of the impacts of e-commerce on trade and transport.

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WIPO - WIPO published in May 2000 a Primer onElectronic Commerce and IntellectualProperty Issues that provides an overview ofthe latest developments in e-commerce, itseffect on intellectual property, and the role ofintellectual property in e-commerce. WIPOorganised regional consultations on e-commerce and intellectual property duringAugust-October 2000 in Brazil, Jamaica,Jordan, Poland and Thailand to promoteawareness of intellectual property issuesraised by e-commerce.

- WIPO is organising the second internationalconference on intellectual property and e-commerce – WIPO Expo 2001 – to be heldin Geneva on 20-22 September 2001. TheConference will bring together high-levelrepresentatives of government and theprivate sector to address the issues raisedin the field of intellectual property by thedevelopment of e-commerce, the Internetand related digital technologies – as well asprovide an opportunity for select exhibitorsto demonstrate practical applications toexploit and protect intellectual property in adigital environment.

- WIPO continues to develop and implementprogrammes to provide developing countrieswith information, education and skillstraining relating to electronic commerce,particularly under the auspices of the WIPOAcademy. The Academy administers adistance learning programme to teach anintroductory course of intellectual propertylaw, and is developing an e-commerce andintellectual property module forimplementation by 2001.

WTO - The WTO Special Study “ElectronicCommerce and the Role of the WTO”considers the economic importance ofelectronic commerce and the main policychallenges, and outlines the way in whichWTO Agreements impact on electroniccommerce.

- Further analytical work to be carried out bythe Research Division. This work will focuson trade data, and issues arising from thesubstitutability of electronic transmission forphysical products.

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SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

Electronic commerce promises a range of economic benefits to small and medium-sized enterprises(SMEs) and has potential to be a key force for economic growth in both the developing and developedworld. The particular challenges to participation in the digital market-place faced by SMEs are beingexamined by a number of organisations such as the International Trade Centre (ITC), the InternationalTelecommunication Union (ITU), the UN/CEFACT United Nations Centre for Trade Facilitation andElectronic Business, the World Bank, and the WTO.


ITC - Secrets of Electronic Commerce – A Guidefor Small and Medium-Sized Exporters. Thispublication answers over 100 frequentlyasked questions to help small and medium-sized enterprises in developing countries totake advantage of electronic export andimport opportunities.

- Gourmet Coffee Auction on the Internet: ITCorganised the world’s first online coffeeauction in December 1999. The auctiongenerated price premiums of up to 60% forthe companies taking part, showing how theInternet can be combined with traditionalmarketing and quality assurancemechanisms to promote developing countryexports.

- Cybercafés are organised as a support tospecial trade events. The cybercafés allowSME exporters to find online tradeinformation targeted to products andgeographical sectors of interest to them.The information is placed on CD-ROM foruse at the cybercafés and subsequentdissemination to a broader audience.

- Cybermarketing: A Guide for Managers inDeveloping Countries – The guide focuseson how to implement a commercial strategyusing the Internet, outlines opportunities andobstacles faced by developing countries,and provides examples of e-commerceoperations and services.

- Publication of national versions in a widerange of partner countries to reflect localcircumstances.

- Experiment with new auction formats andelectronic bourses to reflect the needs ofspecific product market-places.

- E-Commerce Fitness Checker: A diagnostictool to help SMEs determine their e-readiness and also help developmentagencies target technical assistance moreeffectively.

ITU - Support of electronic commerce applicationsby SMEs in developing countries throughtechnical assistance.

- Extend the technical assistance support to alarger number of companies.

UN/CEFACT - Is working on ways to make UN/EDIFACTmore accessible to SMEs throughUN/Simpl-edi, which entails the identificationof core business data in basic internationaltransactions; this will allow the developmentof simpler off-the-shelf electronic commercesolutions to SMEs.

- Continue the work on UN/Simpl-edi.

- The UN/CEFACT ebXML initiative will lowerthe barrier of entry to electronic business inorder to facilitate trade, particularly withrespect to SMEs and developing nations.

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UNCTAD - Trade Point Programme is aimed atstimulating the use of e-commerce bySMEs. To date there are over 100 tradepoints established around the world.

- The newly created Electronic CommerceSection has put emphasis on co-operationand exchange of experiences among SMEs.

- Specific technical assistance activities(training, regional workshops) are planned,which will target SMEs in developingcountries.

World Bank/infoDev

- infoDev seminars and discussion groups onthe practical applications for electroniccommerce systems in emerging economies.

- Dissemination of lessons learned.

- Development of tool-kit outlining proceduresnecessary to increase grass rootsparticipation in Internet commerce.

- Stimulate private entrepreneurship at themicro level by funding the development of abusiness plan for the establishment andoperation of information service centres.

