1. A presentation to the
Executive Lecture Series
May 14th
, 2010
St. Vincent and the Grenadines
International Trends, TradeInternational Trends, Trade
Agreements and their impact on theAgreements and their impact on the
Regional ICT Development AgendaRegional ICT Development Agenda
2. ObjectiveObjective
• Focus on macro economic concerns of ICT as an
enabler of extra-regional trade and subject of FDI
• Briefly discuss the I-economy, and the Caribbean
experience thus far
• Identify the key aspects of the ICT development pyramid,
and how governments in their role as framework
establishers can have an impact
• Highlight existing trade agreements which either guide or
constrain CARICOM ICT Policy development
3. the development of the global e-Economythe development of the global e-Economy
1990’sTODAY
4. The challenge facing the Caribbean e-The challenge facing the Caribbean e-
economyeconomy
Int’l telecoms
• Traditionally Dominant form of
tele-commerce in the region.
• Net capital inflows
• Reducing as providers migrate to
VoIP solutions
Internet based
• Emerging as dominant form of
communications
• Popular applications such as WWW,
e-mail and VoIP
• Gross capital outflows - est. greater
than US$100M annually… just to
provide access to the Internet!
Currently there are little Internet-based revenue inflows associated with the mere
provision of access to the Internet
5. How do CARICOM States restructureHow do CARICOM States restructure
themselves to optimally benefit from thethemselves to optimally benefit from the
increased access to theincreased access to the
Global Information Society?Global Information Society?
6. Overview of the relationship of keyOverview of the relationship of key
information society conceptsinformation society concepts
• The Information society is based on the premise of utilising
automated processing systems to enhance service delivery
to markets and persons anywhere in the world.
• A fundamental presumption to achieve this goal is the
provision of telecommunications services:
– by extending the infrastructure grid to as many persons worldwide,
– by commoditizing those services such that the cost of access is
generally affordable
The cumulative effect of positioning ICT-based services as the
ubiquitous leveling agent for personal and economic development
across the globe
7. • Upon the foundation of ubiquitous telecommunications is a
platform supporting the transport and storage of commercial
information.
• As the core imperatives of commerce remain unchanged,
this commercial information’s ready transmission creates
opportunities for enhanced business relationships
• This ease of exchange of such commercial information
introduces new paradigms:
– Where information is used to support transaction in transactions
related to physical goods, and traditional services
– Where information itself is the key commodity traded
Overview of the relationship of keyOverview of the relationship of key
information society conceptsinformation society concepts
8. Appropriate administration frameworkAppropriate administration framework
for the Information Societyfor the Information Society
• Administration of this paradigm is largely the oversight of
domestic and international trade facilitation systems
• Associated with these systems, there are considerations
of protection and enforcement:
– Law enforcement,
– Customs administration, and
– expeditious judicial arbitration
• Further, to provide comfort to both consumers and
investors these systems should encourage:
– transparency in governance, and
– the protection of personal and commercial privacy
• These frameworks are essential before particular forms of
commerce can be effected (e.g. e-payments, e-
government etc.)
11. existing Trade Agreementsexisting Trade Agreements
• Regionally, Article 67 of the Revised Treaty of
Chaguaramas commits CARICOM Members to
“harmonisation of standards and technical regulations,
and transparency in the development and promulgation”
• Extra-regionally, CARICOM have entered into binding
commitments which generally impact the level of
development and competition in its sector markets
• CARICOM and its member states must remember the
reference frameworks established by existing multi-
lateral international treaties and agreements. These
agreements include two major considerations today
– WTO Basic Telecoms Agreement (BTA) and Reference Paper,
and
– the Sections related to Telecoms & ICT in the CARIFORUM/ EU
EPA
12. WTO GATS – what it is and why it isWTO GATS – what it is and why it is
importantimportant
• Concluded in 1997, the Fourth Protocol to the
General Agreement on Trade in Services
(GATS) facilitates liberalization of trade in
services. Two types of obligations exist under
GATS:
– general obligations that apply to all members and all
service sectors covered under GATS regardless of
whether or not specific commitments have been
made; and
– sector-specific commitments regarding market access
and national treatment for sectors and activities that
members agree to open to international tradeWTO Obligations provided much of the framework that has guided Telecoms
policy work in the region for the last decade !
