preparing trinidad and tobago for doing business in the

Report of the

National Electronic Commerce Policy Committee

"Preparing Trinidad And Tobago For Doing

Business In The Internetworked Global Digital

Economy"

Report of the National Electronic Commerce Policy Committee “Preparing Trinidad and Tobago for Doing Business In The Internetworked Global Digital Economy”

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MEMBERS OF THE NATIONAL E-COMMERCE POLICY COMMITTEE

Dr. Finbar Fletcher - Chairman Ministry of Trade and Industry and Consumer Affairs

Mr. Clyde Alleyne - Vice Chairman IBM World Trade Corporation

Mr. Raoul John – Vice Chairman Trinidad and Tobago Chamber of Industry and Commerce

Mr. Joseph Caesar National Information Systems Center Ministry of Information and Communication

ASP Phillip Carmona Ministry of National Security

Mr. Philip Colthrust Central Bank of Trinidad and Tobago

Mr. Wayne Corbie Bank Employees Union

Ms. Albertina Devenish Ministry of Consumer Affairs

Mr. Simon Fraser Carib-Link Limited

Mrs. Liesel Gransaull-Brown National Institute of Higher Education, Research, Science and Technology (NIHERST)

Mr. Samraj Harripaul Ministry of Attorney General and Legal Affairs

Mr. Michael Lau The South Trinidad Chamber of Industry and Commerce

Mr. Krishnarine Maharaj Trinidad and Tobago Manufacturers Association

Mr. Richard Madray Ministry of Public Administration


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Ms. Heather Tull Small Business Development Corporation

Mr. Richard Young The Bankers Association of Trinidad and Tobago

Mr. Christopher Hamel-Smith Legal Private Sector

Mr. Winston Ragbir Telecommunications Division - Ministry of Information and Communication.

Mr. John Malcolm Spence Intellectual Property Office, Ministry of Legal Affairs

Mrs. Samdai Rampersad Ministry of Finance, Planning and Development

Participating Alternates

Mr. Anthony Joseph Ministry of Finance, Planning and Development

Mr. Derwin Howell The Bankers Association of Trinidad and Tobago

Mr. Deoraj Ramnarine Caribbean Association of Industry and Commerce

Mr. Tracy Hackshaw The South Trinidad Chamber of Industry and Commerce Inc.

Mr. Wayne Punnette Small Business Development Corporation

Other Contributors: Mr. Steven Abiraj Ministry of Public Administration Mr. David Mungroo Ministry of Public Administration


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This report was prepared by the National Electronic Commerce Policy Committee (NECPC), created

by Cabinet with a mandate to examine Trinidad and Tobago's current environment and formulate

policy recommendations, which would allow the country to reap the maximum benefits from the new

digital economy. Over the last seven months the NECPC has been engaged in both intensive and

extensive deliberations on electronic commerce. Issuing from these deliberations, the NECPC first

produced an interim report which was submitted to the Cabinet in December of 1999. This interim

report is attached as Appendix 3 and primarily contains principles and guidelines on which the

recommendations in the final report were based.

The NECPC's work programme was organized based on a model earlier adopted by the FTAA Public-

Private Sector Experts advisory group on Electronic Commerce. Following this model, the relevant

issues were categorized into four areas and addressed by four working groups as follows:

1. Strengthening the Infrastructure 2. Increasing Participation in Electronic Commerce 3. Clarifying Marketplace Rules 4. Building Confidence for Users of Electronic Commerce

1. The work and the ensuing recommendations of the NECPC were thus primarily constituted

around these four issues. These also formed the base of our policy objectives and an enabling

environment for two other objectives, viz., Jumpstarting the E-Economy and

2. Positioning Trinidad and Tobago as a regional E-Commerce Hub.

Foreword


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Page

1 Executive Summary 6

PART 1 – BACKGROUND

2 Terms Of Reference 13

3 Introduction And Background 15

4 Methodology And Work Plan 23

5 The Current E-Commerce Environment In Trinidad And Tobago 25

PART 2 - RECOMMENDATIONS

6 Strengthening The Information Infrastructure 32

7 Increasing Participation In E-Commerce 38

8 Clarifying Marketplace Rules 53

9 Building Confidence For E-Commerce Users 67

10 Jumpstarting the E-Economy - Summary of Recommendations. 74

Appendix 1 – Opportunities For Citizen Access To Government Via The Internet. 82

Appendix 2 – Opportunities For Electronic Commerce In Government. 84

Appendix 3 - Interim Report Of National Electronic Commerce Policy Committee. (November 1999)

86

Appendix 4 - Proposal For Establishing A National E-Commerce Coordinating Unit. 95

Appendix 5 - Budget Estimate For Establishing Community Access Centers. 103

Appendix 6 - References 104

Table of Contents

The Challenge Facing Trinidad and Tobago

Massive changes are taking place in the world around Trinidad and Tobago;

globalization, market liberalization, regional trading blocs such as NAFTA, the EU and

the Southern Cone, and the explosion of Electronic Commerce on the Internet are

creating huge opportunities for businesses, governments, industries and entire

countries to transform themselves. At the same time, these developments have resulted

in new threats - the same businesses, governments, industries and countries now face

the risk of being marginalised if they do not respond to the changes taking place around

them. Time pressures compound the challenge; the pace with which developments take

place in the new networked world means that even if the right actions are identified and

execution begun, those who move too slowly will be overtaken by others who can make

the commitment to move at Internet speed. The report thus identifies a number of

immediately actionable programmes intended to jumpstart our National E-Commerce

initiative.

At the onset, it must be unequivocally stated that there are two necessary preconditions

for success. Firstly, there is very little hope for the advancement of the E-Commerce

agenda without drastic improvements in the telecommunications infrastructure. Efforts

that are currently underway must therefore be accelerated. Secondly, success requires

that political will be ultimately manifest. This will be demonstrated by the government’s

speedy action on the recommendations contained herein, together with the allocation of

sufficient budgetary allocations to meet the costs of implementation of the

recommendations. At a minimum, government should move quickly to allocate the funds

for the appointment of the National E-Commerce Coordinator and the supporting

Secretariat, as this person will be very key to ensuring that the recommendations are

executed in a timely manner.

EXECUTIVE SUMMARY


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The Role of Government

The report has adopted as a primary principle, that government’s principal role is to

facilitate the creation of a environment that facilitates the expanded use of E-Commerce

and its related technologies by the private sector, government and individuals. However,

it also recognises that Micro, Small, and Medium sized Enterprises (MSMEs), which

form the employment backbone of the economy, face unique challenges with respect to

access to resources and expertise in this new environment. As a result, it has

recommended that government should play a pro-active role in helping the MSME

sector by providing “incubator” assistance where practical.

Government transformation into “e-government”

The report also recommends that government should use the new technology to

radically transform how it functions and how it addresses the needs of the country’s

citizens. By transforming itself into an “e-government”, it will be able to operate more

efficiently and effectively, thereby improving the service provided to citizens - at

significantly reduced costs. By being able to function more efficiently and effectively, the

savings gained will allow government to better address other pressing issues such as

improved remuneration, retention, and skills development issues in the public service.

Bridging the Digital Divide

Somewhat outside of the scope of the focus on creating an environment that enhances

E-Commerce in its strictest sense, but one which is included in all international

discussions of E-Commerce, is the need to factor in those individuals in the society who

are affected by the “Digital Divide”. This “Digital Divide” separates those who have

access to the new technologies from those who do not, usually because of differences in

income, education or geographic location. By improving affordability and accessibility,

the government will be better able to attain its goal of Universal Access to computers

and the Internet. To address this divide and ensure that all sectors of society have an

equal opportunity to reap the benefits of the new technologically driven society, the

report advocates programs such as the establishment of "Community Access Centers"


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Telecommunications Infrastructure

As alluded to above, easy and reasonable cost access to the telecommunications

infrastructure by all users - business and individual, was seen as pivotal to the

realisation of our electronic commerce agenda. However, the "high cost - low

bandwidth" infrastructure has created an extremely unfavourable environment for all

users. The problem of low bandwidth continues to exist both in our connection to the

global backbone and in connections to the local backbone, i.e. "the last mile". The report

therefore proposes a much more aggressive stance in our move towards liberalization.

With the addition of new players, not only are costs likely to be reduced, but the problem

of low-bandwidth will be addressed as additional broadband technologies, both wire-

based and wireless will be considered.

Improving the cost and bandwidth of the telecommunications infrastructure has been the

consistently most frequently cited obstacle to increased use of E-Commerce all over the

world . It is important to remember, however, that telecommunications is but the most

visible part of the iceberg. Once one gets past the telecommunications issue, there are a

host of other issues below the surface that become equally important, such as the

Legislative Framework, Workforce Skills, Security and Privacy, and supportive Financial

Institutions. Even the population’s attitude and cultural habits with respect to computer-

based transactions will have to be addressed.

Appointment of a National E-Commerce Coordinator

A significant recommendation of the committee is that the government should seek to

ensure the attainment of its goals and objectives by appointing a National E-Commerce

Coordinator much along the lines of the National Y2K Coordinator. This Coordinator

would have a mandate to continue the development of a comprehensive Policy

Framework on E-Commerce fully integrated within the National Policy Framework, and a

consensus-based Roadmap for implementation. In addition, the Coordinator should play

a coordinating role to ensure that the activities of the many private and public sector

stakeholders in support of the policy are executed in a consistent, effective manner. The


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Coordinator would be supported by a secretariat with appropriate professional and

administrative staff based in the Ministry of Trade, Industry and Consumer Affairs.

Clarification of Marketplace Rules

With regard to the Clarification of Marketplace rules, the objective is to ensure that the

rules which govern commercial transactions in cyberspace would be clear to all

participants. Ideally, one would expect that the same principles would apply to offline as

well as online transactions. The report thus posits several recommendations that are

geared towards making the Trinidad and Tobago electronic marketplace one in which all

existing and prospective players, both domestic and international, would feel

comfortable doing business and investing. The report also emphasizes the global nature

of many of these rules and the need for Trinidad and Tobago to be a vocal and active

part of all the discussions in progress and the decisions being made at the international

level.

Security and Privacy Issues

As part of its ultimate set of recommendations, the NECPC addressed the issue of the

current low level of confidence that is prohibiting effective participation in electronic

commerce. These issues essentially relate to the privacy and security concerns of

users. Recommendations are presented with regard to, inter alia, the guarantee of

individual privacy, security and access to encryption technology, and some of the

resulting challenges to the law enforcement community.

National Electronic Commerce Policy

The terms of reference mandated the NECPC to establish a National E-Commerce

Policy. We wish to sound one caveat. Such a policy cannot be adequately developed

outside of broader national economic development policy concerns. Additionally, given

the very dynamic nature of the targeted environment, any policy formulations must be

part of a living system, prepared to change at any moment in response to environmental

stimulants. This document must therefore not be regarded as a static fait accompli, but

as work in progress subject to transformations both in breadth and depth over time.


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Notwithstanding the above, the report places into proper focus and brings to the table a

number of issues we consider to be very critical at this juncture. We have identified a set

of objectives which we believe should be the main thrust of any current national E-

Commerce policy. Based on these objectives, we have made a number of

recommendations to the government which if implemented, will address the major

issues that have been identified as being important to promote the use of E-Commerce

in the Private and Public Sectors. As a consequence, the document contains most of the

elements which would form important components of a comprehensive National

Electronic Commerce Policy. One omission is the absence of an action plan and

roadmap for implementation. However, it is expected that one of the first tasks for the

National Electronic Commerce Coordinator and Secretariat would be to ensure that the

National Policy Framework for Electronic Commerce continues to be developed,

together with an accompanying Roadmap for execution.

International Activity on Electronic Commerce

As part of its work, the NECPC reviewed work which had been done by a number of

national and multinational agencies with respect to E-Commerce. It was discovered that

there has been a huge amount of work done on this issue all over the world over the last

3 years. A compilation of the documents referenced is listed in the References section

of this report. Some of the bodies whose work had been reviewed by the NECPC or

which the NECPC is aware of were:

FTAA Joint Government-Private Sector Committee of Experts on Electronic Commerce

G7 Conference on Global Marketplace for SMEs - “Electronic Commerce and the Future for SMEs in a Global Market Place”

US Advisory Commission on Electronic Commerce OECD Ministerial Conference - “A Borderless World: Realising the Potential for

Global Electronic Commerce” WTO Work Program on Trade-Related Aspects of Electronic Commerce IDB Informatics 2000 Initiative for Latin America and the Caribbean UNCTAD Trade Efficiency Initiative ITC Executive Forum 2000 - “Export Development in the Digital Economy”


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The issues identified and the recommendations arising from the work of the initiatives

mentioned above, were remarkably consistent. If compared, it will be clear that the

conclusions and recommendations from the various international and multilateral studies

are consistent with the recommendations made in the NECPC’s report. There is clearly

a major worldwide drive underway all over the world to address the issues surrounding

E-Commerce.

Trinidad and Tobago’s own efforts to make itself a part of the new Digital Economy can

therefore benefit from the activities underway around the world; there will be significant

economies in terms of time and effort since the wheel need not be reinvented. But

therein also lies the challenge to Trinidad and Tobago; as the larger, more developed (or

smaller but more aggressive) countries take the steps necessary to stake out their

territories in this Digital Economy, it becomes even more critical that Trinidad and

Tobago act swiftly but in a focussed, well planned manner to take its own place in the

digital economy. It has been said that “even if you are on the right path, you will be run

over by those that are moving faster than you”. The NECPC therefore urges the

government to act on these recommendations with the greatest possible sense of

urgency, and to allocate the resources (financial, human and otherwise) necessary for

expeditious execution of the actions highlighted in this report.


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PART 1

BACKGROUND


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2.0 THE COMMITTEE'S TERMS OF REFERENCE On the advice of the Minister of Trade, Industry and Consumer Affairs, the Cabinet of

the government of Trinidad and Tobago agreed to the establishment of the Committee

with objectives and terms of reference as follows:

Objectives:

(i) to examine the relevant Electronic Commerce (E-Commerce) issues, their likely

impact on both the economic life and social life of Trinidad and Tobago.

(ii) to establish a National Electronic Commerce Policy which would guide Trinidad

and Tobago into Electronic Commerce.

Terms of Reference: To assess Trinidad and Tobago’s readiness to fully engage in Electronic Commerce with

regard to the following and other matters considered relevant by the Task Force –

(i) Legal and Regulatory – examine all the legal issues generated by trade and

other forms of business and personal interaction in the electronic environment

and recommend if required, an appropriate legislative framework. The task

force should seek regional and international cooperation as far as possible to

address these issues. Areas of concern here include but are not limited to –

• The guarantee of individual privacy – the protection of personal information

• Consumers’ rights and obligations • Intellectual property rights • Administration and enforcement of taxation laws • Harmful and illegal content • Jurisdictional conflicts


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• Labour laws • Authentication of transactions and Certificate Authorities

(ii) Technology and Business – examine the required technology and business

infrastructure for efficient and reliable EC and also to build and maintain

confidence and trust in the EC medium. Areas of concern here include –

• Increased broad band capacity - removal of capacity bottlenecks • Liberalization of Trade in Telecommunications and Information

Technology • Standards for interoperability • Security and Access to encryption technology • Electronic Payment Systems

(iii) Universal Access – to recommend a policy for the achievement of universal

and affordable access.

(iv) Economic and Social Implications – to examine the Social and Economic

Implications of Electronic Commerce and related technologies for Trinidad and

Tobago.

(v) Training – examine the type of knowledge infrastructure and knowledge base

that is required at all levels to facilitate efficient interaction in the new electronic

environment.

(vi) The role of Government – to examine and make recommendations on the role

to be played by Government in the promotion of E-Commerce.


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3.0 INTRODUCTION AND BACKGROUND 3.1 ELECTRONIC COMMERCE OVERVIEW Electronic Commerce or E-Commerce may be broadly defined as the delivery of

information, products/services, payments or any other value adding activity via

electronic means. Whilst this simple definition tends to hide the complexity of issues

which E-Commerce addresses, it is however very clear that it covers a wide range of

activities. It is generally inclusive of the entire set of supporting processes for

commercial activity and involves "the enablement of a business vision supported by

advanced information technology to improve efficiency and effectiveness within the

trading process".1 This all-encompassing business-centric view of E-Commerce has

been termed “E-Business” by certain segments of the business world. In the report, we

therefore use the terms Electronic Commerce, E-Commerce and E-Business

interchangeably. In recent times, references to E-Commerce have also assumed that

the technology infrastructure is Internet-based.

