E-com needs new balanced interests<\/p>\n
By Djauhari Oratmangung and Wiwit Wisatyo<\/p>\n
JAKARTA (JP): At the threshold of the 21st century, developed
\nand developing nations alike are challenging themselves to action
\nstructural reform or modernization in society based on the key
\nparadigms globalization, liberalization and informatization.<\/p>\n
Along this line, transactions conducted through the Internet
\nand the World Wide Web as main components of the business and
\nsocial infrastructures will be magnified and highly evolved in
\nthe next millennium.<\/p>\n
It is widely recognized that the application of Electronic
\nCommerce (E-com) mainly driven by technological revolution is a
\nprime mover for growth in the world economy, which will further
\ninvigorate trade efficiency and competitiveness and its
\nbeneficial effects upon the improvement of global trading
\npractices.<\/p>\n
This phenomenon is one of the pervasive pulses of
\nglobalization and liberalization in the economic sense that
\nrelatively no country in this world can avoid its impact.
\nAlthough they have provided considerable advantage results for
\nsome countries that have managed to avail themselves of its
\nexpanded opportunities, many developing nations are still facing
\ncomplex challenges, risks and uncertainties even still have very
\nlittle say in the policy formulation of these ongoing processes.
\nIt is therefore that all nations should form and implement the
\ncooperative relationship, among other things, based on the spirit
\nof genuine interdependence; just, effective and transparent
\nglobal trading management with a vision to equitable sharing of
\nresponsibilities, mutual respect and advantages.<\/p>\n
Judging from this state of affairs, the basic question is to
\nexamine briefly that the E-com policy be formulated based on
\nglobal vision and that a new sense of E-com as the new agenda for
\ntrade policy is urgently needed. This joint effort, based on
\nbalanced interests, should be designed and formulated to
\naccommodate the balanced interests of all nations. There is a
\nneed for multilateral and regional action to create enabling
\nenvironment in which E-com can flourish.<\/p>\n
Electronic commerce (E-com) shall easily be defined as the
\nprocess of using electronic methods and procedures to conduct all
\nforms of business activities to gain organizational objectives.
\nE-com operates different technologies and embraces a wide range
\nof financial forms such as electronic banking, electronic
\ntrading, electronic data interchange (EDI), electronic mail (e-
\nmail), facsimile, electronic cataloging, video conferencing and
\nall forms of messaging between enterprises.<\/p>\n
With the advent of E-com, transactions in the form of digital
\ninformation will flow freely over global networks across national
\nboundaries. There is a growing idea of the establishment of an
\ninternational order based on integrated rules covering the
\nplacement and acceptance of orders, conclusion of contracts and
\nsettlement of accounts and so on.<\/p>\n
Furthermore, the rapid development of information technology
\nand communication have constituted E-com as one of the burning
\nissue of numerous international meetings, such as the G-7
\nMinisterial Conference on Information Society held in Brussels in
\nFebruary 1995 and the Ministerial Conference on Global
\nInformation Networks held in Bonn on July 1997. Still, in 1997
\nthe OECD organized an international conference on Dismantling
\nBarriers to Global Electronic Commerce in Turku, Finland, and
\nwill be followed by meeting on the Borderless World: Realizing
\nthe Potential of Global E-com, to be held in Ottawa in October of
\nthis year.<\/p>\n
It is interesting to observe that the major trading nations,
\nled by the United States, have energetically contemplated the
\nidea of having multilateral or regional understanding,
\nparticularly in the fora of APEC and World Trade Organization
\n(WTO) on the significant role of the application of E-com in the
\nfield of international transactions. Even in the preparation of
\nthe Second Ministerial Conference of the WTO to be held in Geneva
\non May 18-May 20, "the majors" have initially indicated some
\ncrucial and sensitive elements of the aforementioned idea of E-
\ncom by pursuing the successful encouragement of global E-com and
\nits plan of action, as well as striving for agreement within the
\nWTO to establish a tariff-free environment of global E-com and
\nits applications.<\/p>\n
Having said that, there is an active divergent view in the
\ndeveloped nations on how to make the future promised by E-com a
\nreality. For illustration, in July 1997 the U.S. released the
\nFramework for Global Electronic Commerce (E-com) which sets out
\nits vision of the emerging electronic marketplace; outlines the
\nprinciples that will guide its approach to E-com; and indicate an
\nagenda for international discussion and agreements to facilitate
\nthe growth of E-com and also it hopes to be able to work with
\ninternational trading partners to develop a free and open global
\nelectronic marketplace.<\/p>\n
So far, the five principles of the Framework are as follows:
\na) the private sector should lead development; b) government
\nshould avoid undue restrictions on E-com; c) where government
\ninvolvement is needed, it should aim to support and enforce a
\npredictable minimalist, consistent and simple legal environment
\nfor commerce; d) existing laws and regulations that may hinder E
\n-com should be reviewed and revised to reflect the needs of the
\nnew electronic age; e) the legal framework supporting commercial
\ntransactions should be facilitated on global basis consistent and
\npredictable, regardless of the jurisdiction in which a particular
\nbuyer and seller reside. To follow up this Framework, the U.S.
