Aust-US Agreement on Electronic Commerce
Brian Jenkins
Centre, Canberra.
AUSTRALIA-UNITED STATES CO-OPERATION ON ELECTRONIC COMMERCE
I am pleased to announce that President Clinton and I have agreed to a
joint approach in the development of electronic commerce. By agreeing
to
cooperate more closely in the field of electronic commerce, Australia
and
the US have recognised, at the highest level, the importance of the
internet and electronic commerce to our nations' future economic and
social
development.
The growing information economy is a truly global phenomenon, which has
the
potential to improve the lives of all citizens, whether they live in our
cities, or rural and regional Australia. Harnessed effectively, the
information economy will continue to provide more and more opportunities
to
businesses large and small, and employment growth.
Co-operation will take place in a range of areas designed to accelerate
the
growth of the information economy and electronic commerce, to promote
better standards of livings for all in our emerging networked economies.
The statement finalised today builds on the close cooperation between
the
US and Australia on a range of internet and e-commerce related issues,
such
as domain names and opposition to "bit taxes". The statement
demonstrates
both countries' commitment to putting in place a safe and secure
environment so that e-commerce can flourish.
The statement is aimed at:
· providing certainty and building confidence for government, business
and
consumers in key areas of e-commerce;
· facilitating progress in key areas, particularly a transparent and
consistent legal and regulatory framework; and
· promoting a dialogue between Australia and the US on e-commerce issues
which will benefit government, business and consumers.
Australia and the United States have reached agreement on key policy
principles of private sector leadership, minimal government intervention
and self-regulation wherever possible.
Agreement has also been reached on the underpinning principles behind a
range of specific policy issues including taxation in relation to the
internet and electronic commerce; custom duties on electronic
transmissions; enforcement of electronic transactions and electronic
authentication methods; privacy with regard to processing of personal
data
and consumer protection in the online environment; online content and
government services and information.
Whilst bilateral cooperation is important in ensuring the sharing of
information and building confidence, multilateral fora will also have a
key
role to play. Governments will need to work together with the private
sector in developing a global framework for electronic commerce.
Australia
and the United States have been actively cooperating in APEC, the OECD
and
the World Trade Organisation to this end.
A copy of the joint statement is attached.
1 December 1998
AUSTRALIA-UNITED STATES
JOINT STATEMENT ON ELECTRONIC COMMERCE
Australia and the United States believe that the growth of the
information
economy is a significant and positive development for both countries
and,
generally, for society and global business. The benefits of e-commerce,
in
particular, include access to new markets, quality of service,
encouragement of innovation, more efficient management of supply and
distribution and better customer service. These benefits should
accelerate
economic growth in all sectors, and across all regions and communities.
I. PURPOSE OF STATEMENT
This joint statement is being made in order to accelerate the
development
of e-commerce in both countries and empowerment of individual citizens
by:
· providing certainty and building confidence for government, business
and
consumers in key areas of e-commerce;
· facilitating progress in key areas, particularly a transparent and
consistent legal framework;
· promoting a dialogue between Australia and the US on e-commerce issues
which will benefit government, business and consumers.
II. POLICY PRINCIPLES
1. The growth of electronic commerce will be led by the private sector,
and
its continued development depends on leadership by the private sector in
key areas both domestically and internationally.
2. Competitive market-based solutions to specific issues for the
information economy will promote optimal growth and benefits.
Governments
should avoid imposing unnecessary regulations. When regulation is
necessary, they should rely on a "light touch" regulatory environment.
3. Where the market alone will not solve problems, self-regulation gives
maximum control and responsibility to the individual and should be the
preferred approach. In some cases this may need to be facilitated by
legislation to ensure effective arrangements.
4. In light of the global nature of e-commerce, government-based or
industry-based approaches should be coordinated and harmonised
domestically
and internationally, as far as possible.
5. Government should actively pursue excellence in the online delivery
of
government services and in its dealings with business.
III. POLICY ISSUES
Australia and the United States agree on the following approaches to key
areas of electronic commerce and the information economy:
1. Taxes and Tariffs
A: Rules for the taxation of the Internet and electronic commerce
should
be neutral, efficient, simple to understand and should promote
certainty.
