JOB/GC/100  
 
25 July 2016  
(16-3933)  Page: 1/8  
  Original: English  
 
 WORK PROGRAMME ON ELECTRONIC COMMERCE 
NON-PAPER FOR THE DISCUSSIONS ON ELECTRON IC COMMERCE / DIGITAL TRADE FROM JAPAN 
The following non-paper, dated 21 July 2016, is being circulated at the request of the delegation 
of Japan. 
 
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 1  INTRODUCTION 
1.1.  Members of the WTO have discussed e-commerce since the formulation of the 
Work Programme on Electronic Commerce some 20  years ago. However, what we saw then was a 
different picture to what we are seeing now. The digital economy has been changing almost all aspects of commercial activities, including trade and investment. 
1.2.  For the purpose of better addressing those new aspects of e-commerce in the WTO, Japan, 
together with its co-sponsors submitted th e proposal, "REINVOGORATING DISCUSSIONS ON 
ELECTRONIC COMMERCE" (JOB/GC/96/Rev.1). The prop osal aims to identify what the WTO should 
do, and, for this purpose, it encourages Memb ers to examine their own interests and views on 
e-commerce and/or digital trade by answering simp le questions. Japan submits this non-paper as 
Japan's own response to the questions set out in the proposal. 
2  BARRIERS TO ELECTRONIC COMMERCE (RESPONSE TO Q1 OF THE PROPOSAL) 
2.1.  The digital economy has contributed to gl obal economic growth. Furthermore, the Fourth 
Industrial Revolution realised with the utilisation of the latest technology such as the Internet of Things and Big Data will permeate countless aspects of the world economy and people's lives, 
impacting sectors as varied as healthcare, traffic systems etc. Such impact will also provide 
various opportunities to the world and have the potential to promote further socio-economic prosperity, from developed to developing countries, from large to small-medium enterprises, and 
from firms to individuals. 
2.2.  However, a number of challenges still remain to be addressed in order to maximize the 
benefits from this trend. These challenges include the improvement of infrastructure and 
connectivity and developing legal frameworks related to electronic commerce and/or digital trade. 
Among others, it is indispensable to address emer ging "digital protectionism". Efforts to address 
those challenges should help to ensure an open, secure, and reliable global e-commerce environment that will promote and facilitate cross-border digital trade. 
3  WTO AND E-COMMERCE (RESPONSE TO Q2 OF THE PROPOSAL) 
3.1.  A number of international organizations have  been involved in supporting various aspects of 
e-commerce. For example, the OECD is at the fore front of establishing international guidelines 
related to e-commerce including on consumer protection and internet taxation and is also leading 
research into trade and investment barriers based on the actual e-business environment. UNCTAD has made great efforts for the development aspect of electronic commerce and has recently formally launched the "eTrade for All" initiative. The ITC is making considerable contributions for 
the SMEs in developing countries to gain business opportunities in the global market through 
e-commerce. WIPO is the international leader on digital copyright and trademark issues. UPU focuses on enabling easy access to better delivery of goods through e-commerce. Other than the JOB/GC/100 
 
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  international organizations, Regional Trade Agreements have played important roles in making rule 
frameworks on the trade aspects of electronic commerce. 
3.2.  Apart from the aforementioned international organizations, the WTO is uniquely positioned as 
a pre-eminent forum for trade negotiations and th e establishment of international trade rules and 
the monitoring of their implementation. These core  functions of the WTO are complemented by the 
Aid for Trade initiative as well as technical assistance and capacity building activities. 
3.3.  Bearing the abovementioned core functions of the WTO in mind, Members are encouraged to 
initiate the discussion with a view to establishing trade rules not only for traditional e-commerce 
issues but also for issues related to emerging as pects of e-commerce and/or digital trade so that 
the WTO can more effectively respond to the structural changes of world trade and the global economy and the changing needs of businesses. 
4  POSSIBLE ELEMENTS AND IDEAS TO BE DISCUSSED (RESPONSE TO Q2 OF THE 
PROPOSAL) 
4.1.  For the purpose of providing insights fo r future discussion, Japan would like to present 
several elements and ideas that Japan attaches importance to for promoting e-commerce  and/or 
digital trade, as set out below. These ideas incl ude international trade rules for e-commerce and/or 
digital trade that have already been discussed in various fora, and take hints from the diverse 
fields of trade-related topics including intellectual property and investment. 
4.2.  This list is not exhaustive, and mainly purpor ts to be used to identify appropriate issues for 
discussion in the WTO. By taking the opinions of  interested Members and industries into account, 
Japan would like to deepen the discussion and engage thoroughly for the fall season. 
A. DISCIPLINES RELATED TO E-BUSINESS PRACTICES 
Electronic Signatures and Authentications 
 