13. The EPA – what it is and why it is importantThe EPA – what it is and why it is important
• Economic Partnership Agreements are a form of trade partnership,
required by the Cotonou Agreement, which covers economic relations
between the EU and African, Caribbean and Pacific (ACP) States
• Concluded in 2008, the EPA ensures the following, among others, to
signatory CARIFORUM nations:
– Services and Investment
• In general the liberalization of various service sectors should lead to increased investment
and greater efficiencies.
• The regional Services Sector stands to benefit from development assistance from the EU
to address a range of needs, including development of regulatory regimes to build the
capacity of regional services firms, …to facilitate greater interaction with EU firms.
• Regional investors can benefit from liberalization in almost all sectors in the EU with only
some exclusions in a few sectors and limitations in mainly the new EU member states.
14. The WTO/ EPA implementation frameworksThe WTO/ EPA implementation frameworks
• WTO members and EPA signatories make commitments on market
access and national treatment based on one of the following four
modes of supply:
• cross border supply
• consumption abroad
• commercial presence
• presence of natural persons
• Requires signatory states to adjust regulatory frameworks where
necessary to effect market entry and trade in accordance with
agreed commitments
• Breach of said requirements has been known to lead to penalties
applied to offending nations.
A key test is to appreciate variances between obligations pursuant to WTO and
the EPA
16. Key common facets to TelecommunicationsKey common facets to Telecommunications
reformreform
• The ultimate objective is to ensure ubiquity of access, the
establishment Universal Service Programmes
• To ensure commoditisation of basic services, the
encouragement of open, competitive domestic and
international markets
– Need to redefine key concepts in the telecommunications space,
as well as how and where regulatory intervention is appropriate
• the convergence of technologies affords the separation of regulatory
oversight of the network and service components
– particular focus in ensuring transparency and openness in
licensing,
– Regulatory focus on mitigating against the abuse of market power
by providers
17. Comparison of Significant WTO/ EPA ClausesComparison of Significant WTO/ EPA Clauses
Scope and definitionsScope and definitions
WTO Reference Framework CARIFORUM/ EU EPA
basic telecommunications services are public and
private telecommunications services that involve
end-to-end transmission of customer supplier
information. These include voice telephone
services, packet-switched data transmission
services, circuit-switched data transmission
services, telex services, telegraph services,
facsimile services, and private leased circuit
services.
"telecommunications services" means all services
consisting of the transmission and reception of
electro-magnetic signals and do not cover the
economic activity consisting of the provision of
content which requires telecommunications for its
transport
18. Implications of these definitionsImplications of these definitions
• Definitions are very similar between these reference frameworks
• The definition of these key terms are of significance to the definition
of market structure, and clarify which segments are regulated and
unregulated. These elements are critical to a harmonised
approach of sector regulation across the region.
As examples:
Contemporary definitions do not distinguish between voice and data services in the
definition of “telecommunications”, and thus the rights, obligations & regulatory
oversight of such parties may not be expected to vary across these segments;
The new approach to “essential facilities” and “major suppliers” must
envisage a focus on elimination of abuse of competitive power of
participants – not necessarily the incumbent;
"public telecommunications network" means a public switched telecommunications network owned and
operated by a carrier for the provision of telecommunications services to the public
Telecommunications Act , Chap 282B, Barbados
To note
19. Implications of these definitionsImplications of these definitions
Other examples:
The definition of “value added service” is as follows:
services for which suppliers enhance the form or content of the customer’s
information, thereby “adding value” to the customer’s information, and include
electronic mail, voice mail, on-line information and data base retrieval, Electronic
Data Interchange (EDI), enhanced/value-added facsimile services, including store
and forward, and store and retrieve, code and protocol conversion, on-line
information and/or data processing (including transaction processing), and other
services.
