APEC HIGH-LEVEL SYMPOSIUM ON ELECTRONIC COMMERCE
AND PAPERLESS TRADING
Summary Report

The China International Electronic Commerce Center
Beijing, 9-10 February 2001

 
The APEC High-Level Symposium on Electronic Commerce and Paperless Trading was held at the China International Electronic Commerce Center, Beijing, China from 9-10 February.  The Symposium was jointly sponsored by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) of the People’s Republic of China and the Department of Foreign Affairs and Trade (DFAT) of Australia.  Over 200 government and private sector representatives from 20 of the 21 APEC economies participated in the symposium

OVERVIEW

The Symposium noted that prospects for e-commerce in APEC would be very promising to the economic development of the region in the 21st century, as the revolution in information and communication technology presents both developed and developing APEC economies with many new and exciting opportunities for increasing economic growth.  Participants in the Symposium emphasized that at the APEC Leaders meeting in Brunei in November 2000, APEC leaders pledged to prepare each of APEC economies and all of the people in the region to use the technology revolution as a passport to the fruits of globalization through enhancing cooperation.

The Symposium recalled that since 1997, APEC has been committed to promoting electronic commerce within the region.  In November 1998, the APEC Ministerial Meeting passed the APEC Electronic Commerce Blue Print, setting up the APEC action framework for promoting E-commerce as well as the working objective of realizing paperless trading by 2005 for developed members and 2010 for developing members.  Participants in the Symposium noted that currently APEC’s work on E-commerce covers a wide range of issues such as E-commerce legal framework, preparedness assessment, paperless trading, consumer protection as well as capacity building and enabling SMEs to utilize E-commerce, hence APEC has been playing an active role in creating an environment conducive to the development of electronic commerce in the Asia-Pacific region.

Meanwhile, participants also acknowledged that a digital divide could further widen social and economic disparities across the APEC region, and underlined the importance of ensuring that everyone in the region has access to the opportunities presented by new economy.  In this regard, participants emphasized that economic and technical cooperation should be deepened to assist the developing member economies to build up their capacity of meeting the challenge of the new economy in the information age.

The Symposium also welcomed the call of APEC Leaders and Ministers to widen the scope of APEC’s electronic commerce work program and to promote participation of business/private sector in APEC activities in relation to electronic commerce.  Participants of the Symposium, especially representative from the business sector, pledged to work closely with relevant APEC fora to strengthen dialogues and make contributions to this topic wherever possible.

Objectives

The APEC E-Commerce and Paperless Trading Symposium aims to: 

I   raise awareness of the different approaches to paperless trading being taken by individual agencies and economies;

II   allow cross-fertilization of ideas between economies and agencies;

III ensure that a new range of trade barriers are not inadvertently built into the electronic trade administration systems currently under development and 

IV provide improved direction to APEC activities to assist economies to meet the paperless trading goals.

The Symposium is targeted towards high level officials from all relevant agencies including Finance, Customs, Quarantine, Transport, Communications, Attorney Generals and Trade. There will also be private sector participation to ensure that delegates are exposed to private sector perspectives 

Opening Ceremony

1.	The opening ceremony was chaired by Mr. Long Yongtu, vice minister of Ministry of Foreign Trade and Economic Cooperation of China. The distinguished guests he presented include Mr. Shi Guangsheng, minister of MOFTEC of China, Mr. Wu Jichuan, Minister of Information Industry of China, Mr. David Irvine, Australian Ambassador to the People’s Republic of China, and Ms. Pamela Fayle, Australian Ambassdor to APEC and Deputy Secretary of Australian Department of Foreign Affairs and Trade.
2.	 Mr Shi Guangsheng pointed out in his opening speech that E-Commerce has become a new development engine of the world economy and is profoundly influencing human life. He stated that the Chinese government attaches great importance to the development and application of electronic and information technologies and has carried out “Gold Bridge”, “Gold Customs” and “Gold Card” projects since 1993 to build China’s E-Commerce infrastructure. He stressed that cooperation among APEC members on E-commerce is of unusual significance in bridging “digital divide”. 
3.	In his speech entitled “Realize Frog-Leaping Mode of Development of China’s Information Industry”, Mr Wu Jichuan, Chinese Minister of Information Industry, presented an informed brief on the rapid development of China’s IT industry. To reach the objective of “promoting industrialization by means of informationalization”, China will continue to keep the annual growth rate at 20% in the coming five years. The strategies and policies he summed up include the establishment of a national infrastructure oriented towards the 21st century, the acquirement of independent innovation capability, the digital restructuring of conventional industries, and the improvement of government administrative system. 
4.	Mr. David Irvine, Australian Ambassador to China, first expressed his confidence that the symposium will make significant contribution to APEC’s efforts to address the digital divide and facilitate business in the Asia-Pacific region. He pointed out that the two major contributions government can make in establishing e-Government are committing to online procurement and facilitating paperless trading by implementing electronic trade administration systems. He also enumerated the major difficulties the symposium has been structured to address: the major constraints of the lack of IT and telecommunications infrastructure; the complexity and risks of the security and legal regimes required to support e-commerce; difficulties in training and retaining IT specialists; and the difficulties of establishing a “whole of government” regime.
Putting the Issues in Perspective

