I am pleased to announce that President Clinton and I have agreed
to a joint approach in the development of electronic commerce. By
agreeing to cooperate more closely in the field of electronic commerce,
Australia and the US have recognised, at the highest level, the importance
of the internet and electronic commerce to our nations' future
economic and social development.
The growing information economy is a truly global phenomenon, which
has the potential to improve the lives of all citizens, whether they
live in our cities, or rural and regional Australia. Harnessed effectively,
the information economy will continue to provide more and more opportunities
to businesses large and small, and employment growth.
Co-operation will take place in a range of areas designed to accelerate
the growth of the information economy and electronic commerce, to
promote better standards of livings for all in our emerging networked
economies.
The statement finalised today builds on the close cooperation between
the US and Australia on a range of internet and e-commerce related
issues, such as domain names and opposition to "bit taxes".
The statement demonstrates both countries' commitment to putting
in place a safe and secure environment so that e-commerce can flourish.
The statement is aimed at:
providing certainty and building confidence for government,
business and consumers in key areas of e-commerce;
* facilitating progress in key areas, particularly a transparent
and consistent legal and regulatory framework; and
* promoting a dialogue between Australia and the US on e-commerce
issues which will benefit government, business and consumers.
Australia and the United States have reached agreement on key policy
principles of private sector leadership, minimal government intervention
and self-regulation wherever possible.
Agreement has also been reached on the underpinning principles behind
a range of specific policy issues including taxation in relation to
the internet and electronic commerce; custom duties on electronic
transmissions; enforcement of electronic transactions and electronic
authentication methods; privacy with regard to processing of personal
data and consumer protection in the online environment; online content
and government services and information.
Whilst bilateral cooperation is important in ensuring the sharing
of information and building confidence, multilateral fora will also
have a key role to play. Governments will need to work together with
the private sector in developing a global framework for electronic
commerce. Australia and the United States have been actively cooperating
in APEC, the OECD and the World Trade Organisation to this end.
A copy of the joint statement is attached.
1 December 1998
Australia and the United States believe that the growth of the
information economy is a significant and positive development for
both countries and, generally, for society and global business. The
benefits of e-commerce, in particular, include access to new markets,
quality of service, encouragement of innovation, more efficient management
of supply and distribution and better customer service. These benefits
should accelerate economic growth in all sectors, and across all regions
and communities.
I. PURPOSE OF STATEMENT
This joint statement is being made in order to accelerate the development
of e-commerce in both countries and empowerment of individual citizens
by:
* providing certainty and building confidence for government,
business and consumers in key areas of e-commerce;
* facilitating progress in key areas, particularly a transparent
and consistent legal framework;
* promoting a dialogue between Australia and the US on e-commerce
issues which will benefit government, business and consumers.
II. POLICY PRINCIPLES
* The growth of electronic commerce will be led by the private
sector, and its continued development depends on leadership by
the private sector in key areas both domestically and internationally.
* Competitive market-based solutions to specific issues for the
information economy will promote optimal growth and benefits.
Governments should avoid imposing unnecessary regulations. When
regulation is necessary, they should rely on a "light touch"
regulatory environment.
* Where the market alone will not solve problems, self-regulation
gives maximum control and responsibility to the individual and
should be the preferred approach. In some cases this may need
to be facilitated by legislation to ensure effective arrangements.
* In light of the global nature of e-commerce, government-based
or industry-based approaches should be coordinated and harmonised
domestically and internationally, as far as possible.
* Government should actively pursue excellence in the online delivery
of government services and in its dealings with business.
III. POLICY ISSUES
Australia and the United States agree on the following approaches
to key areas of electronic commerce and the information economy:
1. Taxes and Tariffs
A: Rules for the taxation of the Internet and electronic commerce
should be neutral, efficient, simple to understand and should promote
certainty. Governments will cooperate closely to ensure 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 US national tax authorities should
continue to consult and cooperate on the taxation issues associated
with electronic commerce in international fora, such as the OECD
and other bodies, and at a bilateral level in accordance with the
exchange of information provisions of the 1982 Australia-US Double
Tax Convention.
B: Australia and the US support the indefinite extension of the
WTO declaration of May 1998 not to impose customs duties on electronic
transmissions.
2. Developments in International Fora
A: World Trade Organisation (WTO): The international trading
system under the WTO should foster the growth of electronic commerce
by reducing the scope for trade-distorting government intervention
and to give enterprises greater access to the global marketplace.
Australia and the United States are actively participating in the
WTO work program on e-commerce, with the shared objective of undertaking
a comprehensive review of the implications of e-commerce for the
application of WTO agreements and for mandated negotiations, taking
into account the application of the established body of trade rules
to electronic commerce and the importance of further expanding market
access and trade liberalization commitments within the WTO framework.
The program should also consider the potential contribution of e-commerce
to development objectives, and means to promote greater access for
enterprises in developing countries to the global digital network.
The General Council should continue to coordinate the work program,
avoiding duplication with work done elsewhere, focussing on workable
outcomes, and keeping open the possibility of adding new issues
to the work program.
