"The Internet and Global Trade Operations"
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         Presented at the "Internet World 1995" Conference
                      San Jose, California

                          Madanmohan Rao
                          (rao@igc.org)

                     Communications Director
             United Nations Inter Press Service Bureau

                          April 12, 1995


 1. There is no doubt that, despite accompanying problems, computer
technology has greatly contributed to the work force and the
economy in terms of productivity and global connectivity. The
"Scientific American" magazine's 150th anniversary celebrations in
San Francisco yesterday included a panel on "Key Technologies For
The 21st Century," which focused a great deal on computers,
networks, and the Internet.

 2. My talk today is situated within the context of the following
global trends:
     a) Increased globalisation of trade, finance and capital
     b) Creation of macroeconomic and regional frameworks
     c) Increase in electronic communication, publication, and
          commerce.

 3. A key objective of trade organisations is increasing trade
efficiency, which can be brought about only through improvements in
cost, time, information, and networking of trade-related
activities.

 4. Some examples of trade networks with a global reach already
exist - UNDP's TIPS project, the recently-launched IBEX network,
and UNCTAD's trade efficiency initiative.

 5. Such trade networks facilitate the rapid and convenient storage
and exchange of business information for trade, which can be
divided into the following categories:
      a) Products, opportunities, services
      b) Agents, consultants
      c) Pricing, standards, statistics, gatherings
      d) Customs, banking, insurance, transport, promotion

 6. Sources and markets for such business information include
commercial suppliers, business associations, academic
organisations, government institutions, and international bodies.

 7. A key component of such operations is telematics, or the fusion
of computers and telecommunications technologies. The Internet is
the fastest growing multimedia global communications platform.
Dozens of discussion groups, mailing lists, and gopher/Web sites on
the Internet already focus on business and trade activities.

 8. The largest existing network platform for global trade is
UNCTAD's Trade Point Network, which evolved as follows:

     a) Trade Efficiency Initiative (1992) - 171 countries
     b) Symposium on Trade Efficiency (Ohio, 1994) - 136 countries
     c) Global Trade Point Network (20,000 trade bodies)

 9. Global Trade Point Network

     a) World's largest international network for trade.
     b) 49 Trade Points today, 100 expected by 1996
     c) 19 countries on the Web, 30 by gopher and e-mail

10. A Trade Point provides the following facilities:
     a) Source of Trade-Related Information
     b) Gateway to Global Networking
     c) Center for Facilitating Trade

11. Participants in a Trade Point include the Ministry of Trade,
Chambers of Commerce, Customs Bureaus, Bankers, Insurance Agents,
Freight, PTT Services, and Universities.

12. Information Sources and Flow at a Trade Point include:
     a) Local Trade Point, Global Trade Point Network,
          Specialised Databases
     b) E-mail, Fax, CD-ROM, diskettes, printed bulletins.

12. Communications platforms used by Trade Points include:
     a) Internet, SITA, Sprint, MCI, ATT, videoconferencing
     b) EDI interfaces, MIS, SITE, TISNET

13. Sample Trade Point Codes used at Trade Points include:

     T111      Know-how offer
     T120      Manufacturing offer
     T132      Used product offer
     T150      Cooperation offer
     T183      Real estate offer
     T230      Technology demand
     T260      Service demand

14. Coordination of Trade Point operations is managed by the
following layers of organisations:
     a) Global organisation: IFTEA (Geneva)
     b) Regional organisations: ASEANet, CACCINet, SPTCNet,
          ALADI
     c) National organisations: KOTRA, JETRO, AIT, SNS, AUSTRADE

15. Sample Trade Point Hosts (by continent):
     a) Bolivia, Brazil, Colombia, USA
     b) China, India, Indonesia, Thailand
     c) Finland, France, Germany, Portugal, England, Switzerland
     d) Kenya
     e) Asutralia

16. There are several inequities in global telematics distribution:
     a) Infrastructure inequities (computer, phones, electricity):
          penetration, quality
     b) Know-how, expertise
     c) Government regulations, policies

17. There may also be problems with using the Internet as a trade
platform, since the Internet carries with it a lot of "political
baggage," due to its anarchic nature and global reach. Some
governments are wary of using the Internet because criticism
against them can be found in Usenet groups, e-mailing lists, etc.

18. However, given the amount of investment for Internet
infrastructure, the gains and opportunities afforded far exceed
that of any other comparable telematics technology. The Internet as
a platform for global trade is thus of particular significance to
developing and emerging markets.

19. The Internet is a unique medium as far as convergence goes - a
global convergence of media modalities, of economic sectors, of
professional agents, and of social groupings.

20. Either way, it seems inevitable that:

"The Silk Routes of the twenty-first century will be fiber optic
         cables and telecommunications networks."

21. Contact information: http://www.unicc.org
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