JOB/GC/94  
 
4 July 2016  
(16-3590)  Page: 1/3  
  Original: English  
 
 WORK PROGRAMME ON ELECTRONIC COMMERCE 
NON-PAPER FROM THE UNITED STATES 
The following non-paper, dated 1 July 2016, is being circulated at the request of the delegation of 
the United States. 
 
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 1  INTRODUCTION 
1.1.  The United States has noted with appreciation a revived attention among Members to 
questions relating to electronic commerce and/or digital trade during the period since the WTO’s 
10
th Ministerial Conference. It is encouraging that  many WTO Members appear open to exploring 
how such issues may be relevant to the definition of future work in the WTO. This is particularly 
the case in light of the rapid growth of an electron ic/digital component in global trade flows, and of 
the apparent interest of many Members in explor ing positive linkages between digital trade and 
economic development. 
1.2.  The United States perceives that WTO Members remain in a period of defining terminology, 
studying implications, and considering in a delibe rate fashion how best to approach new WTO work 
on e-commerce/digital trade. At present, the United States has no preconceived views on best approaches, or on whether negotiations on specific aspects of e-commerce should be pursued, and 
if so on what bases. The United States believes that, in this as in other aspects of our post-Nairobi 
work, it is critically important to consider all issues carefully, deliberatively, and through a wide variety of conversations. 
1.3.  In the interest of contributing to this em erging, positive discussion, the United States offers 
this non-paper outlining a number of trade-related policies that can contribute meaningfully to the flourishing of trade through electronic and digital means. Again, the United States emphasizes that 
it is advancing no specific negotiating proposals at this time. The concepts presented here are 
intended solely to contribute to constructive discussion among Members, a process in which the United States looks forward to participating actively. 
 
2  EXAMPLES OF POSITIVE CONTRIBUTIONS TO A FLOURISHING DIGITAL ECONOMY 
2.1.  PROHIBITING DIGITAL CUSTOMS DUTIES: The complete prohibition on customs duties for 
digital products can ensure that customs duties do  not impede the flow of music, video, software, 
and games so that creators, artists and entrepreneurs get a fair shake in digital trade. 
2.2.  SECURING BASIC NON-DISCRIMINATION PRINCIPLES: Fundamental non-discrimination 
principles are at the core of the global trading system for goods and services. Rules that make 
clear that the principles of national treatment and MFN apply to digital products can contribute 
directly to stability in the digital economy. JOB/GC/94 
 
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  2.3.  ENABLING CROSS-BORDER DATA FLOWS: Co mpanies and consumers must be able to move 
data as they see fit. Many countries have enacted rules that put a chokehold on the free flow of information, which stifles competition and disadvantages digital entrepreneurs. Appropriately crafted trade rules can combat such discriminatory barriers by protecting the movement of data, 
subject to reasonable safeguards like the protection of consumer data when exported. 
2.4.  PROMOTING A FREE AND OPEN INTERNET: A free and open Internet enables the creation and 
growth of new, emerging, and game-changing In ternet services that transform the social-
networking, information, entertainment, e-comme rce and other services we have today. The 
Internet should remain free and open for all legitimate commercial purposes. 
2.5.  PREVENTING LOCALIZATION BARRIERS: Companies and digital entrepreneurs relying on 
cloud computing and delivering Internet-based pr oducts and services should not need to build 
physical infrastructure and expensive data centers in every country they seek to serve. Such 
localization requirements can add unnecessary costs and burdens on providers and consumers 
alike. Trade rules can help to promote access to networks and efficient data processing. 
2.6.  BARRING FORCED TECHNOLOGY TRANSFER S: Requirements that make market access 
contingent on forced transfers of technology  inhibit the development of e-commerce and a 
flourishing digital economy. Trade rules may be developed to prohibit requirements on companies 
to transfer technology, production processes, or other proprietary information. 
2.7.  PROTECTING CRITICAL SOURCE CODE: Innovato rs should not have to hand over their source 
code or proprietary algorithms to their competitors or a regulator that will then pass them along to a State-owned enterprise. It is important to ensure that companies do not have to share source 
code, trade secrets, or substitute local technology into their products and services in order to 
access new markets, while preserving the ability of authorities to obtain access to source code in order to protect health, safety, or other legitimate regulatory goals. 
2 . 8 .   E N S U R I N G  T E C H N O L O G Y  C H O I C E :  I n n o v a t i v e  c o m p a n i e s  s h o u l d  b e  a b l e  t o  u t i l i z e  t h e  
technology that works best and suits their needs.  For example, mobile phone companies should be 
able to choose among wireless transmission standa rds like Wi-Fi and LTE. Trade rules may play a 
role in ensuring technology choice by stipulating that companies are not required to purchase and 
utilize local technology, instead of technology of their own choosing. 
2.9.  ADVANCING INNOVATIVE AUTHENTICATION METH ODS: The availability of diverse electronic 
signature and authentication methods protects users and their transactions through mechanisms 
such as secure online payment systems. Trade rules may assist in ensuring that suppliers can use 
the methods that they think best for this purpose. 
2.10.  SAFEGUARDING NETWORK COMPETITION: It is important to enable digital suppliers to build 
networks in the markets they serve or access su ch facilities and services from incumbents – 
whether landing submarine cables or expanding data and voice networks – to better access 
consumers and businesses. 
2.11.  FOSTERING INNOVATIVE ENCRYPTION PRODUCTS: Encryption is increasingly seen as an 
important tool to address protections of privacy and security in the digital ecosystem. Rules may be developed to protect innovation in encryption products to meet consumer and business demand for product features that protect security and privacy while allowing law enforcement access to 
communications consistent with applicable law. 
2.12.  BUILDING AN ADAPTABLE FRAMEWORK FOR DIGITAL TRADE: New and innovative digital 
products and services should be protected agains t future discrimination. Trade-based protections 
for services and investment should continue to apply as markets change and innovative 
technologies emerge, unless a specific, negotiated exception applies. 
2.13.  PRESERVING MARKET-DRIVEN STANDARDIZATION AND GLOBAL INTEROPERABILITY: 
Innovators should not have to design products differently for each market they seek to serve; that 
is why we have the global standards process, wher e industry leads and the best technologies win. 
Trade rules can help to ensure that countries cannot arbitrarily demand that less competitive national standards be forced into innovative products. JOB/GC/94 
 
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  2.14.  ENSURING FASTER, MORE TRANSPARENT CUSTOMS PROCEDURES: The sorts of provisions 
contained in the WTO Trade Facilitation Agreement can make very direct contributions to digital trade. Administrative and at-the-border barriers can often be a bigger problem than tariffs for 
exporters of digital equipment. 
2.15.  PROMOTING TRANSPARENCY AND STAKEH OLDER PARTICIPATION IN THE DEVELOPMENT 
OF REGULATIONS AND STANDARDS: The development of new regulations and standards can pose a significant challenge to suppliers of information and communications technology, whose product 
cycles are short and whose regulatory environment is constantly evolving. A positive environment 
for e-commerce/digital trade entails strong commitments on transparency, stakeholder participation, coordination, and impact assessment for new regulatory measures, standards, and conformity assessment procedures. 
2.16.  RECOGNIZING CONFORMITY ASSESSMENT PROCEDURES: Conformity assessment 
procedures verify that products, including information and communications technology, meet required standards and technical regulations, but overly burdensome conformity assessment 
procedures can hinder such exports. "National treatment" in conformity assessment, so that 
testing and certification performed by one qualifie d conformity assessment body will be accepted 
as consistent with another Party’s requirements, can be an important means of facilitating trade in 
products relevant to the digital economy. 
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