Some of older forms of electronic commerce such as Electronic Data Interchange (EDI)

and Electronic Funds Transfer (EFT) have been around for more than two decades, and

have had major and in some cases radical impact in several industries.

Although these technologies have been the agents of substantial transformation in many

cases, they have not attracted the level of attention that has been generated recently,

and continues to be generated by E-Commerce. The big difference is that in the past E-

Commerce applications such as EDI and EFT had been enabled by private

communications networks and restricted to very large corporations because of the high

implementation and maintenance costs involved. Today the emergence of an ubiquitous

inexpensive public network in the form of the Internet, has made the realm of

possibilities virtually limitless. The Internet is now the great enabler of E-Commerce and

forms the backbone of what is today called the Global Information Infrastructure. E-

Commerce is being used by governments, businesses and the general public to


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exchange all types of information (e.g. audio, video, text), reduce operating costs and

increase levels of service. E-Commerce is redefining interaction, reshaping

marketplaces, trading relationships and international trading boundaries. Indeed the

traditional notion of the "nation state" is now being seriously challenged as a

consequence of the ease with transnational enterprises can now function in this new

networked world.

At a high level, an E-Commerce transaction essentially involves two or more parties who

can be categorized as either consumer, business or government. The possible

relationships or levels of interaction would thus be Consumer to Consumer, Business to

Consumer, Business to Business, Government to Business, Government to Consumer,

and Government to Government. In another way it could be said that E-Commerce is

about providing support for all these types of interaction. Ideally, this support should

comprise of a total enabling infrastructure, not only through ensuring that the advanced

information and telecommunications technology infrastructure exist, but also that the

legal, business, financial, social, macro-economic and knowledge infrastructural aspects

are in place.

Figure 1.

Source: F. Fletcher - presentation to UNCTAD E-Commerce seminar. - August 1999.

1 Adam et al - Electronic Commerce, Technical, Business and Legal Issues, 1999, (Prentice Hall).


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3.2 WHY E-COMMERCE? It might be argued that Trinidad and Tobago is a small country, that there are

insufficient general computer skills among the general population, that the penetration of

personal computers into households is too small, that there is no obvious pressing

consumer need to be fulfilled by E-Commerce - that as a consequence, there is no need

to try to drive increased E-Commerce activity at this time in Trinidad and Tobago.

These factors, while they must certainly be taken into consideration by any organisation

considering entry into the E-Commerce marketplace, are not sufficient to offset the

benefits to be derived from increased adoption of Internet and E-Commerce

technologies by both the private and public sectors.

The potential for greatly increased export earnings is tremendously increased for those

enterprises and countries that are prepared to exploit the new technologies. With the

Internet, the traditional questions of “who or where is the customer?” no longer hold true.

The customer can now be literally anywhere in the world, and the Internet is the vehicle

which can allow a supplier to reach its customers far faster, with greater reach, and at

lower cost than via traditional methods.

Organisations or enterprises which implement Internet technologies also have the

opportunity to re-engineer their business processes, which can result in greatly

increased efficiency and effectiveness. This can help them improve their business

results and make them more competitive in today’s increasing fast-paced, competitive

global marketplace.

The reality therefore, is that implementing Internet technologies will bring tremendous

benefits, both at the national level as well as the organisation or enterprise level.


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But because the technology-driven global marketplace is evolving at such a rapid pace,

it is also very important for enterprises which seek to operate in this marketplace to

embrace the new Internet technology with a very strong sense of urgency, so as to

avoid losing unrecoverable ground to competitors.

3.2.1 At the International Level The increasing use of Internet technologies for E-Commerce all over the world has

created an environment full of both new opportunities and threats.

Small developing economies such as Trinidad and Tobago’s find that the Internet will

create tremendous opportunities for market access - well beyond what traditional, non-

digital marketing approaches would have created. Smaller economies have traditionally

been at a disadvantage when attempting to compete against the large developed

countries due to greater difficulties created by less access to resources and markets.

With Internet technology, many of these traditional advantages are neutralised; a small

business in Trinidad can put itself on the Internet as quickly as a large corporation in the

U.S., for example.

Local manufacturers and exporters which move quickly to adopt Internet technology will

therefore be able to become part of the global marketplace, with its greatly increased

potential for revenue and profit growth. With greater success will come corresponding

national benefits - a greater contribution to national earnings through corporate taxes

and increased employment being two of the more obvious benefits.

With the new digital marketplace, this also means that the pace of competition on a

global basis has also increased tremendously, resulting in significantly increased threats

from non-traditional sources. Just as there would now be increased opportunities for

say, a local grower and exporter of anthuriums to find bigger and more varied buyers,

the new Internet-based economy also means that the local exporter could end up

competing with anthurium exporters all over the world.


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In this kind of fast-paced environment, speed to market is essential - not only to gain

initial sales, but more importantly, to develop an entrenched market presence that will be

able to withstand future competitive activity. Thousands of businesses all over the world

are adopting E-Commerce every day, and as time goes by, it will become increasingly

difficult for later entrants to gain market recognition and share because of the increasing

number of competitors in the marketplace.

Over time, most international business in the world will be conducted electronically and

digitally. Businesses which expect to participate in this environment must begin taking

steps to ensure that they are not left behind.

3.2.2 At the National Level The National Economy depends on the success of the business community for many

reasons - a business is expected to be a taxpayer, an employer, a purchaser of goods

and services, and a corporate citizen. Factors which can greatly impact the potential for

success or failure of the business community must therefore be of significant interest to

the Central Government. The Internet and E-Commerce must be counted among such

factors.

Because the Internet reduces traditional barriers to entry to many marketplaces, the

result is an environment of higher risk to many traditional businesses due to the resulting

entry of new and often non-traditional entrants to their marketplaces. For example, the

local financial and stockbroking community has seen a significant increase in the

number of citizens who have begun to make their own stock investments using Internet-

based brokerage operations based in the U.S. It is important for our local enterprises to

recognise this increased risk and to take steps, not only to ensure that they can survive,

but that they can grow and prosper as a consequence of the new business environment.


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From a cultural standpoint, the Internet is an ideal medium to dramatically broaden the

market for local culture. Via the Internet, local carnival bandleaders already take

international bookings for band costumes. Carnival event schedules are already posted

on the Internet, making it easier for people to schedule their attendance at these events.

The Internet can be used to publicise and market cultural products such as calypso

CDs, Chutney, souvenirs, and even steel pans to the rest of the world. Even individual

video and music clips can be sold over the Internet. The net result can be a huge

expansion in income-earning opportunity of our local composers, entertainers,

performers and others associated with Trinidad and Tobago culture. Because of our

tardiness, some of these items and services are already being offered for sale on the

Internet by foreign cyberpreneurs.

Internet technologies are a tremendous enabling technology that can give businesses

the means to greatly improve their efficiency and effectiveness by re-engineering their

traditional business processes. By re-engineering the way they interface with

employees, customers, suppliers and business partners, businesses can dramatically

improve their operations and their business results. With greater success, each

business’ role as a taxpayer, employer, purchaser and citizen will be enhanced, with

national economic benefits for everyone.

A potential side benefit of addressing the inhibitors to E-Commerce and E-Government

is too significant to leave unmentioned. If the government is successful in bringing down

telecommunications costs as one of the prerequisites for enhanced adoption of E-

Commerce and E-Government, this will facilitate the development of new service

industries which are heavily telecommunications-dependent. Businesses such as Call

Centers and Software Development Centers will become much more viable as

telecommunications costs are normally a very significant portion of their operating costs.

Should these new types of businesses flourish in Trinidad and Tobago, they have the

potential of become very significant providers of permanent jobs - far more than the

highly capital-intensive energy sector.


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3.2.2 Government and the Internet

Governments all over the world face the same challenges - how to provide improved

services to citizens while their budgets for recurrent expenditure come under pressure to

be reduced. Today's citizen has become used to improved customer service, better

quality products and services from suppliers, and lower prices, and these standards are

being extended to their expectations of the services that their Local and Central

Governments provide. As a result, increasingly vocal demands from citizens have forced

governments to reassess their models for governance.

The use of Internet technologies is one of the key strategic ways in which governments

have been seeking to address demands of its citizens. The potential for impact on

government services is great - greater convenience through improved accessibility to

government services, greater efficiency and effectiveness of government departments,

and greatly reduced cost of delivering these services to citizens.

By embracing a vision of “E-Government”, governments can radically improve citizen

satisfaction while reducing recurrent expenditure. This would in turn free up funds which

can then be used for much-needed developmental purposes.

3.3 SOME STATISTICS

A brief examination of some statistics would give a much greater appreciation as to

"Why E-Commerce?". In 1999 alone, US$111 billion was generated from E-Commerce.

This number is expected to reach US$1.3 trillion by the year 2003, of which 86% is

expected to be from business to business (b2b) E-Commerce.2 Again in 1999, 39 million

people shopped on-line. This number was up 129% from 17 million in 1998.3 In the U.S.,

by the year 2004, the number of households with Internet access will nearly double to 90

million from the current 45.9 million, whilst business access will go from 6.3 million to 8.3

million.4 When the rest of the world is taken into account, the situation is even more 2 Reuters, January 24,2000. 3 E-marketer, February 2000. 4 E-Marketer, Febrary 2000.


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dramatic. The picture that is being painted is very clear. There is a tremendous

momentum that is engulfing the world's society and economy at an ever increasing rate.

Trinidad & Tobago has to decide whether it wants to be part of it in a prepared manner,

or be swept away unwittingly unprepared.


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4. REPORT METHODOLOGY AND WORK PLAN

In making a decision as to how its terms of reference and Cabinet's mandate would be

fulfilled, the Committee thought it best to divide itself into working groups, given the fairly

wide scope of the terms of reference and the vast subject area that had to be covered.

Each working group would then take responsibility for a particular area. In assigning

subject areas to the working groups, the committee not wishing to reinvent the wheel

considered existing work models of similar committees. Two models were thus

considered, the work programmes of the FTAA5 E-Commerce Experts Group and the

Singaporean E-Commerce policy group. Both these groups had discussed extensively

E-Commerce policy issues. In the end, the committee opted for what was called the

FTAA+ Model, i.e. the four work areas of the original FTAA work programme with a fifth

area drawn from the Singaporean model. In addition to the FTAA's work programme

being a very comprehensive one, there was a general opinion that Trinidad and Tobago

being a member of the FTAA, should be somewhat guided by its deliberations. Four

working groups were thus established based on the first four areas listed below. It was

decided that the fifth area would receive the attention of the entire committee at the end

of the working group sessions.

Working Groups Areas. FTAA+ Model

1. Strengthening the Information Infrastructure

• The development of a world class telecommunications and computing infrastructure

• Liberalization of Trade in Telecommunications and Information Technology.

• Universal Access • Standards for interoperability

5 Free Trade Area of the Americas.


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• Internet Management, including administration and use of the '.tt' ccTLD

(Trinidad and Tobago's Top Level Domain country code)

2. Increasing Participation in E-Commerce

• Training - Raising Skills and Awareness • The role of government

• Government as model users • E-Commerce as basis for transforming administrative government

• Small and Medium sized businesses (SMEs)

3. Clarifying Marketplace Rules

• Intellectual Property Rights • Administration and Enforcement of taxation laws • Harmful and illegal content • Jurisdictional conflicts • Labour laws • Electronic Payment Systems

4. Building Marketplace Confidence for E-Commerce Users

• The guarantee of individual privacy – the protection of personal information • Consumer’s rights and obligations • Validity of electronic documents and digital signatures • Authentication of transactions and Certificate Authorities • Security and Access to encryption technology • Challenges to Law Enforcement

5. Programmes/Strategies to Jumpstart and position Trinidad and Tobago as a leading E-Commerce player.

Given the lack of statistical data, the work had to proceed on the basis of the vast

experience repository of the committee members and the past and current efforts in

international fora.


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5.0 STATE OF E-COMMERCE IN TRINIDAD AND TOBAGO

5.1 COMPUTING AND TELECOMMUNICATIONS INFRASTRUCTURE

Although Trinidad and Tobago possesses a fairly developed technology infrastructure

compared with the other countries of the Caribbean and the rest of the developing world,

there remains a lot to be done to achieve the world class infrastructure that is needed.

5.1.1 The Telephone System

Although being far from ideal, the international telephone system (PSTN)6 remains the

major conduit for global Internet traffic. The circuit-switching system on which the PSTN

is founded does not match well with the packet-switching technologies which enable the

Internet, and suffers from several deficiencies in transporting data other than voice. As it

is today perhaps the only means whereby general access to the Internet and the global

information infrastructure can be universally had, no serious discussion of E-Commerce

can proceed without an examination of the telephone system.

The table below gives an indication of the telephone installation base in Trinidad and

Tobago.

Table 1. Telephone Installation Data as of May 1, 1999

Households with telephones 222058 (80%)

Business Telephones 24584

Main Lines per 100 people 21.0

Cellular lines per 100 people 2.0

Request to Installation time 20 to 30 days

Main Line waiting list 3800

(data supplied by TSTT)

6 Public Switched Telephone Network.


26

Compared with the developing world Trinidad and Tobago has a fairly high universal

service7 rate. Table 1 depicts a relatively high installed base of more than eighty percent

of households. Although lower than rates for countries such as Canada (98%) and the

UK (95%), this universal service rate compares very favorably with countries in Latin

America such as Mexico (28%), Costa Rica (43%) and Chile (15%)8. No information

could be had on the actual in-service figures. This information could have been used to

gauge the effect of the pricing structure on usage levels. Installation timing, however still

lags way behind that of the developed world.

A major factor in determining access to the POTS9 is cost. Table 2 below gives a sample

of telephone access cost data.

Table 2. Telephone Access Cost Data ($TT) - as of May 1, 1999

Cost of 3min local call 0.23 to 1.15

Cost of 3min International Call (to the US) 12.00 to 18.00

Domestic Leased Circuits (Monthly)

• 4.8kps

• 64kps

• 1024kps

- 1760

- 2599

- 5868

International Leased Circuits (US/Canada/UK) (Monthly)

• 64kps

• 2048kps

- 22743

- 227430

(data supplied by TSTT)

7 Universal Service refers to the availability, non-discriminatory access and widespread affordability of telephone service. The level of Universal Service is statistically measured as the percentage of Households with a telephone. From ITU, World Telecommunications development Report, 4th Ed., 1998. 8 National Submissions on List of "Internet Readiness" Indicators - FTAA Joint Government-Private Sector Committee on Electronic Commerce. 9 Plain Old Telephone System.


27

5.1.2 Internet Access

Table 3 shows sample Internet access cost data and aggregated connectivity data.

Although access cost (dial-up) compares favorably with the most of the Caribbean

region, the local Internet user pays more than ten times as much for comparable access

as a US user. For the average business seeking dedicated access, the cost factor given

the figures below would in most cases be extremely prohibitive.

However, the rate of connectivity has been growing steadily for both business and

individual users, with a current level of more than 35000 users, and more than 60000

with email access. This current level represents less than 15 percent of the currently

installed telephone base. There is still therefore much ground that remains to be

covered.

Table 3. Summary Internet Access Data

Internet Access Cost (dial-up) $TT 80.00 per 20hrs to 800

unlimited access

Dedicated Access Cost (monthly) - 64k - T1

- 10000

- 206000

Approx. Number of Dial-Up Lines (Business and Private)

35000

Number of Dedicated Access Lines 55

Number of Email Accounts (private and Business)10

60000

(based on data collected from ISPs by Ministry of Trade, Industry and Consumer Affairs - April 2000)

Although comprehensive data on business access was not available, data from the

Chamber of Commerce showed at least seventy percent of their more than seven

10 The figure here may be understated to the extent that many people possess email accounts not issued by the local ISP. These come from a variety of the free email sources such as hotmail and yahoo.


28

hundred members with some type of access to the Internet, varying from a simple email

address to dial-up or dedicated access to having a complete Internet presence via a

website hosted in their own domain name or in the domain name of a parent company.

Whilst these figures may not apply to the entire business population, they are at least

indicative of a growing trend to get connected.

Additionally, in order to take advantage of many of the available services, broadband

access, i.e. access at high bit rates, must be available. The FCC (Federal

Communications Commission) of the US currently defines broadband as the capability

of supporting at least 200 kilobits per second (kbps) bi-directionally (upstream and

downstream) in the consumer's connection to the network or the "last mile". None of our

existing access methods come close to providing broadband access to the Internet.