Governments will cooperate closely to ensure effective and fair
administration of their tax systems in relation to electronic commerce,
including prevention of tax evasion and avoidance. In support of this
the
Australian and US national tax authorities should continue to consult
and
cooperate on the taxation issues associated with electronic commerce in
international fora, such as the OECD and other bodies, and at a
bilateral
level in accordance with the exchange of information provisions of the
1982
Australia-US Double Tax Convention.
B: Australia and the US support the indefinite extension of the WTO
declaration of May 1998 not to impose customs duties on electronic
transmissions.
Developments in International Fora
A: World Trade Organisation (WTO): The international trading system
under the
WTO should foster the growth of electronic commerce by reducing the
scope
for trade-distorting government intervention and to give enterprises
greater access to the global marketplace. Australia and the United
States
are actively participating in the WTO work program on e-commerce, with
the
shared objective of undertaking a comprehensive review of the
implications
of e-commerce for the application of WTO agreements and for mandated
negotiations, taking into account the application of the established
body
of trade rules to electronic commerce and the importance of further
expanding market access and trade liberalization commitments within the
WTO
framework. The program should also consider the potential contribution
of
e-commerce to development objectives, and means to promote greater
access
for enterprises in developing countries to the global digital network.
The
General Council should continue to coordinate the work program, avoiding
duplication with work done elsewhere, focussing on workable outcomes,
and keeping open the possibility of adding new issues to the work
program.
B: Asia-Pacific Economic Cooperation (APEC): Both governments welcome
the
ongoing e-commerce work program in a range of APEC sub-fora, including
agreement to the key themes and future work program outlined in the APEC
Blueprint for Action on Electronic Commerce.
3. Business and Consumer Confidence
It is essential that business and consumers have confidence in
transactions
conducted electronically. This will be facilitated by action in the
following areas:
A: Electronic Authentication: Governments should work towards a global
framework that supports, domestically and internationally, the
recognition
and enforcement of electronic transactions and electronic authentication
methods (including electronic signatures). At an international level
this
should include exploring the possibility of a convention or other
arrangements
to achieve a common legal approach that will support electronic
transactions
as well as a variety of authentication technologies and implementation
models.
This approach should:
a. Remove paper-based obstacles to electronic transactions by adopting
relevant provisions from the UNCITRAL Model Law on Electronic Commerce;
b. Permit parties to a transaction to determine the appropriate
authentication technologies and implementation models for their
transaction,
with assurance that, to the maximum extent possible, those technologies
and
implementation models will be recognised and enforced;
c. Permit parties to a transaction to have the opportunity to prove in
court that their authentication technique and their transaction is
valid;
d. Take a non-discriminatory approach to electronic signatures and
authentication methods from other countries.
B. Privacy: Ensuring the effective protection of privacy with regard to
the processing of personal data on global information networks is
necessary
as is the need to continue the free flow of information. With regard to
frameworks for personal data protection, governments and businesses
should
consider consumers' concern about their personal information.
Governments
should support industry in implementing effective privacy protection.
Personal information should be collected and handled in a fair and
reasonable manner consistent with generally accepted privacy principles.
The OECD Privacy Guidelines provide an appropriate basis for policy
development.
C. Critical Infrastructures: Protection of information, as well as the
information systems and infrastructures themselves, is a key element in
building user confidence. In some cases information infrastructures are
critical to public safety and national economic well-being. The
preferred
approach to information security is through industry awareness and
industry
based solutions. The OECD Guidelines for the Security of Information
Systems should be the basis for national approaches to information
security. Governments should provide leadership and provide advice on
threats, vulnerabilities and security responses to ensure that critical
information infrastructures are protected.
D. Consumer Protection: Consumers should receive effective protection
in
the online environment which can be promoted through enforcement of
existing consumer protection laws, modification of these laws as
necessary
to accommodate the unique characteristics of the online market, consumer
education, and industry supported mechanisms to empower consumers, and
resolve consumer complaints and concerns.
4. Content
A. The internet is a medium for promoting, in a positive way, diffusion
of
knowledge, cultural diversity and social interaction, as well as a means
of
facilitating commerce. Governments should not prevent their citizens
from
accessing information simply because it is published online in another
country.
