e-commerce by will keenan, unescap

e-Commercee-Commerce

Workshop for UNDP Country Office ICT Programme Officers Workshop for UNDP Country Office ICT Programme Officers & Focal Points in Asia-Pacific - & Focal Points in Asia-Pacific - KKuala Lumpur, December 2002uala Lumpur, December 2002

Will KeenanWill KeenanRegional Advisor on Trade Facilitation Regional Advisor on Trade Facilitation and Electronic Commerceand Electronic Commerce

UNESCAPUNESCAP

e-Commerce

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E-commerce is one of the most visible E-commerce is one of the most visible examples of the way in which information examples of the way in which information and communication technologies can and communication technologies can contribute to economic growth.contribute to economic growth.

Kofi A. Annan, Kofi A. Annan, UN Secretary-GeneralUN Secretary-General

PremisePremise

e-Commerce

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“any form of business or administrative transaction or information exchange that is executed using any information and communications technology”

DefinitionDefinition

Internet users and e-C revenueInternet users and e-C revenue

Source: IDC

e-Commerce

45

40

35

30

25

20

15

10

5

0

Internet users E-commerce revenue (B2B & B2C)

UnitedStates

WesternEurope

Japan Asia/Pacific

Rest ofthe World

Percentof global

e-Commerce

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Challenges to e-CommerceChallenges to e-Commerce

• poor or non-existent telecompoor or non-existent telecom

• high network (Internet, VAN) access costshigh network (Internet, VAN) access costs

• language and culturelanguage and culture

• lack of skilled personnellack of skilled personnel

• legal, regulatory, taxation and consumer legal, regulatory, taxation and consumer protection issuesprotection issues

• e-security and financial transactionse-security and financial transactions

e-Commerce

EDI translationEDI translation& communication& communication

softwaresoftware

Trading PartnerTrading PartnerApplicationApplication

SystemSystem

ApplicationApplicationInterfaceInterface

EDI documents areEDI documents aresent/received via a sent/received via a

network mailboxnetwork mailbox

ApplicationApplicationInterfaceInterface

EDI translationEDI translation& communication& communication

softwaresoftware

Trading PartnerTrading PartnerApplicationApplication

SystemSystem

Traditional EDI processTraditional EDI process

e-Commerce

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• TRADACOMSTRADACOMS

• ANSI X12ANSI X12

• UN/EDIFACTUN/EDIFACT

• HTML HTML

Technical standardsTechnical standards

• XMLXML

• ebXMLebXML

• and many more and many more to come…to come…

e-Commerce

Future ebXML processFuture ebXML process

Company A

Company B

Build Local SystemImplementation

Request Business Details

Agree business arrangements

Do business

Register implementation detailsRegister Company A profile

Query about Company A profile

Download scenarios & profiles

ebXML compliantsystem

1

2

4

2

5

6

Business scenarios

Business profiles

ebXMLRegistry

-- MIMOSMIMOS

TIGeR Initiative - MalaysiaTIGeR Initiative - Malaysiae-Commerce

Vision:Vision: EC for Entrepreneurs Competitiveness EC for Entrepreneurs Competitiveness EC for Exports of Trade & Services, EC for Domestic ConsumptionEC for Exports of Trade & Services, EC for Domestic Consumption

E-Commerce asthe national trade strategy

E-Commerce asthe national trade strategy

Promote the EC deployment among business

sectors, esp. SMEs

Promote the EC deployment among business

sectors, esp. SMEs

Build trust &confidence

Build trust &confidence

Governmentrenovates &

creates market

Governmentrenovates &

creates market

Create an environment for fair

competition and protect consumers

Create an environment for fair

competition and protect consumers

Collaborate proactively with EC-related international forumsCollaborate proactively with

EC-related international forumsPublic hearingand governmentendorsed in 2000

EC Strategyis integratedwithin IT 2010.

Thai e-Commerce policy Thai e-Commerce policy frameworkframeworke-Commerce

e-Commerce

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“Trust & Confidence” Samples Of Some Successfule-Business Practices

e-Commerce

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i-Commerce Products Information available on the web,Buying and selling on the usual (analog) channel e.g. telephone, and fax

1.

c-BusinessIntegrating/Collaborating with the back office information systems, e.g inventory and financial systems,and connecting with business partners

3.

t-Commerce Ordering the products online (online transaction),E-Payment could be available online.