In reforming our approach to market regulation, these and other key definitions
should be revisited.
" value added service” means a service, other than a public telecommunications service that, using a
telecommunications service, provides or modifies content and applications not associated with the
telecommunications service
Telecommunications Act , Chap 47:31, Trinidad & Tobago
To note
20. Comparison of Significant WTO/ EPA ClausesComparison of Significant WTO/ EPA Clauses
AuthorisationAuthorisation
WTO Reference Framework CARIFORUM/EU EPA
GATS
General Obligations and Disciplines
Most Favoured Nation (BFN) Treatment (GATS Article II)
– A licensing regime must grant market access to
operators from a WTO member country on terms “no
less favourable” that the terms applicable to operators
from “any other country”
Transparency (GATS Article III) – All laws and rules
affecting trade in services must be published. - the
Telecommunications Annex specifically requires
publication of, among other things, all notification,
registration or licensing requirements, if any as well as
any other forms of recognition and approval needed
before foreign service suppliers can do business lawfully
in a member country
Barriers to GATS (GATS Article VI) – Licensing
requirements must not “constitute unnecessary barriers to
trade.”
Authorisation to provide telecommunications services
1. Provision of services shall, as much as possible, be
authorised following mere notification.
21. Comparison of Significant WTO/ EPA ClausesComparison of Significant WTO/ EPA Clauses
AuthorisationAuthorisation
WTO Reference Framework CARIFORUM/EU EPA
Where a license is required, the following shall be made
publicly available:
(a) All the licensing criteria and the period of time
normally required to reach a decision concerning an
application for a licence, and
(b) The terms and conditions of individual licences
The reasons for the denial of a licence will be made
available to the applicant upon request
3. Where a licence is required:
(a) all the licensing criteria and a reasonable period of
time normally required to reach a decision concerning an
application for a licence shall be made publicly available;
(b) the reasons for the denial of a licence shall be made
known in writing to the applicant upon request;
(c) the applicant of a licence shall be able to seek
recourse before an appeal body in case a licence is
unduly denied;
(d) licence fees required by the EC Party or by the
Signatory CARIFORUM States for granting a licence shall
not exceed the administrative costs normally incurred in
the management, control and enforcement of the
applicable licences.
Any procedures for the allocation and use of scarce
resources, including frequencies, numbers and rights of
way, will be carried out in an objective, timely, transparent
and non-discriminatory manner. The current state of
allocated frequency bands will be made publicly available,
but detailed identification of frequencies allocated for
specific government uses in snot required.
2. A licence can be required to address issues of
attributions of numbers and frequencies. The terms and
conditions for such licences shall be made publicly
available.
22. Implications of these conditionsImplications of these conditions
• Note that here again, the provisions of the EPA seem
substantially more prescriptive than the WTO Reference
Framework:-
– For assenting parties this may mean a revision of the requirement to issue an
authorisation by the Minister before operation can begin. The latter being a
prominent model in CARICOM.
– There is a progressive drive to encouraging the prominence of competition law in
the regulation of the sector.
• The provisions regarding the licensing of telecommunications
resources are consistent between the frameworks – requiring
transparency and timeliness in administration.
– The EPA does attempt to define the determination of the economic rent of the
resources.
4 (2) In furtherance of his powers and duties under subsection (1),the Minister shall
(d) issue licences in respect of the provision of telecommunications services
Telecommunications Act , Chap 282B, Barbados
To note
21. (1) No person shall operate a public telecommunications network, provide a public telecommunications
service or broadcasting service, without a concession granted by the Minister.
