The Business Contribution to Development and Safe Trade

1. UN Economic Commission for EuropeSecond International Forum on Trade Facilitation, 15 May 2003 The Business Contribution to Development and Safe Trade Patrick de Smedt Chairman, Microsoft EMEA

2. Overview • “No nation was everruined by trade.”Benjamin Franklin • The twin pillars of business support: • Developing markets • Creating a safe trading environment

3. Developing Markets – Overview • Types of industry support: Foreign direct investment Skills gap Open standards Solution development

4. Developing Markets – Direct investment • More than just money at stake • OECD has identified many valuable spill-over effects • A few recent examples: • Renault • €230 million in Russia • Bayer • €3 billion in China • Microsoft • €80 million in China • European Microsoft Innovation Centre • Microsoft Research Cambridge • Partner ecosystem

5. Developing markets – Addressing the skills gap • Skills gap impairs growth worldwide • Career Space: public/private initiative to develop academic guidelines • WEF Digital Divide Task Force • NEPAD

6. Developing markets – Support for open standards • XML, web services • Streamlining customs operations • UNeDocs and Microsoft technology support • Opportunity for SMEs and developing countries

7. Developing Markets – Enabling solutions • Technology enables market development • Thaigem.com – Thai gem sales • Everythingaboutwater.com – Indian water sales • Dubai – eMirsal Customs On-line Service • Czech customs project • Entirely new private network • 80% of customs declarations electronic • First Eastern European link to NCTS

8. Trade safety – Overview • Key business issues for improved trade safety: Safe and trustworthy computing Supply chain security management Piracy and counterfeiting Export control regimes

9. Trade safety – Piracy and counterfeiting • Pirates and counterfeiters support many types of illegal activities • IP theft – illegal software rates: • 36% worldwide • 34% in EU • 63% in Eastern Europe • Industry action plan: • Public awareness campaigns • Education Programs • Joint efforts with Government Regulators

10. Trade safety – Safe computing • Safe trading requires safe and secure computing • The Microsoft response • “Trustworthy Computing is computing that is as available, reliable and secure as electricity, water services and telephony” • Four pillars of TWC: reliability, security, privacy and business integrity • Universal Postal Union Project: secure digital signatures leading to safer trade • Great security will increase trade safety and expand consumer confidence in trade and development

11. Trade safety – Supply chain security • Supply chain security critical in the modern trans-border economy • New technologies help • ‘Smart’ shipping containers • Shipping content tracking software • Public/private partnerships improve security and customs efficiencies

12. Trade safety – Export Control Regimes • The realities of a post 9/11 world • New rules should be multilateral and transparent • Remember history – the flawed attempt to control encryption in the 1990s • Working together to find the best balance: Security vs. efficient trading

13. Conclusions • Industry has an important role • Developing markets improves local conditions and expands trade • Trade safety is vital to the continued trust and support of the free trade system • More than just trade – all these efforts help bring developing countries into the global economy

14. Thank You