2.

E-Commerce maturity modelE-Commerce maturity model

e-Commerce

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APEC APEC - Asia Pacific Economic - Asia Pacific Economic CooperationCooperation

• 21 member economies– 2.5 billion people– 50% of world trade– consensus based

• APEC’s premise– trade and investment liberalisation delivers

economic growth, creates employment and alleviates poverty

e-Commerce

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APEC’s Digital DivideAPEC’s Digital Divide

e-Commerce

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APEC and e-CommerceAPEC and e-Commerce

• e-Commerce becoming mainstreame-Commerce becoming mainstream

• B2B Internet commerce in the A-P regionB2B Internet commerce in the A-P regionUSD 96.8 billion in 2000USD 96.8 billion in 2000– 22 percent of world total22 percent of world total

• substantial cost reductions from streamlining substantial cost reductions from streamlining business processes and improved B2B business processes and improved B2B communicationcommunication

ASEAN ASEAN – Assn of Southeast Asian – Assn of Southeast Asian NationsNations

e-Commerce

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e-ASEANe-ASEAN

• Shepherd: Shepherd: SingaporeSingapore• Co-Shepherd:Co-Shepherd: Malaysia, BruneiMalaysia, Brunei• Areas of coverage:Areas of coverage:

– e-Commerce legal frameworke-Commerce legal framework– e-Commerce legislation on electronic e-Commerce legislation on electronic

transactions and electronic signaturestransactions and electronic signatures– Consumer protectionConsumer protection

▪ Online alternative dispute resolutionOnline alternative dispute resolution▪ Privacy and personal data protectionPrivacy and personal data protection

e-Commerce

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e-ASEANe-ASEAN

• Areas of coverage (cont’d.):Areas of coverage (cont’d.):– Regional electronic payments systemRegional electronic payments system– Intellectual property rightsIntellectual property rights– Cybercrime legislation and preventionCybercrime legislation and prevention– Developing authentication and security Developing authentication and security

policiespolicies– Mutual recognition of digital signature Mutual recognition of digital signature

frameworkframework– Security policySecurity policy– Taxation issuesTaxation issues

e-Commerce

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ASEM ASEM - Asia-Europe Meeting- Asia-Europe Meeting

An informal process of dialogue and cooperation An informal process of dialogue and cooperation between…between…

AustriaAustriaBelgiumBelgiumDenmarkDenmarkFinlandFinlandFranceFranceGermanyGermanyGreeceGreeceIrelandIreland

ItalyItalyLuxembourgLuxembourgNetherlandsNetherlandsPortugalPortugalSpainSpainSwedenSwedenUnited United KingdomKingdomEuropean European

CommissionCommission

BruneiBruneiChinaChinaIndonesiaIndonesiaJapanJapanKoreaKoreaMalaysiaMalaysiaPhilippinePhilippinessSingaporSingaporeeThailandThailandViet NamViet Nam

e-Commerce

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ASEM Trade Facilitation Action ASEM Trade Facilitation Action PlanPlan

Priority areas:Priority areas: • Customs proceduresCustoms procedures• standards and conformity assessmentstandards and conformity assessment• quarantine and SPS proceduresquarantine and SPS procedures• intellectual property rightsintellectual property rights• electronic commerceelectronic commerce• other areas (e.g. distribution)other areas (e.g. distribution)

e-Commerce

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ASEM Trade Facilitation Action ASEM Trade Facilitation Action PlanPlan

E-commerce actions:E-commerce actions: • seminars and meetingseminars and meeting• issues paper, legislative inventoryissues paper, legislative inventory• joint recommendationsjoint recommendations• pilot projects (e.g. paperless trade)pilot projects (e.g. paperless trade)• website: website: www.asemec.orgwww.asemec.org

e-Commerce

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ASEM Trade Facilitation Action ASEM Trade Facilitation Action PlanPlan

E-commerce recommendationsE-commerce recommendations • user trustuser trust• cyber securitycyber security• intellectual property rightsintellectual property rights