- Uganda and Tanzania: AcceleratingElectronic Commerce. The project twins10 local small start-ups with experienced e-commerce non-profit enterprises in westerncountries for training and assistancepurposes, thus creating a unique opportunityfor developing Internet-based business inUganda and Tanzania to competeeffectively with foreign enterprises in therapidly developing e-commerce arena.

- Funding of projects and provision oftechnical assistance- infoDev IncubatorsInitiative.

- Projects developed by the IFC SME Group.

WTO - The work programme examined thedevelopment implications of electroniccommerce – including ways of enhancingthe participation of developing countries andtheir SMEs, e.g. sponsorship of specialseminars dedicated to these issues.

- All the subsidiary bodies of the WTOGeneral Council assigned to examine e-commerce issues were directed to takedevelopment implications into account.Further consideration of developmentdimensions of e-commerce will arise in theongoing negotiations on liberalising trade inservices and will be discussed further also inthe context of the work programme once theWTO General Council determines the formand substance for continued work.

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SKILLS DEVELOPMENT

There is widespread recognition that the use of electronic commerce requires the development of digitalliteracy and skills by businesses, organisations and consumers. Organisations such as the InternationalTelecommunication Union (ITU), the International Labour Organization (ILO), the International TradeCentre (ITC), the Universal Postal Union (UPU), and the World Bank have all started programmes fortraining and skills improvement. The United Nations Conference on Trade Development (UNCTAD) hasalso started an initiative for human resource development in the area of electronic commerce.


ILO - Skills development is a key ongoing ILOconcern in terms of the impact ofinformation technology on changing skillsprofiles and the future labour marketstructure and employment opportunities.Many ILO reports and meetings address thisissue.

ITC - “Internet Technology in the Supply Chain”:Two-day workshop on how to apply Internettechnology to improve the efficiency andeffectiveness of supply chain operations andrespond to the requirements of MNCs.

- Cybermarketing Technical Assistance: ITCtrains trade professionals to design andimplement trade information programmes,based on ICT, to market national exports.

- SME audit and subsequent training infundamentals of e-trade and applications ininternational marketing.

ITU - Training for government officials and privatesector entrepreneurs on electroniccommunication regulation and practices.

- Organising electronic commerce trainingworkshops for IT professionals in developingand least developed countries.

- Active promotion of the use of the GlobalInformation Infrastructure for thedevelopment of human resources.

- Research, case studies, publications tofoster Internet, e-Commerce and multimedianetwork development (e.g. publications on“Internet for Development”).

- Expand training activities to includetelecommunication-/e-commerce-relatedmatters.

- Research, case studies, publications tofoster Internet, e-Commerce and multimedianetwork development (e.g. publications on“Internet for Development”).

UN/CEFACT - Working closely with the other UN RegionalCommissions and UNCTAD to developcompetencies related to electronic datainterchange and simpler trade proceduresthrough seminars and brochures.

- Continuing and strengthening the work withall UN Regional Commissions.

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UNCTAD - TRAINFORTRADE/e-trade programmeprovides interactive training modules for thepractitioners of e-commerce – including adistance course on electronic commerce forArab countries.

- Training seminars and workshops (nationaland regional) on e-commerce for the publicand officials have been organised under the“Development Account”.

- Capacity Building in the Area of ElectronicCommerce: Human Resource Development.This initiative will propose ways to mobilisecivil society to contribute to the design anddissemination of training and informationneeds.

- A training course on legal aspects ofelectronic commerce is currently underpreparation in co-operation with UNCITRAL.

- As required by the series of regionalworkshops already scheduled, furthertraining activities of a similar type will beprogrammed.

- An important element of the new Trade PointProgramme strategy adopted in October1999 is capacity building. Courses will bedeveloped both to enhance skills of TradePoint staff, and to assist them in deliveringtraining as a service to their clients.

UNESCO - Training of electronic network managers andtrainers in informatics, telematics andmultimedia: elaboration of training packagesand support to training seminars.

- Continuing ongoing training.

UPU - Improvement of the knowledge and skills ofthe postal community in electroniccommerce, logistics and financial services.

- Continuing awareness and skillimprovements programmes.

World Bank - Funding for general training and capacitybuilding for technical, competition and otherspecific regulatory functions in thetelecommunications sector in developingmarkets.

- Continuing capacity building components ofreform and restructuring operations indeveloping markets.

(infoDev) - Development of access centres that providetechnical training on the use of the Internet.

- Continuing provision of grants to projectsthat develop the skills of individuals in theareas of connectivity, networking, regulation,e-commerce, etc.

- Telecommunications Technology andRegulatory training project, to be developedin partnership with the United StatesTelecommunications Training Institute(USTTI).

WCO - Customs Reform and Modernisation (CRM)Programme.