Mr Lou Ventino, Vice President, Global Trade Compliance, Oracle Corporation, USA
Mr. Lou Ventino covered the following topics in his presentation: the definition of E-Commerce (business using the Internet and high technology to interact with marketplaces), barriers to efficiency (regulations which increase barriers to trade; restrictions of the physical world and rules; infrastructure limitations; and incompatible systems and process); trends in e-Commerce and Internet business mega trends. He also illustrated a model of E-Commerce by defining E-Business portals. 
Business’ Need for Paperless Trade Administration and E-Government

B2B Best Practice in Retail 
Private Sector Progress --- Retail
Mr. Dave Botherway, E-Commerce Co-ordinatory, Coles Myer, Australia 
 The topics Mr. Botherway covered in his presentation include key factors for retailers, B-2-B models and government roles. E-commerce helps retailers to offer reliable, accelerated and efficient merchandise supply, to have a global outlook and to strive for “World’s Best Practice”. He observed that government should play the roles of building infrastructure pre-requisites (city and rural networks, appropriate tariffs), ensuring the interoperability of government systems with private sector, validating electronic documents, and assisting local manufacturers, esp SMEs.  
Broader Developments in Supply Chain Management --- “Sino Australia Paperless Project” (SAPP)
Mr. Alan Brundish, Director & General Manager, Five Star Shipping and Agency Company
In his .presentation Mr. Brundish demonstrated that current UN/EDIFACT messaging can be utilized throughout the International Supply Chain to improve the flow of transactional trade information. He observed that no one in any APEC economy has successfully employed UN/EDIFACT messages to create a totally paperless transaction. Mr. Brundish also expressed his hope to utilize his experience and COSCO’s resources to promote the use of open standards based messaging to support trade between China and Australia.
Business’ Need for Paperless Trade Administration and E-Government
Mr James Goh, Regional Vice President, Asia Pacific Region, United Parcel Service Singapore Pte Ltd
Mr. Goh first pointed out that businesses’ need for paperless trade administration and E-government is driven by the “new global economic landscape”, which is characterized with globalization, new global customers and digital or “borderless” economy. He enumerated business needs for a paperless trade administration and e-government as follows:
1.	A continuous development in the telecommunication technology to enable faster global business transactions and the lowering of operating costs.
2.	A stable and evolving government policies towards paperless trading and E-Commerce.
3.	The consistent promotion of cross-national government data exchange to facilitate global trade across international borders.
4.	A timely inter-government data exchange to remove the impediments to global trade transactions and activities.
5.	A call for deepened commitments for nation-wide linkages between government agencies dealing with global trade and businesses.
Break-out Sessions: Developing Infrastructure

Group 1: Improving Physical Infrastructure in Trade Administration Agencies  
Session One: The ‘Harsh Realities’ 

The Harsh Realities

David N. Barnes, Vice President, Government Programs, IBM Asia Pacific

Mr. Barnes observed that the paperless trading is important because no one can sit a spectator in the game of global economy.  And he pointed out that the necessary infrastructure for success in e-commerce and electronic trade is represented by the sum of the readiness indicators from networks to efficient customs, express delivery services, online government, skills and training and a range of government policies that affect everything from taxation to consumer confidence.  He suggested that e-government strategies can be an important lever in attracting new business investment and trade administration agencies can then play a crucial role in rounding out these strategies by implementing online systems that will deliver savings and efficiencies to the SMEs and make it attractive to get wired. And the APEC Readiness Initiative provides a platform to assess each economy’s needs, develop strategies and take action.

