USCIB Comments to Commissioner Bangemann

on the Commission Communication Regarding

the Need for Strengthened International Cooperation

March 30, 1998

The United States Council for International Business (USCIB) has applauded the US "Framework" and European Union's "Initiative" for Global Electronic Commerce for their recognition of the global nature of the electronic commerce marketplace and the need for market-driven solutions. It is clear that the potential of that market can only be attained if national governments and regional blocks do not create local barriers to Internet trade and electronic commerce.

While we look forward to hearing more details about the role of business in the call for Strengthened International Coordination, we have reservations about the advisability of pursuing this initiative in its present form because it does not sufficiently stress the need for market-led solutions, nor does it recognize the adequacy of existing fora to deal with these issues.

We support the call made by Jaap Kamp of ABN-AMBRO on behalf of over 100 European companies for business to have a leading role in the development of strengthened international coordination of electronic commerce. The role of business needs to go beyond that of issue spotting set forth in the Commission Communication. Business and government must act in concert to address issues of electronic commerce. We would also like to see more details related to the implementation mechanisms for the International Coordination. The frequent result of such intervention, no matter how well intentioned, is the creation of new layers of bureaucracy, which impede rather than foster the development of new market approaches and solutions.

Existing international bodies dealing with technical standards and policy guidelines are capable of providing the needed fora and coordination for the development of market-driven self-regulation. The International Chamber of Commerce (ICC) and TransAtlantic Business Dialogue (TABD) are among the logical business-led fora to hold such discussions as they are already engaged in broad reviews of electronic commerce, both in terms of policy implications and needed revisions to existing trade and legal frameworks. The USCIB is working closely with the ICC and TABD to help provide business leadership in the development of international best practices and guidelines that will help facilitate electronic commerce.

The USCIB acknowledges that there are some areas, tax for example, in which there is a necessary and facilitating role for government. The development of an effective international business self-regulatory environment will provide a more flexible and market-oriented mechanism for achieving international coordination. In such an environment, business can effectively work in cooperation with government to assure that traditional areas of governmental and regulatory oversight can be carried out in a manner that is effective while not obstructing the development of electronic commerce.

For example, the USCIB has played a leading role in BIAC's efforts to provide significant and constructive business input to the OECD's examination of the issue of taxation and electronic commerce. We have also supported and actively participated in the efforts of UNCITRAL to adapt existing international legal frameworks for electronic commerce. Through the ICC delegation to the UNCITRAL Working Group on Electronic Commerce, the USCIB has provided business views and market information to help assure that the solutions that UNCITRAL proposes address market needs as well as the current business and technological environment.

Business is searching for methods to better cooperate with government to assure that effective self-regulation is developed that both responds to market needs and promotes the development of a trusted electronic commerce infrastructure. We look forward to the opportunity to work with the international private sector and national government representatives to find market-driven solutions that will result in greater trust in the electronic commerce marketplace, facilitation of electronic transactions and increased certainty.