Secretary Daley Backs Duty Free Cyberspace

(September 13, 1999) Secretary of Commerce William Daley told the GBDe conference in Paris today that the U.S. will seek a permanent extension of the moratorium on tariffs in cyberspace. He also praised industry self-regulation measures to protect consumer privacy online.

William Daley, head of the U.S. Department of Commerce, addressed the Global Business Dialogue's "E" conference (GBDe) in Paris on Monday, September 13. He had this to say about tariffs: "On this America's policy is very clear: we want a duty-free cyberspace. I can report today that at the WTO meetings in Seattle this fall, we will seek an extension of the current moratorium on tariffs. And we will seek a permanent ban at the earliest possible date."

He also advocated industry self-regulation, rather than government regulation. "The e-commerce paradigm demanded that we in government take a new policy approach: let the private sector lead. And government will provide the legal framework so e-commerce can grow. This is reflected in President Clinton's and Vice President Gore's Internet framework. We may not have known how fast e-commerce would grow, but we knew that the best way for it to flourish was to let business lead."

	Wm. Daley

However, he also cautioned industry to included all interested groups in talks. "Frankly, you also must include other constituencies. What about consumer groups, privacy advocates, and law enforcement officials? They need to sit at the table, also."

"My point is, if you want government out of the picture and self-regulation to work, you must hear all the voices. The fact of the matter is, if you don't hear them, or ignore their legitimate interests, I guarantee they will be knocking on my door, calling for regulation," said Daley.

Secretary Daley praised U.S. online companies for their efforts to protect consumer privacy. "Privacy is a case in point. It is among the biggest issues we face, and I am proud that our industry came up with self regulatory standards that provide real protection for people's privacy. This is very significant so consumers will have confidence when shopping on the Internet."

"We asked our businesses to step up to the plate, and they are responding." said Daley. "A number of new groups are forming -- like the OnLine Privacy Alliance, TRUSTe, and BBB OnLine. They have signed up many companies or associations. They have adopted strong privacy protection principles, and are committed to enforcing them through independent audits and consumer recourse."

He also complemented IBM, Microsoft, Intel, and Disney for their efforts to promote online privacy.

Secretary Daley also added a new twist to the "digital divide" debate. His Commerce Department has released "digital divide" studies showing that there is a gap in computer ownership and Internet use between racial and income groups in the United States.

More recently, FCC Chairman William Kennard has used the term "digital divide" to also describe a gap in the U.S. in broadband Internet access between rural and urban areas.

Secretary Daley used the term "digital divide" in yet another sense in his speech in Paris. He stated that "There is a digital divide among nations, also. So I hope as we move forward, that business and government work together to close the gap among nations so e-commerce can realize its fullest potential."

Following the GBDe Conference, Secretary Daley will participate in the World Intellectual Property Organization's (WIPO) International Conference on Electronic Commerce and Intellectual Property in Geneva, Switzerland, on September 14. That conference will focus on technological and commercial developments in electronic commerce as well as the general impact of electronic commerce on the intellectual property system. Approximately 500 government and private sector officials from around the world are expected to attend.