Global digital transaction may be promoted by not adopting measures that deny the legal validity 
of a signature solely on the basis that the signature is in electronic form and that prohibit other Members to a digital transaction from mutually determining the appropriate authentication 
methods for that transaction. 
 Online Consumer Protection  
Online consumers should be protected from fr audulent and deceptive commercial practices. 
Transparent and effective measures should be adopted to protect online consumers and ensure a secure environment in online commercial activities. 
 
Unsolicited Commercial Electronic Messages  
Unsolicited commercial electronic messages sent in huge quantities may harm not only consumers 
but also the overall e-business environment. Approp riate measures should be adopted to regulate 
unsolicited commercial electronic messages. This issue should also be addressed through international cooperation. 
 
Paperless Trading  
Trade administration documents can be managed in electronic format. Such electronic documents 
may also be made available to the public. In addition, the electronic documents should be 
accepted by each Member and granted the same legal status as that of  their paper versions. 
 
B. DIGITALLY ENCODED INFORMATION / PRODUCTS 
Cross-border Transfer of Info rmation by Electronic Means 
 
The free flow of digitally encoded information, wh ich enables both consumers and suppliers to gain 
the maximum benefits of the digital environment,  should be allowed across borders, when this 
activity is for the conduct of business. 
 JOB/GC/100 
 
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  Customs  Duties  
 Customs duties should not be imposed on electr onic transmissions including digitally encoded 
products to facilitate the movement of digital products across borders. 
 
Non-Discriminatory treatment  
Members should accord national treatment and most-favoured-nation treatment to digitally 
encoded products of another Member.  C. PROHIBITION OF THE MANDATORY REQUIREMENTS AS A CONDITION OF 
BUSINESS OPERATION 
Data Localization including Using or Locating Computing Facilities 
 
Global business operations should not be restricted by mandatory requirements for using or 
locating computing facilities in particular areas.  
Disclosure of Important Information such as Trade Secrets including Source Code 
 The disclosure of important information, such as trade secrets including source code, should not be a condition for the import, distribution, sale, or use of related products including digitally encoded 
products in Member's territory. 
 Use of Particular Technology in cluding Encryption Technology 
 
The use of particular technology including encryption technology should not become mandatory requirements in connection with business conduct in Member's territory. 
 
D. CYBERSECURITY 
Prohibition of the Theft of Trade Secrets 
 
Effective measures to protect trade secrets from cyberattacks should be implemented. 
 Cooperation for Cybersecurity 
 
Members should cooperate together to develop shar ed understanding on cyberspace and strive to 
build the competent capabilities of their national en tities responsible for computer security incident 
response. Cooperation among Members should fu rther be improved by using the existing 
cooperative framework to identify and mitigate malicious intrusion or dissemination of malicious code that adversely affects the electronic networks of the Parties.  
E. INTERNATIONAL RULES AND HARMON IZATION OF STANDARDS IN DIGITAL 
ENVIRONMENTS 
In order to facilitate business based on digi tal environments, rules and harmonization of 
standards, especially for businesses that are d eeply related to digitally encoded products / 
information, should be considered at a global level.  
F. TRANSPARENCY 
Measures related to e-commerce and/or digital trade adopted by each Member should be made 
publicly available, and other Members should be pr omptly notified thereof in order to provide them 
with chances to exchange views. 
 
