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Digital Economy Garners Global Attention
by William New
Breathing life into the digital economy, especially telecommunications, and boosting cyber security are becoming common topics among international organizations. In addition to the Global Business Dialogue on E-Commerce (GBDe), which held its annual meeting this week, two key intergovernmental bodies are joining forces to address those issues and the "digital divide."
The Asia-Pacific Economic Cooperation (APEC) summit held over the weekend in Mexico resulted in a statement on digital economy and cyber security. APEC and the Organization for Economic Cooperation and Development (OECD), meanwhile, will combine efforts Jan. 14-17 at a global forum focused on policy frameworks for the digital economy. The event, to be held in Honolulu, will follow several meetings of both organizations that have addressed the issues.
The groups also will examine tax issues and consumer confidence in the Internet. An OECD official said this week that the United States is questioning the inclusion of tax issues related to the Internet among the topics for the meeting.
On the first day of the meeting, officials with businesses and non-governmental groups will gather, followed the next two days by government officials. A special half-day focus will address developing countries' needs, which will permit preparation for the World Summit on Information Society, scheduled in two parts for December 2003 and 2005.
The head of the U.N. International Telecommunication Union (ITU), Yoshio Utsumi, is expected to attend. The ITU completed its quadrennial month-long conference less than two weeks ago.
The GBDe meeting, held this week in Brussels, Belgium, resulted in wide-ranging recommendations aimed at spurring the growth of high-speed Internet services, improving cyber security and consumer confidence, and addressing intellectual property issues.
European Official To Join Microsoft
Detlef Eckert, head of policy planning for the enterprise and information society directorate of the European Union, will leave government service Dec. 1 to become group manager for Europe, Middle East and Africa at Microsoft.
Eckert said Monday that the position is new and so not clearly defined but that it might involve helping Microsoft better understand all users' needs of and to develop other initiatives "to make the Internet a safer place." Eckert said that after his time in government, he understands that government has a role in the digital economy. "Regulation is not the enemy of industry," he said.
Asked his advice for the European Commission officials he is leaving behind, Eckert said, "The time is now for implementation" -- a reference to the planned coordinating unit on cyber security that is near completion, to common research projects and to standards, such as those allowing "reliable, affordable e-signature."
In other news, Europe's information technology research priorities will be the focus of a Nov. 4-6 conference in Copenhagen, Denmark. More than 3,000 participants are expected, representing governments, businesses and researchers. The European Commission and the Danish government, which currently holds the EU presidency, will cosponsor the event. It will highlight successful research projects and is part of a commission effort to strengthen research and development networks, the commission said.
And members of the European Parliament will be in Washington on Nov. 11 to meet their U.S. counterparts, business officials and others. They are attending the Transatlantic Legislative Dialogue.
Panel: U.S.-Taiwan Deal Would Boost Trade
The International Trade Commission (ITC) has determined that a free-trade agreement between the United States and Taiwan would benefit both nations. However, in its recent report on the impact of such an agreement, the ITC found that non-tariff barriers that affect services remain and that there are still problems with protecting intellectual property rights.
Senate Finance Committee Chairman Max Baucus, D-Mont., and ranking Republican Charles Grassley of Iowa noted in a statement that Taiwan is "an important supplier of electronics and electronic components to industries in the United States." They called for a launch of trade negotiations. Taiwan joined the World Trade Organization last year.
According to the ITC, the bulk of trade between the two nations is in manufactured goods, with computer parts and peripherals accounting for 19 percent, by value, of the total. Semiconductors account for almost 13 percent. Imports of semiconductors enter free of duty in both countries. In both industries, there is a good deal of crossover between companies, such as outsourcing arrangements, ITC said.
The United States and Taiwan are respectively the largest and fourth-largest markets in the world for semiconductors, with the computer industry being the main recipient. The second-largest target in the United States is the telecommunications equipment industry, while in Taiwan it is the consumer electronics industry, the ITC said.
China Security Commission Names New Officials
The U.S.-China Security Review Commission, established by Congress to assess the national security implications of trade and economic ties between the two nations, has elected new leadership.
The new chairman will be Roger Robinson, president and CEO of Conflict Securities Advisory Group and a former senior director of international economic affairs of the National Security Council. C. Richard D'Amato, a state delegate in Maryland, will be the vice chairman. He was first chairman of the commission.
The commission released its first annual report to Congress in July and soon plans to release its 2002-2003 schedule for public hearings.
Nintendo Fined For Breaking European Antitrust Laws
The Japanese videogame company Nintendo has been found in violation of European Union antitrust laws. Officials determined that Nintendo and its distributors illegally divided the European market for game consoles and videogames by blocking sales between EU countries and that the practice had the effect of inflating prices.
The Nintendo investigation, which began in 2000, highlights a difficulty Europe faces in bringing the 15 nations into a "single market." Prices between countries can vary widely due to national tax and retail policies. The difference has led numerous industries, such as automobiles, to try to prevent sales of their products from lower-priced countries to higher-priced countries.
Britain Votes To Ban Online Tobacco Ads
British Parliament last week passed a bill that would ban tobacco advertising in the United Kingdom, Reuters reports, and the ban would include Internet ads. The bill, which would become law after receiving House of Commons approval, would ban media, billboard and Internet advertising of tobacco products, and it contains other restrictions on the promotion of tobacco.
Taking The U.S. Business Viewpoint South
The U.S. Chamber of Commerce has launched a new Web site for its Latin American affiliate, the Association of American Chambers of Commerce in Latin America. The site offers comprehensive information on trade and investment issues affecting Latin America and the Caribbean. It also outlines the trade agenda for U.S. businesses in the region and provides details on the services and events of the 23 American Chambers of Commerce there.
The site will be used to communicate the business viewpoint on trade agreements being negotiated by the Bush administration, the chamber said in a release. The group's Latin branch represents 23 chambers in 21 Latin American and Caribbean countries, including 20,000 companies. Its members account for 80 percent of U.S. investment in the region.
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