Barshefsky Proposes Trade Initiative for E-Commerce

(October 24, 2000) USTR Barshefsky gave a speech in which she described an initiative for a new set of rules and agreements for electronic commerce in the international trading system.

U.S. Trade Representative Charlene Barshefsky gave her speech to the Federal Communications Bar Association in Washington DC on Monday, October 23. He she reviewed recent accomplishments in trade negotiations. She then stated that "we are now moving on to the second generation of high-tech trade policy, through the "networked world" initiative we will advance in the balance of the year at the WTO, the APEC Leaders meeting and elsewhere."

She stated that this initiative "will create a lasting set of rules and agreements which help to ensure that the trading system provides for electronic business the same guarantees of freedom, fair competition, respect for intellectual property rights and access to markets that more conventional commerce enjoys."

USTR Charlene Barshefsky

This initiative has several components. First, trade agreements should treat digital products and services in a technologically neutral fashion. For example, "a software program downloaded from a Web site is the same program as one bought on a CD in a store and should be subject to no greater trade restrictions."

Second, she advocated liberalization of trade restrictions on services. Barshefsky elaborated that "we will seek the broadest possible cross-border market access in services -- building on the financial services and basic telecom agreements, and moving on to the professions, distribution, and much more -- to realize the potential for firms to offer a full range of services over the telecommunications network. And as the Internet speeds the evolution of the services sector through the development of on-line auctions, Web-hosting, remote monitoring and so on ..."

Third, she advocated reducing restrictions on trade in high tech goods, including elimination of tariffs and "encouraging countries to invest in high-tech infrastructure and lower the cost for businesses and consumers of participating in the networked economy."

Fourth, she addressed "encouragement for high-tech investment." She stated that "we will propose WTO-disciplined investment and regulatory regimes that encourage development of the broadest range of infrastructure platforms (cable, wireline, fiber-optic, satellite, wireless) to create competition among technologies and services, and deployment of maximum bandwidth -- the keys to lowering costs and finding new and efficient ways to access networks." (parentheses in original)

Fifth, she addressed intellectual property rights. She stated that "we will encourage robust protection of intellectual property rights" through existing agreements. However, she made no new proposals.

Finally, she included in her speech the customary, and obligatory, plea to address the "digital divide" -- in this case, the "international digital divide."

With the imminent change of administrations, Charlene Barshefsky will not likely be the U.S. Trade Representative for much longer.