G. COOPERATION 
We believe it is important for Members to recognize the global nature of e-commerce and/or digital 
trade, and Members are encouraged to exchange th eir experience and share best practices in this 
area, including the domestic legislation and national  strategies of the Members. We further believe 
that this cooperation can lead to the development of mutually acceptable rules on these areas. 
 JOB/GC/100 
 
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  5  EXISTING INITIATIVES (RESPONSE TO Q3 OF THE PROPOSAL) 
5.1.  Information on the following existing initiatives in this area is provided below for Members' 
reference: the main disciplines in e-commerce chapters in the existing RTAs and the APEC initiatives on Digital Trade. 
 
APEC Initiatives on Digital Trade 
In 2006, the APEC economies agreed  to examine the long-term prospect of a Free Trade Area of 
the Asia-Pacific (FTAAP). In 2010, APEC Leaders i ssued "Pathways to FTAAP", and instructed APEC 
to take concrete steps toward realization of th e FTAAP. In 2015, APEC leaders instructed officials 
to implement the Work Plan for Facilitating Digital Trade for Inclusive Growth as a Potential Next Generation Trade and Investment Issue that shou ld be addressed by FTAAP. Under the Work Plan, 
the independent research project on Digital Trade has been launched. Trade Policy Dialogue will be 
held in August this year.  
  JOB/GC/100  
 
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E-commerce chapter main disciplines in RTAs 
The shaded cells indicate mandatory provisions. 
 
 Singapore-
Australia FTA US-Singapore FTA  US-Chile FTA  US-Australia FTA  Australia-Thailand  
FTA Thailand-New 
Zealand CEPA India-Singapore 
CECA Korea-US FTA  
 Signed February 
2003  
Entry into force 
July 2003 Signed May 2003 
Entry into force 
January 2004 Signed June 2003 
Entry into force 
January 2004 Signed May 2004 
Entry into force 
January 2005 Signed July 2004 
Entry into force 
January 2005 Signed April 2005 
Entry into force 
July 2005 Signed June 2005 
Entry into force 
August 2005 Signed June 2007 
Entry into force 
March 2012 
Electronic 
signatures and 
authentications Electronic 
authentication and 
electronic 
signatures 
(Article 5)   Authentic action and  
digital certificates 
(Article 16.5) Electronic 
authentication and 
digital certificates 
(Article 1104)   Electronic 
authentication and 
electronic 
certificates 
(Article 15.4) 
Online Consumer 
Protection Online Consumer 
protection 
(Article 6)   Online consumer 
protection 
(Article 16.6) Online consumer 
protection 
(Article 1105) Online consumer 
protection 
(Article 10.4)  Online consumer 
protection 
(Article 15.5) 
Unsolicited 
Commercial 
Electronic 
Messages         
Paperless Trading  Paperless t rading 
(Article 8)   Paperless trade 
administration 
(Article 16.7) Paperless trading 
(Article 1107) Paperless trading 
(Article 10.6)  Paperless trading 
(Article 15.6) 
Cross-border 
information flow   Cooperation  
(Article 15.5 
paragraph c)     Cross-border 
information flow 
(Article 15.8) 
Customs Duties  Custom duties 
(Article 3) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions Digital products 
(Article 14.3 
paragraph 1 & 2) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions"  
- Obligation to 
maintain custom 
procedures on 
digital products on 
carrier media Customs duties on 
digital products 
(Article 15.3) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Customs duties 
(Article 16.3) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" or 
digital products on 
carrier media Customs duties 
(Article 1102) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Customs duties 
(Article 10.2) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Digital products 
(Article 10.4 
paragraphs 1 &2) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions"  
- Obligation to 
maintain customs 
procedures on 
digital products on 
carrier media Digital products  
(Article 15.3 
paragraph 1) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmission" or 
digital products on 
carrier media  
  JOB/GC/100  
 