- Organised a series of regional seminars onIT and e-commerce to raise awareness andto build capacities on best practices for theapplication of latest technologies.

- Increased available information on IT and e-commerce on the WCO web sites for thepublic and for the WCO Members.

- Promoting the application of efficientorganisational processes and customsprocedures through the CRM programme.

- Continuing to organise seminars on IT ande-commerce.

- Further improving the WCO web site bymaking additional information available andby adding discussion forum tools to increasethe level of participation in the work of theWCO, in particular that of less developedcountries.

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WTO - The Trade and Development Centre underthe WTO web site provides information andtraining to government officials andbusiness dealers in the developingcountries.

- The work programme on electroniccommerce addressed ways of enhancingthe participation of developing countries andSMEs by improving access to infrastructureand technology; covered the developmentimplications and potential benefits todeveloping countries including their SMEs;and examined ways of enhancing theirparticipation, e.g. through improved accessto infrastructure and technology and byfacilitating the movement of natural persons.

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ENSURING GLOBAL PARTICIPATION

Enabling countries – particularly developing nations – to stimulate innovation and exploit the technologypotential of electronic commerce should be a priority for the development of the global informationsociety. International organisations and regional bodies are helping to facilitate the full participation of thedeveloping world through assistance, special projects and programmes.


ITC - World Tr@de Net programme providesinformation, training and advice to thebusiness community on WTO-relatedissues, including e-commerce.

- Executive Forum 2000 is an annualconference for senior public officials andbusiness leaders from developing andtransition economies; the discussion themein 2000 was “Export Development in theDigital Economy”. A supporting web siteand e-mail-based discussion forumextended the discussion to a wideraudience. The annual proceedings arepublished and disseminated.

- Public procurement e-commerce trainingmaterials. Governments must lead byexample. A training module, “Introduction toElectronic Commerce in PublicProcurement”, and a model web site onelectronic tendering opportunities, includingsearch tools and purchasing bookmarks, areunder development.

- Developing National E-Trade Strategies: Aprogramme to create a methodology andprovide associated training to enablegovernments to develop national e-tradestrategies.

ITU - Serving as a forum (through workshops,training programmes, conferences andseminars) to address policy issues relatedto electronic commerce in developingcountries.

- Bringing various public and private sectorpartners together to deploy e-commerceprojects in more than 100 developingcountries (such as “Electronic Commerce forDeveloping Countries – ECDC”) todemonstrate the benefits of electroniccommerce to the user communities of thesenations.

- Offering, organising and co-ordinatingtechnical co-operation and assistanceactivities specifically oriented to thepromotion and development of electroniccommerce.

- Adjust workshops, conferences andseminars to take into account the newrealities brought by communicationsconvergence and electronic commerce-related matters.

- Expand technical co-operation andassistance specifically oriented to thepromotion and development of electroniccommerce.

- The World Telecommunication Policy Forumon IP telephony in March 2001 will examinechallenges for developing countries,including skill shortages vis-à-vis IPtechnology, and is likely to result in anopinion on human resources developmentissues (relating to IP technology generally).

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UN/CEFACT - The creation of UN/CEFACT was in itself arecognition of the importance of globalparticipation in both the development andimplementation of trade facilitation tools.

- A number of UN/CEFACT trade facilitationrecommendations have as their purpose toreduce the complexity of existingprocedures, and the harmonisation of thebusiness information exchanged. They canbe implemented independently of the levelof technological sophistication of anorganisation or a country, and are aprerequisite for effective electroniccommerce.

- Working with the UN Regional Commissions,and in regional projects like the SoutheastEuropean Cooperative Initiative (SECI).

− Simplifying the implementation of electronicdata interchange through initiatives like theebXML initiative.

− Closer co-operation with the UN RegionalCommissions.

- Co-operation on standards development forelectronic business with ISO, IEC and ITU.

UNCITRAL - Provides a recognised forum for theexchange of views on legal issues ofelectronic commerce and development ofsolutions to those issues, and encouragesbroad participation by international andregional organisations, both governmentaland non-governmental.

- Working with regional forums, such asAPEC, and more global international forumssuch as WIPO, and through a series ofnational seminars to promote adoption ofinternationally recognised legal standards,such as the UNCITRAL Model Law onElectronic Commerce, for development ofthe electronic commerce legal framework.

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UNCTAD - Consistent with its mandate, UNCTADenables developing countries to maximisetrade, investment and developmentopportunities, and helps them integrate intothe world economy.

- Assistance to developing countries in thecontext of their participation in WTO’s workon e-commerce (“Positive Agenda”).

