JOB/GC/97  
 
14 July 2016  
(16-3800)  Page: 1/7  
  Original: English  
 
 WORK PROGRAMME ON ELECTRONIC COMMERCE 
TRADE POLICY, THE WTO, AND THE DIGITAL ECONOMY 
Communication from Canada, Chile , Colombia, Côte d'Ivoire,  
the European Union, the Republic of Korea, Mexico and Singapore 
The following communication, dated 13 July 2016, is being circulated at the request of the 
delegations of Canada, Chile, Colo mbia, Côte d'Ivoire, the European Union, the Republic of Korea, 
Mexico and Singapore. 
 
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1  DIGITAL ECONOMY 
1.1.  Digital technology is transforming the gl obal economy. This transformation presents new 
opportunities to promote inclusive economic gr owth, including by connecting rural to urban 
economies; opening new channels of trade for landlocked countries; facilitating the participation of women and micro enterprises in the formal econ omy; providing micro, small and medium-sized 
enterprises (MSMEs) access to a global consumer base; and facilitating cross-border trade in 
services previously considered not technically feasible.  
1.2.  However, a number of challenges are impeding the full realization of the full benefits of the 
digital economy. These obstacles include the increa sing prevalence of restrictive measures in the 
digital space; inadequate infrastructure and connectivity; and insufficient access to technology. 
This paper aims to inform Members’ efforts to address these challenges under the Work Programme on Electronic Commerce. 
2  ROLE OF THE WTO 
2.1.  The digital transformation of the econom y has impacted all spheres of public policy. 
Consequentially, virtually every international organization has been prompted to consider the 
interface between their work and the digital economy. Each has a role to play to help leverage the 
digital economy for inclusive economic growth. For example, the International Telecommunications Union (ITU) plays a key role, including in standardisation and allocation of radio spectrum and satellite orbits; the World Intellectual Property Orga nization (WIPO) addresses intellectual property 
rights; the World Bank provides financial and technical assistance; and UNCTAD and other 
organisations provide policy analysis, research and a forum for discussions on trade and development as it pertains to e-commerce related issues. 
2.2.  The WTO can contribute to these broader efforts within its core functions, particularly 
transparency and sharing national policy experi ences to inform and enrich Members’ policy 
development; trade liberalization, greater market access and the establishment of trade 
disciplines; and the delivery of technical assistance and capacity building. JOB/GC/97 
 
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  3  TERMINOLOGY 
3.1.  As their understanding of trade in the digital economy has evolved, policy advocates have 
used various terms to define aspects of this trade – e-trade, e-commerce, digital trade etc. The General Council decision establishing the Work Programme on Electronic Commerce (WT/L/274) 
defined the term “electronic commerce” broadly enough to cover all of these concepts – “the 
production, distribution, marketing, sale or deliv ery of goods and services by electronic means.” 
For the remainder of this paper, we will use th e term e-commerce as so defined. The original 
decision also mandated the work programme to consider “issues related to the development of the 
infrastructure for electronic commerce.” The breadth of this mandate convinced Members that the General Council should oversee the work programme, and that four WTO Committees would contribute to the programme – the Council for Trade in Services, the TRIPS Council, the Council for 
Trade in Goods and the Committee on Trade and Development.  
4  MAPPING 4.1.  Eighteen years later, the original work programme remains relevant. The tenth WTO 
Ministerial Conference (MC10) Ministerial Decisi on of 19 December 2015 committed to continuing 
the Work Programme “based on the existing mandate and guidelines and on the basis of proposals submitted by Members in the relevant WTO bodies” (WT/MIN(15)/42). It is worth considering the 
elements of trade policy that relate to e-commerce, taking into account policy developments over 
the past two decades. Against this backdrop, the present paper offers to Members a starting point for discussion in the form of a tentative list of all trade-related elements that are relevant for e-commerce (Figure 1 proposes an overview of all elements discussed in this communication). This 
list is not a proposal for negotiations, and is pr esented without prejudice to which elements the co-
sponsors would seek to pursue. 
4.2.  Elements have been grouped around clusters pertaining to: A. Regulatory Frameworks; B. 
Open Markets; C. Initiatives facilitating the de velopment of e-commerce; and D. Transparency of 
the multilateral trading system. JOB/GC/97 
 
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  MAPPING OUT E-COMMERCE ISSUES AT THE WTO 
Regulatory Frameworks  
 
