Proposed Goals and Initiatives For APEC E-Commerce Work Program
June 1, 1998

At the November 1997 APEC Ministerial and Leaders Meetings in Vancouver, the APEC leaders directed that a work program on electronic commerce be created that would develop a predictable and consistent environment that enables all APEC economies to reap the benefits and foster the growth of electronic commerce. In February 1998, the SOM I established the Ad-Hoc Task Force on Electronic Commerce (co-chaired by Australia and Singapore) in order manage this work program. The Task Force has adopted a two-stage approach for the work program: Stage One will focus on studies and information exchange, while Stage Two will build on this work and focus on specific policy issues, options for technical cooperation and contributions to other international fora. The Task Force is to report its findings to APEC ministers and leaders this coming November in Kuala Lumpur.

In recognition that electronic commerce is a cross-cutting issue, the immediate goal of the Task Force should be to institutionalize a process that involves all parts of APEC -- other working groups, private sector groups, and all member economies. Simultaneously, the Task Force should begin substantive work in important policy areas such as education and training, infrastructure access, consumer confidence, and also develop a business assistance program geared particularly to the needs of small- and medium-sized enterprises (SMEs).

We suggest that the Task Force propose some or preferably all of the following goals and initiatives for action in the time period leading up to the APEC Ministers and Leaders Meeting in November 1998.

1) Education and Research

• Commission a study that would report on the economic and social benefits of electronic commerce to APEC member economies. The study should build upon available research and materials, examine the benefits to SMEs, and explore other applications, such as telemedicine and distance learning. The Task Force should solicit industry input/participation and tap into expertise that could be provided by other APEC working groups, such as the SME and TEL working groups.

  Next Steps/Schedule: Propose/commission an Ae-commerce economic and social benefits study@ at June Task Force meeting.

• Commission a study that would report on barriers to electronic commerce in APEC member economies. This study would build on work in other international fora and would also include the development of a survey template for electronic commerce issues. Each APEC member economy would apply the survey to its respective economy with the goal of developing individual plans to ameliorate barriers identified (e.g., steps and timeframe).

Next Steps/Schedule: Propose/commission a Abarriers to electronic commerce in APEC study@ at June Task Force meeting with action plans due by the Ministers and Leaders Meeting in November.

• Encourage private sector to showcase applications and demonstrate benefits of electronic mediums, such as PBEC e-commerce application demonstration and seminar at the APEC Ministers and Leaders Meeting in November.

Next Steps/Schedule: At June Task Force meeting, propose that Task Force members approach their respective business communities about conducting demonstrations on electronic commerce applications.

2) Economic and Technical Cooperation

• Develop with the private sector, training programs that would provide skills development to those in the APEC business community, particularly SMEs, in technical and business applications for electronic commerce. This could be done by economies through APEC organized reverse trade missions and other activities that could be sponsored/funded by the private sector.

Next Steps/Schedule: At the June Task Force meeting, propose the establishment of an APEC organized electronic commerce training and exchange program to be up and running by November 1998.

• Identify and support projects that examine ways of connecting small and medium sized enterprises to both new and existing electronic commerce networks, such as the Partnership for Equitable Growth (PEG) for SMEs and the Y-2000 project.

Next Steps/Schedule: At June Task Force meeting, propose that Task Force members survey their economies and identify projects that will facilitate SME connectivity to electronic commerce networks.

3) Expansion of Infrastructure and Internet Access

• Use tools developed by the private sector to identify and measure key infrastructure indicators necessary for data communications networks to function effectively in an electronic commerce environment. Important indicators include network size and capacity, bandwidth requirements, server requirements, etc. The goal would be to identify key areas needing remediation and the concrete steps necessary for improvement.

Next Steps/Schedule: Propose that Task Force members undertake infrastructure self-evaluation programs using input from the private sector on how to do this. At the Ministers and Leaders Meeting in November, present recommendations on how member economies can improve their infrastructures.

• Identify policies that encourage the development of market environments conducive for development and use of Internet and information services. The object should be to create incentives for Internet service providers and backbone providers to participate in the build-out of Internet infrastructure. The Task Force should build on commitments made by APEC economies under the WTO Basic Telecom Services Agreement to underscore the importance of market liberalization as a catalyst for increased infrastructure investment. The Task Force should also solicit input and/or participation from the APEC TEL Working Group which has already done work on infrastructure issues.

Next Steps/Schedule: Initiate discussion of Internet access and infrastructure issues at June TEL MIN meeting in Singapore and June Task Force meeting with recommendations to be made at the Ministers and Leaders Meeting in November.

4) Assistance for SMEs

• Identify industry and trade associations and other organizations in the APEC region that can serve as a resource for SMEs on electronic commerce questions. These entities could be used as locales to develop information/applications for equipment requirements, electronic payment systems, web site design, and other areas.

Next Steps/Schedule: At June Task Force meeting, propose that Task Force members survey their economies and identify public and private sector organizations that can assist SMEs with electronic commerce utilization strategies.

• Commission a guide on utilizing electronic commerce for SMEs which will help identify business strategies that take advantage of electronic commerce by lowering transactional and start up costs of doing business, facilitating access to international markets, and enhancing overall competitiveness.

Next Steps/Schedule: Propose/commission an Aelectronic commerce guide for SMEs@ at June Task Force meeting.

5) Consumer/User Confidence and Trust

• Catalog industry self-regulation mechanisms and methods to protect privacy. This effort will build on the Task Force issue paper on privacy that inventories privacy work in other fora.

Next Steps/Schedule: At June Task Force meeting, initiate discussion on privacy issues and recommendations developed in other international fora, such as the OECD, with a view to endorsing privacy guidelines at the Ministers and Leaders Meeting in November.