B: Asia-Pacific Economic Cooperation (APEC): Both governments
welcome the ongoing e-commerce work program in a range of APEC sub-fora,
including agreement to the key themes and future work program outlined
in the APEC Blueprint for Action on Electronic Commerce.
3. Business and Consumer Confidence
It is essential that business and consumers have confidence in transactions
conducted electronically. This will be facilitated by action in the
following areas:
A: Electronic Authentication: Governments should work towards
a global framework that supports, domestically and internationally,
the recognition and enforcement of electronic transactions and electronic
authentication methods (including electronic signatures). At an
international level this should include exploring the possibility
of a convention or other arrangements to achieve a common legal
approach that will support electronic transactions as well
as a variety of authentication technologies and implementation models.
This approach should:
a. Remove paper-based obstacles to electronic transactions by
adopting relevant provisions from the UNCITRAL Model Law on Electronic
Commerce;
b. Permit parties to a transaction to determine 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;
c. Permit parties to a transaction to have the opportunity to
prove in court that their authentication technique and their transaction
is valid;
d. Take a non-discriminatory approach to electronic signatures
and authentication methods from other countries.
B. Privacy: Ensuring the effective protection of privacy
with regard to the processing of personal data on global information
networks is necessary as is the need to continue the free flow of
information. With regard to frameworks for personal data protection,
governments and businesses should consider consumers' concern
about their personal information. Governments should support industry
in implementing effective privacy protection. Personal information
should be collected and handled in a fair and reasonable manner
consistent with generally accepted privacy principles. The OECD
Privacy Guidelines provide an appropriate basis for policy development.
C. Critical Infrastructures: Protection of information, as
well as the 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
well-being. The preferred approach to information security is through
industry awareness and industry based solutions. 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 should receive effective
protection in the online environment which can be promoted through
enforcement of existing consumer protection laws, modification of
these laws 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.
4. Content
A. 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. Governments should not prevent
their citizens from accessing information simply because it is published
online in another country.
B. Empowerment of users, including parents in relation to material
which may be unsuitable for children, should be achieved through
information and education, as well as through the availability of
filtering/blocking systems or other tools. Industry self-regulation
will assist in the promotion of content labelling.
C. Industry will need to deal appropriately with complaints about
prohibited content. We encourage international cooperation between
law enforcement authorities to prevent, investigate and prosecute
illegal activities on the internet and the illegal use of e-commerce
by criminal and terrorist organisations.
5. Government Services and Information
A. Good administration is promoted by governments ensuring that
they pursue excellence in delivery of government services and information
online in a citizen-friendly way rather than reflecting bureaucratic
structures. Governments can also contribute to the development of
the information economy by acting as role models and market catalysts.
Business and user confidence will be enhanced by effective government
use of electronic payments systems.
B. Government led developments in public key and other authentication
technologies should be encouraged to facilitate trade through the
use of secure electronic exchange of permits and licences.
C. Both countries 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.
D. Governments consider the remediation of the Year 2000 computer
date problem as a matter of critical importance to both countries
and international communities. The exchange of appropriate information
and expertise would provide significant assistance in addressing
this issue.
6. Domain Name System (DNS)
Both countries agree on the following guiding principles:
A. Stability: The US Government should end its role in the
internet name and numbering system in a manner that ensures the
stability of the internet. The introduction of a new management
system should not disrupt current operations or create competing
root systems. During the transition and thereafter, the stability
of the internet should be the first priority of any DNS management
system. Security and reliability of the DNS are important aspects
of stability, and as a new DNS management system is introduced,
a comprehensive security strategy should be developed with input
from the private sector.
B. Competition: 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 because they will lower costs, promote innovation, encourage
diversity, and enhance user choice and satisfaction.
C. Coordination: Certain management functions require coordination.
In these cases, responsible industry self-regulation is preferable
to government control and 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 characterised development of the internet
in this area to date.
D. Representation: Private sector mechanisms should be developed
to ensure that domain name system management is responsive to internet
stakeholders worldwide.
7. Intellectual Property Rights
Adequate protection of intellectual property rights on a technology-neutral
basis is essential for the development of e-commerce. The new WIPO
Copyright Treaty and the Performances and Phonograms Treaty provide
a sound basis in this regard. Further consideration of implementation
of the measures in the treaties will be a positive step.
8. Infrastructure
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
competitive provision of infrastructure and telecommunication services
within a pro-competitive regulatory framework.
IV. WORK PROGRAM
Recognising that bilateral cooperation can complement the development
of essential multilateral frameworks, Australia and the United States
will:
A. Work with the private sector and consumer groups in both countries
to promote dialogue and cooperation on the issues contained in this
statement, and facilitate the translation of such dialogue and cooperation
into meaningful international frameworks.
B. Cooperate closely in relevant international fora to support the
growth of and access to global e-commerce; these may include, for
example, the WTO, WIPO, OECD, UNCITRAL, UNCTAD, and APEC.
C. Actively promote exchange of information and views at government
level on all relevant e-commerce issues. This could include economic
and trade issues such as how e-commerce affects small and medium
sized enterprises, including their ability to develop markets and
generate employment; and the broader economic and social impacts
of e-commerce.
D. Work to ensure that the benefits of such exchanges are shared
more broadly, particularly in the Asia Pacific region.