Telecommunications Act , Chap 47:31, Trinidad & Tobago
To note
6. (1) The Minister may grant----(a) an individual licence; (b) a class licence; (c) a frequency authorization
in respect of a licence; or (d) a special licence
Telecommunications Act , 2000, Grenada
To note
23. Overview of necessary ICTOverview of necessary ICT
Trade Facilitation ReformTrade Facilitation Reform
24. Key Instruments in Trade Facilitation ReformKey Instruments in Trade Facilitation Reform
• To ensure harmonisation of CARICOM laws with
regard to default expectations and legal validity of
contract-formation practices:
– Electronic Transactions
– Electronic Signatures
– Electronic Evidence
• Model best practice frameworks established by
OECD, UNCITRAL
– Model frameworks associated due to close linkages
based on the concept of e-document authenticity.
25. Impact of existing international agreementsImpact of existing international agreements
• Due to the recent development of e-commerce concerns,
there is little evidence of existing trade agreements that
reflect these considerations.
• However Article 120 of CARIFORUM/ EU Economic
Partnership Agreement (EPA) includes:
1. The Parties shall maintain a dialogue on regulatory issues raised by electronic commerce, which will
inter alia address the following issues:
(a) the recognition of certificates of electronic signatures issued to the public and the facilitation of cross-
border certification services;
(b) the liability of intermediary service providers with respect to the transmission, or storage of information;
(c) the treatment of unsolicited electronic commercial communications;
(d) the protection of consumers in the ambit of electronic commerce;
(e) any other issue relevant for the development of electronic commerce.
2. Such cooperation can take the form of exchange of information on the respective legislation
of the Parties and the Signatory CARIFORUM States on these issues as well as on the implementation of
such legislation.
EPA, Art. 120
These seem to identify core concepts to be addressed by CARICOM members in
preparation of appropriate legal framework for compliance with the EPA.
26. Key Instruments in Legal EnforcementKey Instruments in Legal Enforcement
• To ensure development and harmonisation of
CARIFORUM laws with regard to Law Enforcement and
Judicial arbitration in the e-environment:
– Cyber Crime
– Interception of Electronic Communications
– Electronic Evidence
• EU Convention of Cyber-Crime (2001, 2006) provides
frameworks of protection from computer-related fraud,
illicit content, network security and protection of
copyright
27. Impact of existing international agreementsImpact of existing international agreements
• No perceived contention seem to arise RE: Law
enforcement and judicial arbitration
• On Customs administration it is notable that the
EPA includes:
Objective and principles
1. The Parties, recognising that electronic commerce increases trade opportunities in many sectors, agree to
promote the development of electronic commerce between them, in particular by cooperating on the issues
raised by electronic commerce under the provisions of this Title.
2. The Parties agree that the development of electronic commerce must be fully compatible with the highest
international standards of data protection, in order to ensure the confidence of users of electronic commerce.
3. The Parties agree that deliveries by electronic means shall be considered as the provision of
services, within the meaning of Chapter 3 of this Title, which cannot be subject to customs duties.
EPA Art. 119
Subsection (3) of the EPA Article prescribes a point of Policy that was resisted by Least
Developed Countries in the contentious Doha round of WTO negotiations
28. Other areas whereOther areas where
Policy DecisionsPolicy Decisions
are requiredare required
29. (Inter)Net Governance(Inter)Net Governance
Three emerging concerns that will soon need to be
ventilated include:
• Along with the converged approach to regulating
infrastructure –
–What approach to treat with other aspects of “Net Neutrality” such as:
• Ensuring non-discriminatory access to content & application services
across networks?
• Issues of piracy, and the appropriate mix of regulatory responsibility
• Issues of national versus transnational and trans-regional regulation of
the above content related issues?
• Rationalisation of Top Level Domain administration
–Should there be a regional TLD?
• What are e-commerce advantages and/or incentives for the development
of same?
