Framework for BRICS E-commerce Cooperation. (Proposed by Russia and China)

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1 (Proposed by Russia and China) The Framework is a non-binding, living document and will take into account the domestic regulatory regimes of BRICS countries. The guiding principles, objectives and priorities for cooperation mentioned in the Framework can be adjusted as required by any BRICS member-country. Background Framework for BRICS E-commerce Cooperation E-commerce, as one of the most dynamic economic activities, is playing an increasingly important role in modem trade by generating employment, transforming and upgrading traditional industries, stimulating domestic demands, as well as facilitating global trade and investment growth and promoting supply chain efficiency. In light of this, the BRICS members, as a group of the world s most dynamic emerging economies, have been attaching great importance to the cooperation in e-commerce and tried to undertake effective and innovative measures to safeguard and accelerate the development of cross-border e-commerce, and further boost their economic and trade cooperative ties. However, despite the achievements of the previous years, many challenges remain. They include ongoing developments in some BRICS countries on the regulatory framework of e-commerce; lack of confidence among investors and e-commerce participants; security threats; lack of interoperability and compatibility of networks; difficulties in overcoming language barriers, participation of MSMEs etc. The BRICS e-commerce market has an opportunity to become the largest in the world providing that member countries realize effective joint actions in this area. E-commerce was listed formally among the priorities of the BRICS Trade and Investment Cooperation Frame, which was endorsed by the BRICS Trade Ministers in To systematically and effectively advance the BRICS e-commerce cooperation and directly contribute to the goal of building a closer economic partnership, the BRICS members developed the Framework for BRICS E-commerce Cooperation (the Framework) to promote current and future initiatives in this sphere. It is envisaged that this Framework could establish a process through which the BRICS countries could further cooperate in trade and investment areas based on a spirit of trust and partnership. The following may be explored for further discussion: Page 1 of 5

2 1. Guiding Principles To develop and implement this Framework in line with the principles of openness and transparency, efficiency and mutual trust, voluntarism and consensus, with a view to achieving mutually beneficial outcomes. To recognize the real needs and circumstances of the BRICS members, and advance the cooperation on a step-by-step basis, based on proposals by BRICS Members. 2, Objectives The BRICS members agree to promote cooperation in cross-border e-commerce for the following purposes: To keep abreast with the rapid development of global cross-border e-commerce and accelerate the development of BRICS e-commerce industry and market. To address the related issues that may hinder the growth of e-commerce, create enabling environment and further utilize e-commerce as a means to promote cross-border trade and facilitate goods and services flows. To enhance the capability of the MSMEs to be well integrated into international markets, and increase MSMEs participation in global value chains. To increase the opportunity for the public to access the global products with original and local characteristics, and to improve their welfare. In order to attain these overarching goals, BRICS members may undertake specific tangible actions in priority spheres of cooperation, including strengthening the partnership between public and private sectors; capacity-building; promotion of dialogues and studies on cross-border e-commerce policies, development of crossborder e-commerce infrastructure; reduction of existing barriers in e-commerce between the BRICS countries (administrative, customs, tax, logistics and other barriers); promotion of confidence and trust; development of analytical systems, standards and linguistic technologies in e-commerce; etc. In case of successful development of BRICS E-commerce cooperation we may consider the possibility of adoption of a Memorandum of Understanding between the BRICS Countries on Cooperation in the Field of E-commerce with an aim to establish a solid basis for further cooperation on cross-border e-commerce within BRICS. Page 2 of 5

3 3. Priorities for Cooperation 3>1 Under Promotion of Dialogues and Studies on Cross-Border E -com m erce Policies we may: - Explore the possibility to conduct a joint study which involves the government officials, academics, entrepreneurs, industry associations and other related stakeholders to identify the opportunities and challenges faced by the BRICS members on promoting cross-border e-commerce and putting forward comprehensive policy recommendations, such as formulating best practices on promoting cross-border e-commerce development in the BRICS countries; - Enhance coordination in multilateral fora, with the aim to seek greater collective voice and influence in the processes of formulating international rules in this area; - Make efforts to develop common approaches towards the definition and the content of e-commerce concept, involving the ability of gathering comparable statistics and making analytical research at the international level; - Study the possibility of establishing information-analytical system of the BRICS countries; - Share experiences and exchange best practices in developing legal and policy framework in the field of e-commerce; -Encourage members participation in related information sharing platforms such as the BRICS Information Sharing and Exchange Platform, which was launched at the BRICS Trade Ministers Meeting in Under Capacity-Building in E-commerce we may: - Encourage member-countries to conduct capacity-building cooperation via four tiers, namely, government agencies, business and industrial associations, enterprises, and academia; - Support joint workshops and training programs on e-commerce, and encourage capacity-building initiatives by those members that are capable to provide more training opportunities. 3 3 Under Strengthening Partnership between Public and Private Sectors we may: - Develop partnership between the public and the private sectors, with a special focus upon the MSMEs participation; Page 3 of 5

4 - Encourage innovation and strengthening intellectual property rights cooperation regarding cross-border e-commerce; - Promote more opportunities for MSMEs participation in electronic trading platforms of the BRICS countries, and enable MSMEs on the usage of electronic trading platforms for business purposes; - Encourage pilot projects with the participation of the business community of the BRICS countries in order to satisfy the real needs of cross-border e-commerce participants; - Foster the establishment of certain BRICS Cross-border e-commerce Pilot Cities and Projects, with the aim to construct a BRICS Cross-border e-commerce Network. 3-4 Under Development of Cross-Border E-commerce Infrastructure and Favorable Environment we may: - Strive to strengthen the broadband and wireless internet construction and further improving domestic e-commerce infrastructure environment, including improving the related investment climate; - Enhance simplifying the customs and other border procedures and explore the transformation of trade process from paper documents to paperless trade; - Promote dialogue between BRICS tax authorities on issues related to e-commerce cross-border transactions taxation; - Make efforts to provide facilitation and policy support for cross-border logistics development; -Enhance cooperation in matters related to trade finance and payment services in cross-border e-commerce; - Strive to facilitate the mutual access of the BRICS companies to electronic trading platforms in the BRICS e-markets; - Improve linguistic technologies and data retrieval systems used in e-commerce; - Enhance mutual trust in data cooperation, including information security and data protection issues. Page 4 of 5

5 3.5 Under Promotion of Confidence and Trust we may: - Discuss the possibility of the establishment of transboundary trust space (TTS) or the mutual recognition of electronic documents based on international standards between the BRICS countries in the Internet for the exchange of electronic documents within the framework of e-commerce, telemedicine, distance education and other functional applications. We may further co-ordinate work in different international initiatives to develop additional ambitious and measurable actions and targets to build an efficient international e-commerce system. These actions and targets need to be forwardlooking and directed towards the guiding principles of the Framework for BRICS E-commerce Cooperation. Page 5 of 5

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