1. aiia : voice of the digital economy ASR: voice of services in Australia Presented by Kaaren Koomen Director, Australian Services Roundtable Director (Alternate), Australian Information Industry Association Director, Government Relations IBM Australia/NZ ICT and the Trans-Pacific Partnership : Issues for the Australian Industry

2. aiia : voice of the digital economy ASR: voice of services in Australia The TPP Opportunity Nine Nations In Talks: Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, US Three More Expressed Interest in Joining: Japan, Mexico, Canada Important that it is a comprehensive and high standard - and go further than any other regional accord Real need for a "21st-century" trade agreement”: includes "next-generation" issues Living Agreement: intended to be updated as needed to cover evolving/emerging issues and that can add new members in the future, possibly forming the foundation of a broader Free Trade Area of the Asia Pacific Negative vs. Positive List Tight Deadline – by end of 2012

3. aiia : voice of the digital economy ASR: voice of services in Australia ICT and Advances in Global Trade Explosion of global services trade a result of fast, efficient, reliable and cost effective electronic communications networks – this is all data! At least two billion people already connected to the Internet already From 2003-2008 global cross border exports of services alone more than doubled ($US1.8 trillion to $3.8 trillion) Further advances in regional economic growth, productivity and innovation will require greater cross border trade using ICT networks and the exchange of digital data Internet is the new ‘Silk Road’ linking traders of goods, services, innovation and ideas Unprecedented opportunity to raise living standards around the world – starting in this region

4. aiia : voice of the digital economy ASR: voice of services in Australia Australian ICT Industry Quick Facts Contribution to the economy (Gross Value Add): 4.9% (2006 data) Industry revenue 2009: $81.6 billion Exports (including re-exports): $45.3 billion ICT Industry Workforce: 426,100 Australian Business are Ready e-Readiness Ranking: 6th out of 70 countries Digital economy ranking: 9th out of 70 countries Australia ranks No.2 on the global cloud scorecard June 2010, there were 9.6 million internet subscribers Australian governments commitment to the NBN Australia is an island and depends on cross border trade!

5. aiia : voice of the digital economy ASR: voice of services in Australia Key TPP Issues for the ICT Industry Cross Border Data Flows Technical Barriers to Trade Customs Financial Services Government Procurement Rules of Origin State Owned Enterprises Telecommunications

6. aiia : voice of the digital economy ASR: voice of services in Australia Threshold Issue for ICT Industry- Cross Border Data Flows Data flows are essential to most if not all industries in some way All exporting industries use data Most services industries communicate electronically and over borders: financial services, consulting services, architecture, engineering, legal services, research and development, insurance, design, logistics, transport, education, publishing, medical services…. We need a binding commitment on cross border data flows We need to protect the movement of data as long as certain reasonable obligations are met Failure to protect data flows would mean that market access commitments for cross-border services delivery would have little value or certainty

7. aiia : voice of the digital economy ASR: voice of services in Australia Threshold Issue for ICT Industry- Cross Border Data Flows Industry recognizes the legitimate right of governments to regulate in areas such as personal data privacy protection national security consumer protection enforcement of laws and regulations. Also critical to create an environment of trust and confidence on Internet

8. aiia : voice of the digital economy ASR: voice of services in Australia Threshold Issue for ICT Industry- Cross Border Data Flows However…. Conditions placed upon service providers should be commercially reasonable and no more burdensome than necessary Flexible in how they can ensure the protection and security of the data Regulations/restrictions on data flows should be Clear Developed in a transparent process (with opportunities for industry input) Regulations should not constitute a disguised restriction on trade or arbitrary or unjustifiable discrimination against service providers or any other party.

9. aiia : voice of the digital economy ASR: voice of services in Australia Technical Barriers to Trade Technology is key to international trade Industry recognises that governments may need to deal with health, safety. Consumer protection and environment issues…. However….need to ensure these are not disguised trade barriers or inhibit trade TPP should promote International industry developed standards that incorporate global best practices Interoperability of ICT goods/services across the global supply chains Regulatory cooperation and coherence Transparent conformity assessment, testing and certification procedures

10. aiia : voice of the digital economy ASR: voice of services in Australia Thank You

11. aiia : voice of the digital economy ASR: voice of services in Australia