Thank you, Ambassador Choi,

Executive Director Arancha González,
Distinguished guests,
Excellencies,
Ladies and gentlemen,

Good morning.

I’d like to start by congratulating the MIKTA countries — Mexico, Indonesia, Korea, Turkey and Australia — for their initiative and for inviting me to join in these discussions.

It is clear that electronic commerce provides some huge opportunities — for growth, development and job creation.

Therefore, I think it is equally clear that the international community should strive to ensure that these opportunities are made available to all.

E-commerce has been a feature of international trade for quite some time, but its importance has increased substantially in the past decade. The rapid technological advances and the steady increase in the number of internet users are changing the traditional way of doing business and conducting trade.

The numbers speak for themselves.

Between 2000 and 2015, Internet penetration increased from 6.5 per cent to 43 per cent of the global population.

In 2013, global business-to-consumer e-trade accounted for an estimated $1.2 trillion.

Meanwhile, the value of global business-to-business e-trade exceeded $15 trillion.

By reducing the trade costs associated with physical distance, e-commerce allows businesses to access the global marketplace, reach a broader network of buyers and participate in international trade.

Broader dissemination of such technologies also means that the trade opportunities generated by e-commerce are also available to businesses in developing countries, with some of them making significant headway in recent years.

But there is a long way still to go. Four billion people in the developing world remain offline. Of the nearly one billion people living in LDCs, around 850 million do not use the Internet. So this is a major challenge.

Being connected is essential — but we can’t just assume that people will automatically benefit from greater opportunities once they are online. It is a necessary condition, but it is not sufficient. A range of other economic and technological barriers can still cause problems — such as underdeveloped financial and payment systems, low consumer trust, and weak legal and regulatory frameworks.

Bigger companies have the ability to get around these problems, while smaller companies often do not.

It was not surprising that e-commerce was a major topic at the workshop last month on Micro, Small and Medium Enterprises (MSMEs), which was organized by another group of Members.

So I think it could be useful to look at how new technologies can facilitate the participation of smaller players in the global economy.

We could look, for example, at how we can ensure that, through multilateral rules, MSMEs benefit from harmonized procedures and reduced operational costs.

We could look at how we can support small suppliers to market their products in a timely fashion, with competitive prices and reliable customer support. This would help consumers to have full confidence in buying from MSMEs in the digital environment. Otherwise, consumers will always prefer the well-known big suppliers.

There are a range of interesting ideas out there. I have met with a number of people from the industry in recent weeks, including the founder of Alibaba, Jack Ma. He is proposing the creation of e-hubs, or digital free trade zones, for small firms. We will continue that discussion in the weeks ahead.

The intersection between MSMEs and e-commerce was also raised by business representatives at the ’Trade Dialogue’ event that we facilitated here at the WTO on 30 May.

Some 60 business leaders attended that meeting, representing small and large companies, from developed and developing countries.

They identified e-commerce as an area where the WTO can make an important contribution. In addition to MSME issues, they also suggested that steps could be taken on:

• enhancing transparency and non-discrimination;
• harmonizing e-commerce practices and procedures, and;
• improving consumer protection.

So I think those conversations have provided some food for thought.

Clearly, the debate is complex and encompasses a wide range of issues, but it is interesting that some themes seem to recur.

I think it is important now that we take time to engage in these discussions. We need to better understand this subject — and so this workshop is very welcome. And I am pleased to see there are a range of different organisations and perspectives represented here today.

In exploring these issues, I think we should seek to build on the work that is already under way. UNCTAD, the ITC, and others, are working on these issues. WTO Members themselves are continuing their conversations in the context of the Work Programme on e-commerce, under the stewardship of Ambassador Suescum, as the Friend of the General Council Chair on e-commerce.

But, perhaps as a result of our two successful ministerial conferences, it seems that the debate is significantly more dynamic than it has been in recent years. There is a new air of openness and positivity, which I think has to be a good thing.

Now it is for Members to decide whether and how to take these discussions further within the WTO.

It is encouraging that one member has already put forward a non-paper on e-commerce issues, and I understand that others may also be forthcoming.

I hope that today’s workshop takes us closer to understanding the challenges and opportunities offered by e-commerce — and that it provides some meaningful, concrete ideas which can be fed into further discussions.

So I urge you all to have a very focused and results-orientated conversation on how the WTO can help.

I am looking forward to hearing the outcomes of your deliberations.

Thank you.