5.1.3 Diffusion of Personal Computers and Computing

No data was available on the installed base of computers at any level, business or

residential. However, from the connectivity data above, a plausible assumption for

computer diffusion would be between ten to fifteen percent of local households. If this

figure is reliable, a rate of under twenty-five percent of households with computers is

clearly not acceptable as we begin the twenty-first century.

With regard to businesses, data compiled from several local Chambers of Commerce

shows at least seventy percent of their membership with some sort of computing

access, installed or otherwise. Again, although many of the international giants in

information technology have a presence in Trinidad and Tobago, there exists little or no

information technology based industries, hardware or software.

5.2 LEGISLATIVE INFRASTRUCTURE

Although some in the legal fraternity are of the opinion that many aspects of electronic

commerce can be adequately handled by our existing legal framework, our laws


29

currently do not expressly address E-Commerce issues. However, it is clear that

electronic commerce not only brings totally new legal issues to the table but also

modifies the perspective of many of the existing ones. Trinidad and Tobago has started

to examine the legal questions raised by electronic commerce and currently three E-

Commerce related bills are under the consideration of the Attorney General's Office.

5.3 FINANCIAL AND BANKING INFRASTRUCTURE

According to a statement from the Banker's association of Trinidad and Tobago, it

appears that although the banks are fully cognizant of what is required for true e-

commerce enablement, those services have not yet been made available in the local

payments system. According to the Bankers Association, its members

"… are aware of the trend towards payments for goods and services across the

Internet and individually and collectively have been reviewing strategies to position the

local payment systems infrastructure to support Internet-based payments."

Their statement suggests that the banks are still at a technology and business case

review stage. There is no indication of how long this process will take. In the interim,

businesses that wish to do Internet E-Commerce have to resort to off-line credit card

validation and processing. For heavy transaction based businesses, this is not a viable

option. Such businesses that wish to have automatic processing of Internet payments

may require a relationship with an offshore financial institution. However, the local

Bankers have indicated a willingness to work with their customers on a one on one basis

to come up with "viable solutions for the acceptance of Internet-based payments".

5.4 E-COMMERCE SERVICE PROVIDERS

At the present time, two options are available for businesses wishing to establish an E-

Commerce operation; they can self-host, or they can be hosted by an E-Commerce

Service Provider (CSP).


30

Businesses in Trinidad and Tobago are beginning to move towards E-Commerce, but to

date, there are no full-service E-Commerce self-hosted businesses in Trinidad and

Tobago. A number of businesses which appear to offer full Business-to-Consumer

services (most notably a number of Carnival bands) are actually hosted at commercial

E-Commerce Service Providers in the US. A number of businesses such as CHIC and

NEMWIL have recently begun advertising on-line insurance applications on the Internet,

but these businesses are at the early stages of E-Commerce implementation, with major

manual business process interfaces being required at various stages of the transaction.

At the present time, there are no full-service E-Commerce Service Providers in Trinidad

and Tobago. An E-Commerce Service Provider supplies a service whereby:

• It hosts merchants (sellers of goods or services) at its site • Customers access the site via the Internet and place orders for the goods and/or

services • It accepts credit card payments at the time of the transaction, which are

automatically electronically forwarded for authorization • The customer’s credit card account is automatically debited and the merchant’s

account is automatically credited • Order confirmations and acknowledgements are sent to the customer, and

shipping and delivery instructions are sent to the merchant

The absence of a local full-service CSP is a significant inhibitor for MSME adoption of E-

Commerce. Larger companies with the resources and expertise will be able to either

self-host on their own server, or enter into an off-shore hosting arrangement. In time,

market forces will be expected to encourage one or more private sector businesses to

offer such a service locally. It may be necessary, however, for Government to subsidise

the cost of the service if it wishes to perform an “incubator” function in order to make the

cost of the service affordable to the MSMEs.


31

PART 2

RECOMMENDATIONS


32

6.0 STRENGTHENING THE INFORMATION IFRASTRUCTURE

6.1 BACKGROUND AND OVERVIEW

The foundation of an effective national electronic commerce policy is an information

infrastructure on par with the best in the world. The Government of Trinidad and Tobago

should therefore be committed to the establishment of a state-of-the-art

telecommunications, computing and information infrastructure as national policy. This is

the most critical component and the pivot around which other aspects of the policy will

radiate. A much discussed method of strengthening the information infrastructure, and

one which the NECPC fully endorse, is telecommunications liberalization. Thus far, the

national government has displayed some level of commitment to this by opening up

value-added services, such as broadcasting, Internet service provision and in particular

the cellular service market, to competition. We are also of the opinion that the

undertaking to the WTO11 to open the basic telecommunications market (PSTN) by 2010

should be advanced considerably prior to that date.

A major constraint in the present infrastructure and to the achievement of policy is

limited bandwidth. There are bandwidth concerns at three levels, our connection to the

international backbone, our local backbone and connections from residences and

businesses to the local backbone. There are a total of 8 E-1 (16 mgbs) lines in TSTT’s

network, whereas a small firm in Miami can have as much as has 41 mgbs.

Asymmetric networks are consequently forming where companies are accessing servers

abroad and returning graphic intensive images to Trinidad and Tobago. Greater

bandwidth requirements exist on the down-stream side of traffic switching. TSTT is not

11 World Trade Organization.


33

stopping this, but ISP12 customers are forced to deal with more than one carrier for a

well-performing network that is commercially competitive.

Another limiting factor is the prohibitive costs of dedicated circuits such as a T-1 carrier.

Currently, a local 256k circuit costs about TT$30,000.00 per month, whilst the cost of a

T-1 is approximately TT$200000 per month for a re-seller and $100000 for an end-user.

In addition to its prohibitive cost, the current provision of circuits and bandwidth is far

from what is needed to meet demand. This current limited availability of bandwidth and

circuits has to do with both intra-country and international access.

It is clear that the present carriers will not be able to satisfy Internet requirements in the

near future as the PSTN was not designed to meet both the projected volume and the

type of data traffic. Internationally, networks are currently in development for the GIS;

which is expected to come on-stream in the period 2003-2005. Globally, there are

several commercial ventures in process hoping to meet the needs of the GIS. These

include

(a) Project Oxygen Global Fibre Network with tremendous capacity.

(b) Teledeisic (incorporating Iridium and ICO) will have 275 space segments, providing broad-bandwidth in the sky.

(c) Sky bridge is a new global satellite company, designed to meet the needs of the future Internet e.g., terabits/sec.

All these firms have applied for licenses and permission to do business in Trinidad and

Tobago, and would no doubt bring technologies that would solve our immediate

bandwidth problem. However, in planning our infrastructure, preference should be given

to technologies with the best potential for extremely high rates of data transmission, as

the growth in bandwidth demand is likely to be exponential as new types of applications

are developed. Table 4 below gives an idea of the bandwidth requirements for a sample

of applications.

12 Internet Service Provider


34

Table 4. Bit Rates for a Sample of Applications

Application Representative Rate

(kilobits/second)

V34 Modem over Telephone Voice Circuit 33

Digital telephone voice circuit -

Low resolution conference-quality video (compressed) 200

Compact Disc Audio 1400

VCR quality TV (compressed) 1500

Broadcast quality TV (compressed) 5000

High Definition TV (compressed) 20000

Source: Advanced Telecommunications in Rural America The - Challenge of Bringing Broadband Service to all Americans - April 2000

From the table, it is readily apparent that the FCC's definition of broadband (200 kbps)

would have to be revisited to cater for applications such as HDTV.

With the government’s focus on using Distance Education to expand access to

educational opportunities by all sectors of the population, there will be a much greater

need for affordable high bandwidth Internet access. The Internet will become the

standard technology by which many distance learning programmes will be delivered in

the future.

Another area of concern is the need to ensure that appropriate standards are

implemented and maintained to enable global interoperability. Issues of interoperability

are critical from the interface (browser) level to the network inter-connectivity level. Open

and non-proprietary architectures such as TCPIP are being used by banks and ISP’s

locally today. Trinidad and Tobago and the Caribbean are following the market and

there are no barriers to entry due to standards, which are constantly evolving. We must

be continually market competitive and conscious of technology change patterns, e.g. the

electronic payment terminals, and the shift in the USA towards SSL (Secure Socket

Layer) over SET (Secure Electronic Transaction).


35

The Internet has evolved as a self-regulating entity, and as a general rule should be

allowed to continue to do so in order to foster the same levels of creativity that it has

experienced thus far. However, there are some issues with regard to the management

of the Internet with which we should be concerned at the national level. One such is the

management and use of the "tt ccTLD", the top level domain country code for Trinidad

and Tobago. Use of the "tt" domain relates the site directly to Trinidad and Tobago, and

thus use of the name by rogue sites promoting for example pedophilia, may impact

negatively on the country's image. There is also a need to relate the names being

registered under the .tt ccTLD to the tradenames currently being used in the country.

For these and other purposes, strict guidelines should be laid down for the use of the "tt"

top level domain.

Other regulatory aspects related to the Internet in Trinidad &Tobago are very open.

There are no licensing requirements for ISPs and other Internet related service

providers, and no regulations are in place or anticipated. The question that requires

addressing is the extent to which Internet related activities in Trinidad and Tobago

should continue to be totally self-regulating.

6.2 RECOMMENDATIONS In light of the above considerations and to promote the development of E-Commerce in

Trinidad and Tobago through the strengthening of the Information Infrastructure, the

NECPC submits the following recommendations:

1. For the development of the telecommunications sector and the expansion of

infrastructure policy, implementation must occur to legalize competition and

liberalization to develop the network and meet demand as soon as possible.

2. The Licensing of alternative carriers for ISP’s for upstream and down-stream traffic

should be accelerated with a functioning, autonomous, competent Telecom

Authority. Two possible approaches are:


36

(i) bringing another carrier to create competition; or (ii) introducing newer technologies e.g. 3rd generation cellular able to handle

2mgbs data rates; VSAT’s, DWDM, A-DSL (giving ISP’s more bandwidth to the customer;) enabling web-casting for local consumption.

3. Barriers to accessing higher levels of encryption which confer trade advantages on

the North and foster dependence, must be addressed. Although, the recent

release of 128bps encryption by the U.S. and Canada (which enables security for

banking transactions) is a welcome development and its regularization is

facilitating the growth of e-trade, in all international fora Trinidad and Tobago

should promote the removal of such technology barriers.

4. To reduce dependence, given the sorting out of the limited bandwidth and

encryption release issus, back-end credit card validation by Trinidad and Tobago

and Regional banks should be accelerated to facilitate on-line commerce and

validation.

5. Technology transfer must continue to be a trade negotiation objective of Trinidad

and Tobago to deepen and expand the knowledge base in telecommunications

and information technology.

6. TSTT and any licensed carrier should establish a one call-district price for all

Internet access calls, i.e. a uniform toll rate.

7. Trinidad and Tobago must liberalize to get on board and not be by-passed. Open

access markets must be qualified to ensure effective local participation in joint

ventures, training and technological transfer, fair trade and employment practices.


37

8. Our concept of Universal access should be redefined. The 20/100 teledensity must

be expanded to include subscriber Terminal Equipment for (voice, data, image) at

affordable prices at home, business, school and for rural community centers.

9. Trinidad and Tobago needs to follow discussions internationally on taxation of

E-Commerce, but maintain a ‘Hands-Off’ position with regard to the taxing of

transactions for the time being.

10. Policy guidelines for the registration of Domain names with regard to the .tt country

code top level domain of Trinidad & Tobago should be developed by the National

E-Commerce Coordinator. The Coordinator should ensure that such policy

guidelines are consistent with other international standards regarding top level

domain names (eg., ICANN).

11. The establishment of a ‘National Information Back-Bone’, a data highway enabling

users (especially commercial) all over Trinidad & Tobago to have better intra-

country and international access.

12. Political will must be manifest to push this process forward nationally and

regionally.


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7.0 INCREASING PARTICIPATION IN E-COMMERCE

7.1 INTRODUCTION AND OVERVIEW

In this section the NECPC examined the ways in which country-wide participation in E-

Commerce could be facilitated and increased. The recommendations here were thus

arrived at with the following areas of focus in mind:

1. To increase participation in Electronic Commerce by the Public and Private Sectors with special focus on the Micro, Small and Medium Enterprise (MSME).

2. Government acting as a Role Model with its use of the Internet and E-Commerce.

3. To Facilitate Universal Access to the Internet and E-Commerce by all citizens, especially those who would normally be disadvantaged because of income, education, or geographic location.

From an analysis of available membership data from a number of business associations

(viz., Trinidad & Tobago Chamber of Industry & Commerce, American Chamber of

Commerce of Trinidad & Tobago, South Chamber of Trinidad & Tobago, Trinidad &

Tobago Manufacturers Association), it is clear that internet usage has been growing

rapidly among members of the business community. However, the vast majority of

business users use the internet for e-mail or simple research. and apart from overseas

purchasing from media (CDs, software, books) or electronics (primarily computer

equipment and accessories) suppliers, most companies do not make use the Internet for

E-Commerce purposes. Because of the rate with which E-Commerce is being

popularised all over the world, it is important that the use of this technology be

dramatically increased in Trinidad as soon as possible.

The business community’s primary need is for the Government to be a facilitator - to

create an enabling environment, free from infrastructural and legislative inhibitors as

much as possible. Such an environment would allow entrepreneurial and market forces


39

to operate, which should result in business services being created by private enterprise

to meet business and consumer needs.

At the same time, Micro, Small and Medium Enterprises (MSME) will not usually have

the skills, knowledge, experience or resources to be able to spontaneously and

independently take advantage of the opportunities offered by the Internet and E-

Commerce. For such enterprises, Government needs to recognise the special needs of

this sector and provide special assistance by way of advice, implementation assistance,

access to expertise, and even financial support.

Government can also play a direct role by virtue of its own use of Internet technology

and E-Commerce - first, to transform itself and improve customer service via improved

internal efficiency and effectiveness, and second, by acting as a role model. By showing

the way, Government would be able to serve as a “technology demonstrator”, which

should help stimulate earlier and faster adoption of E-Commerce by the target sectors of

the economy.

In order to increase individuals’ local participation in E-Commerce, the first priority of the

Government is to improve overall access to the infrastructure and tools which underpin

the Internet, namely telephones, computers and the Internet. This is critical to ensure

that the benefits of the new digital economy are accessible to all citizens - especially

those who would not normally have equal access to the new technologies, such as

people who are in low-income households, under-educated, or live in rural communities.

Also very important to this group will be to try to make such access as affordable as

possible.

Government's efforts to increase participation in electronic commerce (E-Commerce)

throughout Trinidad and Tobago should be carried out in five principal ways:


40

1. Government should act as a facilitator to the private sector and to private

individuals by laying the legal, economic and infrastructural framework for the

speedy development of an advanced national E-Commerce infrastructure.

2. Government should act as a co-ordinator for addressing national E-Commerce

issues in both the Public and Private Sectors through the appointment of a National

E-Commerce Coordinator. Among other responsibilities, the Coordinator should

promote the use and benefits of E-Commerce to all parties.

3. Government should act as an educator by increasing access to education

programmes at all levels, in the areas of computer literacy, Internet usage, E-

Commerce, and associated technologies. This is to serve two purposes: to equip

citizens to function in the new electronically driven marketplace, and to ensure that

there will be an adequate supply of people in the marketplace who have the skills

and knowledge to develop, implement and support Internet and E-Commerce

projects.

4. Government should act as a role model in the effective use of E-Commerce by

aggressively implementing Internet technologies in the Public Service and moving

towards the supply of goods and services to the public via the Internet. In so doing,

it should aggressively seek to reengineer its internal processes to be able to take

advantages of the potential benefits which the new technologies make possible. In

this context, Government will move to becoming an E-Government.

5. Government should act as a social program implementor by promoting and

implementing policies which would improve the accessibility to computers and the

Internet by the less advantaged segments of the society.


41

7.2 GOVERNMENT AS A FACILITATOR

7.2.1 Through Increased Public Access to Information Technology and E-Commerce

Government should continue to encourage the widespread purchase and use of

personal computers and Information Technology among members of the general

population by extending its current position of imposing zero VAT and Import duties on

computer hardware and software. low taxes and duties to related equipment such as

telecommunications equipment (modems, hubs, routers etc).

Government should facilitate Internet access and E-Commerce among those citizens

who do not own or have access to computers through the provision of computer and

Internet facilities at geographically dispersed local Community Access Centers. Special

focus can be directed at low-income or geographically remote communities in order to

give these communities the opportunity to benefit from such access.