 Enhanced transparency 
 Consumer confidence enhancing measures 
o Regulatory framework for consumer 
protection  
o Regulatory framework for privacy protection  
o Regulatory framework for cyber security  
o Regulation of unsolicited communications  
 Trade facilitating measures 
o Open networks / access to and use of the 
internet  
o Addressing licensing and authorisation 
procedures  
o Addressing electronic payments  
o Access to and use of communications 
networks  
o WTO Telecommunication Reference Paper  
o Trade aspects of intellectual property rights  
o Recognition of e-signatures / authentication  
o Addressing e-procurement/ e-auctions Open Markets 
 
 Liberalisation commitments 
o Services  
 Commitments in e-commerce-
relevant sectors  
e.g. (Telecom; computer; Mode 1 
delivery; business services; 
professional services, etc.) 
 Classification, e.g. adhering to the 
Understanding on Computer and 
Related Services 
o Goods 
 Tariff elimination, e.g. ITA  
o Prohibition against custom duties on 
electronic transmissions 
 Measures ensuring openness 
o Disciplines ensuring cross-border data 
flows 
o Disciplines with respect to localisation 
(local presence – including of computer 
servers, local content) 
o Addressing the transfer of and/or access 
to source code 
Initiatives facilitating the development of e-commerce 
 
 Trade Facilitation Agreement / further custom facilitations measures / paperless trading 
 Aid for Trade / Technical assistance  
 Regulatory cooperation among Members and their regulatory authorities  
Enhanced transparency of the multilateral trading system 
 
 Greater focus on e-commerce at the occasion of Trade Policy Reviews  
 DG Monitoring Report on protectionism could include a digital focus  
 Exchange of information through e-commerce agenda items of the regular WTO Committees  JOB/GC/97 
 
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  The elements included in the figure above and de scribed below fall within the WTO’s competence, 
and could be addressed under the work programme, should Members wish to pursue them.  A.  REGULATORY FRAMEWORKS 
Sound regulatory frameworks for e-commerce are transparent and include measures to enhance 
consumer confidence and to enhance trade. While consumer confidence is not a primary trade policy concern, broad commitments at the multilateral level to have such regulatory frameworks in 
place can contribute to an environment that is conducive to the development of e-commerce.  
 1. Enhanced transparency 
Publication of measures and of draft measures relating to e-commerce; opportunity to comment 
on those measures. 
 Consumer confidence enhancing measures 
 
2. Regulatory framework for consumer protection 
Measures protecting consumers from fraudulent and deceptive commercial practices when they 
engage in e-commerce; international cooperation between consumer protection agencies. 
 
3. Regulatory framework for privacy 
Measures protecting the personal information of the users of e-commerce. 
 
4. Regulatory framework for cyber security 
Measures taken against cyber crime, including criminal prohibitions and sanctions. 
 
5. Regulation of unsolicited communications  
Rules such as those requiring suppliers to facilitate the ability of recipients to prevent ongoing 
reception of unsolicited communications, or requiring the consent of the recipients. 
 Trade facilitating measures  
6. Open networks / access to and use of the internet 
Rules ensuring the ability of consumers and operators to access and use services and applications 
of their choice on the Internet; and to connect th eir choice of end user devices to the Internet. 
 
7. Addressing licensing and authorisation procedures 
A broad range of related issues, including discipl ines on licensing requirements and procedures; 
the absence of specific prior authorisation for supplying services on-line; and making licensing 
valid at the same time for o ff-line and on-line activities. 
 
8. Addressing electronic payments 
Electronic payments, covering payments made via the Internet as well as mobile banking, can be 
addressed through both regulatory measures (i.e . setting out the necessary regulatory framework 
supporting payments operations) and through liberalisation measures (i.e. ensuring a competitive 
market for payments services). 
 
9. Access to and use of communications networks 
The GATS Annex on telecommunication services provides for essential provisions on access to and 
use of telecommunication services and networ ks, and therefore comprises a cornerstone of 
Members’ regulatory framework for e-commerce. 
 JOB/GC/97 
 
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  10. WTO Telecommunication Reference Paper 
The Telecommunication reference paper contains disciplines that address essential aspects of the 
regulation of the telecommunications market, such as the independence of the regulator, interconnection and anticompetitive practices. 
 
11. Trade-related aspects of intellectual property rights 
Intellectual property rights protection and enfo rcement issues are an important component of e-
commerce and digital economy discussions, and are addressed in a number of international for a, 
including the World Intellectual Property Organi zation (WIPO) and at the WTO TRIPS Council. 
 