Session Two: Expanding Access to Infrastructure
Expanding Access to Infrastructure

Mr Thomas Siu, President, Business eSolutions, Pacific Century CyberWorks 

A new infrastructure fabricated by matrix of integrated, vertical and horizontal e-business enabling solutions and value-added e-commerce applications will form the basis of a next Generation Network that delivers higher value and margin. Such net work will enable businesses and the public with enhanced choice of applications, connectivity and value-added service on the digital superhighway. PCCW has invested US$4.7 billion in the new infrastructure to provide enhanced service to businesses and consumers, especially in the finance and government sectors, enabling customers to access and benefit from this new form of infrastructure.

A Case of Chinese .Com Company

Mr. Jack Ma, President of Alibaba.com Corporation, China
Mr. Ma gave an interesting account of his experience with the Internet and how his business has become a successful .com company. He defines E-Commerce as businesses making full use of the Internet and the winning players as those who merge traditional businesses with the Internet.
He also pointed out that the foremost use of the Internet in China is for information flow, which is why his business is oriented towards SMEs. He stressed that Asia should learn but not copy E-commerce models of industrialized economies.   
Session Three: Optimizing Use of limited Existing Infrastructure 

Optimizing Use of limited Existing Infrastructure in Indonesia

Mr. Indra Utoyo, Project Director, B2B Commerce, PT Telekonunikasi Indonesia
Mr. Utoyo first briefed limited IT infrastructure and growth in Indonesia. And he observed that we cannot jump to E-commerce, unless we have worthwhile products to be exchanged, market, and value chain integration among parties involved. He concluded his presentation as follows:
1.	Education makes it easier for people to accept new technology;
2.	“Limited infrastructure” should be resolved through creative combination of technology;
3.	APEC Center for Entrepreneurship is the strategic program to empowering SME to be ready for new economy.
Optimizing use of limited existing infrastructure-The Canadian Experience

Mr Peter Ferguson, Director, E-Commerce Policy, Industry Canada
Mr. Ferguson’s presentation covered the topics of administrative, geographic and policy challenges, interoperability of telecommunications and electronic systems, Internet penetration, etc. He pointed out that the ICT producer sector is of critical importance and therefore a strategic sector in terms of its high real growth and high employment growth. And he observed that global growth in ICT will far outspace traditional sectors and that the ICT sector is expected to grow at about 11% a year versus 1.8% for automotive and 0.9% for resources. The other two predictions are that global Internet infrastructure revenue will grow 42% per year to $1.5 trillion (US) in 2003 and that global e-business revenue will grow 86% per year to $1.3 trillion in 2003.
Optimising use of limited existing infrastructure for Customs Processing

Mr Arvind Nagpal, International Trade Manager Asia Pacific, Hewlett-Packard

Mr. Nagpal first illustrated that current scenario for customs processing is characterized with large number of transactions, large amount of data and high turnaround time. Then he suggested schemes of using existing resources to improve basic modules for customs processing. After briefing India customs experience he presented a scenario of how the ideal process will work. He also advocated a process simplification approach of reducing volume of data and transactions and using simplified periodic assessment.

Optimising use of limited existing infrastructure- Mexican Customs

Mr Jorge Montoya Castro, Administration General of Customs, Mexico

Mr. Castro covered the following topics: general information of Mexican Customs system; strategies of developing automated customs system; a flowchart of Mexican Foreign Trade Processes; and tips of optimising usage of resources.

Expanding Access to Information and Communication Technology (ICT) Products in Developing countries: Vietnam’s Experiences 

Mr. Pham Tan Cong, Executive Vice President, Young E-Commerce Solution Corporation, Vietnam.

Mr. Cong briefed the general situation of ICT development, and facts & figures of expanding access to ICT products in Vietnam. He observed that government and businesses play important roles in raising public awareness and expanding ICT products. He also listed the fields where international assistance is needed, which includes improving public awareness, education and training, assisting government in making policies and assisting development of local ICT companies.

Building up a Firm Foundation for E-Commerce Era

Mr Zhiwei Yang, Senior Engineer, China Network Communication Corporation Ltd 

Bandwidth will change the way people live and work. A new generation of broad bandwidth networks will be the foundation of E-Commerce. The current situation of Internet development requires sufficient bandwidth and powerful infrastructure. Broad bandwidth networks will be the ideal platform for mission critical business operations. Netcom Ltd. is an advocate of e-commerce and provider of infrastructure for China’s Internet economy. 

