RCEP: Delivering on E-Commerce Dr. Deborah Elms July 2017 RCEP Negotiations, Hydrabad elms@asiantradecentre.org

E-Commerce Vital for MSMEs Best method of delivering on economic growth and opportunities for smaller firms is through e-commerce and digital trade Allows anyone, any where to become “micromultinational” First customer can be found anywhere Not just for B2C but also B2B Lets smaller firms join value or supply chains But only if policies are in place to support MSMEs across the board…

Specifically in E-Commerce Chapter MSMEs need to have access to information Blockages on data is deeply problematic Smaller firms have no ability to split off “private” or “financial” data from any other type of data Small firms need access to best-in-class data servers and cloud facilities Costs of local servers often too high Security problems often found in using local facilities MSMEs struggle to guarantee security on their own, need to have world-class firms do it for them

Protection and Privacy Small firms care a lot about customer information Reputation is everything for small firms But their ability to ensure protection and privacy is a challenge—count on larger providers to do it for them RCEP should encourage online consumer protection rules for member states RCEP should develop data protection rules that can be used by smaller firms (likely via larger providers and platforms)

Data Not Only Thing Smaller firms need to be paid for goods and services—critical to get e-payments included in RCEP or whole point of e-commerce lost Trade facilitation also very important Especially small size, small value shipments Any costs, delays makes MSMEs uncompetitive Deal with returned items Services likely to be most used by MSMEs Broadest range of services opened via Mode 1

Standards Also Needed Small firms also struggle with incompatible standards, labeling, etc. RCEP members should aim to harmonize with international standards Limit duplicative testing procedures Transparency in all rules, regulations and procedures with clear sources of information so MSMEs can easily access Allow MSMEs to participate in implementation discussions to ensure that RCEP continues to meet needs of smaller firms

Asian Trade Centre The Asian Trade Centre is the premier regional thought leader, advocate and educator for trade Strategic, creative thinking for policy and regulatory challenges Solutions for vexing trade problems Practical advice and suggestions for improving bottom line performance Sensible input to craft modern trade agendas Deborah Elms Executive Director Asian Trade Centre 41A Ann Siang Road Singapore 069717 www.asiantradecentre.org The information, data and graphics provided by the Asian Trade Centre is for advocacy purposes. While we endeavor to provide the best quality information, we make no warranties with respect to the use of the information which is voluntary. The information provided in this document does not constitute investment or legal advice. It should not be used, relied upon, or treated as a substitute for specific professional investment or legal advice.