- A major part of the first meeting of “Partnersfor Development” (Lyon, France, 9-12November 1998) consisted in sessionsdevoted to major issues regarding electroniccommerce and development. GlobalElectronic Trade UN partnerships (GET UP)promoted the concept of a development-friendly global framework for electroniccommerce. Main themes included globalaccess, legal dimensions, securetransactions, and trade logistics. In each ofthese themes, the Lyon meeting aimed atgenerating partnerships betweeninternational institutions, governments andbusiness to enhance the participation ofsmaller players in global e-commerce.

- Under the “Development Account” heading,UNCTAD has organised national, regionaland interregional workshops that helpedsensitise governments and business to thepotential economic and social benefits of e-commerce. Experts from countries andorganisations having experience andcompetence in e-commerce havecontributed.

- One of the major features and strengths ofthe Trade Point Programme is its globalcoverage and a particular focus on involvingactors from all countries on equal terms.The Programme currently includes around150 Trade Points from 91 countries acrossthe world.

- “Development Account”-related activities willbe pursued; training as well as theproduction of policy-oriented studies andsurveys will be priorities.

- The Plan of Action adopted at UNCTAD Xprovides for a specific mandate onelectronic commerce. It calls upon UNCTADto contribute to informing internationaldebates on the development impact of theglobal information network, addressing, inparticular, developing countries’ specificproblems, such as access to informationtechnology, infrastructure constraints andbuild-up of human resource capacity.

UNESCO - The International Experts’ Meeting onCyberspace Law has adopted the“Participation Principle” by which “everycitizen should have the right to meaningfulparticipation in the information society”.

- Promotion of specific initiatives for theeducation of parents, children, teachers andother Internet users on reading, writing andworking in cyberspace; on the implicationsof participation in cyberspace; and on themaximisation of the positive benefitspresented by ICTs.

- Continue such initiatives.

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UPU - Facilitating user groups and forums ofdiscussions and global developmentprojects.

- Working areas are Financial Services,Advanced Electronic Services and Mail andParcels Logistics.

- Introduction of new technologies within thepostal community to improve national andinternational transaction exchange utilisingEDI and XML, financial services such asinternational money orders, and fundtransfers and electronic commercetechnologies.

- Developed a Global Postal e-BusinessStrategy promoting co-operation betweenthe posts and technology providers for thedevelopment of global postal electronicservices.

- Mandate to propose new projects in all threeareas and facilitate the management of suchinitiatives, establishing standards wherenecessary.

- Established a “Postal Incubator” where keye-business and strategic people from theposts work together with technologyproviders to develop next concepts andidentify potential projects based on thedevelopment of new global electronicservices.

World Bank - Providing assistance to developing countriesthrough operational funding of legal andregulatory reform.

- Encouraging the introduction of newservices and applications through privatesector participation consistent with WTOprinciples.

- Ensuring harmonisation with regional andinternational normative structures.

- Dissemination of experience, good practiceand knowledge through publications,participation in international forums and co-operation with other internationalinstitutions, such as ITU, UNCITRAL andWTO.

- Global Dissemination effort through theWorld Bank’s Global Development GatewayInitiative.

- Support to private sector development andnew Internet ventures in developingcountries.

- Continue assistance in the areas of legaland regulatory reform, promoting WTOprinciples and harmonisation.

- Continue knowledge dissemination and co-operation with other internationalinstitutions.

- Continue support to private sectordevelopment and new Internet ventures indeveloping countries.

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infoDev - Act as a catalyst and forum for theexchange of ideas, a clearing-house ofknowledge and information in co-operationwith other organisations.

- Share worldwide experience with, anddisseminate best practices to, governmentsand key decision makers in public andprivate sectors.

- infoDev Conference Scholarship Fund(iCSF) – assist individuals from developingcountries to participate in conferences andseminars which address issues related toICT for trade and development.

- Support to GKP activities, including theGlobal Knowledge Partnership 2000Conference.

- Dissemination activities promoted by theinfoDev-IICD “Stories” initiative.

- Support to the planning of Country Gatewayswithin the Global Development Gateway(GDG) Initiative. The GDG includesknowledge dissemination related to e-commerce.

- Continue current liaison activities betweendeveloped and developing economies andthe public and private sectors.

.

WCO - Organised regional seminars on IT and e-commerce to bring the work of the WCO inthose areas to countries and regions that donot actively participate in the committeework of the WCO.

- Increased available information on IT and e-commerce on the WCO web sites for thepublic and for the WCO Members.

- Continue to organise seminars on IT and e-commerce.

- Further improve the WCO web site bymaking additional information available andby adding discussion forum tools to increasethe level of participation in the work of theWCO, in particular that of less developedcountries.

WIPO - WIPO conducted regional consultations one-commerce and intellectual property duringAugust-October 2000 in Brazil, Jamaica,Jordan, Poland and Thailand, to promoteawareness of intellectual property issuesraised by e-commerce.

