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OPENING STATEMENT BY
MR. KIM HAK-SU
UNDER-SECRETARY-GENERAL OF THE UNITED NATIONS
AND THE EXECUTIVE SECRETARY OF THE ECONOMIC AND SOCIAL
COMMISSION FOR ASIA AND THE PACIFIC

Excellencies,
Distinguished Participants,
Ladies and Gentleman,

It is a great pleasure for me to welcome you to this important regional expert conference on Harmonized Development of Legal and Regulatory Systems for E-commerce.

First of all, let me express my sincere thanks to H.E. Colonel Dr. Nalikatibhag Sangsnit, Vice Minister for Information and Communication Technology, Royal Thai Government, for kindly accepting our invitation to address the meeting despite his busy schedule.

Organization of this event in the Asia-Pacific region is very timely. Internet users in Asia and the Pacific now account for over a third of all Internet users in the world. The volume of Business-to-business (B2B) e-commerce transactions in the region is rising quickly and, with an expected value of $300 billion for 2004, it will likely surpass that in the European Union this year. Business-to-consumer (B2C) levels in the region, at about $26 billion in 2003, remain modest in comparison to B2B transactions, but are growing over 60% year-on-year.

These numbers are encouraging. However, they should not mask the wide differences, which exist across countries in the region. The vast majority of these B2B and B2C transactions were generated by Japan, Australia, and the Republic of Korea. While these countries and Singapore have developed world-class e-commerce infrastructures, many countries in the region still lack the basic legal and physical systems that would allow them to take advantage of information and communication technologies to facilitate exchanges of information, goods and services.

I sincerely hope that this expert conference will assist UNESCAP member countries in their efforts to build or strengthen their e-commerce infrastructure. The first day will focus on the state of laws and regulation and the best practices in Asia and the Pacific, while the major technical legal issues related to e-commerce will be discussed tomorrow. An expert roundtable discussion on the capacity building needs of the region for e-commerce legal and regulatory system development will take place on Friday.

Ladies and Gentlemen,

The world is becoming an Internet-based economy. By lowering transaction costs, the Internet removes distance-related barriers that have traditionally determined the location of service providers and goods producers. As a result, firms from all countries have opportunities to exchange information, goods and services with each other for the benefit of all. An important role of the Governments in the region is to facilitate and manage these exchanges, so as to ensure that they contribute to the sustainable development of the region and the achievement of the Millennium Development Goals, which were adopted by leaders of countries around the world at the Millennium Summit in 2000.

There are eight goals and over 18 targets, and I strongly encourage each of you to review them and think about how you, or your institution, can contribute to their achievement.

Today's event contributes most directly to MDG Goal No. 8, which is to develop a global partnership for development. Under that goal, UN member countries agree to develop further an open, rule-based, predictable, and non-discriminatory trading system. I believe that e-commerce, that is, the electronic exchange of information, documents and payments for commercial transactions, is an important means of achieving such a trading system.

Ladies and Gentlemen,

There is little doubt in the region about the importance of international trade (and investment) as a key engine of growth in the region. While UNESCAP plays an active role in developing member countries' capacity to negotiate and benefit from trade liberalization, we are also aware that trade liberalization will achieve little if countries lack the capacity to supply products and services to the global markets competitively. The development of an adequate e-commerce infrastructure is rapidly becoming a pre-requisite for elevating a country's ability to supply competitive products and services globally.

An extremely important component of the e-commerce infrastructure is a legal and regulatory system for e-commerce. Many countries in the region are struggling to develop a legal system that can cope with technical innovations, facilitate cross-border e-commerce transactions, while at the same time enhancing security for all parties involved. Coordination at the national, regional, and global level is needed. Capacity building needs are enormous, and close cooperation between all governments and development institutions is crucial if we want to ensure harmonized development of E-commerce legal and regulatory systems in the region.

Ladies and Gentlemen,

I would like to thank the Government of France for its generous support for this joint event and for the energy and effectiveness evinced by the French authorities and experts during the preparatory process. It is very encouraging to see that the new Memorandum of Understanding on cooperation between France and UNESCAP, signed only a few months ago, is already producing results for the benefit of the region.

I also wish to express my thanks to the International Trade Center (UNCTAD/WTO), the United Nations Center for International Trade Law, UNCTAD, the Royal Thai Government, and other important institutions and experts for their active collaboration in the preparation for and participation in this event.

I am confident that this Conference will be successful in increasing awareness and building capacity of the region in this important area, and I look forward to the outcome of the expert roundtable discussion on capacity building needs that will take place on Friday. Let me assure you that UNESCAP stands ready to support the region in its effort to develop an enabling environment for e-commerce, as a contribution towards the Millennium Development Goals and the vision of the World Summit on the Information Society.

Thank you.