Expanding Access to information and Communication Technology Products

Mr. Ashley Cross, Department of Foreign Affairs and Trade, Australia

The presentation of Mr. Cross was focused on WTO and APEC developments relating to trade in ICT products. He also commented on actions and outcomes under the WTO Information Technology Agreement and work in APEC on telecommunications Mutual Recognition Arrangements. He pointed out that a precondition to paperless trading and a knowledge-based economy is the widespread availability of information and communications technology (ICT) as an enabling tool. He cited some studies showing that there is an empirical relationship between low customs duties on IT products and low telephone charges on the one hand and a rise in the number of Internet users on the other.

Group 2: Supporting Electronic Transactions---Legal, Security and Risk Management
Session one: Legal Issues

Supporting Electronic Transactions--- Legal Issues

Dr Jason Chou, Director of the Science and Technology  Law Center

He covered the following topics: Chinese Taipei’s EC legal mechanisms; recognition of electronic trade administration documents; consumer and client protection; privacy and protection of trade and commercial data. He made several important proposals to the problems addressed, such as establishing a global domain name system and providing equal treatment to all economies, strengthening internet security, crime prevention and consumer protection to promote user’s confidence.

Electronic Transactions: Legal Issues

Michael Fagan, Baker & Mckenzie

He started his presentation by expounding the important differences between electronic transactions and traditional ones, such as the forms of signature, the forms of authentication and record retention. Then he talked about legal issues in electronic transactions; the formation of contract on-line; privacy, jurisdictional and content issues; the subject matter, parties and form of the transaction; specific laws dictating structure. He also pointed out some challenges to electronic transactions, e.g., neither laws nor standards are uniform.

How do you ensure that your electronic documents are legal?

Michael Baker, executive director, Asia Oceania Electronic Marketplace Association (AOEMA)

He touched upon the following topics: electronic original as an altered  paradigm, which requires acceptance, legal change, new practices and new thinking; electronic original initiative; 5 new international codes of good practice---information stored electronically, electronic communication and e-mail policy, identify signature and copyright, using certification authorities, using trusted third party archives. He concluded that there was no e-commerce without e-original.

Session Two: Security

Security to Support Paperless Trading

Mr. Yoshitakai Toi, director of Office of IT Security Policy, METI, Japan

He first talked about the new secure frameworks to build trust in cyber space. Then he illustrated the structures of CA interrelationship through four basic patterns. He proposed two ways to solve the problem of cross border recognition: by business sector arrangements, e.g., building bridges among sector by sector platforms and building cross sector platform, and by inter-government agreements. The last issue he touched upon was the government’s role in guaranteeing security in e-commerce---to help create favorable environments, specifically, building infrastructures, encouraging private sector initiatives and providing confidence for IT products /management.

E-Security: Making the Vision a Reality

Mr. Terry Ho, CFO, Securenet Asia Limited, Hong Kong, China

Firstly, he stated that security is a critical issue of e-commerce, not just of the network or the applications. Then he elaborated on the four objectives of e-security: authentication --- proving you are who you say you are; integrity --- no unauthorized/un-intended alteration or modification to data; non-repudiation --- non-denial of actions taken/instructions given; privacy --- ensuring that contents are confidential. He concluded that security is a key enabler for e-commerce.
E-Commerce Interoperability Issues

Mr. Paul Greenfield, a senior research engineer from Mathematical and Information Sciences, CSIRO, Australia

First, he contrasted e-commerce vision (doing business in a cheaper, faster and easier way) with e-commerce reality (infrastructure deficiency, lack of trust and lack of real need). Then he pointed out that with many existing competing “standards”, common standards are needed for documents, security and transport. He defined governments’ role as creating a critical mass of users and assisting the development of common standards.
The Roles and Issues of Digital Certificates

Mr. B. H. Mahari, CEO of Multimedia Development Corporation, Malaysia

First he stated that the use of digital certificates is needed in order to resolve Internet Security issues. Then he elaborated on the three components that make digital certificates work: technology (e.g., PKI has been identified as the leading security related technology under consideration), procedure (e.g., authentication and integrity) and legislation (e.g., making digital documents legally binding contracts and establishing legal responsibilities and liabilities of the users and CAs). As to the inter-operability issues, he pointed out that certificate is only good when there is a degree of legal recognition and trust, that the degree of recognition is limited within the C.A.’s legal domain, and that inter-operability enables a certificate issued in one legal domain to be legally recognized in another.