- WIPO will conduct a series of regionalconsultations on e-commerce and thesecond WIPO Internet Domain NameProcess in February-May 2001. It continuesto implement an extensive programme oftechnical assistance to developing countriesin relation to theoretical and practicalaspects of intellectual property. The WIPOAcademy is developing a distance-learningprogramme on the subject of electroniccommerce, to train lawyers globally viaelectronic media. The implementation ofWIPOnet will assist industrial propertyoffices of developing countries to accesselectronically delivered information andservices. WIPO is also developing projectsthat may assist in the digital exploitation ofcountries’ cultural and artistic heritage in anonline environment, and thereby assist inprotecting and disseminating indigenousintellectual property.

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WTO-WorldBank

- The Trade and Development Centreestablished under the WTO web siteprovides information and training togovernment officials and business leaders indeveloping countries in accessing tradedata and WTO documentation.

WTO - The work programme on electroniccommerce is addressing the developmentimplications of electronic commerce.

- The negotiations on trade in services tofurther liberalise GATS market accesscommitments will take into account sectorsand issues of particular interest todeveloping countries, including in the areaof services supplied by electronic means.

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SECTION II. REGIONAL BODIES

The policy requirements of electronic commerce are of a horizontal nature – thus the need for consistencybetween regional, national and international efforts. The work of regional bodies adds an important newdimension to the development of a global framework – articulating the regional perspectives on the issuesat hand. As such, regional bodies play an important and complementary role in the development of theglobal strategy for electronic commerce.

APECAsian-Pacific Economic Cooperation www.ecommerce.gov/apec

www.apecseg.org.sg

The Asia-Pacific Economic Cooperation, formed in 1989, has become the primary regional vehicle forpromoting open trade and practical economic co-operation. The Asia-Pacific Region comprises 21 membereconomies of widely divergent economies, political systems, and histories. The APEC forum has dedicateditself to the pursuit of three primary goals: trade and investment liberalisation; trade and investmentfacilitation; and economic and technical co-operation. In November 1998, APEC Ministers approved anAPEC Blueprint for Electronic Commerce that includes a framework for the region, one that emphasisesthe leading role of the private sector in the development of e-commerce. The Blueprint sets out a workprogramme to build trust and confidence; enhance government use; intensify community outreach; promotetechnical co-operation; work toward eliminating impediments to its uptake; and develop seamless legal,technical, operating and trading environments to facilitate the growth and development of electroniccommerce. APEC Ministers established an APEC E-commerce Steering Group (ECSG) in 1998 to ensureimplementation of the work programme and to co-ordinate the activities of the various APEC forumsinvolved in e-commerce activities. These include the Telecommunications Working Group, the Committeeon Trade and Investment, and the Transportation Working Group. The e-commerce-related work of theseforums are summarised on the APEC Electronic Commerce web site.

CoECouncil of Europe http://www.coe.int

The Council of Europe, an international organisation based in Strasbourg, France, was established by10 countries in the wake of the Second World War, with the signing of its Statute in London on 5 May 1949.Its main role is to strengthen democracy, human rights and the rule of law throughout its member states,and also to enhance Europe’s cultural heritage. The CoE acts as a forum for examining a whole range ofsocial problems, such as social exclusion, intolerance, the integration of migrants, the threat to private lifeposed by new technology, bioethical issues, terrorism, drug trafficking and criminal activities.

EFTAEuropean Free Trade Association http://www.efta.int

In November 1959, Ministers from seven West European countries that were not members of the EuropeanEconomic Community approved the text of the Stockholm Convention establishing the European FreeTrade Association. Currently, EFTA is an international organisation comprising four states – Iceland,Liechtenstein, Norway and Switzerland – with headquarters in Geneva and offices in Brussels andLuxembourg. EFTA has developed relations with a large number of non-EU countries, many of which haveconcluded in free trade agreements. The issue of electronic commerce has hitherto not been addressed inthese third country free trade agreements. Three of the four member states (Iceland, Liechtenstein andNorway) have structured their relations with the European Union in the form of the Agreement on a

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European Economic Area (EEA), through which they participate in the Single Market. In EFTA’s capacityas an interface between its member states and the EU, the various aspects of electronic commerce havebeen addressed.

EUEuropean Union http://europa.eu.int

The European Commission has used its role as the source of policy initiative to transform the frameworkprovided by the Union’s founding treaties into today’s integrated structures. It fulfils three major functions. Itmakes proposals for all new legislation relating to various activities, including trade, industry, social policies,agriculture, the environment, energy, regional development, external relations and overseas development;it acts as the guardian of the EU treaties, ensuring that EU legislation is applied correctly by the MemberStates and that all citizens and participants in the Single Market benefit from the level playing field that hasbeen created; and, as the executive body of the Union, it is responsible for implementing and managingpolicy. The European Commission launched the eEurope initiative on 8 December 1999 with the adoptionof the Communication “eEurope – An Information Society for All”. The initiative aims at accelerating theuptake of digital technologies across Europe and ensuring that all Europeans have the necessary skills touse them. It plays a central role in the agenda of economic and social renewal for Europe set out by theCommission for the European Council in Lisbon.

