MEDIA RELEASE THE DEPUTY PRIME MINISTER AND MINISTER FOR TRADE

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Internet Seen as New 'Silk Road' of World Trade

Electronic commerce through the Internet and the World Wide Web could transform the way large chunks of world trade are conducted over a very short period of time, the Deputy Prime Minister and Minister for Trade, Tim Fischer, said today.

"Electronic commerce is in its infancy, but is the fastest growing type of international value-added trade," Mr Fischer said. "It is expected to increase from about US$3 billion a year now to about US$100 billion a year by 2000."

Mr Fischer was launching the DFAT publication "Putting Australia on the New Silk Road: the role of trade policy in advancing electronic commerce" in Sydney.

"The most important factors in the future growth of electronic commerce are the surge in Internet use from 70 million users to 170 million users by 2000, and that the average Internet user is young, well educated and affluent," he said.

"Consumers also are becoming more confident in using the Internet for commerce as concerns over privacy and the security of online transactions are addressed.

"The Internet will provide opportunities to expand exports and has the potential to create tens of thousands of new jobs. But it also has the potential to increase the level of competition for the consumer dollar at home"

The New Silk Road includes case studies of how small and medium sized Australian firms are boosting exports through the Internet. For example fruit growers in northern Victoria are receiving electronic mail orders from Singaporean restaurants and hotels via the Internet. The vegetables are picked, packed and supplied just in time to buyers who pay electronically on the same day. The whole process takes 24 hours.

"The Government places a high priority on ensuring that an environment is created which provides the best possible conditions for Australian firms and industries trading and investing overseas, as well as supporting measures which increase the competitiveness of the Australian economy," Mr Fischer said.

"I commissioned the report to stimulate discussion among stakeholders about the conduct of online trade. Feedback will be a key element in helping the Government shape and implement an online trade strategy over coming years".

5 September, 1997

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The New Silk Road report is available from Jane Monico, Statistical Services Section, DFAT, Tel: 62613114 Fax: 62613321 at a cost of $30 or on the Internet at: http://www.dfat.gov.au/bookshelf/html/silk_road/new_silk.html

* The original Silk Road was the trade route between the Roman Empire in the West and the Chinese Empire in the East - linking the then known world.