WORLD TRADE  
ORGANIZATION   
S/C/W/338 
13 July 2011  
 
(11-3510) 
Council for Trade in Services Original:   English 
  
 
COMMUNICATION FROM THE EUROPEAN UNION  
AND THE UNITED STATES 
 
Contribution to the Work Programme on Electronic Commerce 
 
 
The following communication, dated 13 July 201 1, from the delegations of European Union 
and the United Sates, is being circulated to th e Members of the Council for Trade in Services. 
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1. The European Union (EU) and the United States  have jointly developed the attached set of 
trade-related principles designed to support th e expansion of information and communication 
technology (ICT) networks and ser vices, and enhance the developmen t of electronic commerce.  The 
ICT services sector – a rapidly growing source of em ployment and exports in its own right – is an 
increasingly important part of the infrastructure for a host of other industries and sectors.  The EU and 
the United States share the view that broader implementation of these principles in policy and 
regulation will promote the development and spread  of network-based services while stimulating 
economic growth and expanding opportunities for c onsumers and workers. The implementation of 
these principles will also create conditions for the development and growth of electronic commerce. 
2. To encourage broader understanding of these principles among WTO members, the EU and 
the United States submit them for consideration to the Council for Trade in Services (CTS) and as an 
additional contribution to the work programme on e-commerce.   
3. In presenting the principles, the EU and the Unite d States seek to stimulate discussion at the 
next meeting of the Council for Trade in Services by proposing topics for consideration by Members, 
such as: 
(a) Technical questions relating to the content of the principles; 
(b) Sharing of Members’ experiences regarding the topics that the principles address;  
and 
(c) Consideration of whether any additional pr inciples should be explored to address 
topics that are not reflected in the current set of principles. 
4. We welcome additional suggestions for topics that could be discussed. 
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  Trade Principles for Information and Communication Technology Services 
 
 
These principles have been endorsed by the EU and the United States and are without 
prejudice to their rights and obligations under th e Marrakesh Agreement Establishing the World 
Trade Organization (WTO), and to the exceptions c ontained in the WTO General Agreement on Trade 
in Services (GATS). They are also without prejudice  to the policy objectives and legislation of the 
European Union and the United States in areas such as the protection of intellectual property, the 
protection of privacy and of the confidentia lity of personal and commercial data, and the 
enhancement of cultural diversity (including through public funding and assistance). These principles 
are not intended to appl y to financial services. 
 
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Governments seeking to enhance their na tional regulatory capacity and support the 
development of Information and Communications  Technology (ICT) networks and services should 
embrace the following principles and, as appropriate, work to integrate them, in a technologically 
neutral manner, into bilateral and multilateral trade disciplines:  
1. Transparency:  Governments should ensure that all laws, regulations, procedures, and 
administrative rulings of general application a ffecting ICT and trade in ICT services are published 
or otherwise made available, and, to the exte nt practicable, are subject to public notice and 
comment procedures.  2. Open Networks, Network Access and Use:  G overnments, preferably through their regulators, 
should promote the ability of consumers  legitimately to access and distribute information and run 
applications and services of their choice. Governme nts should not restrict the ability of suppliers 
to supply services over the Internet on a cross-border and technologically neutral basis, and should promote the interoperability of services and technologies, where appropriate.  3. Cross-Border Information Flows:  Government s should not prevent service suppliers of other 
countries, or customers of those suppliers, from el ectronically transferring information internally 
or across borders, accessing publicly available information, or accessing their own information 
stored in other countries.    4. Local Infrastructure:  Governments should not require ICT service suppliers to use local 
infrastructure, or establish a local presence, as  a condition of supplying services. In addition, 
governments should not give priority or prefer ential treatment to nati onal suppliers of ICT 
services in the use of local infrastructure, national spectrum, or orbital resources.  5. Foreign Ownership:  Governments should a llow full foreign participation in their ICT 
services sectors, through establishment or other means.  
 
6. Use of Spectrum:  Governments should maxi mize the availability and use of spectrum by 
working to ensure that it is managed effectivel y and efficiently, and, where appropriate, in 
accordance with applicable Inte rnational Telecommunication Union Radiocommunication Sector 
(ITU-R) recommendations. The allocation of spect rum for commercial purposes should be carried 
out in an objective, timely, transparent, and no n-discriminatory manner, with the aim of fostering 
competition and innovation. Governments are encour aged to empower regulators with impartial, 
market-oriented means, including auctions, to assign terrestrial spectrum to commercial users. 
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  7. Regulatory Authorities:  Governments should ensure that the regulatory authorities that 
oversee ICT services sectors are legally distinct and functionally indepe ndent from all service 
providers, and have sufficient legal authority an d adequate resources to perform their functions 
effectively. Regulatory decisions and procedures s hould be impartial with respect to all market 
participants. Regulatory decisions regarding ICT ser vices, and the results of appellate proceedings 
regarding such decisions, should be publicly available. 
  8. Authorizations and Licenses:  Governments should authorize the provision of competitive 
telecommunications services, wherever possible, on simple notification by a service provider, and should not require legal establishment as a cond ition of supplying a service. Licenses should be 
restricted in number only for the purpose of addr essing a limited set of specified regulatory issues, 
such as the assignment of frequencies.  9. Interconnection:  Consistent with the GATS Telecommunications Annex’s access and use 
provisions, governments should ensure that public  telecommunications service suppliers have the 
right and the obligation to negotiate and to provide interconnection on commercial terms with 
other providers for access to publicly availabl e telecommunications networks and services. In 
addition, in accordance with the GATS Referen ce Paper on Basic Telecommunications, countries 
should ensure that public telecommunications servi ce suppliers are able to negotiate and obtain 
interconnection with major suppliers at cost-orien ted, non-discriminatory, and transparent rates. 
 
10. International Cooperation:  Governments s hould cooperate with each other to increase the 
level of digital literacy globally  and reduce the "digital divide". 
 
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