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Canadian proposal to WTO on ecommerce



This proposal from Canada to the WTO regarding ecommerce would give the
WTO a pretty broad mandate in ecommerce issues, including the issues
relating to the "adequate protection of intellectual property works in
the digital world," and the "identification of specific issues arising
from domestic regulation affecting electronic commerce."


   Jamie





PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Electronic Commerce
Communication from Canada

	The following communication, dated 23 September 1999, has been received
from the Permanent Mission of Canada.

_______________


1.	The following proposal is presented by Canada for consideration in
the preparatory processfor the Seattle Ministerial meeting.  The
non-paper distributed by Canada at the Council for Trade in Services on
19 July 1999, entitled  Global Electronic Commerce:  A Canadian
Perspective, provides background material to this proposal.


	Proposal
	
2.	That, as part of the recommendations on electronic commerce to the
Seattle Ministerial:

-	Members agree to extend their current practice of not imposing customs
duties on electronic transmissions;  this commitment will be reviewed at
the next Ministerial meeting, taking into account the progress of
negotiating groups and/or WTO bodies.
		
-	Members agree that the electronic delivery of services falls within
the scope of the GATS, since the Agreement applies to all services
regardless of the means by which they are delivered.  Measures affecting
services supplied by electronic means are measures affecting trade in
services and would therefore be covered by GATS obligations.
		
-	Members agree that the supply of services by electronic means is
permitted by specific commitments unless a Member's schedule states
otherwise.
		
-	Members agree that all GATS provisions, whether relating to general
obligations or specific commitments, are applicable to the supply of
services through electronic means.
		
-	Members agree that the provisions of the TRIPS Agreement apply to
electronic commerce, and that the effective implementation of this
Agreement will facilitate electronic commerce.
		
-	Members agree that the following issues should be included in the work
conducted in WTO bodies and negotiating groups in relation to electronic
commerce:
		
	-	indefinite extension of the current practice of not imposing customs
duties on electronic transmissions;
			
	-	clarification of the distinction between the GATS modes of supply in
situations where a service is being supplied by electronic means;
			
	-	classification and scheduling of new services related to electronic
commerce which are not already included in the Central Product
Classification (CPC);
			
	-	classification of electronic transmissions with a physical
equivalent;

	-	the adequate protection of intellectual property works in the digital
world;

	-	benefits of electronic commerce for developing countries and ways of
enhancing their participation;
			
	-	the application of the provisions of the Annex on
Telecommunicationsregarding access to and use of public
telecommunications transport networks and services to the supply of all
services included in a Member's schedule;
			
	-	the application of the provisions of the GATS Reference Paper on
Basic Telecommunications to basic telecoms services relevant to
e-commerce;
			
	-	identification of specific issues arising from domestic regulation
affecting electronic commerce.
			
	-	Members agree to establish an Experts Committee on Electronic
Commerce, a horizontal non-negotiating group to advise and inform the
work conducted in WTO bodies and negotiating groups in relation to
electronic commerce.
		
Background

3.	Electronic commerce is increasingly global and can reinforce the
trend towards tradeliberalization.  It requires an open, predictable,
and transparent trading environment which operates across territorial
borders and jurisdictions.  International cooperation is essential to
creating such a trading environment and to optimizing the social and
economic potential of electronic commerce, both by creating the enabling
conditions for electronic business to take place on a transnational
basis and by removing barriers or impediments to electronic commerce.

4.	The Work Programme on Electronic Commerce executed over the past year
has beensuccessful in bringing to the forefront the trade-related
aspects of electronic commerce, and highlighting the issues which must
be considered within each WTO body as part of ongoing work.  For
example, Members have noted that while information technology in
general, and e-commerce in particular, could be instrumental in the
multilateral trading system, steps should be taken to ensure that
e-commerce does not remain beyond the reach of many developing
countries.  Narrowing the gap between developing and developed countries
is both important and urgent and will be beneficial to all Members.

5.	The Work Programme has resulted in consensus on some issues, as
described above;  it is evident however that further dialogue is
necessary to develop a fuller understanding of what is needed to both
enable global electronic commerce and reduce impediments to trade. 
Given the varying stages of adoption of electronic commerce, its
underlying technologies, and the development of national approaches
among Members, the creation of a forum for the discussion of
trade-related aspects of electronic commerce in a non-negotiating
context will contribute to the development of  truly global electronic
commerce.

6.	Given the nature of electronic commerce, including the rapidly
evolving technology associated with electronic commerce, a WTO Experts
Committee on Electronic Commerce, consisting of representatives from all
interested WTO Member governments, should consider ways in which it can
draw upon expertise from outside government using processes similar to
those of other WTO bodies.

__________
-- 
James Love / Director, Consumer Project on Technology
http://www.cptech.org / love@cptech.org
P.O. Box 19367, Washington, DC 20036
voice 202.387.8030 / fax 202.234.5176