Business E-commerce Blueprint Proposed to Governments

For Immediate Release                                                   Contact:  Christina Shevchik/(212)703-5043        

Ottawa, 7 October --  A broadly based business alliance today presented an action plan for the development of electronic commerce to governments attending the “ Borderless World ”  conference called by the Organization for Economic Cooperation and Development (OECD).  The plan calls for minimum government regulation and emphasizes business self-regulation as the most effective way of building confidence in transactions over open networks.

The plan submitted to the OECD governments sets out industry’s views on the full range of  e-commerce issues, including privacy, cryptography, consumer protection in the online environment, taxation of e-commerce, intellectual property protection, standards, competition and Internet governance.

It describes in detail business initiatives in all these fields so that governments are informed of the extent to which self-regulation is already operating and what further initiatives are in the pipeline.  The plan’s stated aim is to create trust in e-commerce across the whole spectrum of providers of services and goods.  Carol M. Stephenson, President and CEO of Stentor and Chair of the Information Technology Association of Canada, said, “ We are convinced that user confidence and trust in e-commerce can be ensured effectively through industry self-regulation and leadership. ”

Business organizations whose members account for the bulk of electronic commerce throughout the world are backing the Global Action Plan on Electronic Commerce.  The international coalition that put the plan together includes providers of information and communications products and services , as well as user industries such as, financial services, retail etc.  It numbers large multinational corporations alongside small firms from developed and emerging economies.

The plan was issued on the first day of the two-day ministerial by the Business and Industry Advisory Committee to the OECD (BIAC), the Global Information Infrastructure Commission, the International Chamber of Commerce, the International Telecommunications Users Group and the World Information Technology and Services Alliance.  It is supported by over 50 national, regional and sectoral trade associations, ranging from the Confederation of British Industry to Japan’s Keidanren, the International Air Transport Association and the Australian Information Industry Association. 

The plan builds upon a number of fundamental principles for industry-led policy for global electronic commerce.  These  principles were for the first time revealed by business at the OECD's precursor conference in Turku in November 1997.  Dr. Etienne Gorog, Vice President of IBM Consulting Group and information policy leader in BIAC, who led the business representation in that event, says that, if governments do not quickly arrive at a globally-compatible and business-friendly policy framework, "the development of computer generated business would not be stopped, but it could be slowed to a trickle."

The main thrust of this business declaration to ministers at the OECD conference is that the private sector, responding to market forces, should take the main responsibility for regulating            e-commerce.  The business initiative is directed at all governments and not just those of the 29  advanced market economies that make up the OECD membership.

The action plan says, “ Business has a strong market incentive to foster the empowerment of users, but will only make the necessary investments if it can trust that governments will recognize and reinforce the leadership of business responding to the highly dynamic nature of electronic commerce. ”

Harris N. Miller, President of the World Information Technology and Services Alliance (WITSA) and the Information Technology Association of America (ITAA), said,  “ Governments around the world have called for industry leadership on electronic commerce issues.  They have thrown down the gauntlet of leadership and industry has picked it up. ”

ICC Secretary-General Maria Livanos Cattaui said, “ As a general rule business urges governments to leave untouched all those areas - and this should be most of them - where there is no clear evidence that business conduct will have a negative effect on society or the fundamental rights of individuals. ”

Business would like to see governments concentrate on providing consistent basic legal guarantees for effective global enforcement of essential rights in e-commerce, for instance the protection of intellectual property.

The document describes specific business actions and commitments in the filed of                 e-commerce and identifies business expectations of government action.  “ Government regulation may be required in such maters as intellectual property protection, taxation, and the removal of barriers to competition in providing the underlying infrastructure, ”  it says.

An annex to the action plan contained summaries of various business initiatives.  Business executives who compiled the document said they provided ample evidence that comprehensive business self-regulation of electronic commerce is well on its way.

Mrs. Cattaui said, “ The dividing line between government and business responsibilities for Internet governance needs clarification, and that is what the action plan sets out to achieve.  Furthermore, international organizations must ensure that their initiatives do not duplicate or contradict each other. ”

The global business action plan will be used by the coalition to convey industry's views on electronic commerce in several fora beyond the Organization of Economic Cooperation and Development.  Electronic commerce, by its nature, defies national borders.  It is a global medium and we are committed to seeing it grow globally,"  said Jim Johnson of the Global Information Infrastructure Commission.  He added that to that end, the coalition plans to use the document in discussions with several other international organizations including the Asia Pacific Economic Cooperation (APEC) forum, the Free Trade Area of the Americas, the World Trade Organization and others.

The United States Council for International Business (USCIB) advances the global interests of American business both at home and abroad.  The USCIB has a membership of over 300 global corporations, professional firms, and business associations.   It is the American affiliate of the International Chamber of Commerce (ICC), the Business and Industry Advisory Committee (BIAC) to the OECD, and the International Organisation of Employers (IOE).  As such, it officially represents U.S. business positions in the main intergovernmental bodies, and vis-à-vis foreign business communities and their governments.

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