Session Three: Risk Management & Re-engineering of Work Practices

Risk Management & Re-engineerig of Work Practices

Ms. Jenny Peachey, National Director, Office of Business Systems, Australian Customs Service

She focused on developments in the Australian Customs Service, particularly the impact of e-commerce on cargo management practices. In her conclusion she put forward two important proposals. First, APEC customs administrations could work more closely with relevant international organizations (e.g. the World Customs Organization, the United Nations and the G7 Customs Group) on issues related to data harmonization, electronic messaging, web developments, risk management and simplification of customs procedures. Second, various APEC working groups on paperless trading could develop practical projects between industry and border agencies to implement transparent, automated processes for the clearance of cargo and passengers.
Risk Management & Re-engineering of Work Practices

Ms Marry Hsu, assistant director general, Department of Customs Administration, Ministry of Finance, Chinese Taipei

First she pointed out that customs’ role must be relevant to the new digital economy and that modern customs administrations have to balance the imperatives of revenues and community protection, with the facilitation role. Then he observed that Chinese Taipei customs has considered the real need to remain relevant to the new business environment in the new century, and started a series of actions in building up the technology as well as physical policy infrastructure. She concluded her presentation by briefing the major step that Chinese Taipei Customs takes to cope with the growth of global trade, i.e., to seek to provide a single window of information services to help trade in terms of transparency, consistency and simplification, through the increasing use of technology.
Risk Management & Re-engineering of Work Practices

Mr. Anthony Pass, Regional Director of Worldtrade Management Services, PricewaterhouseCoopers, Hong Kong

First, he emphasized that to insist on paper documents in an e-commerce environment is like competing in a Formula One racing event with a car governed to 50 MPH --- it is an inefficient use of resources. Then he explained the reason why there are no requirements for importers and exporters to keep hard copies of documents, that is, paper records limit the potential of electronic commerce. Finally, on the subject of re-engineering, he observed that for the majority of world trade paperless e-commerce is already a reality for most international trading corporations.
Group 3: Human Resource Development and Education
Session one: Specialist Skill development and retention of IT professionals

Paperless Trading and Human Resource Development 

Mr Hogun Lee, chairman, Korean Association for Global Commerce and Cyber Trade.

In his speech, Mr. Hogun Lee first touched upon the components of and obstacles to paperless trading. He then stressed that XML/EDI was one of the most important specialist skills and the training of XML/EDI professionals was urgently needed. Spreading XML/EDI training among the public was considered the next mission. Finally he introduced the Korean situation. 

E-commerce Empowerment for SMEs: Indonesia Case

Dr. Onno Purbo, independent IT consultant, Indonesia.

He first introduced the current situation in Indonesia, where the PC population was still very low. He observed that high impact on the society could only be maintained if focus was given to the small business and industries. Schools and the educational sectors had a very important role to play in enabling the country progress towards a knowledge-based society. He also mentioned the following as real life skills needed for SMEs: improving English proficiency; improving overall computer literacy; increasing knowledge of B2B marketplace and expanding access to internet or e-kiosks. The three strategies proposed for future practice are: knowledge generation in local language; creating knowledge infrastructure, and adopting simple e-commerce mechanisms.
Special Skill development and Retention of IT Professionals

Representative from Vietnam delegation on behalf of Ms Thuy Hoang Nguyen, deputy head, APEC-ASEM Division, Ministry of Trade, Vietnam

He first introduced e-commerce environment in Vietnam and then gave some figures about Vietnam education. He pointed out the big problem for the country was how to raise people’s awareness about e-commerce, to make them understand what it was. He then expressed wishes to take this opportunity to seek cooperation among APEC members to help educate people in his country. 
In the discussion which followed, the floor made some comments. One observed that to eliminate digital divide, governments should not only train more competent professionals, but also educate people to use applications to make life more comfortable. Another commented that leaders should be trained too. IT leaders should take responsibilities to educate their employees. 
Session two: Introducing IT to Trade Administration Agencies

Introducing IT to Trade Administration Agencies
Dr. Pichet Durongkaveroj, director, Electronic commerce Resource center, National Electronics and Computer Technology Center, Thailand