12. Recognition of e-signatures / authentication 
Measures ensuring that the legal validity of a sign ature is not denied on the sole basis that the 
signature is in electronic form; and that it is not prohibited for parties to an electronic transaction to mutually determine the appropriate authentica tion methods for that transaction subject to 
possible performance standards or accreditation requirements. 
 
13. Addressing e-procurement/ e-auctions 
Measures organizing the participation in governme nt procurement procedures though the Internet, 
allowing notably for non-established companies to participate in such procedures. 
 
14. Technical standards 
Measures addressing digital standards for both goods and services, including issues such as 
interoperability and recognition. 
 
B.  OPEN MARKETS 
Open markets for e-commerce can be supported by multilateral commitments for liberalisation, in 
both goods and services, as well as by a series of  measures that ensure a given level of openness.  
 Liberalisation commitments 
 
15. Commitments on services  
Commitments on services trade, particularly in cross-border trade in services (Mode 1) and in e-
commerce-relevant sectors, such as telecommunication services, computer services, and delivery 
services.  
 
16. Services classification issues 
Endorsement of classification tools, such as th e Understanding on Computer and Related Services 
(S/CSC/W/51), which clarify sectoral coverage of services commitments. 
 
17. Tariffs elimination for goods 
Tariff elimination, such as through the Information Technology Agreement (ITA). 
 
18. Prohibition against custom duties on electronic transmissions 
Legally binding prohibition against imposing custom duties on electronic transmissions. 
 Measures ensuring openness 
 
19. Disciplines ensuring cross-border data flows 
Building on existing WTO obligations, commitment to ensure that cross-border data flows is 
permitted, subject to appropriate public policy exceptions. JOB/GC/97 
 
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20. Disciplines with respect to localisation  
Building on existing WTO obligations, disciplines addressing all forms of localisation, including local 
presence; localisation of computer servers; and local content requirements, subject to appropriate 
public policy exceptions. 
 21. Addressing the transfer and/or access to source code 
Measures to refrain from requirements on the transfer of or access to, source code of software, as 
a condition of market access.  C. INITIATIVES FACILITATING THE DEVELOPMENT OF E-COMMERCE 
Further to regulatory disciplines and liberalisation measures and commitments, a series of 
initiatives have contributed and will continue to contribute to the development of e-commerce across the WTO membership. 
 
22. Trade Facilitation Agreement / further custom facilitations measures / paperless trading 
Implementation of the Trade Facilitation Agreement will contribute to enhancing trade in goods, 
including that generated by e-commerce. Additional initiatives could include establishing regulatory 
frameworks to mandate advanced electronic data to enable facilitation measures and paperless trading.  
23. Aid for Trade / technical assistance 
With a focus on connectivity in the 2016-17 work programme, Aid for Trade can play a critical role 
in the development of e-commerce. Technical assistance projects by Members and international 
organizations can also increase capacity in this area. 
 24. Regulatory cooperation among Members and/or regulatory authorities 
Regulatory cooperation, whether in the form or structured dialogue or ad hoc  conversations, can 
allow Members to address the cross-border nature of e-commerce and can contribute to the exchange of good practices.  
D. ENHANCED TRANSPARENCY OF THE MULTILATERAL TRADING SYSTEM 
The WTO can continue to play an important role in contributing to enhanced transparency of all 
Members policies that relate to e-commerce. 
 
25. Greater focus on e-commerce at the occasion of Trade Policy Reviews 
Trade Policy Reviews could address e-commerce-related policies in a systematic manner, for 
example through a dedicated section on e-commerce in each Secretariat report. 
 26. DG Monitoring Report on protectionism could include a digital focus 
Reports on protectionism could include a focus on e-commerce-related policies. 
 
27. Exchange of information through e-commerce agenda items of the regular WTO Committees 
Members continue and possibly intensify the exchange of information under the e-commerce 
agenda items of the WTO regular bodies, and explore cross-cutting issues in dedicated sessions 
under the horizontal work programme.  JOB/GC/97 
 
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  5  NEXT STEPS 
5.1.  Members should make more effective use of the e-commerce work programme in order to 
demonstrate the continued relevance of the WTO in the modern economy. 
5.2.  Are there additional e-commerce-related elem ents of trade-policy, which should be included 
in the above mapping? 
5.3.  On what elements would Members wish to have focused technical discussions? 5.4.  Are there elements that could be pursued as outcomes for the 11
th Ministerial Conference 
(MC11)? 
5.5.  How and where should Members discuss these elements? 
 
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