\nadministration adopted Internet Tax Act, which regulated on the
\nrestriction of federal and state government to impose new tax
\nscheme on internet commerce until the year of 2004.<\/p>\n
On Dec. 5, 1997, released a joint European-U.S. Statement on
\nElectronic Commerce which seeks a global understanding of certain
\nmain principles that when goods are ordered electronically and
\ndelivered physically, there will be no additional import duties
\napplied in relations to the use of electronic means; in all other
\ncases relating to E-com, the absence of duties on imports should
\nremain. It means that taxes on E-com should be clear, consistent,
\nneutral and non-discriminatory. Furthermore, to explore the
\npossibility the creation of a global market based system of
\nregistration, allocation and governance of internet domain names
\nwhich fully reflect the geographically and functionally diverse
\nnature of the internet.<\/p>\n
The discussion of legal and social issues for E-com policy
\nmay, among other things, comprise the applications statutory
\nprovisions which ruling paper or paper-based concepts, such as a
\nsigned original document, recognizing the legality of transaction
\nformed using electronic technology; assessing the admissibility
\nand evidential value of electronic communications,
\nauthenticating, verifying the integrity and providing for the
\nnon-repudiation of electronic communications. At the global
\nlevel, pursuant to the Resolution No: 51\/162 the United Nations
\nCommission on International Trade Law (UNCITRAL) adopted the
\nModel Law on Electronic Commerce which comprised of the unbinding
\nguidance for the nations to facilitate the use and application of
\ninformation technology, particularly E-com including the legal
\nstatus of computer print-out as legal evidence, the format of
\ncontract\/agreement as well as dispute settlement mechanism.<\/p>\n
As we are still have around 20 months before the world enters
\nthe gate of the New World of the 21st century. The change in the
\nglobal political and economic landscape have brought a new
\nparadigm for an opened-up vista and perspective for mutually
\nbeneficial cooperation among nations, especially in the field of
\nE-com and its applications. Therefore, we must be shapers or
\nplayers of event, not observers. We must awaken to the decisive
\nmoment to make a nation and a world better than any we have ever
\nknown. If we do not act, the moment will easily pass -- and we
\nwill significantly lose the best possibilities of forging our
\nbetter future.<\/p>\n
It is obvious that anticipative steps to be taken by Indonesia
\nare, among others, to socialize the optimum benefits derived of
\nthe application of the electronic commerce which lead to improve
\nthe overall competitiveness of public and private sectors as well
\nas enhancement of national efficiency of international
\ntransactions. It is an urgent need that the country should
\nharness its multidisciplinary expertise to focus on trade and
\ninvestment promotion concerned with the identification of trade
\nopportunities, the marketing of strategic partners, trade flow of
\nspecific products and market conditions including nontariff
\nmeasures.<\/p>\n
Having said that, in light of the forewarning measures of the
\ninclusion of this issue as non economic conditionality to the
\ninternational trade regulations, developing countries should
\ncollectively perform their common diplomatic efforts to
\nequilibrium the interest of developed and developing nations by
\nforming a synergistic formation lead by competent chief
\nnegotiator supported by qualified multidisciplinary experts to
\npursue the balanced multilateral framework based on equity and
\nwin-win solutions.<\/p>\n
Djauhari Oratmangun is an international trade analyst, and
\nWiwit Wirsatyo is an international business observer.<\/p>",
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