FTAAFree Trade Areas of the Americas http://www.ftaa-alca.org

The effort to unite the economies of the Western Hemisphere into a single free trade arrangement wasinitiated at the Summit of the Americas, held in December 1994 in Miami. The Heads of State of the 34democracies in the region agreed to construct a “Free Trade Area of the Americas” or FTAA, and tocomplete negotiations for the agreement by 2005. The goals of the FTAA are to: preserve and strengthenthe community of democracies of the Americas; promote prosperity through economic integration and freetrade; eradicate poverty and discrimination in the western hemisphere; guarantee sustainable developmentand conserve the natural environment for future generations. The FTAA has formed the Joint Government-Private Sector Committee of Experts on Electronic Commerce to make recommendations to ministers onhow to increase and broaden the benefits of electronic commerce, and – in particular – how electroniccommerce should be dealt with in the context of FTAA negotiations.

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SUMMARY OF ACTIVITIES AND INITIATIVES

A. BUILDING TRUST FOR USERS AND CONSUMERS

PROTECTION OF PERSONAL DATA AND PRIVACY


Council ofEurope

- Convention for the Protection of HumanRights and Fundamental Freedoms, ETSNo. 005 (1950) and its Protocols. Inparticular, the relevant case law on dataprotection under Article 8 of the ECHR.

- Convention For The Protection OfIndividuals With Regard To AutomaticProcessing Of Personal Data, ETS No. 108(1981).

- Additional Protocol to Convention ETSNo. 108 on Supervisory Authorities andTransborder Data Flows.

- Recommendation No. R(99)5 for theProtection of Privacy on the Internet(23 February 1999), containing Guidelinesfor the protection of individuals with regardto the collection and processing of personaldata on information highways.

EFTA - EC Directive on Privacy and personal dataprotection adopted by the EEA JointCommittee.

European Union - Directive 95/46/EC on the protection ofindividuals with regard to the processing ofpersonal data and on the free movement ofsuch data.

- Recommendation 1/99 on Invisible andAutomatic Processing of Personal Data onthe Internet performed by software andhardware.

- Proposal for a Directive on the processing ofpersonal data and the protection of privacyin the electronic communications sector,COM(2000)385.

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INTEROPERABLE AND SECURE INFRASTRUCTURE


APEC - An ECSG survey in the Autumn of 2000indicated that more than half of all APECmembers have adopted or modified lawsthat give legal recognition to electronicsignatures and documents.

Council ofEurope

- Resolution 1191 (1999) calls forgovernments and the EU to support, in co-operation with industry, research into suchissues as data security and digital signature.

EFTA - EC Directive on electronic signaturesadopted by the EEA Joint Committee.

- Participating in work related to standards inelectronic signatures.

European Union - Directive 1999/93/EC on a CommunityFramework for Electronic Signatures.

CONSUMER PROTECTION


APEC - In July 2000 a workshop on consumerprotection was held in Bangkok whichresulted in a work programme, endorsed byMinisters, to promote information-sharingand the development of best practices.

EFTA - EC Directive on protection of consumers inrespect to distance contracts adopted by theEEA Joint Committee.

- Integration of EC Directive on distanceselling of financial services into the EEAAgreement when adopted in the EU.

European Union - Directive 97/7/EC on protection ofconsumers in respect to distance contracts.

- Council Resolution of 19 January 1999 on“The Consumer Dimension of theInformation Society” adopted at the2128th Council meeting.

- Amended proposal for a Directive ondistance marketing.

- Forthcoming proposal for Directive ondistance selling of financial services.

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OTHER TRUST-RELATED ISSUES


Council ofEurope

- ORDER No. 514 (1996) for promotingchildren’s causes.

- Recommendation 1371 and Document 8041(1998) on abuse and neglect of children.

- Doc. 7659 (1996) on the sexual exploitationof children.

- Resolution 1099 (1996) on the sexualexploitation of children.

- Resolution 1191 (1999) calls forgovernments and the EU to develop lawsand intensive studies in order to check theinevitable flood of information technologycrimes, and to support development oftechnologies that allow coding to protectagainst obscene and offensive materials.

- Recommendation (89)9 on computer-relatedcrime.

- Recommendation (95)13 on procedural lawaspects related to information technology.

- Draft Convention on cybercrime.

- Recommendation on self-regulation and userprotection against harmful or illegal contenton the Internet.

EFTA - EC Directive on certain legal aspect ofelectronic commerce adopted by the EEAJoint Committee.

