JOB/GC/130  
 
14 July 2017  
(17-3828) Page: 1/3 
General Council  Original: English  
 
POSSIBLE WAY FORWARD  ON ELECTRONIC COMMER CE 
COMMUNICATION FROM J APAN  
The following communication, d ated 11 July 2017 , is being circulated at the request of t he 
Delegation of the Japan . 
 
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1  BACKGROUND  
1.1.  The advancement of digitalization is tran sforming all aspects of business activities, including 
production, distribution, marketing, sales, and delivery of goods and services. It reduc es the cost 
of doing business, and allow s micro, small and medium enterprises (MSMEs) to reach a wider 
market ove r the internet. This transformation presents new opportunities for business , especially 
in developing countries. The potential for e -commerce /digital trade  in the global economy is huge.  
A number of challenges are, however, impeding the full realization of  that potential. Obstacles 
include inadequate infrastructure  and connectivity, insufficient trade logistics, lack of payment 
solutions , insufficient human capacity , inadequate regulatory frameworks, restrictions on trade, 
and lack of appropriate national s trategies.  
1.2.  The Work  Programme  on Electronic Commerce was established in 1998 with a view to 
examining all trade -related issues relating to global electronic commerce. And thanks to its 
comprehensive scope it remains relevant today.  On the other hand, Membe rs share the common 
view that the current transformational impact of electronic commerce on trade and investment is 
resulting in a situation that cannot be compared to the one we were dealing with in 1998.   
1.3.  Against this backdrop, since the 10th Ministerial  Conference, Members ha ve actively engaged 
in discussion on how the WTO can better address  its ongoing transformational impact on trade and 
investment, in various fora inside and outside the WTO. Some of the related  submissions, 
seminars and workshops1 have attempted to identify emerging issues and reflect them in the 
discussion at the WTO. An illustrative, but not exhaustive, list of issues  based on these positive 
initiatives is provided in the Annex.  
1.4.  In spite of a common outlook on the digitalized society , Members have  wide-ranging views on 
how best to proceed in the area of e -commerce  at the WTO, and those views have not yet 
converged . Some Members believe there is a need to strengthen the WTO rules in order to create 
a clear and predictable regulatory en vironment for e -commerce. Other Members take the view that  
new WTO rules on e -commerce are  premature and that it is necessary to continue exploring the 
issue under the Work Programme.  
                                                
1 JOB/GC/94, JOB/GC/96 , JOB/GC/98, JOB/GC/99, JOB/GC/100, JOB/GC/110, JOB/GC/113, 
JOB/GC/115, JOB/GC/116, JOB/GC/117, JOB/GC/128, JOB/GC/129, IP/C/W/613, workshops/seminars by "the 
Friends of Electronic Commerce for Development ", MIKTA Group and the African Group . JOB/GC/130  
 
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  2  POSSIBLE WAY FORWARD2 
2.1.  Japan believe s that, in order for e -commerce /digital trade  to better contribute to the global 
trade and economy, it is essential to create a clear and predictable environment  and address 
structural challenges, especially in developing countries.  
2.2.  To fulfill the above objectives, initiating negotiations at  the WTO and establishing new rules in 
this area is straightforward. However, Japan recognizes that Members have a variety of  views  on 
this matter . Bearing this in mind , this paper  suggests that , based on the Work  Programme  of 
1998, Members comprehensively  evaluate whether the clarification or strengthening of the existing 
WTO rules are necessary  over the course of next one year after MC11 .Members may then decide 
to initiate negotiations without delay depending on the result of the evaluation . 
2.3.  In the course  of conducting the evaluation,  Members may use the aforementioned illustrative 
list of issues as reference . In particular, Members are encouraged to take into account the reality 
that developing countries and SMEs face a number of challenges and that it is  incumbent on the 
WTO to effectively address those challenges by fully exploiting  its competencies , including  capacity 
building assistance and technical assistance.  
2.4.  Moreover, with a view to addressing structural challenges in developing countries, this pap er 
suggests that Members encourage the WTO to collaborate with stakeholders such as relevant 
international organizations and other donors.  Members are  also encouraged to take advantage of 
key findings at the Global Review in order to better understand the development aspects of 
e-commerce /digital  trade. 
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2 The suggest ed process in this paper is without prejudice to any existing negotiation mandates in the 
WTO agreements.  JOB/GC/130  
 
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  ANNEX  
ILLUSTRATIVE LIST OF ISSUES  
ENHANCED TRANSPARENCY  
 Greater focus on e -commerce /digital  trade in Trade Policy Reviews  
 DG Monitoring Report on protectionism could include a digital focu s 
 Exchange of information on e-commerce /digital  trade  related issues in regular WTO 
Committees  
 
REGULATORY FRAMEWORKS FACILI TATING ELECTRONIC COMMERCE /DIGITAL TRADE  
 Recognition of electronic signatures/authentication and electronic contracts  
 Addressing ele ctronic payments  and settlements  
 Regulatory framework for consumer protection  
 Regulatory framework for cyber security  
 Regulation of unsolicited communications  
 Removing regulatory bottlenecks at borders and unnecessary trade barriers  
 Expediting movement of goods  
 
OPEN AND FAIR TRADING ENVIRONMENT  
 Non-discriminatory treatment in the formulation and application of the measures affecting 
e-commerce /digital  trade 
 Disciplines ensuring the cross -border flow of information, ideas, and knowledge  
 Disciplines allowing  users to access, process and store online information, ideas, knowledge, 
and services of their choice  
 Ensuring internet users/ service suppliers a choice of where to transfer, process, and store 
information  
 Protecting necessary  source code  confidentiality  
 Trade -related aspects of intellectual property rights  
 Use of particular technology including encryption technology  
 Tariff reduction/elimination for products related to e -commerce /digital  trade 
 Prohibition of custom duties on electronic transmissions  
 
INTE RNATIONAL COOPERATION AND DEVELOPMENT  
 Aid for Trade/technical assistance  
 Collaboration with relevant stakeholders.  
 Addressing inadequate infrastructure and connectivity  
 Addressing insufficient trade logistics  
 Addressing lack of payment  and settlement solutions 
 Addressing insufficient human capacity  
 Special and differential treatment provisions for developing and least developed members, 
including the possibility of adopting the approach prescribed in Section II of the TFA  
 
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