PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
06/07/1999
Release Type:
Media Release
Transcript ID:
11303
Released by:
  • Howard, John Winston
JOINT STATEMENT ON ELECTRONIC COMMERCE

I am pleased to announce that Prime Minister Obuchi and I have agreed

on a joint statement setting out common approaches and areas of cooperation

in the promotion of electronic commerce. This recognises that electronic

commerce presents opportunities and challenges of the highest economic

and social significance, warranting attention and collaboration at

the highest levels of government. It also reflects the importance

that Australia and Japan place on working together on policy issues

that are of domestic, regional, and indeed global significance.

The economic potential of the information economy is well recognised

by both our Governments. We embrace the efficiencies of electronic

commerce and its potential to facilitate new global markets for goods

and services, and to create new markets in services that were not

previously practicable. As the economies of Asia return to sustained

economic growth, the information economy will play an ever greater

part in linking us together and raising quality of life around the

globe.

This statement is also significant because it points the way to further

commercial cooperation and linkages between Australian and Japanese

corporations involved in electronic commerce and the Information Economy,

thus addressing an important new element to our excellent economic

relationship with Japan.

Today's joint statement builds on the cooperation Australia and Japan

have already enjoyed in a number of international fora dealing with

electronic commerce, and provides a platform for our two countries

to work more closely on priority issues to provide a secure environment

for the growth of electronic commerce.

The joint statement is intended to encourage:

Building certainty and confidence with governments, business and

consumers in key areas of electronic commerce;

Facilitating the development of clear and consistent legal frameworks,

nationally and internationally; and

Promoting continuing dialogue between Australia and Japan on electronic

commerce issues.

On the key policy principles, Australia and Japan have confirmed our

positions that the private sector should lead the development of electronic

commerce as far as possible, with minimum government intervention

and self-regulation wherever possible.

We have set out our common policy approaches to a number of the key

issues that arise in electronic commerce, including taxes and customs

duties; authentication of transactions; protection of privacy; consumer

protection issues; intellectual property protection; and the issues

that arise from electronic transmission of content.

We have also agreed that our Governments should act as role models

and catalysts in developing the information economy through such services

as electronic payments and electronic service delivery.

We have also endorsed the principles that the Internet should, as

far as possible, remain industry-led and self-governing.

Many of the points in this statement remain the subject of keen consideration

in global fora such as the World Trade Organisation, the OECD and

APEC. The common positions agreed with Japan today will help us both

to collaborate effectively in ensuring development of a flourishing,

global information economy.

A copy of the Joint Statement is attached.

The Government of Australia and the Government of Japan accept that

the growth of the information economy is a significant development

in global economic relations and benefits both countries, especially

in the conduct of international business. Electronic commerce, in

particular, allows access to new markets, improves the quality of

services, encourages innovation, and fosters more efficient supply

and distribution. These benefits should accelerate economic growth

around the world.

I. PURPOSE

This joint statement is intended to promote the development of electronic

commerce in both countries by:

(a) building certainty and confidence with governments, businesses

and consumers in key areas of electronic commerce;

(b) facilitating the consideration and adoption of a clear and consistent

legal framework;

(c) promoting a dialogue between Australia and Japan on electronic

commerce issues;

(d) supporting and endorsing the following principles and policies,

which should guide the development of electronic commerce.

II. POLICY PRINCIPLES

1. The private sector should lead in the development of electronic

commerce and in establishing business practices, both domestically

and internationally.

2. Governments should create a favourable environment which maximises

private sector initiatives and fosters open competition in electronic

commerce. They should avoid the imposition of unnecessary regulations

or restrictions on electronic commerce. They should also avoid imposing

unnecessary, restrictive or regulative measures on international trade

transacted electronically. Government actions, when needed, should

be clear, transparent, and predictable to the private sector.

3. Legislation may be needed to facilitate the efficient self-regulation

of electronic commerce.

However, governments should also encourage effective self-regulation

through codes of conduct, model contracts, guidelines, and enforcement

mechanisms developed by the private sector.

4. Cooperation and harmonisation among all countries, from all regions

of the world and all levels of development, will assist in the construction

of a seamless environment for electronic commerce.

5. Governments should contribute to reducing the cost of administrative

services and raising convenience for their citizens by facilitating

the use of information technology. They also have an important role

in facilitating progress towards the information society and information

economy. Governments should endeavour to deliver a high standard of

online services for the full benefit of every citizen.