B. Empowerment of users, including parents in relation to material which
may be unsuitable for children, should be achieved through information
and
education, as well as through the availability of filtering/blocking
systems or other tools. Industry self-regulation will assist in the
promotion of content labelling.
C. Industry will need to deal appropriately with complaints about
prohibited content. We encourage international cooperation between law
enforcement authorities to prevent, investigate and prosecute illegal
activities on the internet and the illegal use of e-commerce by criminal
and terrorist organisations.
5. Government Services and Information
A. Good administration is promoted by governments ensuring that they
pursue
excellence in delivery of government services and information online in
a
citizen-friendly way rather than reflecting bureaucratic structures.
Governments can also contribute to the development of the information
economy by acting as role models and market catalysts. Business and
user
confidence will be enhanced by effective government use of electronic
payments systems.
B. Government led developments in public key and other authentication
technologies should be encouraged to facilitate trade through the use of
secure electronic exchange of permits and licences.
C. Both countries recognise the value of, and will continue to support,
international cooperation in electronic delivery of government services
through bodies such as the International Council for Information
Technology
in Government Administration, and through collaborative work such as the
G7
Government Online Project.
D. Governments consider the remediation of the Year 2000 computer date
problem as a matter of critical importance to both countries and
international communities. The exchange of appropriate information and
expertise would provide significant assistance in addressing this issue.
6. Domain Name System (DNS)
Both countries agree on the following guiding principles:
A. Stability: The US Government should end its role in the internet
name
and numbering system in a manner that ensures the stability of the
internet. The introduction of a new management system should not
disrupt
current operations or create competing root systems. During the
transition
and thereafter, the stability of the internet should be the first
priority
of any DNS management system. Security and reliability of the DNS are
important aspects of stability, and as a new DNS management system is
introduced, a comprehensive security strategy should be developed with
input from the private sector.
B. Competition: The internet succeeds in great measure because it is a
decentralised system that encourages innovation and maximises individual
freedom. Where possible, market mechanisms that support competition and
consumer choice should drive the management of the internet because they
will lower costs, promote innovation, encourage diversity, and enhance
user
choice and satisfaction.
C. Coordination: Certain management functions require coordination. In
these cases, responsible industry self-regulation is preferable to
government control and is likely to be more flexible and responsive to
the
changing needs of the internet and of internet users. The
self-regulatory
process should, as far as possible, reflect the bottom-up governance
that
has characterised development of the internet in this area to date.
D. Representation: Private sector mechanisms should be developed to
ensure
that domain name system management is responsive to internet
stakeholders
worldwide.
7. Intellectual Property Rights
Adequate protection of intellectual property rights on a
technology-neutral
basis is essential for the development of e-commerce. The new WIPO
Copyright Treaty and the Performances and Phonograms Treaty provide a
sound
basis in this regard. Further consideration of implementation of the
measures in the treaties will be a positive step.
8. Infrastructure
The supporting infrastructure for online transactions must be
technically
and commercially suitable, particularly in terms of adequate bandwidth
and
competitive pricing. The optimal outcome will be achieved through
competitive provision of infrastructure and telecommunication services
within a pro-competitive regulatory framework.
IV. WORK PROGRAM
Recognising that bilateral cooperation can complement the development of
essential multilateral frameworks, Australia and the United States will:
A. Work with the private sector and consumer groups in both countries to
promote dialogue and cooperation on the issues contained in this
statement,
and facilitate the translation of such dialogue and cooperation into
meaningful international frameworks.
B. Cooperate closely in relevant international fora to support the
growth
of and access to global e-commerce; these may include, for example, the
WTO, WIPO, OECD, UNCITRAL, UNCTAD, and APEC.
C. Actively promote exchange of information and views at government leve
l
on all relevant e-commerce issues. This could include economic and
trade
issues such as how e-commerce affects small and medium sized
enterprises,
including their ability to develop markets and generate employment; and
the
broader economic and social impacts of e-commerce.
D. Work to ensure that the benefits of such exchanges are shared more
broadly, particularly in the Asia Pacific region.
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