He put forword three priorities in promoting computerization from the survey conducted in his economy: teachers’ literacy, content development and infrastructure. He also pointed out the problems and issues in developing e-commerce: executives’ lack of awareness and drive, brain drain from public to private sector, organizations’ lack of information management and outdated regulations. He divided human resources into three layers: policy makers, IT professionals and users. He suggested that CIOs should also be policy-makers and good coordinators. They should be accountable and their position should be an institutionalized one. IT professionals should be allowed to know how far they can advance in the career path and, financial return is certainly an important incentive for them. Government should design programs to improve computer literacy. He observed that digital divide was not only technology divide, but also literacy divide.
Introducing IT to Administration Agencies: Outsourced Solutions

Mr. Stephen Selby, Director of the Property Department, Hong Kong, China

He listed the objectives of outsourcing: harness private sector expertise in e-business; maximize business opportunities and operational efficiency and increase operational efficiency at lower cost to users. He then shared with the floor his experience from bitter experiences: contract documentation requires exclusive detail; consultant’s experience is very limited; it is vital to appoint staff to monitor the contractor’s performance closely; realistic transit-in and transit-out is needed; correct allocation of ownership of assets (both tangible and intangible) is desired; and realistic assessment of business risks is required. The key features he pointed out in outsourcing are: on-line internet search of application and registration; on-line advertising of application and business re-engineering. 
Addressing the critical Role of Trade Administration Agency Managers in IT Project Management

Professor Laurence Dooley, executive director of the Monash Regional Center for Information and Communications Technology

He first cited the challenge posed by the new era---to increase the likelihood of IT project success in APEC Trade administration agencies by improving the IT project management skills of the Agency managers. He then introduced the Australian Quarantine Inspection Service (AQIS) as an example to meet the challenge. The overall aim of the training was to equip the business managers with the knowledge and expertise to oversee the development and implementation of a system capable of transmitting and receiving UN standard SANCRT messages.
In the discussion that followed, one participant suggested that APEC help member economies put IT education into the curriculum. Another inquired about the possible staff redundancy if government outsourced service to private sector. Mr. Selby explained that the law of HK allowed people in any work to opt for redundancy and leave with pension and that the government was large enough to absorb people. He also added that the government was employing people on short-term contracts.
Session three: the Internationalized Workforce

Internationalized Workforce Today & Tomorrow

Mr. Anthony Wai-Hung Au, president, Hong Kong Information Technology Federation

He touched upon the current movement of workforce and made predictions about the future generation. He pointed out the following  two trends in internationalized workforce: the increase of multinational enterprises and much higher growth rate in SME sector. Finally, he concluded that the internationalized workforce would change and we should be prepared.
The Internationalized Workforce

Dr. Addons Wu, Chief Information Officer for General Motors China Operations

As the global workforce is becoming more mobile and international in nature, one common fundamental element for any corporation’s success is the recruiting and retaining of talents. With increased investment from government and more training opportunities, less developed countries can attract people to their land. Brain drain may not be considered a permanent loss, and they may potentially gain from it. He stressed the two factors that make people stay: good leaders and like of their job. 
Internationalization of the Information Technology (IT) Profession and International Mobility
Associate Professor Robyn Iredale, University of Wollongong, Australia

As a migration researcher, she briefed the audience on Characteristics of the IT industry/labor market; the global demand side and supply side of IT professionals; and the hierarchy of desirable work destinations. She then put forward the following issues for human resource management: can countries and companies retain IT worker; how can IT workers be attracted to come or return; how to management mobility this is organized by agencies; and how to meet training requirements.  
In the final discussion, the panel put forward the following questions and suggestions: how to put IT subject in school curriculum; to provide basic IT education to users; APEC should be actively involved in governments’ efforts to provide re-training for the would-be unemployed people, and governments have to look ahead before it happens; to foster a framework of education in the economy to provide IT training to everyone at various stages, so that people can go through the whole process like climbing a ladder; re-training should aim not only to help people work better, but also to improve their life style; to set up CIOs forum from each economy and conduct exchange programe; to take measures to stop brain drain from developing economies to developed economies due to income; and how APEC would promote the computer literacy in its member economies. 
The Chair concluded the afternoon break-out by submitting the following proposals to the symposium: recognizing the different development stages of APEC member economies and pursue technology transfer, diffusion and cooperation; setting up APEC CIO club; and promoting computer literacy in APEC member economies. 

