Electronic Commerce

The WTO Secretariat was asked in 1998 to undertake a study of “all trade-related issues relating to global electronic commerce”, taking into account the economic, financial and development needs of developing countries.

According to this study, by the WTO Secretariat (1998), electronic commerce is growing at an extremely rapid rate. In 1991, there were less than 5 million Internet users. By the turn of the century, it is estimated that there will be more than 300 million users.

Predictions are that the value of electronic commerce will reach US$300 billion by that time. The expansion of trade opportunities offered by e-commerce, including for developing countries, is emphasized. Much remains to be done though to improve access to necessary infrastructure and user skills for such opportunities to be realized.

The definition of electronic commerce used by the WTO Secretariat encompasses the production, advertising, sale and distribution of products via telecommunication networks. Further, e-commerce can be divided into three broad stages:

1. searching - where producers and consumers, or buyers and sellers, first interact;
2. ordering and payment - once a transaction has been agreed upon;
3. delivery.


The study highlights the potential gains, as well as the complexities, of trade over the Internet.

Policy issues identified in the study include the legal and regulatory framework for Internet transactions, security and privacy questions, taxation, access to the Internet, market access for suppliers over the Internet, trade facilitation, public procurement, intellectual property questions, and regulation of content.