30. (Inter)Net Governance(Inter)Net Governance
• Harmonised regional strategy to address IPv4 – IPv6
migration and interoperability
• Regional strategy to treat with the imbalanced current
paradigm of commercial peering of IP Networks
– As domestic competitive environments mature, this imbalance is
the major source of Internet cost differential between Caribbean
and extra-Caribbean users
– As e-commerce grows, without a change in how we interact with
the Internet, this threatens to remain a growing economic
haemorrhage from the region that remains largely unchecked…
31. much of the infrastructure required for such a
change exists today…
32. Despite the existing infrastructure:Despite the existing infrastructure:
• Internet interaction for users in CARICOM states still
involves interacting with hosts and systems which reside
outside of the region. This arrangement also represents:
– a single point of failure for regional Internet; and
– a significant risk to information sovereignty
• Region’s primary link to the outside world is through the US,
where the arrangement entails unilateral payment for
– bandwidth to transport traffic to and from the US; and
– Access to the Internet backbone and the provision of transit
services
What are the realistic options that exist to allow CARICOM to reposition this
arrangement?
33. well, there is an option…well, there is an option…
• Efforts to revisit the peering/ Internet settlement
regime into something which approximates to
parity resulted in the World Telecommunications
Standardisation Assembly 2000 which
recommended that;
“[parties] involved in the provision of international Internet connections
negotiate and agree to bilateral commercial arrangements enabling
direct international Internet connections that take into account the
possible need for compensation between then for the value of
elements such as traffic flow, number of routes, geographical coverage
and cost of international transmission amongst others”
However, this recommendation is not mandatory,
and the US and Greece have not assented.
However, other neighbors did assent …and practice it!
34. To break the cycle of dependence…To break the cycle of dependence…
• CARICOM may need to establish as matters of
coherent, articulated regional policy:
– Clear incentives to encourage the regional market
utilisation of regional resources for the hosting/ storage
of applications/ content
– Clear incentives to encourage bi-lateral cost sharing
approaches to facilitate direct member-to-member ICT
connectivity
– Clear impetus to encourage diversification of routes out
of the Caribbean basin, utilising Latin America (noting
e-LAC) and Europe (?)
35. excerpts from the regional WSIS Action Planexcerpts from the regional WSIS Action Plan
(eLAC2010) that may be leveraged(eLAC2010) that may be leveraged
14** Promote the development of infrastructure in each country and in
the region, fostering the deployment of traffic nodes, the installation
of copies of root servers and local content hosting, with the object
of improving the network’s quality and stability and reducing access
costs.
22** Promote the creation of specially-priced baskets of appropriate-
content digital services for socially vulnerable sectors, including,
but not limited to, older adults, children, rural communities,
indigenous peoples, persons with disabilities, the unemployed,
displaced persons and migrants.
60** Strengthen national policies for the information society from a
regional perspective, including coordination and participation by
public agencies, civil society and the private and academic sectors,
within their respective roles and areas of responsibility, in the
design and dissemination of ICT programmes.
36. In ConclusionIn Conclusion
• To ensure the maximisation of economic benefits of the Internet-
economy, CARICOM Member States must modernise and harmonise
ICT Policy & legal frameworks to support administration of information-
based products and services
• International trade commitments stand to impact existing policy
frameworks – work must be expedited to amend laws accordingly:
– the EPA includes articles which are, in some instances more prescriptive than the
WTO BTA with regard to (i) Scope & definitions, (ii) Authorisation/ Licensing and (iii)
Universal Access/ Service
• EPA provides comprehensive guidelines regarding Electronic
Commerce, Data Protection, et al
– The EPA includes articles which are binding on some aspects of e-Customs
• OECD, UN and EU provide strong policy directions with regard to
Access to/ Freedom of Information, Cyber-Crime and Interception of
Communications
37. FurtherFurther……
• Work must begin to develop value added frameworks to
first establish, and then strengthen the brand of
CARICOM-based e-commerce products
• Work must begin to transform regional frameworks to
treat with issues of convergence such as content and
address rationalisation
• Work must continue to harmonise and strengthen rules
and enforcement of intellectual property laws, both
online and offline
• Serious consideration of the viability of creating regional
administrative institutions within the sphere of ICT’s
All of these considerations are necessary pre-requisites for the CARICOM
countries to develop from consumers and users into fuller, (net) revenue
earning participants of the knowledge-based society!