Recommentations reference otherRecommentations reference otherinternational recommendations, such asinternational recommendations, such asUNICTRAL Model Law on E-CommerceUNICTRAL Model Law on E-Commerce

e-Commerce

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• contractual formscontractual forms

• technical standardstechnical standards

• data protectiondata protection

• e-Commerce IP issuese-Commerce IP issues

• security and cryptologysecurity and cryptology

• facilitation vs regulationfacilitation vs regulation

International issuesInternational issues

e-Commerce

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• contractscontracts

• legislationlegislation

• self-regulationself-regulation

• international conventionsinternational conventions

Legal dimensionsLegal dimensions

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• ease of reproductionease of reproduction

• difficulty of detecting alterationdifficulty of detecting alteration

• absence of originalityabsence of originality

• anonymity of sourceanonymity of source

DematerialisationDematerialisation

e-Commerce

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• documentdocument

• writingwriting

• signaturesignature

• instrumentinstrument

Language in statutesLanguage in statutes

e-Commerce

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• requirements of formrequirements of form

• mechanical signaturesmechanical signatures

• intention to signintention to sign

• proofproof

• national legislation national legislation

SignaturesSignatures

e-Commerce

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• standardisation of technologystandardisation of technology

• recognition of root authoritiesrecognition of root authorities

• harmonisation of commercial codesharmonisation of commercial codes

• modernisation of enforcement proceduresmodernisation of enforcement procedures

Electronic signaturesElectronic signatures

e-Commerce

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• technical securitytechnical security

• commercial securitycommercial security

• legal securitylegal security

• national securitynational security

SecuritySecurity

e-Commerce

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• EU directiveEU directive

• registrationregistration

• personal datapersonal data

• consentconsent

• confidentialityconfidentiality

• proper useproper use

• correction of correction of errorserrors

Data protectionData protection

e-Commerce

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• “…… “…… should we tax the internet?”should we tax the internet?”

• ““How should we tax the internet?”How should we tax the internet?”

• direct and indirect taxesdirect and indirect taxes

• international aspects of taxationinternational aspects of taxation

Fiscal issuesFiscal issues

e-Commerce

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Developed economies

• broadband access

• regional networks

• market exchange

• cross-border certification

• security

• intellectual property

Developing economies

• human capacity building

• basic access

• low cost PC & SW

• local language

• portal site

• government facilitation

ICT & e-Commerce strategiesICT & e-Commerce strategies

e-Commerce

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Role of the UNRole of the UN

• UNCTADUNCTAD

• UNCITRALUNCITRAL

• WIPOWIPO

• UN/CEFACTUN/CEFACT

• ITUITU

• UNDPUNDP

• Regional CommissionsRegional Commissions

e-Commerce

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United NationsUnited NationsNew York and Geneva, 2002New York and Geneva, 2002

E-COMMERCE AND DEVELOPMENTE-COMMERCE AND DEVELOPMENTREPORT 2002REPORT 2002

UNCTADUNCTAD

e-Commerce

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UNCITRALUNCITRAL

Positive experience with Model Law on Electronic Commerce

– adopted by Australia, Bermuda, Colombia, Ecuador, France, Hong Kong SAR, India, Ireland, New Zealand, Pakistan, Philippines, Rep. of Korea, Singapore, Slovenia, Thailand

– Uniform Acts in Canada and USA

e-Commerce

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• Recommendation 26 - TPAsRecommendation 26 - TPAs

• Recommendation 31 - Contract formationRecommendation 31 - Contract formation

• Recommendation 32 - Codes of conductRecommendation 32 - Codes of conduct

• Current workCurrent work

– Certification authority standards

– ODR

– ebXML legal issues

UN/CEFACT recommendationsUN/CEFACT recommendations

e-Commerce

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www.afact.org

Thank youThank you

keenan@un.orgkeenan@un.org

UNESCAPUNESCAP

Will KeenanWill Keenan

Workshop for UNDP Country Office ICT Programme Officers Workshop for UNDP Country Office ICT Programme Officers & Focal Points in Asia-Pacific - & Focal Points in Asia-Pacific - KKuala Lumpur, December 2002uala Lumpur, December 2002