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E-Commerce Rules in Canada

For all the parlor jokes about dot-coms, e-commerce is here to stay, and the momentum is just building.  E-commerce grew from a few billion dollars in the 1990s, to $250 billion in 2001.  Conservative forecasts place it above $3 trillion in the next few years.

The great advantage of e-commerce is its global reach without the limits of shelf space or warehousing.  E-commerce permits greater choice and price comparison, lower transaction costs, and brings together purchasers around the world.

The great danger of e-commerce is that it will forge ahead of the world's ability to come up with at least a minimum of global rules for it, including taxation, conflicting national laws, and adjudication of disputes.  Protecting consumers form cyber-crime is also important as is the greater notion of building confidence in e-commerce.

While e-commerce is still in its infancy, there is an urgency to solve this emerging global issue quickly, before the issues become insurmountable.  In this capacity also, Canada has become something of a leader.

On September 22, 1998, Parliament announced Canada's Electronic Commerce Strategy, which outlined a number of initiatives designed to establish Canada as a world leader in the adoption and use of electronic commerce.  The primary goals of the plan – facilitating economic growth, maximizing social potential, and reflecting and supporting global needs – were designed to break down the digital divide between information "haves" and "have nots" based on social, linguistic, or geographical grounds.   

In addition, Parliament passed the Personal Information Protection and Electronic Documents Act which has the dual purpose of providing for the protection of personal information while building consumer confidence in e-commerce.  Through this legislation, Canada has encouraged the development of higher encryption and authentication of electronic documents.

These initiatives have placed Canada above the U.S. in terms of Internet users and Internet hosts.  In addition, it leads the G7 nations in the share of population that uses the Internet, and in terms of connectedness and technological infrastructure, Canada ranks just slightly below the U.S.  At the same time, Canada has ensured that there is enough of a regulatory framework to protect consumers and innocent internet surfers.

Canada's initiatives should provide a model for the rest of the world.  It has managed to balance the competing requirements of encouraging e-commerce and Internet use, while still ensuring that consumers are protected.

The creative solutions that Canada has used to tackle regional issues are ones that can be applied on a global level.  The lessons learned, whether from its failures in the fish industry or its successes in developing e-commerce, are lessons which it can and ought to export to the world.

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