Information Networks, e-commerce, and Evolving Policy Challenges
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1 2009/CTI2/GOS/SEM/012 Information Networks, e-commerce, and Evolving Policy Challenges Submitted by: Japan Seminar on Commercial Realities of Cross- Border Services Trade Singapore 20 May 2009
2 Information Networks, E-Commerce, and Evolving Policy Challenges May 20, 2009 Noriyuki Mita Director, Economic Partnership / FTA Division Ministry of Economy, Trade and Industry of Japan 1 Role of Information Network for growth The growth of information networks, and the ensuing development of any kind of economic activities through information network, are important contributors to innovation and economic growth in the APEC region. Development of Information Network and expanding usage (in innovative way!) contribute to the introduction and growth of new forms of services and economic activities <Key recent trends> - The rise of cloud computing (cross-border no border) - Expansion into new form of services (e.g., healthcare) - New forms of C-to-C services (eg., finance, gambling) 2
3 E-commerce to E-service Even E-commerce is not simply about buying and selling goods over the internet. Moreover, Development of Information Network has enabled provision of other forms of services, creating new cross-border trade. <E-commerce> - B2B Transactions (EDI, EFT) - Selling and Buying Goods and (Digital) Contents - Booking for Services (tourism, entertainment, etc.) - Advertisement <Provision of any type of services through information network > - BPO (design, accounting and other professional services, date processing, software development, call center, etc.) - Remote Monitoring and Operation - Education, Healthcare, etc - B2C (C2C) ITC Related Services (ASP, web, etc.) 3 Regulatory frameworks: Issues at Stake Cross (No) border nature of e-service (e-commerce) - Effectiveness (esp. enforcement) of domestic lows and regulation - Question of jurisdiction and applicable law - Necessity of international cooperation - Necessity of adaption of common policy (even harmonization) - Better way for dispute/complaint handling Intersection with various disciplines (spectrum approach) - Contract laws - Consumer protection laws (in general / sector specific) - Laws and regulations for social (e.g. safety) purposes - Laws specific to ITC (signature, data privacy, security, etc.) - Intellectual property laws - Domestic tax codes - Trade and Investment laws (market access, discrimination, tariff, etc ) 4
4 Regulatory frameworks: A historical overview Many of the main legal issues regarding e-commerce have been discussed for a long, long time. Multilateral efforts - WTO (Tariff, GATS, TRIPs) - OECD (Consumer Protection, Data Privacy, Security) - UNCITRAL (Model Civil Law, Signature etc.) - Academia / Private Sector c.f. Some themes discussed in a 1999conference on jurisdiction by the Internet Law & Policy Forum (ILPF) - Different concepts of jurisdiction under common law / civil law - Rule of Origin vs Rule of Destination - Relationship with various legal disciplines (e.g., consumer protection, domestic tax codes) Regional and bilateral efforts - APEC / ECSG (Date Privacy, etc.) - FTAs (electronic commerce chapters) 5 Regulatory frameworks: A historical overview (Continued) So what is happening now? Same debates, but bigger scope. What was discussed back in the old e-commerce (mostly selling goods) is being extended to today s e-services (all Mode 1 trade over the net). New trends (esp. cloud computing) Expanding number of users and market. 6
5 Restrictive disciplines Economies have often established restrictive disciplines amongst each other to create a level regulatory playing field for e-services. - NT, MFN for digital contents - Moratorium (WTO) / elimination (FTAs) of tariffs on digital products - Market access for e-services (NT, MFN, MA, etc.) - Clarification and cooperation for application and enforcement of domestic laws to cross-border transactions However, these disciplines cannot by themselves create the necessary environment for new, innovative forms of e- commerce to flourish. Business requires more than better regulations. 7 Enabling disciplines Enabling disciplines involve cooperation between economies to create the right business environment for e- commerce. - Electronic signature (PKI) and certification - Consumer protection measures (law enforcement, complaint handling) - IPR (protection, enforcement) Recent developments, such as cloud computing and new forms of C-to-C e-commerce, call for further cooperation in enabling disciplines. - Data privacy / Security - Competition cooperation Broad Capability, especially qualitative aspects are essential - Energy saving in IT networks (both hardware & software) - Reliability 8
6 The road ahead for APEC Development of Information Network enabled the various forms of E-services (E-commerce is one of them; it is also an enabler of various other (non-it) services. As such, regulating e-services, especially across borders, is a highly complex affair. There lies the scope for APEC. It has provided a platform for regulatory cooperation in e-commerce. In the future, APEC may also consider establishing certain strategic plans adapted to the cloud computing era, with greater emphasis on cooperation in areas ranging from regulatory disciplines to newer enabling disciplines such as energy saving and data privacy. 9 Thank you very much. Noriyuki Mita, METI 10
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