TERMS OF REFERENCE. Preparation of a Policymakers Handbook on E-Commerce and Digital Trade for LDCs, small states and Sub-Saharan Africa

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1 TERMS OF REFERENCE Reference: Post Title: NBCWG0923 Preparation of a Policymakers Handbook on E-Commerce and Digital Trade for LDCs, small states and Sub-Saharan Africa Project Location: home-based with possibility of travel Duration: 30 consultancy days over the period July to August 2016 Closing Date: 15 June 2016 Fee: Eligibility: An all-inclusive fee of 8,000 (to cover fees, airfare, local travel and per diem) Individuals or firms (the consultant) registered in a Commonwealth Member State 1. Background Multilateral perspective The WTO work programme on Electronic Commerce (E-Commerce), first adopted in 1998, has received renewed attention in recent years. In the WTO s most recent Ministerial Conference in Nairobi, counties agreed to continue to maintain the current practice of not imposing customs duties on electronic transmissions until our next session which we have decided to hold in The E-Commerce work programme states that: "[Exclusively for the purposes of the work programme, and without prejudice to its outcome, the term 'electronic commerce' is understood to mean the production, distribution, marketing, sale or delivery of goods and services by electronic means". Four WTO bodies were charged with the responsibility of carrying out the work programme: the Council for Trade in Services; the Council for Trade in Goods; the Council for TRIPS; and the Committee on Trade and Development. The General Council plays a central role and keeps the work programme under continuous review. Since then, Members have worked in these various WTO bodies and reported on progress to the General Council on a regular basis. At the 9th WTO Ministerial Conference held in December 2013 in Bali, there was a lot of discussion on the status of the work on E-commerce in the WTO and in particular on the development-related issues to be addressed in the work programme. Accordingly, the General Council was instructed to emphasize and reinvigorate the development dimension in the work programme, particularly through the Committee on Trade and Development to examine and monitor development-related issues such as technical assistance, capacity building, and the facilitation of access to electronic commerce by micro, small and medium sized enterprises, including small producers and suppliers, of developing countries and particularly of least-developed country Members. Further, any relevant body designated in the work programme may explore appropriate mechanisms to address the relationship Page 1 of 5

2 between electronic commerce and development in a focused and comprehensive manner. The rapid technological development, including tools for E-Commerce makes it even more pressing to advance work at the multilateral level in this specific area. This Decision as well as previous ones were reaffirmed at the last WTO Ministerial Conference held in Nairobi in December Over the years a number of topics have been discussed, some of which are highlighted below: Protection of personal information, privacy and development of e-commerce Rules supporting innovative advances in computer application and platforms Enhancing internet connectivity and mobile telephones Electronically delivered software Cloud computing Consumer protection Access to electronic commerce by micro, small, medium enterprises Trade treatment of electronically delivered software Jurisdiction and rules for applicable law to govern electronic commerce Classification of the content of certain electronic transmission At the multilateral level, beyond the WTO, there is a need to understand the ways in which the 2030 Agenda for Sustainable Development will influence and be influenced by emerging issues at the WTO. The WTO Nairobi Package recognize[s] the role the WTO can play in contributing towards achievement of the 2030 Sustainable Development Goals. Whilst the 2030 Agenda for Sustainable Development recognizes the importance of The spread of information and communications technology and global interconnectedness. At the domestic level, information and communications technologies will be important for developing countries in terms of technological upgrading across all sectors and the servification of economies. As stated, the E-Commerce affects the production, distribution, marketing, sale or delivery goods and therefore technological upgrading can be targeted across sectors to boost their competitiveness in global value chains, whilst tradable electronic services can help promote structural transformation processes in country. Services are increasingly viewed as an important part of structural transformation processes, given manufacturing sectors are not delivering sufficient structural transformation in many countries in sub-saharan Africa and Latin America. It is vital for developing countries to proactively participate in the WTO E-Commerce negotiations in order to deliver a work programme which promotes the interests of developing countries. At a more general level, technological upgrading in general and within the context of E- Commerce can also help contribute towards improved data collection in developing countries, as envisioned under the 2030 Agenda for Sustainable Development to achieve the Sustainable Development Goals. Regional perspective At the regional trade level, the Trans Pacific Partnership (TPP) Agreement E-Commerce chapter includes commitments ensuring that companies and consumers can access and move data freely (subject to safeguards), which will help ensure free flow of the global information and data. It also includes commitments on market access and national treatment and other measures to help prevent unreasonable restrictions, such as the arbitrary blocking of websites. Page 2 of 5