- 6 -  Singapore-
Australia FTA US-Singapore FTA  US-Chile FTA  US-Australia FTA  Australia-Thailand  
FTA Thailand-New 
Zealand CEPA India-Singapore 
CECA Korea-US FTA  
Non-discriminatory  
treatment of 
digital products 
 
(NT = National 
Treatment) 
 
(MFN = Most-
Favoured-Nation 
treatment) 
  Digital products 
(Article 14.3 
paragraphs 3 & 4) 
 
- NT and MFN 
provisions including 
both carrier media 
and electronic 
transmissions Non-discrimination 
for digital products 
(Article 15.4) 
 
- NT and MFN 
provisions regarding  
electronic 
transmissions only Non-discriminato ry 
treatment of digital 
products 
(Article 16.4) 
 
- NT and MFN 
provisions including 
both carrier media 
and electronic 
transmissions   Digital products 
(Article 10.4 
paragraphs 3 & 4) 
 
- NT provisions 
including both 
carrier media and 
electronic 
transmissions Digital products 
(Article 15.3 
paragraphs 2 & 3) 
 
- NT and MFN 
provisions including 
both carrier media 
and electronic 
transmissions 
Location of 
Computing 
Facilities         
Source Code         
Domestic  
Regulations  Domestic 
regulatory 
frameworks 
(Article 4)    Domestic 
Regulatory 
Frameworks 
(Article 1103) Domestic 
Regulatory 
Frameworks  
(Article 10.3)   
Transparency Transparency 
(Article 2)      Transparency 
(Article 10.6)  
Cooperation   Cooperation  
(Article 15.5)  Cooperation  
(Article 1108) Cooperation  
(Article 10.7)    
  JOB/GC/100  
 
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 Japan - 
Switzerland EPA ASEAN -  
Australia- New 
Zealand FTA EU - Korea FTA  Malaysia -   
Australia FTA Japan - Australia 
EPA Japan -  Mongolia 
EPA China-Australia 
FTA Trans-Pacific 
Partnership 
 Signed February 
2009 
Entry into force 
September 2009 Signed February 
2009 
Entry into force 
January 2010 Signed October 
2010 
Entry into force 
July 2011 Signed May 2012  
Entry into force 
January 2013 Signed July 2014  
Entry into force 
January 2015 Signed February 
2015 
Entry into force 
June 2016 Signed June 2015  
Entry into force 
December 2015 Signed February 
2016 
Electronic 
Signatures and 
Authentications Electronic 
signatures and 
certification 
services 
(Article 78) Electronic 
authentication and 
digital certificates 
(Article 5) 
 
Cooperation 
（Article 9.c ） Cooperation on  
regulatory issues  
(Article 7.49 
Paragraph 1 (a)) Electronic 
authentication and 
digital certificates 
(Article 15.6) Electronic signature 
(Article 13.6) Electronic signature 
(Article 9.5) Electronic 
authentication and 
digital certificates 
(Article 12.6) Electronic 
Authentication and 
Electronic 
Signatures 
(Article 14.6) 
Online Consumer 
Protection Protection of online 
consumers 
(Article 80) Online Consumer 
protection 
(Article 6) 
 
Cooperation on 
electronic 
commerce (Article 9 
Paragraph (c) ) Cooperation on 
regulatory issues  
(Article 7.49 
Paragraph 1 (d)) Online Consumer 
protection 
(Article 15.7) Consumer 
protection 
(Article 13.7) Consumer 
protection 
(Article 9.6) Online Consumer 
Protection 
(Article 12.7) Online Consumer 
Protection 
(Article 14.7) 
Unsolicited 
Commercial 
Electronic 
Messages Cooperation 
(Article 82.2 
paragraph (b)) Cooperation on 
electronic 
commerce 
(Article 9 paragraph 
(c)) Cooperation on 
regulatory issues 
(Article 7.49 
paragraph 1 (c)) Unsolicited 
commercial 
electronic messages 
(Article 15.10) Cooperation  
(Article 13.10 
paragraph 2) Unsolicited 
commercial email 
(Article 9.7)  Unsolicited 
Commercial 
Electronic Messages 
(Article 14.14) 
Paperless Trading  Paperless trade 
administration 
(Article 79) Paperless trading  
(Article 8) 
Cooperation on 
electronic 
commerce 
(Article 9 paragraph 
(a)) Cooperation on 
regulatory issues  
(Article 7.49 
paragraph 1(e)) Paperless trading  
(Article 15.9) Paperless trade 
administration 
(Article 13.9) Paperless trade 
administration 
(Article 9.8) Paperless Trading  
(Article 12.9) Paperless Trading  
(Article 14.9) 
Cross-border 
information flow      Cooperation  
(Article 9.12 
paragraph 6)  Cross-Border 
Transfer of 
Information by 
Electronic Means 
(Article 14.11) 
Customs Duties  Customs duties 
(Article 76) 
 