Pushing the Boundaries’ Presentations 
Paperless Trade System
Mr Michio Naruto, Special Representative, Fujitsu Ltd

Mr. Naruto predicted that global Internet Commerce market will be ten times from 2000 to 2004. And he observed that the driving factors of e-Commerce are regulatory openness, infrastructure availability and global supply chain linkage. He commented that the three key principles for paperless system are open, flexible and seamless.

Joint Promotion on E-Commerce in the New Century

Ms Xing Wei, President China International Electronic Commerce Centre (CIECC)

Ms Xing Wei first briefed the status quo of international e-Commerce and its development in China, then she elaborated on the mission of CIECC (providing all-round e-Commerce application service for government and businesses, maintaining and enlarging China’s trade share in the global market via China International e-Commerce Net), network construction (establishing security system standardization system), and platform operation (e-government service and enterprise application service). She concluded her presentation by urging all the APEC member economies to make concerted efforts to bridge the Digital Divide so as to promote the economic and trade development of the region.

Pushing the boundaries-Thaigem.com
Mr Don Kogen, Chief Executive Officer, Nuntiya Care Stone Company Limited, Thailand

Mr. Don Kogen first defined e-Commerce in Asia, and then observed that the web is an important business tool---“E-Commerce is not a business. It’s a business tool.” His presentation was focused on the barriers of conducting export e-Commerce in Asia: customs service inefficiencies, taxation problems, returning difficulties, expensive bandwidth, the lack of English proficiency and technical skills, the high cost of customer acquisition, and competitive threats (i.e. barriers to entry). In conclusion he demonstrated the main measures his company has taken to overcome the barriers: making the customer comfortable (e.g. third party payment, rapid shipping and free insurance), using an export service, fostering relationships with government and advisory bodies, developing overseas return facilities, and developing efficient, creative and sustainable customer acquisition strategies.

Single window, multi-connection work towards paperless trading

Mr Teh-Nan Lin, Executive Vice President, Trade-Van Information Services, Chinese Taipei. 

Mr. Lin first provided some background information of Chinese Taipei’s cargo clearance automation and APEC member economies customs-related VAN services. And then he briefed accomplishments in cargo clearance automation, add-on Internet gateway services and pan Asian e-Commerce alliances. Finally he suggested that special efforts should be made to set up a specific forum under APEC, facilitate mutual exchange of trade-related documents and to encourage CA cooperation.

TEDI

Mr Teru Kawashima, Mitsubishi Corporation, Japan 

TEDI (Trade Electronic Data Interchange) aims to realize paperless international trade and settlement using advanced Technology and Sound Legal Structure. TEDI is a ready system characterized with easiness and flexibility.

 “Whole of Government” approaches
“Whole of Government” approaches: the Korean experience

Mr Kim Sang-Yeol, Director General for Trade Policy Bureau, Ministry of Commerce, Industry and Energy, Republic of Korea.

Mr. Kim mainly briefed Korea’s e-Commerce policy and paperless trade project aimed at promoting paperless trade, and stated that the Korean government has issued the”Korea EC Initiative” which outlined the measures to lay the foundation for electronic trade as follows:
1.	revise laws and regulations on electronic trade by introducing the concept of electronic trade in the Foreign Trade Act;
2.	Operate Electronic Trade Support Center to facilitate electronic trade of SMEs;
3.	Operate a trade portal site ‘www.silkroad21.com’ as a venue for online meetings and contacts between trade companies, both domestic and foreign; and
4.	Promote education and training in this area.

A national approach to implementation of government electronic procurement: the Australian perspective

Mr Gary Allan, General Manager, Government Electronic Business, National Office for the Information Economy, Australia

Mr. Allan first introduced the Australian National Office for the Information Economy (NOIE), which is responsible for development and coordination of advice to the Federal Government on information economy issues, and the Australian Procurement and Construction Council (APCC), which is responsible for procurement and construction policy for Federal, State and Territory Governments, and the NZ government. Then he elaborated on the objectives, functions and implementation of the Framework for National Cooperation on Electronic Commerce in Government Procurement (May 1999) developed by APCC. He stated that the next version of the National Framework due in February 2001 will reflect jurisdictions’ implementation experience, the introduction of a new business identifier, the issue of certificates under the Gatekeeper framework, and the maturing of the market generally.

