JOB/GC/189  
 
18 May 2018  
(18-2962) Page: 1/2 
General Council  Original: English  
 
JOINT S TATEMENT ON ELECTRON IC COMMERCE  
MARKET ACCESS AND EL ECTRONIC COMMERCE  
Communication from Canada  
The following communication, dated 17 May 2018, is being circulated at the request of the 
delegation of Canada . 
 
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This submission outlines market access elements , which  could be considered in WTO negotiations 
on trade -related aspects of electronic commerce. This contribution is without prejudice to Canada's 
position on the scope and modality of such negotiations.  
1  SERVICES TRADE IN MO DE 1 
1.1.  With few exceptions, services rendered on a cross -border basis are generally delivered 
through electronic communications. Technological developments have enabled cross -border 
delivery of services in virtually all sectors. In this regard, GATS schedule s including entries of 
"Unbound*" under Mode 1 due to technical infeasibility should be revisited. Given different means 
for delivering services, such as cross -border consultancy and remote monitoring, among others, 
Members could replace "Unbound*" entries  with "None" or with commitments that reflect the 
current regulatory regime.  
1.2.  Members could complement this initiative by undertaking a modal negotiation for services in 
mode 1 on a request -offer basis.  
2  COMPUTER AND RELATED  SERVICES  
2.1.  In order to promote effe ctive liberalization in this sector, considering the rapid technological 
advancement and possibilities for creation of new business models, Members could schedule 
commitments at the highest level possible (i.e.,  two-digit CPC  84). Full commitments at the 
highest level would ensure the openness of this sector to the benefit of all Members making such 
commitments and further ensure that developments in this area remain robust and dynamic. With 
this in mind, Members could schedule the following commitments:  
a. Modes 1 -3: no limitations  for the sector as a  whole (CPC  84, two-digit based).  
b. Mode 4 : no exclusion of CRS services from horizontal Mode 4  commitments. 
No additional limitation s beyond horizontal limitations.  
2.2.  The Understanding on Computer and Related Service s (S/CSC/W/51) provides an accurate 
and reader -friendly clarification of the scope of coverage of CPC  84 that may increase the level of 
comfort of WTO Members when deciding to complete their commitments in this sector. Members 
could decide to schedule this  Understanding as part of their commitments for CPC  84. JOB/GC/189  
 
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  3  FINANCIAL SERVICES  
3.1.  Access to competitive financial services, including payments solutions, is essential for firms' 
participation in electronic commerce. The Understanding on Commitments in Financial Services is a 
forward -looking instrument, which provides effective market access for financial services; 
addresses transfers and processing of information; and considers non -discriminatory barriers to 
the provision of financial services. Members could acce pt the Fifth Protocol to the General 
Agreement on Trade in Services (GATS) and schedule according to the Understanding on 
Commitments in Financial Services.  
4  CUSTOMS DUTY MORATOR IUM 
4.1.  WTO Members presently enjoy tariff -free trade in electronic transmissions. However, the 
current Moratorium on imposing customs duties on electronic transmissions lacks enforceability 
and is only in place for a short and fixed time period. Some Members have already signalled their 
desire to impose tariffs, fearing that technologic al change will impact government revenue 
collection. Such a practice would distort trade and hinder Members' ability to leverage electronic 
commerce to further integrate into the global economy.  
4.2.  In their FTA practice, many Members, including Canada, undertake a permanent prohibition 
on imposing customs duties on electronic transmissions . However, in the absence of a permanent 
customs duty prohibition, Members without vast FTA networks risk facing unfavourable terms of 
trade. A multilateral prohibition would ensure a level playing field for all Members.  
4.3.  Members could agree to the following text, which would prohibit the imposition of harmful 
tariffs, while making clear that Members retain the right to impos e internal taxes, fees or 
other  charges.  
Customs Duties  
1. No Member may impose a customs duty, fee or other charge in connection with the importation 
of an electronic transmission  between a person of one Member and a person of another Member.  
 
2. For greater certainty, nothing in paragraph 1 prevents a Member from imposing internal taxes, 
fees or other charges on electronic transmission, provided that such taxes, fees or charges are 
imposed in a manner consistent with the Agreement.  
 
 
5  EXPANDED INF ORMATION TECHNOLOGY AGREEMENT  
5.1.   Information and communication technology (ICT) enables firms to be more productive, more 
innovative, and more competitive in international markets. By eliminating tariffs on information 
and communication technology (ICT), suc h as mobile phones and computers , Parties to the ITA  
and its expansion help provide their businesses and consumers with access to the best technology 
at lower cost. Members who have not already done so are encouraged to  join the ITA and 
its expansion . 
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