The economic basket
Should e-commerce transactions be categorised under services (regulated by GATS) or goods (regulated by GATT)? Does the categorisation of music as a good or a service change depending on whether it is delivered on a CD (tangible) or via the Internet (intangible)? Ultimately, the same song could have different trade status (and be subject to different customs and taxes) depending on the medium of delivery. The issue of categorisation has considerable implications, because of the different regulatory mechanisms for goods and services. What should the link be between TRIPS and the protection of IPR on the Internet? Since the WTO’s TRIPS agreement provides much stronger enforcement mechanisms for IPR, developed countries have been trying to extend TRIPS coverage to e-commerce and to the Internet by using two approaches. First, by citing the principle of ‘technological neutrality’, they argue that TRIPS, like other WTO rules, should be extended to any telecommunication medium, including the Internet. Second, some developed countries have requested the closer integration of WIPO’s ‘digital treaties’ into the TRIPS system. TRIPS provides stronger enforcement mechanisms than WIPO conventions. Both issues remain open and they will become increasingly important in future WTO negotiations. During the current stage of trade negotiations, it is not very likely that e-commerce will receive prominent attention on the WTO agenda. The lack of global e-commerce arrangements will be partially compensated by some specific initiatives (e.g. regarding contracts and signatures) and various regional agreements, mainly in the EU and the Asia-Pacific region. Other international e-commerce initiatives One of the most successful and widely supported international initiatives in the field of e-commerce is the United Nations Commission on International Trade Law8 (UNCITRAL) Model Law on Electronic Commerce.9 The focus of the Model Law is on mechanisms for the integration of e-commerce with traditional commercial law (e.g. recognising the validity of electronic documents). The Model Law has been used as the basis for e-commerce regulation in many countries. Another initiative designed to develop e-commerce is the introduction of e-business XML (ebXML)10 by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), which is a set of standards based on XML technology. While these standards are still developing new versions, and the previous set – the Electronic Data Interchange (EDI) – is still widely deployed, it remains to be seen if and how they will be adjusted to cope with new trends and technological developments.11 121