3 According to the definitions in the TPP, digital product means a computer programme, text, video, image, sound recording or other product that is digitally encoded, produced for commercial sale or distribution, and that can be transmitted electronically. Electronic transmission or transmitted electronically means a transmission made using any electromagnetic means, including by photonic means. The European Union (EU) has made available a draft proposal that it submitted to the United States (US) under the TTIP negotiations. The chapter on E-Commerce applies to telecommunications and other information and communication technologies. It does not apply to gambling services, broadcasting services, audio-visual services, services of notaries or equivalent professions and legal representation services. The chapter on cross-border services deal with such issues (except audio-visual services). Electronic transmission shall not be subject to any customs duty and the chapter highlights the need for cooperation, conclusion of contracts electronically and marketing communications. The chapter on cross border supply of services deals with market access, national treatment, and most favoured nation obligations. However, none of the provisions in the draft define the items covered under electronic commerce. Given the special characteristics of the Small States and Least Developed Countries and the prevalence of micro, small and medium sized enterprises and producers in these countries, there are merits in exploring the potential for E-Commerce to contribute to the socioeconomic development of these countries and in enhancing their participation in the global economy bridging geographic distances, access to remote areas/markets, access to a wide range of services and small business development are some of the potential gains from E- Commerce. However, E-Commerce has wide-ranging implications which need to be thoroughly studied such as access, tax and revenue implications and intellectual property rights. Also, there is an enormous technology, infrastructural and regulatory (policy) gap to fill in in many countries to unleash the full potential of E-Commerce in these countries. Aid for Trade could be one such instrument that could be used to fill in the gap in developing countries. At the bilateral level, trade agreements are also beginning to include provisions on E- Commerce. For example, under the US Free Trade Agreements with Australia, Bahrain, Chile, Colombia, Korea, Morocco, Oman and Peru. The WTO has an important role to play in ensuring that E-Commerce policy does not become fragmented with discord across different regional and bilateral trade agreements. 2. Objective The objective of the assignment is to help capacity development of Commonwealth small states, least developed countries, and sub-saharan African states so that they can participate effectively in global work on E-commerce, including in the context of the WTO work programme and discussion in other trade fora with a view to safeguarding and promoting their interests. Although several studies have sprung up in recent times, the potential scope of trade benefits for poor and capacity-constrained developing countries from this sector has not been adequately addressed. How a global deal on E-Commerce can help with domestic capacity development and the measures that need to be implemented by policymakers in these countries are also important issues. Most of LDCs, small states and SSA countries would also like to know what international support mechanism exists to make e-commerce a stimulant to their trade and economic performance. Furthermore, given the technical issues involved in the related areas, Page 3 of 5

4 policymakers in these countries would benefit from a more comprehensible analysis of the relevant issues. 3. Tasks Given the above, the project will focus on the preparation of a policy maker s handbook from the perspectives of capacity-constrained countries such as LDCs, small states and sub- Saharan Africa. The user-friendly short handbook should include discussion of the following issues. To define the scope of e-commerce (including its nature and types) and how (if so) it is related to other types of trade; To provide an assessment of the magnitude of e-commerce activities globally and participation of developing countries in it; To consider the benefits of e-commerce particularly for the groups of countries mentioned above. To stock take the current status of the work programme on E-Commerce in the WTO and the pertinent issues for the Commonwealth small states, LDCs, sub-saharan Africa; To provide an overview of the discussion/implementation on E-commerce issues outside the WTO e.g. in regional trade deals and implications for small states and LDCs; To identify areas which could be developed to enhance the developmental aspect of the WTO s work programme on E-commerce to benefit LDCs, small states and SSA; To suggest specific proposals that would recognize the needs and interest of small states, LDCs and SSA while ; To identify domestic supply side issues for LDCs, small states and SSA that need to be addressed to develop capacity; To identify any external barriers (e.g. market access, technical barriers, compliance, etc.) in expanding e-commerce in capacity-constrained developing countries; To outline the support measures that will be required by LDCs, small states and SSA in developing their e-commerce activities; To make concrete recommendations for developing country policymakers; development partners and the WTO so that e-commerce can play an effective role in promoting trade and development in LDCs, small states and SSA. 4. Expected output A draft report containing discussion on all the above issues, written and organized in a user-friendly and comprehensible manner. The consultant may be required to present the draft in a meeting convened/facilitated by the Commonwealth Secretariat and then revising the content based on the comments and suggestions received. In addition, a set of comments/suggestion/feedback will be provided as part of the peer review of the first draft. 5. Qualifications and experience: Post graduate qualification in Economics and/or international trade and/or Law and/or Management; Page 4 of 5

5 At least ten years of experience in international trade policy including work on Ecommerce, services and/or Digi trade; Experience working in developing countries, small states and Least Developed countries an advantage; Demonstrated excellent communication and interpersonal skills. 6. Deliverables/Timeline: The consultant is expected to develop and submit the draft analytical paper to the Secretariat no later than 5 August A final version which incorporates comments from the Secretariat will be received no later than 5 September How to apply The applicant must submit: A curriculum vitae and a covering letter explaining why he/she is suitable to carry out the expected tasks. Provide two pages on how you propose to carry out the assignment - a brief methodology, strategy and time frame. Page 5 of 5

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