Government should also work with TSTT to ensure that telephone services are available

in communities which are not currently served. For those low-income areas where there

is likely to be a dependence on Community Access Centers instead of homes as the

Internet access location, consideration should be given to developing a special fee

structure for those Centers which would make the telephone charges as affordable as

possible.

7.2.2 Through the development of an affordable Telecommunications Service Government should adopt pro-competition policies in the local telecommunications

industry by allowing entry of new competitors into the marketplace and by relaxing

regulatory controls as much as possible. This would result in increased access to the

latest technologies and a telecommunications infrastructure with lower, more affordable

prices. As telecommunications costs represent a very significant cost component of an

E-Commerce environment, an affordable and reliable high-bandwidth


42

telecommunications network would be a key prerequisite for greater use of the Internet

and E-Commerce in Trinidad & Tobago.

7.2.3 Through the Proper Consideration of Internet and E-Commerce Issues in National Policy Making

Government should continuously give appropriate consideration of Internet and E-

Commerce issues when developing its national policy agendas. The effective use of

computers, the Internet and E-Commerce are inextricably linked to the general

economic development of the country. Over time, E-Commerce will become the way that

most business all over the world is conducted, and the Government’s success in

effectively addressing issues which arise in this context will become increasingly

important to the survival of small economies such as ours.

TIDCO and the various Trade Facilitation Agencies should also be asked to factor in E-

Commerce and Internet-based initiatives into their existing and future market penetration

and trade promotion programmes. Virtual Trade Shows (e.g.TIDCO's Tradepoint

Network or the excellent model of Southex's Virtual Show - www.southex.co.tt) are low-

cost, high output, high impact approaches that could achieve significantly more than the

relatively inefficient, primary approaches currently being pursued.

7.2.4 Through Special Consideration of the Needs of Micro, Small and Medium

Sized Enterprises In recognition of their role in the national economy as a major employer and their unique

needs, special assistance should be given by the Government to Micro, Small and

Medium Enterprises (MSMEs) to enable them to cope with the barriers to entering the E-

Commerce market. Government should encourage these MSME's to become e-

businesses by helping them overcome their IT related obstacles which are a

consequence of their smaller size and more limited resources.


43

The Small Business Development Company (SBDC) should extend their range of

services offered to assist these enterprises in taking advantage of E-Commerce

technologies. MSMEs will require technical advice and guidance, implementation

assistance, and even financial aid as they make greater use of computers, the Internet

and E-Commerce. This can best be provided by a special IT support unit within the

SBDC. In order for the SBDC to fulfill its expanded role, it will require increased funding

and resources from the Government.

Government should facilitate the development of a cyber-network of information,

guidance and facilitation or "EnterpriseNeTT" for MSMEs and encourage participation by

MSMEs of this facility. The facility could be provided by a State Agency such as TIDCO,

and offered to the MSMEs at subsidised rates. It could be modeled after already

established online communities such as Go2Net's Hypermart. The proposed

"EnterpriseNeTT" could offer MSMEs services such as Website Design, Hosting &

Maintenance among others such as:

• E-Commerce Support, including Shopping Cart Software, Secure Servers and

Merchant Account assistance.

• A Buyers' Cooperative (offering special rates on business supplies and

equipment).

• Continuously updated Online Education and Training in all aspects of business,

and especially in E-Commerce.

• Consultant Database for those enterprises which require additional/specialized

face-to-face or interactive help.

Further collabouration between the various Chambers of Commerce, the TTMA, and

other similar business organisations should be actively encouraged through use of the

"EnterpriseNeTT". Thus, another aspect of "EnterpriseNeTT" could be chatrooms and

bulletin boards/message forums (moderated by significant Business Associations)

where MSMEs could network, obtain, post and exchange ideas and information.


44

One of the major potential benefits of the Internet is its ability to allow local

manufacturers to more easily penetrate overseas markets. Once a sale is made,

however, the supplier then faces a real challenge of how to fulfil customers’ overseas

orders in the very short timeframes that Internet consumers have come to expect. Large

manufacturers address this concern by establishing a stocked “staging area” (e.g., in

Miami for the U.S. Marketplace) from which orders can be delivered very quickly. As

MSMEs do not individually have the resources to establish their own overseas staging

areas, a common staging facility which could be shared by many MSMEs is the ideal

solution. Ideally, this should be a commercial service offered by a private sector

business, but in the event that such a service is not immediately forthcoming from the

private sector, government should take on the role of facilitator and incubator for these

MSMEs by establishing the facility. This will allow the jumpstarting of MSME sales and

market penetration into targeted export marketplaces.

7.2.5 Through the Development of an Easily Obtainable Means of Effecting On-Line Payments.

Government should encourage the banking sector to introduce an instrument which

would facilitate electronic payment for those individuals who would not normally have

qualified for traditional credit cards. Presently, international credit cards are the main

instruments by which the majority of E-Commerce transactions take place on the

Internet. Limited access to credit cards would slow down universal participation in E-

Commerce.

This instrument could take the form of some sort of 'prepaid' electronic transaction card

(ETC) for online transactions. Because it is pre-paid, such a card would therefore be

easily accessible to all citizens irrespective of credit standing or income level. These

ETCs could be effectively Credit Cards which did not have a pre-approved credit limit,

but would be used only so far as the pre-paid debit balance was not exhausted. The


45

normal credit card authorization process that is the backbone of E-Commerce payment

systems would therefore be able to handle these ETC cards.

7.3 GOVERNMENT AS A CO-ORDINATOR

7.3.1 Through the appointment of a National E-Commerce Coordinator Because of the importance of the Internet and E-Commerce to national economic

development and international competitiveness, the Government should accelerate the

introduction of Internet technologies and E-Commerce by establishing a central

coordinating role between the Public Service and the Private Sectors. At the same time,

a coordinating body will also be very helpful within the Public Service itself to coordinate

internal activities relating to E-Commerce.

A National Coordinator should be appointed to work closely with both the public and

private sectors to promote and encourage the use of E-Commerce technologies. This

should be done via a National Coordinator with the necessary authority to gain the

cooperation of members of the Public Service as well as the Private Sector.

The National E-Commerce Coordinator should be supported by an E-Commerce

Secretariat which would provide administrative, research, and professional resources.

This would follow the model successfully adopted in 1999 to coordinate national Y2K

preparedness in both the Public and Private Sectors - namely the appointment of a

National Y2K Coordinator and the creation of a National Y2K Secretariat to provide

administrative, professional and technical support. Similar to the National Y2K

Coordinator, the National E-Commerce coordinator should have rank and status

comparable to the level of Permanent Secretary.

It is recommended that an E-Commerce Public Service Committee be formed which

would be the coordinating body for the Public Service transformation through Internet

technology. The committee should comprise the National E-Commerce Coordinator as


46

Chairman, with members being the NISC Executive Director and senior representatives

of departments and Ministries in the Public Service that would play an important role

such as the Ministry of Information and Communication in the Prime Minister’s Office,

the Ministry of Public Administration, the Auditor General’s Department, the Ministry of

the Attorney General and Legal Affairs, and the Ministry of Finance, Planning &

Development. To the extent that Private Sector individuals can provide assistance

without creating situations where conflicts of interest or access to restricted and

confidential information might arise, such individuals can be invited to participate in the

activity of the Public Service Committee at appropriate times.

The Coordinator and the Secretariat would be expected to perform a variety of roles

such as to:

• Ensure that a comprehensive Policy Framework for facilitating economic development and the movement to E-Commerce and E-Government continues to be developed. This will form the basis for a consensus-based Action Plan supported by all key public and private sector stakeholders. The Action Plan will address issues or concerns which create inhibitors to increased utilization of computers, E-Commerce and E-Government. This would include issues regarding the technology, security, legislative and regulatory frameworks necessary for wider E-Commerce use.

• Coordinate the activities arising from the execution of the Action Plan. In this context, the Coordinator will be required to interface with stakeholders in both the private and public sectors.

• Coordinate and Develop public awareness programs to inform the public, public and private sectors on the importance and benefits of using computer technology in general and E-Commerce.

• Provide a central point of contact and coordination with respect to queries and requests for information or advice on how to implement E-Commerce solutions.

• Identify and facilitate actions towards addressing issues or concerns which create inhibitors towards increased utilization of computers, the Internet, and E-Commerce in both the Public and Private Sectors. This would include issues regarding the technology, security, legislative and regulatory frameworks necessary for wider E-Commerce use.


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• Conduct such field research as necessary and to make recommendations based on the findings as may be suggested in order to achieve the Government’s objectives. In addition, because of the rapid pace of E-Commerce technology changes, field research will also be required to ensure that the Government remains aware of overall international technology changes, and their impact on the local environment.

The National E-Commerce Coordinator should report to a Cabinet Subcommittee

comprising at a minimum, the Ministers of Trade, Industry and Consumer Affairs,

Information & Communication, Public Administration, Finance, Planning & Development,

and Social & Community Development. This would ensure that the high level focus and

sponsorship necessary for success will be present. These key ministries will ensure that

these major objectives are achieved:

• Public Service Transformation to E-Government.

• Business and Economic Development via greater E-Commerce usage.

• Improved Universal Access to computers and the Internet for Citizens as a key strategy for and Citizen and Community Development.

It is also recommended that a Standing Advisory Committee on E-Commerce be

retained which comprises membership from major stakeholders (such as currently the

organizations which currently comprise the National E-Commerce Policy Committee).

This committee would act as an important source of input to the coordinator .

7.4 GOVERNMENT AS AN EDUCATOR

7.4.1 Through the Provision of Information Technology and E-Commerce Training

Government should as a matter of urgency, revamp curricula at all levels of the

educational system in the country, with the objective of ensuring that adequate computer

and IT skills are developed to meet the country’s needs. This would include the Primary,

Secondary, Tertiary and Technical/Vocational areas. Computer and Internet literacy

should be introduced as compulsory subjects beginning at the Primary level with


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continuation into Secondary level. Computer Literacy should be promoted as being as

critical for future employment prerequisites similar to the way in which Mathematics and

English Language are considered fundamental in today’s job market.

At the post-secondary level, it is important for the University of the West Indies and the

technical colleges affiliated with COSTAATT13 to offer appropriate undergraduate,

postgraduate and technical courses in computer studies, the Internet and E-Commerce.

This is extremely necessary to develop a large pool of skilled individuals who would be

needed to develop and implement the systems required by the business and public

sectors.

The UWI and the COSTAATT colleges should be encouraged by the Ministry of Training

and Distance Learning to develop IT technical courses which could be delivered over

the Internet. This would expand the accessibility of post-secondary education to citizens

by making it very convenient for citizens to continue their education regardless of the

location of their place of residence.

7.5 GOVERNMENT AS AN E-COMMERCE USER AND ROLE MODEL 7.5.1 Through increased internal use of computers and the Internet

Government should aggressively seek to increase the use of computers in the Public

Service and use of Internet and E-Commerce technologies to transform the way in

which it conducts its internal processes and deliver services. By changing the way in

which it interacts internally and externally, it can dramatically improve its efficiency and

effectiveness, which would result in greatly improved customer service to the public.

With increased efficiencies and effectiveness, there should be a corresponding

decrease in recurrent expenditures as well as increased revenue. The additional funds

gained can then be redirected towards other pressing requirements.

13 College of Science, Technology, and Applied Arts of Trinidad and Tobago.


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Government should use the Internet to make all relevant information on Ministries,

Departments, Agencies and State Institutions more accessible to the public. Such on-

line information could include: role and functions, location and addresses, contact

information, services provided, hours of service, procedures, processes and regulations,

and would be available on a 7 day per week, 24 hour per day basis. By making this

information available via the Internet, it would greatly increase the convenience to the

public by reducing travel requirements and increasing service hours. By also making

government information more accessible to the public, citizens would also become more

aware of and educated about governance issues.

Government should re-engineer its internal business processes and the civil service

regulations if necessary, to allow for the sale and delivery of products and services to

the public through the Internet. This would include measures to be put in place to enable

monetary payments to be made by the general public to state collecting agencies

electronically - via credit cards and ETCs.

A Public Service work-group should be established as a matter of priority to identify

those issues which will affect Government departments’ ability to deliver services and

accept electronic payments via the Internet. Examples of relevant factors would be

approvals from oversight agencies such as the Auditor General’s department and the

Ministry of Finance, and revising those regulations which would inhibit the receipt of

payments for goods or services.

7.5.2 By Setting An Example For Emulation By Others

Government could play an important role in promoting the use of Internet technologies,

among members of the Public and in the Private Sector by becoming a model user of

these technologies. By becoming an E-Government, thereby “leading the charge”, it will

be in a position to allow private sector enterprises to learn from Government

Departments’ experiences in implementing E-Commerce solutions. This would


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encourage private sector enterprises to accelerate the implementation of these

technologies in their own operations. Furthermore, by implementing state of the art

technologies and processes, Government will become a technology showcase model for

private sector enterprises to emulate.

The modeling will benefit both the Public and Private Sectors; the Public Sector will be

able to use this as a key catalyst for the transformation of the Public Service, while

gaining the benefits of vastly improved efficiency and effectiveness, and the Private

Sector will be able to use the Government’s experience and role modeling to facilitate

faster implementation of their own E-Commerce projects at the same time.

7.6 GOVERNMENT AS A SOCIAL PROGRAMS IMPLEMENTOR 7.6.1 Through establishment of social enabling policies

Government must establish policies which are directed at ensuring that the less

advantaged segments of the society have access to telecommunications and computer

technology. Available research in the United States has shown that there is a growing

“digital divide” between those who have access to the new digital economy and the

Internet and those who don’t, and that the divide exists along the lines of education,

income, region, and race.

Specifically, policies to be adopted by the Government should include:

• Policies which are aimed at ensuring that affordable telephone service is available to all households in the country - even in remote areas. Government should maintain pro-competition policies in the telecommunications industry. This would encourage open-market competition, resulting in overall lower costs and better service to consumers. At the same time, Government needs to ensure that service to rural areas is provided, even thought it might not be financially economical for the telecommunications provider to provide service in these areas. Government should also ensure that the telecommunications service providers are prepared to provide Internet access at reduced rates, subsidised if necessary, to specially categories of customers - such as schools and Community Access Centers.


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• Policies which would have the objective of making computers affordable to as many households as possible - especially low-income households

• Policies which are aimed at making computer and Internet access available to people who cannot afford their own computer or their own Internet access. To this end, as Government moves to de-monopolise the telecommunications industry, it can request that interested entrants include proposals in the License applications for offering reduced-cost telecommunications and Internet access to qualified institutions (such as Community Centres in underdeveloped areas).

• As social, educational and cultural factors are also significant determinants to the willingness and ability to use computers, Government needs to implement outreach and educational programs to help address these factors. These should be implemented as part of the Community Access Centres which are recommended in Section 7.6.4.

7.6.2 Through its management of fiscal policy Through its management of fiscal policy, Government should continue to ensure that

computers can be imported and sold to the public at affordable prices. In this context,

Government should stay the course and maintain its zero-duty and zero-Vat position on

the import of computers and software. At the same time, government should extend

zero-duty and zero-Vat status to telecommunications equipment (e.g., modems, hubs &

routers - which are vital for Internet-access services), as well as Internet services

themselves. Through the resulting reduction in the cost of Internet services, this would

help encourage faster and wider adoption of this new technology by everyone.

7.6.3 Through Tax Incentives Through tax incentives, Government should encourage the private sector to subsidize

computers to employees through company funded or subsidised Employee Purchase

Plans. Government can also consider offering businesses a tax incentive to change their

computers more frequently, provided the replaced computers are made available to less

advantaged and needy organizations or communities.


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7.6.4 Through The Establishment of Community Access Centers (CACs)

Government should establish Community Access Centers (CACs), where members of

the public would be able to learn how to use computers and gain access to the Internet.

These CACs would be particularly important in poorer or more rural communities.

Potential CACs could be located at schools, public libraries, community centers, or post

offices in the target areas if they exist and are suitable for such objectives.

The CACs would be equipped with computers with Internet access. Members of the

public who could not afford their own computers or Internet access would thus to able to

find a facility close to their place of residence to make use of the computers. The CACs

would therefore go a long way towards addressing the “digital divide” which tends to

separate people who have access to the digital economy and the Internet and those

who don’t have access, because of income, education, race, or residence.

