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.