III. POLICY APPROACHES

The Governments of Australia and Japan will adopt the following approaches

to key areas of electronic commerce and the information economy:

1. Taxes and Tariffs

A. Rules affecting the taxation of the Internet and electronic commerce

should be neutral, efficient, simple to understand, and should promote

certainty. The Governments of Australia and Japan will cooperate

closely to ensure the effective and fair administration of their

tax systems in relation to electronic commerce, including prevention

of tax evasion and avoidance. In support of this the Australian

and Japanese national tax authorities should continue to consult

and cooperate on taxation issues associated with electronic commerce:

(a) within international fora, in particular within the Organisation

for Economic Co-operation and Development (OECD);

(b)at a bilateral level in accordance with Article 18 of the Agreement

between the Commonwealth of Australia and Japan for the Avoidance

of Double Taxation and the Prevention of Fiscal Evasion with Respect

to Taxes on Income.

B. The Governments of Australia and Japan reaffirm the declaration

by the World Trade Organization (WTO) in May 1998 to continue the

current practice of not imposing customs duties on electronic transmissions.

2. Business and Consumer Confidence

The Governments of Australia and Japan recognise that it is essential

that business and consumers have confidence in electronic transactions.

Developments in this area should recognise the importance of private

sector leadership, and should promote both a competitive market for

and user confidence in electronic transactions. This will be facilitated

by action in the following areas:

A. Electronic Transactions and Authentication: The Governments

of Australia and Japan recognise the opportunity that electronic commerce

offers to facilitate and increase trade. Both Governments will work

to build a global framework that supports, domestically and internationally,

the recognition of electronic transactions and authentication methods.

Recognising that each country's history and culture has shaped its

transaction rules, at the international level the Governments of Australia

and Japan will support the development worldwide of a legal structure

that will facilitate a variety of authentication methods and technologies,

as well as a variety of implementation models, as long as the underlying

purpose of any authentication system is the encouragement of user

confidence in electronic commerce . This approach should:

(a) Remove legal obstacles to electronic transactions by respecting

relevant provisions from the UNCITRAL Model Law on Electronic Commerce.

(b) Permit parties to an electronic transaction to determine by

mutual agreement the appropriate authentication technologies and

implementation models for their transaction, with assurance that,

to the maximum extent possible, those technologies and implementation

models will be recognised and enforced according to the agreement

of the parties within the principles of law.

(c) Permit parties to an electronic transaction to have the opportunity

to prove in court that their authentication technique and their

electronic transaction are valid.

(d) Take a non-discriminatory approach to electronic authentication

methods from other countries.

B. Privacy: Ensuring the effective protection of privacy with

regard to the processing of personal information on global information

networks is necessary, as is the need to continue the free flow of

information. The OECD Privacy Guidelines provide an appropriate basis

for policy development. With regard to frameworks for personal information

protection:

(a) Governments and businesses should consider consumers' concerns

about their personal information.

(b) Governments should support industry in implementing effective

privacy protection. Legislation can be provided in harmony with

such support where considered appropriate by the Government.

(c) Personal information should be collected and handled in a fair

and reasonable manner consistent with generally accepted privacy

principles.

C. Critical Infrastructures: The Government of Australia

and the Government of Japan believe information security should

be achieved primarily through industry awareness and industry based

solutions. Protection of information (as well as information systems

and infrastructures themselves) is a key element in building user

confidence. In some cases information infrastructures are critical

to public safety and national economic welfare. The OECD Guidelines

for the Security of Information Systems should be the basis for

national approaches to information security. Governments should

provide leadership and provide advice on threats, vulnerabilities

and security responses to ensure that critical information infrastructures

are protected.

D. Consumer Protection: Consumers using electronic commerce

should receive an equivalent level of protection to that provided

for other forms of commerce. This can be promoted through enforcement

of existing consumer protection laws and practices; modification

of these laws and practices as necessary to accommodate the unique

characteristics of the online market; consumer education; and industry-supported

mechanisms to empower consumers and resolve consumer complaints

and concerns.

3. Content

As the Internet is a medium for promoting, in a positive way, diffusion

of knowledge, cultural diversity and social interaction, as well as

a means of facilitating commerce,

A. Governments should not prevent their citizens from accessing

information simply because it is published online in another country.

B. Where users do not wish to receive certain types of content (such

as that which is unsuitable for children) filtering/blocking systems

or other tools should be made available. Industry self-regulation

will assist in the promotion of content labelling.

C. Industry will need to deal appropriately with complaints about

prohibited content. On-line service providers should be expected

to work with domestic law enforcement authorities as well as with

their international counterparts to stem the transmission of illegal

content.