In conjunction with the Ministry of Training and Distance Learning or other appropriate

public agency, the CACs could also be used as a computer skills training center. This

would mean that citizens could use the computer facilities as a means to access

computer-assisted training courses as well as Internet-based and delivered education.

The CACs would therefore be a means to help bridge the “education divide” that results

with people who live in remote areas.

Just as importantly, citizens in areas served by CACs would be able to gain access to

Government services (as they are made Internet accessible via E-Government) without

having to incur the burdens of extensive travel times and expenses. Via the Internet

these citizens would have access to the same online Government services as their

better-off, urban counterparts. This would help bridge the digital divide that separates

these two groups in the society.


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8.0 CLARIFYING MARKETPLACE RULES 8.1 INTRODUCTION

The Internet and its associated technologies have clouded for many people the rules

that govern commercial transactions. However many of the principles that apply to

offline transactions should also apply to online electronic transactions.

There are inevitably rules that are linked to the technology of the time in which they were

developed. A key task that would assist in clarifying marketplace rules for electronic

commerce would be the neutralisation of any rules or laws that are inherently technology

dependent. A notable example of these rules and laws are those that require

submissions or signatures “in writing” to be regarded as sufficient evidence.

It would be resource inefficient to seek out each of these rules and laws in order to

amend them appropriately. Canada has passed a Bill that appears to have the objective

of allowing legal acceptance of electronic documentation. Australia now has legislation,

"The Electronic Transactions Act" which became law in December 1999, and which

seems to have a similar objective. New Zealand appears inclined to follow the Australian

law as a model.

It is therefore proposed that:

1. Trinidad and Tobago enact new legislation that neutralises technology related constraints in existing laws which restrict the legal acceptance of electronic documentation and transactions.

In order to clarify the application of existing principles and to properly frame the

appropriate new rules or laws, the areas that are thought most likely to be in some way


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technology dependent have been determined and examined. The results of this work

are outlined in Appendix 3, Guiding Principles for the Recommendations of the NECPC.

The other proposals contained in this section therefore are based on the principles

therein outlined and are designed to clarify the actions that can be taken to implement

the principles proposed in that document.

For convenience the following are extracted from the Appendix.

"Marketplace rules refer to those that govern the code of conduct of parties involved in

business (including government) transactions."

"These rules may be encoded in legislation, agreed by contract or accepted on moral

grounds."

"The growth in electronic commerce in Trinidad and Tobago would be slowed

considerably unless the marketplace rules in certain key areas are seen to be at least as

clear as the existing rules."

"The areas are Intellectual Property Rights, Administration and Enforcement of Taxation

Laws, Harmful and Illegal Content, Jurisdictional Conflicts, Labour Laws, and Electronic

Payment Systems."

8.2 INTELLECTUAL PROPERTY RIGHTS 8.2.1 Ownership of Digital Content Principle Trinidad and Tobago’s Electronic Commerce policy should support provision of

Intellectual Property Rights over digital content and the participation of Trinidad and

Tobago in the international determination of Intellectual Property issues.


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This principle refers to Trinidad and Tobago's support for the owners of original works,

including works available in digital form, to have the right to exclude others from making

unauthorised copies of their work.

The digital technologies make the copying of works without the permission of the owner

easier than ever. That it is easier to break the rules in this area does not suggest that

the principle on which the rule is founded is flawed.

Trinidad and Tobago’s Copyright Act, 1997 was written with digital content included in

mind and also the benefit of the recently concluded WIPO Copyright Treaty and the

WIPO Performances and Phonograms Treaty. In Trinidad and Tobago, therefore,

copying of original digital content in the course of electronic commerce without the

permission of the owner is considered an infringement of copyright.

Given the international nature of electronic commerce, however, it is necessary to

cooperate internationally with other States to ensure mutual respect for the relevant

rights. And it is necessary to encourage as many of our trading partners and others to

similar international agreements.


1. Trinidad and Tobago accede to the WIPO Copyright Treaty (WCT) and the

WIPO Performances and Phonograms Treaty (WPPT) as soon as possible;

2. Trinidad and Tobago actively encourage other States to accede to these Treaties; and

3. Trinidad and Tobago participate actively in the ongoing international discussions on electronic commerce and the protection of original work that take place within the World Intellectual Property Organisation (WIPO).


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8.2.2 Liability of Internet Service Providers Principle Trinidad and Tobago’s Electronic Commerce policy should seek to limit the liability of

ISPs and intermediaries.

This principle refers to Trinidad and Tobago's support for the establishment of Internet

Service Providers and intermediaries in Trinidad and Tobago.

It is proposed that:

1. Trinidad and Tobago enacts legislation that contains provisions clearly limiting the liability of Internet Service Providers and intermediaries in areas that would discourage the growth of Electronic Commerce.

8.2.3 Trademarks and Domain Names

Principle Trinidad and Tobago’s Electronic Commerce policy should seek to discourage the use

of existing trademarks as domain names without the authorisation of the owners of the

trademarks.

This principle seeks to avoid conflicts between trademark owners and domain name

owners that could discourage or retard the growth of electronic commerce.

It is proposed that:

1. The Country Code Top Level Domain (ccTLD) Name Registrar be required to implement the guidelines for domain name registration developed by WIPO.

2. The Country Code Top Level Domain (ccTLD) Name Registrar be linked

electronically to the national trade mark data base.


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3. Trinidad and Tobago consider the establishment of an appropriate mechanism for the rapid resolution of disputes between trademark owners and domain name owners.

8.2.4 Database Protection Principle Trinidad and Tobago’s Electronic Commerce policy should seek to support the

development of appropriate international agreements on the protection of databases

This principle recognises the inherent value to electronic commerce of information and

its organisation and structuring to facilitate its use. The electronic storage, copying and

movement of information challenges the traditional perceptions of how information is

kept secret, when it is in fact copied, and when possession of the information is

transferred to someone else.

Some protection for databases is already available in Trinidad and Tobago under the

existing Copyright Act, 1997 and as trade secrets under the Protection Against Unfair

Competition Act, 1996, amongst other law.

Other States, particularly those that are members of the World Trade Organisation

(WTO) have similar law. An international agreement on the protection of databases

would, however, assist in clarifying the rules in this area.

As noted in the policy principles report, some exemptions should be allowed for access

to specific databases (for example, medical and scientific databases for research, or

meteorological databases) where restricted access might adversely affect the public

good.

Omitted from the policy principles report and so duly noted here is the need to ensure

that such protection for databases does not apply to the “general knowledge, skill and

experience” of individuals like employees of the firm who should be allowed to transfer

this information with them to new employment.


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1. Trinidad and Tobago should hold National Consultations on the development of databases that might have international commercial value; and

2. Trinidad and Tobago, on the basis of information from these Consultations, seek appropriate, advantageous bi-lateral or multi-lateral agreements for the mutual protection and sharing of databases.

8.2.5 Relationship to Competition Law Principle Trinidad and Tobago’s Electronic Commerce policy should seek to discourage the unfair

use of intellectual property in the digital environment

This principle recognises that the holder of an intellectual property right, might, in a

competitive environment, act in a way that unfairly restricts competition. Equally, a

competitor might use the right-holder's intellectual property in a way that is inconsistent

with honest commercial practice. Trinidad and Tobago’s rules and laws in this area

called unfair competition are thought to be sufficiently clear and technology neutral.

The bundling of different proprietary software packages into a single product limits the

choices available to consumers and might, for example, be viewed as an anti-

competitive practice. Our laws against anti-competitive practices, as opposed to unfair

competitive practices, are still being developed.


1. Trinidad and Tobago ensure that its competition policy, laws and rules are all technology neutral.


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8.3 ADMINISTRATION AND ENFORCEMENT OF TAXATION LAWS

The seven principles that should be considered in the administration and enforcement of

the tax laws of Trinidad and Tobago to facilitate electronic commerce were identified and

described in the policy principles report and are listed here for convenience:

• Equity • Simplicity • Certainty • Effectiveness • Un-intrusive • Flexibility • Distribution

Trinidad and Tobago’s current tax systems and structures are already founded on many

of these principles and will therefore continue to be appropriate in spite of the changes

brought about by electronic transactions.

The areas that arise out of E-Commerce that are likely to need some closer attention are

those that are concerned with intermediaries, jurisdiction and the ability to effect

compliance. Again, bi-lateral and multi-lateral discussions should seek to arrive at

agreements on how these issues should be handled.


1. The Board of Inland Revenue should be prepared to determine compliance requirements and to accept payment of taxes using the technologies of electronic commerce;

2. Trinidad and Tobago should seek to conclude bi-lateral and multi-lateral agreements on jurisdiction and taxation as part of its trade negotiation strategy.


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8.4 HARMFUL AND ILLEGAL CONTENT

Principle

No specific principle was highlighted in this area in the policy principles report. Mention

was made, however, of the desirability of providing user-enabled filtering, particularly for

content that might be deemed offensive or blocking of content inappropriate for children.

Mention was also made of the issue of liability in respect of defamatory material, and

truthful and accurate advertising.

In many of these areas, the rules and laws in Trinidad and Tobago are reasonably clear.

As mentioned earlier, legislation should be enacted to ensure that relevant clauses are

neutralised with respect to their dependence on technology.

8.5 JURISDICTIONAL CONFLICTS

It was noted in the policy principles report that these conflicts should be resolved at the

regional or international level. Support was also given to the use of Alternative Dispute

Resolution (ADR) mechanisms. This is particularly important for Micro, Small and

Medium Enterprises that might find the cost of pursuing legal action internationally for E-

Commerce conflicts too expensive.


1. Trinidad and Tobago provide greater support for the use of ADR by commercial enterprises;

2. Trinidad and Tobago include "jurisdiction" as an issue in its international

trade negotiations; and 3. E-Commerce enterprises be encouraged to develop self-regulatory

mechanisms for the avoidance of conflict both locally and internationally.


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8.6 LABOUR LAWS

Principle

This subject was not addressed in the previous report and so some discussion that

might elucidate principles is included here.

The OECD publication, "Economic and Social Impacts of Electronic Commerce",

published in February 1999 and available on the web14 notes the difficulty in forecasting

the effect that E-Commerce might have on jobs.

In Trinidad and Tobago there is likely to be the potential for direct job growth in the

provision of information and entertainment services, software and digital products. The

possibility of job growth should also exist in the financial services sector and the postal

and delivery sectors.

In the local distribution and retail sectors generally there may not be a significant

reduction in jobs for some time as the goods purchased electronically may begin with

those not available from the proximate retail outlets.

In Trinidad and Tobago there are few signs that there will be either growth or reduction

of jobs in the sector that provides infrastructure, although there may be a small increase

with increased local competition. It is far more likely that these jobs will change their

nature rather than their quantum.

The two changes that should be considered further are therefore in the provision of

services and in the provision of infrastructure.

In the services sector E-Commerce is likely to accelerate a change to the employment of

individuals on contract for specific, often time-dependent, activities.

14 http://www.oecd.org/subject/e_commerce/summary.htm


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The principle that should be considered should be for labour related law not to provide

barriers to the movement of labour from one employer to another.

This may require changes, for example, to pension regulations that would be employee

anchored rather than employer anchored. There will also need to be a re-thinking of the

rules for collective bargaining and the way in which bargaining units become recognised.

In the sector providing infrastructure there is little new regulation that might be

necessary for the changes that may take place. Existing regulations and laws

concerning redundancy should suffice. Regulations concerning re-training might be

strengthened as the rate of change of technology suggests that such changes may

become a feature of employment in the sector.

The principle that should be considered should be for labour related law to promote the

evolution or transformation of skills of labour within the company.

On the basis of these two principles the following is proposed:

1. A Committee be established under the Chairmanship of the Ministry of Labour and with representation from labour, business and the Ministry of Education and any other relevant stakeholder to detail ways in which these principles can be implemented.

8.7 ELECTRONIC PAYMENT SYSTEMS

Principle

The principles for the development of these systems are primarily:

• Transparency • Integrity • Security • Auditability


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In addition, as outlined in the previous report, the Central Bank needs to play a

significant role in determining several aspects of electronic payment systems so that the

rules for their use can be clear. These are:

• Evaluation of Vulnerability (determining the products) • The Financial Risk Borne by Issuers of E-money (determining the issuers) • The Supervision of Payment Systems (monitoring the system) • The Operation of Monetary Policy (managing the system)

Trinidad and Tobago’s Electronic Commerce policy should consider each of the above issues.

Note should also be taken of the systems that are being developed in other jurisdictions.

Most of the E-Commerce transactions that are likely to take place initially will be cross

border. Compatibility of the payment systems will therefore need to be addressed

(similar to the way in which differing currencies are exchanged).


1. The Central Bank begin to evaluate electronic payment systems and their requirements in order to determine which should be introduced in Trinidad and Tobago and when.

8.8 CONCLUSION

The clarification of market place rules could become an activity that becomes consumed

by its own minutiae. This should be avoided however possible.

Many of the existing market place rules will apply to the E-Commerce environment.

Those that do not, appear to have fairly easy resolution. This work must be regarded as

a preliminary look at the issues involved. Other countries that are well advanced in their

encouragement of E-Commerce began in much the same manner.


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Clarifying market place rules pre-emptively is undoubtedly a useful exercise. Once the

practice of E-Commerce begins to expand, those entrepreneurs involved will be in the

best position to determine which rules are unclear.

The next step is, therefore, to dedicate full time resources to oversee the implementation

of these recommendations and to respond to new issues as they arise. This, too,

appears to be the path already well trodden.

Trinidad and Tobago has a distinct advantage in that it is small enough and has

sufficient access to resources to quickly implement the infrastructural requirements

without which E-Commerce cannot exist in the first place.

SUMMARY OF RECOMMENDATIONS 1. Trinidad and Tobago enact new legislation that neutralises technology

related constraints in existing laws which restrict the legal acceptance of electronic documents and transactions.

2. Trinidad and Tobago accede to the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT) as soon as possible.

3. Trinidad and Tobago actively encourage other States to accede to the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT) as soon as possible.

4. Trinidad and Tobago participate actively in the ongoing international discussions on electronic commerce and the protection of original work that take place within the World Intellectual Property Organisation (WIPO).

5. Trinidad and Tobago enacts legislation that contains provisions clearly limiting the liability of Internet Service Providers and intermediaries in areas that would discourage the growth of Electronic Commerce.


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6. The Country Code Top Level Domain (ccTLD) Name Registrar be required to implement the guidelines for domain name registration developed by WIPO.

7. The Country Code Top Level Domain (ccTLD) Name Registrar be linked electronically to the national trade mark data base.

8. Trinidad and Tobago consider the establishment of an appropriate mechanism for the rapid resolution of disputes between trade mark owners and domain name owners.

9. Trinidad and Tobago should hold National Consultations on the development of databases that might have international commercial value.

10. Trinidad and Tobago, on the basis of information from these Consultations, seek appropriate, advantageous bi-lateral or multi-lateral agreements for the mutual protection and sharing of databases.

11. Trinidad and Tobago ensure that its competition policy, laws and rules are all technology neutral.

12. The Board of Inland Revenue should be prepared to determine compliance requirements and to accept payment of taxes using the technologies of electronic commerce.

13. Trinidad and Tobago should seek to conclude bi-lateral and multi-lateral agreements on jurisdiction and taxation as part of its trade negotiation strategy.

14. Trinidad and Tobago provide greater support for the use of ADR by commercial enterprises;

15. Trinidad and Tobago include "jurisdiction" as an issue in its international trade negotiations; and

16. E-Commerce enterprises be encouraged to develop self-regulatory mechanisms for the avoidance of conflict both locally and internationally.


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17. A Committee be established under the Chairmanship of the Ministry of Labour and with representation from the National Trade Union Council (NATUC), the Employers Consultative Association (ECA), the Ministry of Education and any other relevant stakeholder to detail ways in which these principles can be implemented.

18. The Central Bank begin to evaluate electronic payment systems and their requirements in order to determine which should be introduced in Trinidad and Tobago and when.


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9.0 BUILDING MARKETPLACE CONFIDENCE FOR USERS OF E-COMMERCE

9.1 INTRODUCTION AND OVERVIEW

The policy principles which informed the recommendations in this section are outlined in

Appendix 3. In coming up with these recommendations, the NECPC focussed on the

following aspects of “Building Marketplace Confidence for E-Commerce Users”:

• The guarantee of individual privacy – the protection of personal information • Consumer rights and obligations • Validity of electronic documents and digital signatures • Authentication of transactions and Certification Authorities • Security and Access to encryption technology • Challenges to Law Enforcement

The Global Information Infrastructure Commission, an independent, non-govern

mental initiative involving communications related industry leaders from developing as

well as industrialised countries, identifies and defines seven major areas of focus to be

addressed under the rubric of consumer protection in electronic commerce, as follows:

• Truth in Advertising- In the electronic marketplace, people lack the face-to-face interaction of the traditional marketplace. In addition, they cannot hold or test a product before they buy. As a result, they must rely on the information presented to them online. Truth in advertising or providing accurate information to the consumer is essential if there is to be a trust in the digital medium.