“Whole of Government” approaches: Role of TDB

Mr. Tan Wee Kheng, Trade Development Board, Singapore

Mr. Tan gave a short introduction to TradeNet and enumerated the advantages of trading with TradeNet, viz. Single form, single submission, single interface and single process.

“Whole of Government” approaches: the Philippine way

Toby Melissa C Monsod, Assistant Secretary and Chief of Staff, Dept of Trade and Industry, Philippines 

She first demonstrated the role of government in e-commerce: providing favorable policy environment, promoting trust and confidence among e-commerce participants, developing domestic framework compatible with international norms and catalyzing e-commerce and encouraging its mass use. Then she pointed out that how we participate in the new economy depends on six factors --- infrastructure: telecom and data networks; human resources; laws and executive policies; business development; financial systems: improving access to capital, attracting new capital; and logistics. She concluded her presentation by forwarding five critical “success” factors --- private sector’s advocacy and participation; national vision; “champion” in public sector; incentive-compatible civil service regime; and improvement of management.

Electronic Commerce for Procurement (EC4P)

Madame Lynne Kosky, Minister for Post Compulsory Education, Training and Employment & Minister for Finance

Madame Lynne Kosky briefed in her short speech the Electronic Commerce for Procurement Project which is a key component of the Government’s ‘Connecting Victoria” strategy committing budget sector departments and agencies to carrying out purchases and supplier payments online. She believed that the Victorian Government’s approach to EC4P will create an open electronic trading business to  Government (B2G) community so as to provide opportunities for new and existing businesses.

Government E-Business Strategies in Developing Economies

John Daly, Senior Consultant, Critical Path Asia Pacific, Hong Kong

He first pointed out that the actual usage by SMEs in most developing economies is minimal and growth is negligible, and that the problem lies, at least in part, with the adoption by governments of developing economies of e-business strategies which are based on insufficient relevant information resulting in mistakes and wasted resources. He cited three examples to show that the relevant information was available within the region, but it was not presented to the decision-makers themselves. He then went on to suggest that APEC establish an Advisory Team to give advice or assistance to member economies before they approve a project. 

A Introduction of China’s EC Development 

Mr. Wang Hong from the Ministry of Information Technology, briefed China’s development of e-Commerce on behalf of Madame Song Ling, director general, Department of Information Industry. He wished that more efforts be made to encourage the exchange of ideas and information regarding e-Commerce among APEC member economies.

Short Statement  at APEC E-Commerce & Paperless Trading Symposium 

Dr. Alexander Ananiev, Deputy Director, Department for Trade Policy and Multilateral Negotiations

Mr. Ananiev declared that Russia aims at activating participation in all organization and forums of APEC, and at developing bilateral contacts in mutual trade and at coordinating positions on problems of international trade relations. He stated that digital economy, new economy and e-commerce activities are becoming in conditions of emerging markets a relevant factor of stabilizing the development of Russia. With an introduction of the current situation of ICT development in Russia, his speech also covered the following topics: competitive advantages of Russia, principles of co-operation between government and business circles in the field of E-Commerce and priorities in developing E-Commerce in Russia.

At the end of the morning session, the symposium launched into a spirited discussion. The questions (Q) raised by the floor and the answers (A) given by the speakers were as follows:
Q: Mr. Daly, you mentioned a National Certification Authority collapse in an APEC economy, could you tell us the reasons?
 A: The reasons were quite complicated, and home team syndrome was one of them. That economy had intended to develop a software system of their own when the conditions were not mature, which triggered off the above-mentioned collapse.  
Q: Mr. Daly, you mentioned several scenarios that have been repeated in several APEC economies. How large the problems are?
A: Larger than usually understand. And actually those problems existed in almost all the member economies, from the least developed ones to the most developed ones.
Q: Mr. Daly, you suggested establishing an APEC IT advisory team and an e-commerce advisory team, but who will donate the fund?
A: Fund is always a sensitive topic. I suppose those few generous developed economies would donate the money, and APEC should optimize the use of the fund for the specific purpose.
The Closing Session: The Way Forward and Conclusion

Mr. He Ning from MOFTEC chaired the closing session and gave a brief review of the two days’ symposium.
Mr. Gao Hucheng delivered his closing remarks , in which he hailed the symposium a complete success and extended thanks to the Australian government, the co-sponsor of the symposium, and representatives from the business circles for their active participation.  He was convinced that the success of this symposium would make a remarkable contribution to the further development of e-Commerce in the Asia- Pacific region.