- Action Plan on the Promoting of Safe Use ofthe Internet has been integrated into theEEA Agreement. Participation in relatedprogrammes.

European Union - Decision No. 276/1999/EC adopting a multi-annual Community Action Plan on promotingSafer Use of the Internet by combatingillegal and harmful content on globalnetworks.

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B. ESTABLISHING GROUND RULES FOR THE DIGITAL MARKETPLACE

COMMERCIAL LAW


APEC - An important element of APEC efforts hasbeen to develop a compatiblelegal/regulatory framework for electroniccommerce. Work has focused onworkshops and information-sharing tosupport the adoption of appropriate lawsand regulations – in particular, adoption ofrelevant elements of the UNCITRAL ModelLaw.

Council ofEurope

- Resolution 1191 (1999) calls forgovernments and the EU to improvecontinuously the legal and organisationalframework of virtual enterprises, and defineprocedures for managing and operatingthem.

EFTA - EC Directive on certain legal aspects ofelectronic commerce adopted by the EEAJoint Committee.

- EFTA states have also contributed todiscussions in the EC on the Action Plan fortendering conditions for public procurementthrough electronic commerce.

- EC directive on regulatory transparencymechanism for Information Society servicesto be integrated into the EEA Agreement.

European Union - Directive 2000/31/EC on certain legalaspects of information society services, inparticular electronic commerce, in theInternal Market (“Directive on electroniccommerce”).

- Proposal for a Council Regulation onjurisdiction and the recognition andenforcement of judgements in civil andcommercial matters.

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TAXATION


European Union - Proposal for a regulation on administrativeco-operation in the field of indirect taxation(VAT). Proposal for a Council Directiveamending Directive 77/388/EEC as regardsthe value added tax arrangementsapplicable to certain services supplied byelectronic means, COM(2000)349final.

FTAA - Briefing Notes on “Taxation and PaymentIssues: The Implications of ElectronicCommerce for Domestic Taxation”(FTAA.ecom/inf/15).

FINANCIAL ISSUES


APEC - An important objective of the Blueprint forElectronic Commerce is paperless trading.A high-level symposium will be held inBeijing in February 2001 to advance thisissue.

EFTA - Consultation with the EU on the Action planrelated to fraud and payments counterfeitingwith regard to its EEA relevance.

- Consultations with the EU on the proposalfor a Directive on electronic moneyinstitutions.

- Integration of the EC Directive on distanceselling in financial services into the EEAAgreement when adopted in the EU.

European Union - Proposal for a regulatory framework fordistance selling of financial services.

- Directive 2000/46/EC on the taking up,pursuit of and prudential supervision of thebusiness of electronic money institutions.

FTAA - Briefing Notes on Electronic PaymentSystems (FTAA.ecom/inf/14).

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TRADE FACILITATION AND MARKET ACCESS


FTAA - Joint Government-Private SectorCommittee of Experts on ElectronicCommerce — established to determinehow electronic commerce and electronictransactions should be dealt with within theFTAA process.

- In late 1999, the Committee published aReport with Recommendations to Ministerson how to increase and broaden thebenefits of electronic commerce, anddetermine how electronic commerce shouldbe dealt with within the context of FTAAnegotiations.

- Briefing Notes on Electronic Commerceand Business Facilitation: “Business Users”(FTAA.ecom/inf/12/Rev1)

- Committee will continue to identify the waysin which the use of electronic commercecan influence the operation of tradeobligations, trade policy, security, andconfidentiality.

- The Committee will keep itself appraised ofactivities in other forums such as the WTO,the OECD, WIPO, UNCITRAL, UNCTAD,and APEC.

INTELLECTUAL PROPERTY


Council ofEurope

- Resolution 1191 (1999) calls ongovernments and the EU to supportresearch on “watermarking” of digitalinformation to trace copyright violations.

- Recommendation on measures to protectcopyright and neighbouring rights and tocombat piracy, especially in the digitalenvironment.

EFTA - Integration of EC directive on copyright andrelated rights in the Information Society intothe EEA Agreement when adopted in theEU.

European Union - Amended proposal for a Directive on theharmonisation of certain aspects ofcopyright and related rights in theinformation society, COM(1999)250final.

- Proposal for a Council Regulation on theCommunity patent COM/2000/0412final.

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C. ENHANCING THE INFORMATION INFRASTRUCTURE FOR ELECTRONIC COMMERCE

ACCESS TO AND USE OF THE INFORMATION INFRASTRUCTURE


Council ofEurope

- Resolution 1191 (1999) calls ongovernments and the EU to make sure thataccess to networks will be open to all, ifnecessary by the introduction of fiscal orother relevant measures; and to support thedevelopment and the deployment of broad-band communications channels.