• Electronic Contracting- Different legal and private sector rules may apply to business-to-consumer transactions. The global nature of electronic commerce poses questions about what requirements are necessary for writing, carrying out, and enforcing contracts.

• Consumer Redress- In order to foster consumer confidence in the electronic marketplace, there needs to be an effective means of resolving consumer complaints or problems.

• Online Fraud- The same types of consumer fraud that exist in the real marketplace are surfacing online. The problem is complicated by the transitory nature of the electronic marketplace and the ability to maintain anonymity.


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• Privacy Protection- The growth of electronic commerce and rapid development of networking technologies have revolutionized the way in which data can be stored, accessed, and processed. Consumers are not likely to participate in the global marketplace without assurances that their personal data exchanged during a transaction will be protected.

• Authentication and Security- Security and authentication mechanisms can provide the means to ensure and maintain the integrity of information being exchanged. These technological advances will help promote trust and confidence in electronic transactions.

• Consumer Education- As with any type of commercial transaction, there are risks associated with electronic commerce that may not be able to be resolved by an updated regulatory scheme or with technology. Consumer education can help provide consumers the information they need to make informed decisions and provide information about the consumers' rights and obligations when conducting electronic transactions.

The NECPC having considered the above basic principles that should guide the

formulation of a National E-Commerce Policy make the following recommendations to

build marketplace confidence for E-Commerce users:-

9.2 THE GUARANTEE OF INDIVIDUAL PRIVACY

Individual privacy is a constitutional right of every citizen, and we must continue to

ensure that safeguards are put in place to protect this right. Consumers are not likely to

participate in the global marketplace without assurances that their personal data

exchanged during a transaction will be protected.

Government should adopt a flexible and responsive approach to the protection of

personal data, including the acceptance of self-regulatory solutions and enact laws that

forbid the disclosure of personal data to other persons, unless so authorized by the

“data exporter”.

Our approach to the protection of personal information should not prevent transborder

data flows and our government should cooperate internationally to ensure a seamless

environment. Current international initiatives to enhance privacy protection on a global

basis should be taken into consideration.


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Government must play a key role in educating the public to use privacy-enhancing

technologies properly. To this end, Government should develop a programme/establish

a web site for the production and dissemination of such information. This should include

active measures to facilitate the introduction of E-Commerce.

9.3 CONSUMERS’ RIGHTS AND OBLIGATIONS

The basic principle in setting standards for consumer protection in electronic commerce

is that the rights of the consumer should not be diminished through the use of the

technology. The consumer should, as a minimum, retain existing legal rights and

protection. Recognition must be given to the following factors:

1. The protection afforded to consumers under existing laws is inadequate and

inappropriate to their needs.

2. The rights of consumers are derived from several scattered pieces of legislation

and the general law.

3. Existing consumer laws are not capable of being adapted to the peculiarities of the

on-line environment, so that E-Commerce will require novel protection and redress

mechanisms.

The development of a comprehensive consumer protection code that will guarantee the

quality of information provided to consumers is therefore imperative. The code should

require the following information:

1. The seller’s legal identity and physical location.

2. The total price of the goods including delivery charges and payment arrangements.

3. Any restrictions or conditions on purchases including warranties or guarantees.

4. Return arrangements.


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5. Mechanisms for handling complaints and offering redress.

6. Retailer’s policy on privacy.

7. Whose laws will apply.

Consumer education by government as well as consumer groups is paramount, if

consumers are to use the Internet with the degree of confidence that will promote the

growth of E-Commerce. Government should encourage consumers to use out-of-court

dispute settlement procedures, including mediation, while maintaining court proceedings

as the ultimate solution. 9.4 VALIDITY OF ELECTRONIC DOCUMENTS AND DIGITAL SIGNATURES

Any law covering digital signatures should be minimal at this time and address the

following basic standards for a law that governs E-Commerce:

1. Electronic disclosures should be permitted only when the transaction is initiated and

consummated electronically.

2. When electronic signatures are required, the technologies used must be reasonable,

reflect an actual intent to sign a document (not merely opening a package of shrink-

wrapped software) and be attached only to documents that are unalterable after the

signature is attached.

3. The consumer should be given the opportunity to accept or refuse disclosures

electronically without surcharges.

4. The consumer must be able to obtain paper copies at a reasonable cost and in a

timely manner.

5. The disclosures must actually be delivered to the consumer's mail address with a

reply requested or must be retained on the seller's Web site for the duration of the

contract.


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6. When disclosures are provided to consumers through a seller's or creditor's Web

site, they must be retained for the duration of the contract.

7. The electronic contract must be accessible and retainable by the consumer. It must

also be provided in a format that prevents alteration after it's sent, so it can be used

to prove the terms of the contract in a court of law.

8. The consumer's failure to respond to the consent request should trigger paper

disclosures, before the failure to respond triggers default.

Digital signature legislation must take into account the practical issues that are important

for consumer protection.

9.5 SECURITY AND ACCESS TO ENCRYPTION TECHNOLOGY Government has a major role to play in educating and empowering the public to

enhance awareness of their responsibilities and ability to exercise choice with respect to

their protection as consumers.

It is crucial for electronic commerce that business and end-users are able to choose the

cryptographic systems that best suit their needs.

9.6 AUTHENTICATION OF TRANSACTIONS AND CERTIFICATION AUTHORITIES Government’s policy should aim to provide a predictable legal framework based on the

fundamental concept of freedom of contract. It should be non-discriminatory;

technologically and architecturally neutral; promote flexibility as to the content, form and

function of certificates and similar authenticating devices; and promote competition

among providers of authentication services.

Rules for evaluating the legal validity of electronic signatures should not be written to

require localisation, local partners, local insurance or guarantee schemes, mutual


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recognition, or otherwise act as trade barriers. Neutral criteria relating to adequacy

should be used to determine recognition.

Our Government should use and recognise standards for electronic signatures that are

technologically neutral, commercially available and should not endorse or favour any

particular solution and should allow for technological innovation.

Our Government should facilitate the emergence of borderless networks of certification

authorities supporting mutual recognition agreements and avoid highly prescriptive

legislation based exclusively on digital signature technology. Our Government should

not impose any licensing schemes that could disrupt such mutual recognition.

Accreditation should be voluntary and based on internationally recognised best

practices.

9.7 CHALLENGES TO LAW ENFORCEMENT 1. Criminalise the unauthorised and intentional interference with computer services,

data and programs, and to the computer or computer network itself;

2. As an intended deterrent, impose very heavy fines and severe terms of

imprisonment for E-Commerce related offences;

3. When requesting, issuing or executing a search warrant or a subpoena,

government’s law enforcement agencies should take due care to cause the least

burden to the operations of the subject firm, to respect privacy and confidentiality

requirements, and not overstep the territorial scope of the subpoena or search

warrant by exploiting computer linkages with other sources in other locations. Law

enforcement agencies should not use the firm’s computers to access or seize

information stored on computers outside their jurisdiction but rather rely on existing

procedures such as mutual legal assistance treaties and legislation;

4. Train a squad of police officers to deal with E-Commerce crimes;


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5. Allow a computer printout or record to be used as evidence in civil and criminal

proceedings;

6. Make computer offences extraditable offences;

7. Since the parent legislation is already in existence, we need to enter into more

mutual legal assistance agreements, both regionally and internationally, and

extradition agreements;

8. Consider special computer training, e.g., short work shops or seminars, for legal

and judicial officers, particularly to sensitize them about this novel area;

9. As an alternative to the judicial process, enact legislation to provide for Alternative

Dispute Resolution (ADR); and

10. Consider contributing to the creation of an International Redress Mechanism.


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10.0 JUMPSTARTING THE E-ECONOMY 10.1. OVERVIEW

In sections 1 to 9 of the report, we identified a number of recommendations designed to

meet our first four policy objectives of:

• Developing a World Class Information Technology Infrastructure • Increasing Participation in E-Commerce by government, businesses and individuals • Clarifying the Rules of the Marketplace and • Building Confidence for Users of E-Commerce

Given Trinidad and Tobago's current low rate of E-Commerce diffusion and a relatively

underdeveloped enabling infrastructure, the NECPC believes that the identification of

programmes to move us quickly towards the development of a true digital economy

would be critical.

In this section we identify programmes which are both immediately actionable and also

give Trinidad and Tobago's electronic commerce agenda the required "shot in the arm".

10. 2 JUMPSTART RECOMMENDATIONS - GENERAL

1. In order to successfully promote Trinidad and Tobago’s Electronic Commerce

Agenda and ensure the achievement of the objectives as outlined in the report, there

is a critical need for an implementation and national coordination mechanism.

Government should therefore move quickly to establish the required structures by

making provisions for the appointment of a National E-Commerce Coordinator with

an appropriate supporting secretariat as outlined in section 7.3.1. The complete

proposal for this national E-Commerce coordinating facility can be reviewed at

Appendix 4. The recurrent cost to government, exclusive of special project costs, is

estimated at TT$1.2m per annum.


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The National E-Commerce Coordinator must ensure the continued development of a

national policy framework for E-Commerce and E-Government, with an

accompanying consensus-based Roadmap for execution. It may be necessary for

external consulting expertise to be used to expedite this process.

2. Given the tremendous potential that E-Commerce holds for contribution to national

economic development, it should immediately be placed on the national policy

agenda. This should be done through the inclusion of an E-Commerce policy in

Government's Medium Term Planning Framework. Appropriate funding for E-

Commerce development should also be provided in the country's National Budget.

10.3 JUMPSTART RECOMMENDATIONS - INFORMATION TECHNOLOGY AND

TELECOMMUNICATIONS INFRASTRUCTURE

The report recognizes our current high cost/low bandwidth telecommunications

environment as a major deterrent to the successful deployment of E-Commerce and the

positioning of Trinidad and Tobago as a regional E-Commerce hub. It is therefore

recommended that Government address this problem by:

1. Taking steps for the deployment of high bandwidth technologies through rapid

liberalisation. This must be not only be supported by the necessary network sharing

and interconnection policies for use of the incumbent provider's facilities but also by

the necessary competition policy and legislation to guard against practices inimical to

the economic well-being of the consumer, such as price-fixing.

2. Inviting recommendations for the development and deployment of a National

Backbone and 'last mile' technologies capable of individual delivery of ultra high

bandwidths such as that required for HDTV (20,000kps+). We believe that in our

planning we should go well beyond the FCC's definition of high-bandwidth.


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Depending on the availability of local expertise to perform this task, it may be

necessary to contract the services of an International telecommunications firm. It

may also be useful for the decision-makers to experience a totally wired community

in action, and as such site visits may be appropriate.

3. Government should immediately move to develop policy guidelines for the

administration of Trinidad and Tobago’s Country Code Top Level Domain (.tt ccTLD).

The National E-Commerce Coordinator should ensure that the ccTLD administrator:

• Implements the guidelines for domain name registration developed by WIPO,

• Electronically links the ccTLD domain name to the National Trademark

database in order prevent cybersquatting15 and other improper uses of

legitimate trademarks and names, and

• Ensures that all top level domain name registrations are consistent with

international standards such as ICANN.

10.4 Jumpstart Recommendations - Increasing Participation in E-Commerce 10.4.1 For Government 1. As the Government itself will be a major potential beneficiary as it embraces the

move towards E-Government, a high-level public service coordinating committee

should be immediately formed to spearhead the transformation. This committee will

interface closely with the National E-Commerce Coordinator to ensure that all the

enter twined private and public sector issues can be addressed in a consistent and

coordinated manner.

15 The practice of reserving a legitimate trade name as a domain name with an intention to later offer the domain name for sale to its legitimate owner in the physical world. This practice is now illegal in the U.S.


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10.4.2 For Business

1. One of the major prohibiting factors for MSMEs in business to consumer E-

Commerce is in the area of logistics. Often quantities are too small to offset high

delivery costs. To alleviate this and other problems, we recommend that staging

facilities be established in the major export markets of North America and Europe to

facilitate exports especially of small businesses. The staging facilities would serve

multiple MSMEs, thereby giving MSMEs the ability to fulfil orders faster, more easily,

and at less cost than would otherwise have been possible. The staging facilities may

take the form of a joint venture between government and the business community.

We recommend that a team drawn from TIDCO, the SBDC, TTMA and the Trinidad

and Tobago Chamber of Industry and Commerce further consider this proposal and

submit full recommendations for its implementation. This effort should be coordinated

by the National E-Commerce Coordinator.

2. Another major impediment to E-Commerce at the business level is a perceived lack

of support from domestic financial institutions for the processing of Internet-based

payments. While local businesses can have their E-Commerce sites hosted offshore

and use offshore Payment Service Providers and Payment Gateways, this can add

additional costs and levels of complexity which would deter all but the most

determined businesses. Government should therefore seek to persuade the local

financial community to become more flexible and aggressive in offering on-shore

payment processing services for locally hosted E-Commerce businesses. 10.4.3 For the General Public

1. Cost of Internet access is a major inhibitor for increased Internet usage. In order to

further encourage Internet usage, we recommend the suspension of Value Added

Taxes on all Internet related services, in particular Internet access. For lnternet

access, the cost to Government in terms of revenue foregone based on current


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usage levels is estimated at TT$6.3m16. This suspension can be for an initial period,

and can potentially be terminated if Government feels that the concession has met

the objectives of the programme in terms of high numbers of Internet subscribers.

As part of the de-monopolisation of the telecommunications industry, Government

should request that potential new entrants into the marketplace include proposals in

their License applications for minimizing the cost of telecommunications and Internet

access to specially designated institutions (eg. CAC’s and Community Centres in

rural areas not well served by roads and public transportation).

2. In Section 7.6.4, the establishment of Community Access Centers (CAC) was

recommended as a means whereby the poorer and/or more rural communities could

gain access to computers and the Internet. Government should therefore move

immediately to ensure that a digital divide is not created or widened by establishing a

pilot project of four CACs to provide basic internet access and computer usage for

selected communities. We expect that these centers would evolve into, among other

things, facilities for the full-scale electronic delivery of government services. The

expected cost per center to Government is estimated at approximately TT$250,000

for set up and TT$300,000 for annual maintenance. A budget is attached at

Appendix 5. This project could be implemented by a team from the Ministry of Social

Development, the Ministry of Information and Communications and the National E-

Commerce Coordinator.

3. A significant inhibitor to the increased use of E-Commerce is the fact that a large

proportion of the population does not hold credit cards, which are the principal forms

of payment in Internet transactions. Government should therefore encourage

commercial banks to introduce an instrument that would facilitate electronic payment

by individuals who would not normally qualify for credit cards.

16 Estimate is based on 35000 users paying an average of $100 per month for Internet access, and a V.A.T rate of 15%.


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4. With a view to building national skills and knowledge in the new electronically driven

marketplace, increased access to education programs in the areas of computer

literacy and E-Commerce is critical. It is recommended that as a first step, Computer

and Internet literacy be made compulsory both at the Primary and Secondary levels

of the education system. Further, tertiary institutions such as COSTAATT and the

UWI should develop a specialized capacity and begin to incorporate the business

and technology aspects of electronic commerce into their programmes.

10.5 JUMPSTART RECOMMENDATIONS - CLARIFYING THE RULES OF THE

MARKET PLACE

1. Government, and specifically the office of the Attorney General should continue its

efforts to quickly put in place a legislative framework which provides for certainty and

predictability in electronic and Internet based transactions. This framework must,

inter alia,

• Be technology neutral. • Clarify the liability of network access providers and other intermediaries for

third party content, as unlimited liability would tend to discourage the growth of E-Commerce.

• Quickly create an enabling environment for electronic applications with the Public Sector.

• Provide for a Public Key infrastructure.

• Ensure that intellectual property laws can deal adequately with the new and

future technology and as far as possible conform to International treaties such as those established by the World Intellectual Property Organization.

2. The Ministry of Trade, Industry and Consumer Affairs and the Office of the Attorney

General should immediately begin a review of existing policies (competition and

other), laws and rules to ensure technological neutrality and the removal of potential

obstacles to electronic trade. There should also be a mandate that all new policies

and laws conform to the technological neutrality requirement.