- Provision 
affirming the WTO 
moratorium on the 
imposition of 
customs duties  Objective and 
principles 
(Article 7.48 
Paragraph 3) 
 
- Non-imposition of 
customs duties on 
deliveries by 
electronic means. Customs duties 
(Article 15.4) 
 
-  Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Customs duties 
(Article 13.3) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Customs duties 
(Article 9.3) 
 
- Perpetual 
obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Customs duties 
(Article 12.3) 
 
- Obligation not to 
impose customs 
duties on bilateral 
"electronic 
transmissions" Customs duties 
(Article 14.3) 
 
- Perpetual 
obligation not to 
impose customs 
duties on "electronic  
transmissions"  
  JOB/GC/100  
 
- 8 -  Japan - 
Switzerland EPA ASEAN -  
Australia- New 
Zealand FTA EU - Korea FTA  Malaysia -   
Australia FTA Japan - Australia 
EPA Japan -  Mongolia 
EPA China-Australia 
FTA Trans-Pacific 
Partnership 
Non-discriminatory  
treatment of 
digital products  
 
(NT = National 
Treatment)  
 
(MFN = Most-
Favoured-Nation 
treatment)  Non-discriminatory 
treatment of digital 
products 
(Article 73) 
 
- NT and MFN 
provisions 
regarding electronic  
transmissions only    Non-discriminatory 
treatment of digital 
products 
(Article 13.4) 
 
- NT and MFN 
provisions regarding  
electronic 
transmissions only Non-Discriminatory 
Treatment of Digital 
Products 
(Article 9.4) 
 
- NT and MFN 
provisions including 
digital products 
fixed on a carrier 
medium  Non-Discriminatory 
Treatment of Digital 
Products 
(Article 14.4) 
 
- NT and MFN 
provisions regarding  
electronic 
transmissions only 
Location of 
Computing 
Facilities      Prohibition on 
Requirement 
concerning the 
Location of 
Computing Facilities  
(Article 9.10)  Location of 
Computing Facilities  
(Article 14.13) 
Source Code      Source Code  
(Article 9.11)  Source Code  
(Article 14.17) 
Domestic 
regulations Domestic 
regulation 
(Article 77) 
 
- Partially invokes 
the principles of 
Article VI of GATS 
(domestic 
regulations) Domestic regulatory 
frameworks 
(Article 4)  Domestic regulatory 
frameworks 
(Article 15.5) Domestic regulation 
(Article 13.5) Domestic regulation 
(Article 9.9) Domestic regulatory 
frameworks 
(Article 12.5) Domestic Electronic 
Transactions 
Framework 
(Article 14.5) 
Transparency  Transparency 
(Article 3)    Sub-Committee on 
Electronic 
Commerce 
(Article 9.13) Transparency 
(Article 12.4)  
Cooperation Cooperation 
(Article 82) Cooperation on 
electronic 
commerce 
(Article 9) Cooperation on 
regulatory issues  
(Article 7.49)  Cooperation  
(Article 13.10) Cooperation  
(Article 9.12) Cooperation on 
electronic 
commerce 
(Article 9) Cooperation  
(Article 14.15) 
 
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