- Recommendation (99)14 on universalcommunity service and “General Report onUniversal Community Service: Access for Allto Internet Services at Community Level”.

EFTA - Consultations with the EU on the proposalsfor a new regulatory environment forelectronic communications.

- EC directive on the legal protection ofservices based on, or consisting of,conditional access to be integrated into theEEA Agreement.

European Union - Regulation on Unbundled Access to theLocal Loop.

- 6th Implementation Report of theTelecommunications Regulatory Package.

- Proposal for a Directive on a CommonRegulatory Framework for ElectronicCommunications and Services,COM(2000)393.

- Proposals for Directives on universal serviceand users’ rights; access to andinterconnection of electroniccommunications networks and associatedfacilities, authorisation of electroniccommerce networks and services.

- Proposal for a Decision on a regulatoryframework for radio spectrum policy in theEC, COM(2000)407.

- Public Consultation on the Green Paper on“Convergence of the Telecommunications,Media and Information Technology Sectors,and the Implications for Regulation”,COM/99/0108final.

FTAA - Report on “Successful Models to FacilitateAccess to the Network, Internet Use, andRelated Cultural Aspects”(FTAA.ecom/inf/58)

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INTERNET GOVERNANCE / DOMAIN NAMES SYSTEM


EFTA - The EFTA States participate in discussiontaking place in various organisations atinternational level.

European Union - Formal proposal to ICANN on the creation ofa .eu top-level domain name.

- The .eu registry is to be set up as soon asagreement is reached with the EuropeanParliament and the Council.

STANDARDS


Council ofEurope

- Motion for a resolution “Standardisation inthe Field of Information and CommunicationTechnologies”, which invites thegovernments of member states, as well asthe European Union:

- to promote the establishment ofEuropean standards enabling networksto be interconnected and applications tobe interoperable, with a view toencouraging the dissemination ofmultimedia products;

- to intensify international co-operation,which is essential in order to assure theconvergence of these standards.

- Resolution 1191 (1999) calls ongovernments and the EU to promote theestablishment of standards for collaborativecomputing.

EFTA - Following and participating as appropriatein work relating to the setting of standards.

EU, IEC, ISO,ITU

- The Global Standards Conference “Buildingthe Global Information Society for the 21stCentury”.

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D. MAXIMISING THE BENEFITS

ECONOMIC AND SOCIAL IMPACTS


APEC - In 1999, a tool for assessing E-CommerceReadiness was developed by the privatesector in co-operation with APEC. To date,19 APEC economies have undertakenassessments in co-operation with the privatesector.

Council ofEurope

- Resolution 1120 (1997) on the impact of thenew communication and informationtechnologies on democracy.

- Resolution 1191 (1999) calls ongovernments and the EU to supportresearch and development in non-technicaldisciplines such as new economics resultingfrom the changed nature of work, or newparadigms of educational, ethical,sociological and philosophical issues.

- European Convention on the LegalProtection of Services Based on, orConsisting of, Conditional Access(6 October 2000).

- Recommendation (99)1 on measures topromote media pluralism.

European Union - Proposal for a Council Decision adopting amultiannual Community programme tostimulate the development and use ofEuropean digital content on the globalnetworks and to promote linguistic diversityin the Information Society,COM/2000/0323final.

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SMALL AND MEDIUM-SIZED ENTERPRISES (SMES)


APEC - In June 2000, Brunei hosted a workshop onSMEs and e-commerce. This workshopprovided the basis for an APEC SME E-Commerce Action plan, which was endorsedby APEC Ministers in 2000.

European Union - The Commission is working on improvinglegal certainty for SMEs offering e-commerce services across the Unionthrough an on-line information service andawareness actions.

- Encourage SMEs to “Go Digital” through co-ordinated networking activities for theexchange of knowledge on best practices,e-commerce readiness and benchmarking.“Reference centres” could help SMEs tointroduce e-commerce into their businessstrategies.

FTAA - Report on international experiences ofgovernment programmes destined tosupport SMEs with respect to access to theInternet, export promotion and logistics.(FTAA.ecom/inf/57)

SKILLS DEVELOPMENT


APEC - Committed to a series of efforts, includingcollaboration with the Global BusinessDialogue on Electronic Commerce (GBDe)and other groups, to expand IT skills in theregion.

European Union - Presentation to the Education Council of adetailed proposal for action to implement theeLearning initiative, to help adapt theeducation system to the new economy.

ENSURING GLOBAL PARTICIPATION


APEC - Recognising the value of informationsharing, co-ordination and avoidance ofduplication with work of other forums.

EFTA - Assisting the EFTA States in theirparticipation in the EC’s work on electroniccommerce.

OECD Web site:http://www.oecd.org

Forum Web site:http://www.oecd.org/dsti/sti/it/ec/act/dubai_ec/

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