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10.6 JUMPSTART RECOMMENDATIONS - BUILDING USER CONFIDENCE

Government should quickly move towards providing a safe and secure environment for

all users of E-Commerce.

1. The Ministry of Consumer Affairs and the Office of the Attorney General should

immediately begin a review of existing consumer protection laws to ensure that both

businesses and consumers are protected from the abusive use of the electronic

marketplace, and that adequate recourse mechanisms are provided.

2. Government should ensure that all consumer protection legislation equally protect

both the domestic and foreign user of local E-Commerce. With this, the country can

be positioned as a "safe" E-Commerce zone.

Government should aggressively promote the establishment of regional and

international dispute resolution mechanisms at all fora.


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APPENDICES


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APPENDIX 1

Citizen access to Government via the Internet The number of areas within the Public Service that would lend themselves to an Internet-based interface with the public is extremely large. A sample of areas of public interest where online publication of information would include the following:

The Office of the Attorney General & Ministry of Legal Affairs • The Constitution of the Republic of Trinidad and Tobago • The updated laws of the Republic of Trinidad and Tobago • List of licensed lawyers and legal practitioners within Trinidad and Tobago • The Companies Registry

The Elections and Boundaries Commission

• The current list of voting districts, eligible voters and voting locations (within a reasonable period before the date of any election)

The Ministry of Finance • The annual budget speech, related documents and any other financial

information that would assist in the creation of a well-informed financial environment.

The Board of Inland Revenue • Inquiries via the Internet on the status of submitted tax returns

The Central Statistical Office • Various Publications

The Government Printery

• The Trinidad and Tobago Gazette • Various Publications


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The Ministry of Health • Listing of Medical Practitioners licensed to perform within Trinidad and

Tobago. • List of approved medications and suggested maximum prices.

The Judiciary/Magistracy

• Guide to using the Judicial System of Trinidad and Tobago. • Locations and schedules of the various courts. • Scheduled dates, locations and times for the hearing of cases.

The Land and Surveys Division of the Ministry of Housing • Detailed and current maps of each part of Trinidad and Tobago.

The Central Bank

• Various Central Bank Publications. • Statistics on the performance of the economy.

Parliament • Audio transmission over the Internet of all public sessions of Parliament. • Online listing of past bills and the status of those presently before

Parliament.

The list of opportunities provided above was not intended to be comprehensive. It is expected that once successful pilot projects are implemented in the various departments, the full potential of the capabilities of the Internet will be better appreciated. The biggest barrier to identifying opportunities is the imagination. With experience therefore, many more potential areas will be identified.


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APPENDIX 2

E-Commerce in Government The following list is a sample of some ways in which E-Commerce could be applied to Government processes:

The Customs and Excise Division of the Ministry of Finance • On-line listing of the arrival dates of expected shipments/cargo and the

status of those which have arrived at the sea ports of Trinidad and Tobago. • Electronic submission of documents for advance review to expedite cargo

clearance.

The Inland Revenue Division of the Ministry of Finance • Electronic submission of tax returns. • Electronic receipt of Individual Income Tax, Business Tax and Land and

Property Tax payments.

The National Housing Authority • On line status of a tenant's account status. • On-line receipt of tenant rents.

The Ombudsman’s Office • On line submission of complaints to the Ombudsman.

The National Library • Online listing of material housed at the National Library with borrowing

status.

The Ministry of Public Utilities

• Online display of national weather conditions and forecasts.


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The Ministry of the Attorney General & Legal Affairs • Electronic receipt of payment for document search charges at the Red

House.

The Licensing Division of the Ministry of Works and Transport • Electronic receipt of payments from members of the public.

The Central Tenders Board • On-line announcement of Government Contracts for bidding. • On-line purchasing. • On-line bidding for Government Tenders.

The Ministry of Works

• Use of E-Commerce for payment to suppliers of materials used in construction and development programmes.

The Central Bank

• On-line receipt of payment of access fees and other charges. The Water and Sewerage Authority

• On-line receipt of payments of water rates.

It is expected that once experience is gained within Government ministries and departments, and appreciation of the potential use of E-Commerce and the Internet becomes more widespread, that there will be a dramatic expansion of the identification of opportunities for services to be delivered via the Internet.


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APPENDIX 3

Trinidad and Tobago National E-Commerce Policy Committee

Interim Report – 25th November 1999 Introduction The National Electronic Commerce Policy Committee was established by the Ministry of Trade, Industry and Consumer Affairs in October 1999, and charged with the responsibility of developing a policy which would guide the development of Electronic Commerce in Trinidad and Tobago. The Committee’s work plan is modeled along the lines of the FTAA’s Electronic Commerce Expert Working Group, and its deliberations to date have thus focused on the following four areas -

(i) Strengthening the Infrastructure (ii) Increasing Participation in E-Commerce (iii) Clarifying Marketplace Rules (iv) Building Marketplace Confidence for E-Commerce Users

A fifth area “Programmes to Jumpstart Trinidad and Tobago’s E-Commerce Agenda” will be a part of the final report. This document is an interim report in the form of a government policy statement outlining fundamental principles which would guide the development of Electronic Commerce in Trinidad and Tobago.


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The interim report articulates guidelines which would guide the National Electronic Commerce Policy Committee in its final policy recommendations. It covers four areas, the first of which focuses on the need to develop a world class telecommunications infrastructure. Here the overriding issues are identified as the need for expeditious liberalization of the telecommunications industry and also the need to ensure that usage of the new technology and infrastructure is not restricted to a chosen few. Thus the achievement of universal access is paramount. The second area addresses the issue of how effective participation in E-Commerce can be achieved and increased. Here the main concerns are the role of E-Commerce in economic development, the promotion of business opportunities (especially small business), the very critical role of government in this process and the need for human resource development. One of the major barriers to the growth of global E-Commerce is the absence of clarity in the rules governing E-Commerce transactions. This issue is targeted by the third set of guidelines with regard to Intellectual property Rights, Administration and Enforcement of Taxation Laws, the resolution of Jurisdictional conflicts and Electronic Payment Systems. Finally, the current low level of confidence demonstrated by users of E-Commerce is addressed. Here there are concerns of individual privacy, consumer rights and obligations, authentication, use and validity of electronic documents and digital signatures, and law enforcement.

Summary


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1. Development and promotion of a World Class Telecommunications and Computing Infrastructure

The Trinidad and Tobago Government is committed to the establishment of a state-of-the-art telecommunication and information infrastructure as national policy. The objective of this is not only to enhance local communication, but also to allow us to function as equals in the Global Information Infrastructure. Several constraints to the achievement of this national policy currently exist, a major one being the existence of very limited bandwidth. For example, whereas a small firm in the US may have as much as 41 megabits, the equivalent of only 16 megabits is available on our local network. For the resolution of this and other constraints, and the general promotion of an efficient and robust infrastructure, our actions shall be guided by the following:

(i) Commitment to liberalization of the telecommunications industry and the

promotion of competition, and in particular the guidelines of the World Trade Organization (WTO). Steps already taken in this regard include:

(a) All value-added services, broadcasting and Internet Service Provider’s

are now open to competition. (b) The cellular market is in the process of being opened up to competition. (c) Our 2010 WTO commitment for basic telecommunication (PSTN) is to be

advanced considerably prior to that date.

(ii) Prevention of the development of ‘information apartheid’ by ensuring that all our citizens have the opportunity not only to access the infrastructure at a reasonable cost but also to be provided with the necessary information appliances at affordable prices. In this context, the standard definition of Universal Access will be reconsidered.

(iii) Recognize the evolving nature of telecommunications standards, and ensure regional and international interoperability by promoting the use of open architectures.

(iv) Recognition of the importance of Internet Management and the Domain Name System in particular, and its potential use for both goodwill and harm. Trinidad and Tobago will consider the relocation of the country code (.tt) registration to a legally constituted local authority and participate actively in international fora with regards to the management of the Internet.

(v) Establishment of a National Information Backbone or data highway enabling better internal and external interaction.

(vi) Subscription to domestic and international policies promoting the free flow of encryption technology.


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(vii) Consideration of technology transfer as a trade negotiation objective in order to deepen and expand the base in telecommunications and information technology.

(viii) Recognition of the need for an appropriate transport infrastructure to support E-Commerce.

2. Increasing Participation in E-Commerce

Government is cognizant of the fact that in the new globalized economic environment, technology is one of the main determinants of successful export market penetration. In this regard, Government acknowledges that technological development and technical change are major driving forces which can contribute to increased efficiency and productivity of the structure of production, opportunities for trade and the enhancement of international competitiveness. `Government also sees Information Technology and Telecommunications as important economic and social development tools and as part of an overall strategy for participation by all citizens in nation building and for increasing the productivity of the country to better compete as part of the global economy.

Government also recognizes the significant role of the small and micro business sector in the industrial development of Trinidad and Tobago and the potential of this sector to carve out niches in the market place in which it can operate on a competitive basis. In particular, it is acutely aware of the tremendous opportunities for this sector to increase not only its domestic but also its international competitiveness by the new E-Commerce agenda.

Government moreover recognizes its very important role in promoting acceptance and use by utilizing these new telecommunications and information technologies to increase its administrative efficiency and improve the delivery of services or provide new services altogether, and generally reengineer the public sector.

The government of Trinidad and Tobago is therefore committed to the development of policies to increase the participation in E-Commerce by all sectors of the economy. In developing these policies, it will be guided by the following:

(i) The fact that government and their citizens can benefit significantly from providing services online and using new technologies to meet citizens needs. Governments can reduce costs, be more efficient and productive, provide new and improved services, make available greater amounts of useful information, increase citizen involvement, and ensure their economies participate in the emerging digital economy by utilizing the tools of electronic commerce. Because of their unique role and greater resources, governments can serve as catalysts for the development of electronic commerce within their countries.


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(ii) The need to enhance the participation of small island developing states in electronic commerce, in particular by improving and facilitating inexpensive access to telecommunications services, new markets, and training for human resources, by the users in these countries, and especially by the Micro, Small and Medium Enterprise (MSME) Sector.

(iii) Government will develop an accommodating and supportive legislative and policy environment designed to promote awareness of the myriad of options made available by E-Commerce.

(iv) Trinidad and Tobago will provide an enabling environment to train the country's human resources in the use of IT, the Internet and New Media, to develop an IT professional society, and to actively disseminate the benefits of the use of IT and New Media (including E-Commerce).

3. Clarifying Market Place Rules

Marketplace rules refer to those that govern the code of conduct of parties involved in business (including government) transactions. These rules may be encoded in legislation, agreed by contract or accepted on moral grounds. They have developed over time and govern transactions that take place within sovereign jurisdictions and between parties from different sovereign territories. A reasonable degree of clarity exists for transactions that do not rely wholly on electronic transmission for each element of the transaction from offer to consumption. The growth of E-Commerce in Trinidad and Tobago would be slowed considerably unless the marketplace rules in certain key areas are not seen to be at least as clear as the existing rules.

In this area, we will be guided by the following:

(i) Intellectual Property Rights (IPR) – Our policy here would seek to

(a) Reinforce Trinidad and Tobago’s commitment to the rights of the creators of original works as set forth in the International Agenda of the WTO and the World Intellectual Property Organization (WIPO). The ease with which the unauthorised copying of digital content can take place could act as a barrier to the expansion of electronic commerce involving original works resulting from creative effort.

(b) Limit the Liability of ISPs and other intermediaries, as they may unwittingly host material that infringes intellectual property rights.

(c) Discourage the use of existing trademarks as domain names without the authorization of the owners of the trademarks.

(d) Support the development of appropriate international agreements on the protection of databases.


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(e) Clarify the relationship between IPR and Competition Law. Intellectual Property law provides a right to exclude others from using the property as defined thereby allowing the possible creation of a monopoly. Competition law should first and foremost seek to prevent the abuse of this or any restrictive business practice.

(ii) Administration and Enforcement of Taxation Laws – In examing our taxation with regard to E-Commerce the following principles will apply:

(a) Equity - The tax should not favor electronic commerce over non-electronic

commerce and vice versa.

(b) Simplicity - Administrative costs for the tax authorities and compliance costs for the taxpayers should be minimized.

(c) Certainty - The tax consequences of a transaction are known in advance. That is, the rules should be clear as to what is taxed, when and where the tax is to be paid and accounted for.

(d) Effectiveness - The system should be robust enough to prevent tax evasion and avoidance.

(e) Un-intrusive - The system should avoid economic distortions in that corporate and business decisions should be based on commercial issues rather than on tax considerations.

(f) Flexibility - The system should be sufficiently flexible to ensure consistency with technological and commercial developments.

(g) Distribution - The system should ensure a fair sharing of the tax base among countries and jurisdictions since E-Commerce usually involves cross-border activities, where the provider of the Internet service, the seller of the product/service and the buyer may be in different jurisdictions. As such, the effective administration of tax may require cooperation among countries. Consequently, domestic tax regulations should be structured in coordination with developing international Internet tax principles. This is particularly important as regards the equitable division of the Internet tax base between developed and developing countries.

(iii) Jurisdictional Conflicts –

(a) Promotion of and support for regional and international dispute resolution mechanisms rather than court proceedings.

(iv) Electronic Payment Systems (EPS) – Here the following issues will be

considered


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(a) Transparency – EPS should comply with transparency criteria so users can fully assess the cost and risk of using the system. Useful disclosures for consumers could include information about significant user rights, relevant information on the issuer and its obligations towards the consumers, applicability of any deposit insurance or other guarantees and intentions regarding any use of personal data.

(b) Financial Integrity – This should be based on adequate liquidity requirements to meet demands for funds. As well, appropriate capital controls governing investment policies and internal controls with respect to management policies and procedures should be established.

(c) Technical Security – Implementation of measures in order to ensure protection against fraud, counterfeiting, money laundering, tax evasion, and illegal gambling.

(d) Evaluation of Vulnerability – Evaluations should be conducted of the vulnerabilities of particular products to the risks of criminal usage and attacks.

(e) Auditability – EPS must be auditable in order to ensure that the source, route and destination of each payment can be identified especially for large transactions. This may be required in order to identify, investigate and prosecute individuals engaging in criminal activities like money laundering as is possible with non-electronic payment systems.

(f) The Supervision of Payment Systems – Central Banks as the overseers of payment systems may need to take an active role in the development of e-money products since deposit taking institutions within the financial system are likely to be involved in the issuance of E-money. As with other payment or banking products the risks associated with e-money will have to be properly managed. In this respect the determination of the acceptable level of risk is a key issue. Further, systemic risk concerns must be addressed with respect to the likelihood that the failure of one scheme could threaten the viability of the others and EPS on the whole.

(g) The Operation of Monetary Policy – The implications for monetary policy become of particular concern where an extensive substitution of E-money for banknotes impacts on the monetary aggregates (particularly narrower definitions) and the ability of the Central Bank to implement effective monetary policy through traditional means of reserve requirements. Under this scenario, Central Banks will have to determine whether it is useful to extend the coverage of the reserve requirement to E-money or opt to issue e-money themselves. The implications of these two options are extensive and must be investigated further.


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(h) The Financial Risk Borne by Issuers of E-money – The determination of who can issue e-money. The selection f the range of E-money issuers will have to be based on the level of regulatory oversight that the Central Bank will wish to maintain as well as ability of the national authorities to update existing legislation and introduce new laws to govern the issuance of E-money.

4. Building Marketplace Confidence for E-Commerce Users

The Government of Trinidad and Tobago recognizes that a major impediment to the proliferation of global E-Commerce is the low level of confidence in the medium by users. Our efforts to build marketplace confidence will therefore be guided by the following:

(i) The guarantee of Individual privacy. It should be recognized that

(a) Individual privacy is a constitutional right of every citizen and safeguards

must be put in place to protect these rights.

(b) In an E-Commerce environment the free flow of information should not be restricted except it is done to preserve the sanctity of those rights while at the same time, leaving room for choice.

(c) The State must play a key role in increasing awareness of the risks involved in trading in this new environment, in order to facilitate informed choice.

(d) An appropriate balance must be established between the interest of the private sector in not hindering the growth of E-Commerce and that of the individual in securing his/her right to privacy.

(i) Consumers’ rights and obligations

(a) In setting standards for consumer protection, the rights of the consumer should not be diminished as a result of the use of Internet technology.

(b) The protection of consumers’ rights is essential to the building of trust in the commerce environment.