D. The Governments of Australia and Japan will encourage

international cooperation between law enforcement authorities to

prevent, investigate and prosecute illegal activities on the Internet

and the use of electronic commerce for criminal purposes.

4. Government Services and Information

A. The Governments of Australia and Japan believe good administration

will be promoted by governments pursuing excellence in the online

delivery of government services and information. This should be

done in a way that reflects the needs of citizens and minimises

bureaucratic processes. Governments can act as role models and market

catalysts in developing the information economy.

B. Governments' effective use of electronic payments systems will

enhance business and user confidence.

C. Governments should encourage developments in authentication technologies,

including public key and other technologies, to facilitate trade

through the use of secure electronic exchanges of permits

and licences. As part of that process, systematic authentication

systems for governments should be developed, built, and implemented.

D. The Governments of Australia and Japan recognise the value of,

and will continue to support, international cooperation in electronic

delivery of government services through bodies such as the International

Council for Information Technology in Government Administration,

and through collaborative work such as the G7 Government Online

Project.

5. Internet Governance

The Governments of Australia and Japan acknowledge the following as

guiding principles for global governance of the Internet.

Policy development in all areas of Internet management should comprehensively

engage industry interests. As a general rule, responsible industry

self-regulation is preferable to government control because it is

likely to be more flexible and responsive to the changing needs of

the Internet and of Internet users. The self-regulatory process should,

as far as possible, reflect the bottom-up governance that has so far

characterised development of the Internet.

The Internet succeeds in great measure because it is a decentralised

system that encourages innovation and maximises individual freedom.

Where possible, market mechanisms that support competition and consumer

choice should drive the management of the Internet. This will lower

costs, promote innovation, encourage diversity, and enhance user choice

and satisfaction.

The Governments of Australia and Japan welcome the establishment of

the Internet Corporation for Assigned Names and Numbers (ICANN), to

manage the global domain name system (DNS).

A. The Governments of Australia and Japan aim to ensure that the DNS

overseen by ICANN:

(a) is global, fair and market-based;

(b) reflects the geographically and functionally diverse nature

of the Internet; and

(c) provides for dispute settlement processes that are not burdensome

and do not favour any specific jurisdiction.

B. The Governments of Australia and Japan acknowledge the need for

further work in international fora to address the issue of domain

names and trade marks (including well-known marks).

C. The Governments of Australia and Japan support the further development

of a system of DNS management which is inclusive of all nations

and is responsive to the requirements of Internet stakeholders worldwide.

6. Intellectual Property Rights

The Governments of Australia and Japan consider that growth of electronic

commerce depends on the adequate protection of intellectual property

rights (IPR), including industrial property rights and copyright.

The widespread and effective protection of patents and other IPR concerning

infrastructure of electronic commerce is essential for the progress

of electronic commerce. The WTO TRIPs Agreement provides international

minimum standards for intellectual property rights protection, that

are directly applicable to electronic commerce. The WTO electronic

commerce work program provides an opportunity to clarify the operation

of existing TRIPs rules in the digital environment. The Governments

of Australia and Japan will make an effort to take the necessary steps

to accede to and implement the World Intellectual Property Organisation

(WIPO) Copyright Treaty and will continue to study the issues involved

in accession to and implementation of the WIPO Performances and Phonograms

Treaty.

7. Infrastructure

The Governments of Australia and Japan consider that the supporting

infrastructure for online transactions must be technically and commercially

suitable, particularly in terms of adequate bandwidth and competitive

pricing. The optimal outcome will be achieved through the competitive

provision of infrastructure and telecommunication services within

a regulatory framework that encourages competition.

IV. ACTION AGENDA

Recognising that bilateral cooperation can complement the development

of essential multilateral frameworks, the Governments of Australia

and Japan will:

(a) Work with the private sector and consumer groups in both countries

to promote dialogue, cooperation and further action on the issues

contained in this statement, including facilitating the translation

of this cooperation into meaningful international frameworks.

(b) continue to cooperate closely at relevant international fora

(for example, the WTO, WIPO, WCO, OECD, UNCITRAL, UNCTAD

and APEC).

(c) Actively promote the exchange of information and views at government

level on all relevant electronic commerce issues. This could include

economic and trade issues such as how both governments can refrain

from unnecessary impediments to trade, thereby ensuring a free transaction

environment for electronic commerce, or how electronic commerce

affects small and medium sized enterprises, including their ability

to develop markets and generate employment; and the broader economic

and social impacts of electronic commerce.

(d) Work to ensure that the benefits of such exchanges are shared

more broadly, particularly in the Asia Pacific region.

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