(c) The right to information is a key element of consumer protection.

(d) The consumer should be informed of the type of information which is required, whether it will be stored and if distributed, to whom.

(e) A consumer whose personal information is to be stored and distributed should have the right to give prior consent.


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(f) A consumer should be informed of the means of redress in case his information is misused and in case of any breach of the contract.

(g) The State should educate the consumer with respect to his privacy rights as it relates to E-Commerce.

(ii) Authentication, Use and validity of electronic documents and digital

signatures.

(a) The law must accord equal status to electronic documents and digital signatures as is given to paper documents and hand written signatures in the physical world.

(b) There must be continued freedom of contract. The law should not force parties to only use electronic contracts – the right to use paper contracts should continue to be an option.

(c) Consideration should be given to the establishment of minimum technology neutral standards to govern the use of digital signatures’ technology.

(d) The role of Certifying Authorities, whether privately or publicly controlled in the infrastructure should be recognized.

(iii) Law Enforcement

(a) In the settlement of jurisdictional conflicts and the problem of cross-border enforcement an International Redress Mechanism is to be preferred to Court litigation.

(b) Law enforcement may be enhanced by the establishment of a Computer Emergency Response Team (CERT), entering more mutual legal assistance agreements, and ensuring that the related offences are extraditable offences and the relevant extradition agreements are entered into.

(c) Training and development of Law Enforcement Personnel and Legal and Judicial Officers in the new technology.


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Appendix 4

Proposal for the Establishment of a National E-Commerce Coordinating Unit. 1. Overview. Based on a recommendation in the National Electronic Commerce Policy Committee interim’s report of December 1999, and recognizing the important role that E-Commerce has to play in the economic development of Trinidad and Tobago, Cabinet agreed to the formation of an Electronic Commerce unit based in the Ministry of Trade, Industry and Consumer Affairs. The unit will be based on the model successfully employed in the coordination of the country’s National Year 2000 preparedness and will consist of a National E-Commerce Coordinator supported by a National E-Commerce Secretariat with the necessary professional and administrative staff. Similar to the National Year 2000 Coordinator, the National E-Commerce Coordinator will assume a ministry spanning role, working closely with all ministries and the private sector to encourage and promote the use of E-Commerce technologies. The unit should have a life of five years in the first instance after which it should be subject to review. 2. Objectives and Terms of Reference. The unit, comprising the National E-Commerce Coordinator and the National E-Commerce Secretariat, will serve as the key instrument of the Government of Trinidad and Tobago through the Minister of Trade, Industry and Consumer Affairs to ensure the development and implementation of the National E-Commerce Policy and Strategy. The unit will be charged with the following responsibilities, inter alia: 1. Ensuring that a comprehensive policy framework for facilitating economic

development and the movement to E-Business, E-Commerce and E-Government continues to be developed.

2. Ensuring the development of a consensus-based action plan based on the policy

framework. 3. Coordinating the activities arising from the execution of the Action Plan, interfacing

with stakeholders in both the private and public sectors. 4. Coordinating and Developing public awareness programs to inform the public, public

and private sectors on the importance and benefits of using computer technology in general and E-Commerce in particular.

5. Providing a central point of contact and coordination with respect to queries and

requests for information or advice on how to implement E-Commerce solutions.


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6. Identifying and facilitating actions towards addressing issues or concerns which

create inhibitors towards increased utilization of computers, the Internet, and E-Commerce in both the Public and Private Sectors, including issues regarding the technology, security, legislative and regulatory frameworks necessary for wider E-Commerce use.

7. Conducting such field research as necessary to identify patterns and trends in the

adoption of computers and the use of the Internet by the public, the business community and the public service, and to make such recommendations based on the findings as may be suggested in order to achieve the Government’s objectives.

8. Engaging in continuous technology scanning in order to ensure that the Government

remains aware of overall international technology changes, and their impact on the local environment, by, among other things, participating in local, regional and international seminars and conferences.

9. Representing Trinidad and Tobago at regional and international E-Commerce related

events. 10. Maintaining a Web presence with information on E-Commerce activities in Trinidad

and Tobago. 11. Engaging in any other E-Commerce related activity as directed by the Minister of

Trade, Industry and Consumer Affairs. 3. Structure and Staffing. The Coordinating Unit will be under the aegis of the Minister of Trade, Industry and Consumer Affairs and comprise the National E-Commerce Coordinator and the supporting secretariat. The Secretariat will provide multi-disciplinary support for the National Coordinator and be made up of a small and efficient staff having independent facilities with particular reference to:-

• Professional/Technical/Administrative/Secretarial Staff • Space (Administrative Office) • Mailing Address and • Information Technology/Facsimile/Telephone Facilities

Recommended staffing for the Secretariat is as follows:-


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• 1 Director • 1 E-Commerce Specialist/Advisor (Technology) • 1 E-Commerce Specialist/Advisor (Business) • 1 E-Commerce Specialist/Advisor (Legal) • 1 Administrative Assistant • 2 Clerical/Secretarial

Organization Chart It is proposed that staff be employed on a contractual basis for a period of two years initially. Given also the dearth of quality IT personnel, especially in the relatively new field of E-Commerce, consideration may have to be given to source personnel externally. 4. Roles and Functions of Principal Officers. National E-Commerce Coordinator. The National E-Commerce Coordinator will report to the Minister of Trade, Industry and Consumer Affairs as Chair of the Ministerial E-Commerce Sub-Committee and have overall responsibility for developing and implementing the National E-Commerce Policy Framework and ensuring that all the responsibilities of the Coordinating Unit as outlined above are carried out in an effective and efficient manner. Specifically the Coordinator will be required to, inter alia,:

Director

E-Commerce Specialist(Technology)

National E-Commerce Coordinator

E-Commerce Specialist(Business) E-Commerce Specialist

(Legal)

Administrative Support


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1. Ensure that a comprehensive policy framework for facilitating economic development and the movement to E-Business, E-Commerce and E-Government continues to be developed.

2. Ensure the development of a consensus-based action plan based on the policy

framework.

3. Coordinate the activities arising from the execution of the Action Plan and interfacing with stakeholders in both the private and public sectors.

4. Monitor the progress of E-Commerce initiatives. 5. Work with public and private sector stakeholders to develop best practice

approaches. 6. Promote and develop general education with respect to E-Commerce in the

public and private sectors.

7. Identify and facilitate the implementation of E-Commerce projects in the public sector.

8. Provide leadership and Guidance to the Public Sector with respect to E-

Commerce.

9. Represent the country at regional and international E-Commerce related events. 10. Undertake any other E-Commerce related activity as directed by the Minister.

In order to facilitate high-level interaction with the rest of the Public Service and the Private Sector, similar to that which obtained for the National Y2K Coordinator, the National E-Commerce Coordinator should be accorded or assigned the status of Permanent Secretary. Director – National E-Commerce Secretariat. The Director will report to the National E-Commerce Coordinator and overall will be required to manage and direct the efforts of the Secretariat in support of the Coordinator in the execution of his mandate. Additionally, the Director will be required to:-

1. Coordinate the activities of the E-Commerce Secretariat. 2. To assist the Coordinator in ensuring the continued development of the National

E-Commerce Policy Framework.

3. To assist the Coordinator in ensuring the development and implementation of the National E-Commerce Action Plan.


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4. Develop and implement mechanisms to monitor progress of E-Commerce initiatives.

5. Develop and implement public awareness and education programmes in the area

of e-commerce for the public and private in particular, the small business sector.

6. Building a repository of E-Commerce related information. 7. Directing such field research as necessary to identify patterns and trends in the

adoption of computers and the use of the Internet by the public, the business community and the public service.

8. Engage in any other activity related to effectively supporting the National

Coordinator as directed by the National Coordinator. E-Commerce Specialists. The E-Commerce Specialists will form the core of the Secretariat and be responsible for providing multi-disciplinary high-level professional and technical support and advice in their respective areas in support of the Secretariat’s responsibilities. E-Commerce Specialist (Technology).

1. Provide technical advice as to best practice implementation of E-Commerce projects.

2. Evaluate and recommend technology options for E-Commerce projects.

3. Work with the Coordinator and the Director to ensure that the National E-

Commerce Policy Framework and Action Plan have a sound technological footing.

4. Generally act as a technology consultant on identified projects.

5. Identify and facilitate actions towards addressing issues or concerns which create

inhibitors towards increased utilization of computers, the Internet, and E-Commerce in both the Public and Private Sectors, including issues regarding the technology.

6. Work with the Ministry and Education and other Educational authorities to

develop E-Commerce technology curricula at primary, secondary and tertiary levels.

7. Keep abreast of all technological developments in the field of E-Commerce, to

ensure the best technology choices are made. 8. Perform any other activity as determined by the Director or National Coordinator.


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E-Commerce Specialist (Business)

1. Work with elements of the public and private sector to identify and develop e-commerce projects.

2. Develop and implement e-commerce business education programmes for the

private sector, in particular the Small, Micro and Medium sized Enterprises.

3. Work with the Ministry and Education and other Educational authorities to develop E-Commerce business curricula at primary, secondary and tertiary levels.

4. Work with the SBDC and the small business community to identify appropriate

cyber projects and develop business cases.

5. Perform any other activity as determined by the Director or National Coordinator. E-Commerce Specialists (Legal)

1. Develop a knowledge repository with regard to the legal aspects of E-Commerce. 2. Provide advice on the legal implications of E-Commerce initiatives. 3. Work with the Coordinator and the Director to ensure that all legal aspects of E-

Commerce has been adequately handled in the National E-Commerce Policy Framework and Action Plan.

4. Work with the Office of the Attorney General in identifying and developing

required E-Commerce based legislation.

5. Keep abreast of developments in the emerging field of E-Commerce law. 6. Perform any other activity relating to the legal aspects of E-Commerce as

determined by the Director or National Coordinator. 5. Operating Budget The operating costs of the unit is estimated at $1m per year, with initial equipment cost of $175,000. Over the expected life of the unit, total costs are thus estimated at $5,175,000. A detailed cost estimate is attached. Note that this estimate does not include a provision for consultancies.


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Proposed Budget for National E-Commerce Coordinating Unit.

(12 month period)

Staff Salaries and

Allowances

Salary Travel Other National Coordinator 1 18000 1250 231000 Director 1 15000 1000 192000 E-Commerce Specialists 3 12000 1000 468000 Administrative Assistant 1 6000 800 81600 Clerical/Secretarial 2 3500 84000 1056600 Office Equipment PCs 6 10000 60000 Notebooks 3 20000 60000 Printers 2 20000 40000 Fax 1 3500 3500 Photocopier 1 12000 12000 175500


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Appendix 5

Community Access Centres Pilot Project Estimated Cost per Centre.

SET UP COSTS Internet Access Appliances

Personal Computers

20 9000 180000

Printers 2 7000 14000 Software 12000 12000 Furniture Tables 22 550 12100

Chairs 22 350 7700 Proxy Server (Hardware) 7000 7000 Installation and Set-Up 9600

232800 Contingency 23280 Total Set up Cost. 256080

RECURRENT MONTHLY COSTS

System/Admin Mgr. 10000 Admin Asst./Help Desk 5500 Supplies 500 Security 2000 Rental of Facility 2000 Internet Access 800 Telephone Access (3 lines) 300

21100 Contingency 2110

23210

Yearly Cost Of Maintaining Facility 278520

1. Cost assumes that the current licensing arrangement with Microsoft is used for software access. 2. No provision is made here for any site conversion. This would depend on the actual site that is selected.


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Appendix 6

SELECTED REFERENCES 1. First Annual Conference on Global Marketplace for SMEs - G7 (April 1997) 2. OECD Ministerial Conference papers- “A Borderless World: Realising the Potential

of Global Electronic Commerce”

a. Conference Conclusions b. OECD Action Plan for Electronic Commerce (October 1998) c. A Global Action Plan for Electronic Commerce prepared by Business with

Recommendations from Governments (October 1998) d. The Economic and Social Impact of Electronic Commerce: Preliminary

Findings and Research Agenda (August 1998) e. SMEs and Electronic Commerce (September 1998)

3. OECD - “Dismantling the Barriers to Global Electronic Commerce” (November 1997)

4. FTAA Joint Government-Private Sector Committee of Experts on Electronic Commerce - Working Papers, Reports, Notes by the Chair

i. Electronic Commerce: The Small Business Experience in Canada

ii. Governments as Model Users

iii. Chair’s Paper - Network Access/Reliability and Electronic Commerce

iv. Chair’s Note - Standards and Electronic Commerce

v. Tables relevant to the Chair’s Briefing Notes on Electronic Commerce and Small Economies

vi. Note from Private Sector Group (US Delegation) - Electronic Commerce

vii. Notes from the Fourth Meeting - Indicators relevant to the determination of Internet “readiness” of FTAA members

viii. Briefing Note by the Chair - Electronic Commerce and Business Facilitation: Implications for Small and Medium-Sized Enterprises (SMEs)

ix. Briefing Note by the Chair - Electronic Commerce and Business Facilitation: Electronic Commerce for Small and Medium-sized Enterprises (SMEs)

x. Chair’s Note - Electronic Commerce & Business Facilitation: Implications for Small Economies

xi. Briefing Notes - Electronic Commerce and Business Facilitation: Business Users


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xii. Briefing Note by the Chair - Electronic Payment Systems

xiii. Briefing Note by the Chair - Taxation and Payment Issues: Practical Aspects of Collecting Tax Revenue

xiv. Briefing Note by the Chair - Taxation and Payment Issues: The Implications of Electronic Commerce for Domestic Taxation

xv. Briefing Note by the Chair - User Issues: Building Market Place Confidence for E-Commerce - Security, Encryption, Authentication and Digital Signatures

xvi. Briefing Note by the Chair - Consumer Protection Issues in Electronic Commerce

xvii. Briefing Note by the Chair - Protection of Privacy in Electronic Commerce

xviii. Position Paper of the Argentine Delegation, Private Sector

5. United Nations Commission on International Trade Law - Report of the Working Group on Electronic Commerce (February 1999)

6. International Chamber of Commerce - ICC Guidelines on Advertising and Marketing on the Internet (http://www.iccwbo.org/Commissions/Marketing/Internet_Guidelines.html)

7. ‘Electronic Trading for Local Authorities, County Councils and Central Government” - joint production of the Swedish Association of Local Authorities, Association of Swedish County Councils, and the Government of Sweden (June 1997)

8. UNCITRAL Model Law on Electronic Commerce with Guide to Enactment (1996) with Additional Article 5 as adopted in 1998

9. Singapore Electronic Transactions Act 1998

10. Singapore Government Electronic Commerce Web Site (http://www.ec.gov.sg/polic.html)

11. Report of the Ad-Hoc Group of High Level Private Sector Experts on Electronic Commerce

12. Attorney General’s Electronic Commerce Expert Group (ECEG) - (http://www.law.gov.au/advisory/eceg/eceg.html)

13. President William J. Clinton - “Framework for Global Electronic Commerce” (July1997)

14. (US) Advisory Commission on Electronic Commerce - Issues and Policy Options Paper (12-3-1999)

15. U.S. Government Working Group on Electronic Commerce - First Annual Report (November 1998)


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16. European Commission - “Electronic Commerce: EU Policies and SMEs” (September 1998)

17. The Electronic Commerce Advisory Council (State of California) - “Defining Government’s Role in Internet Electronic Commerce” (November 1998)

18. IBM Corporation White Papers - “Living in the Information Society” i. E-Commerce - Summary

ii. Understanding Internet Content Principles

iii. Making Electronic Commerce Work

iv. Understanding the Global Information Infrastructure

v. Protecting Privacy and Securing Data

vi. Taxation of the Internet

vii. A Global Cryptographic Policy Framework

viii. Public Sector: Government Strategic Issues

ix. Rethinking Government

x. Small and Medium Businesses in the Global Networked Economy

xi. Transforming Developing Countries with Network Computing

xii. Assuring Access for All

19. IBM Corporation Institute for Electronic Government - “The Quest for Electronic Government: A Defining Vision” (July 1999)

20. Adam, Nabil et al, ELECTRONIC COMMERCE, Technical, Legal and Business Issues, 1999, Prentice Hall.

21. Negroponte, Nicholas, being digital, 1995

22. Tapscott, Don, The Digital Economy, Promise and Peril in the Age of Networked Intelligence, 1996, McGraw-Hill.

23. International Chamber of Commerce: Second edition of the global Action Plan for Electronic Commerce: 27 Sept 1999.

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