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THE IMPACT OF FREE TRADE
AGREEMENTS ON INFORMATION
TECHNOLOGY BASED BUSINESS
DR ANDRES GUADAMUZ
UNIVERSITY OF SUSSEX
APOLOGIES
BACKGROUND
SOME
BACKGROUND
FTAs
A stage in economic integration between
nations by which member states have
agreed to eliminate or reduce tariffs,
quotas, and preferences in some goods
and services subject to international trade
restrictions.Trade in goods, services,
investments

Telecom, e-commerce

IPR, government procurement

Dispute settlement

Transparency

Customs procedures and facilitation

Labour, environment
DR-CAFTA
Agreement signed in 2004 by US and Central
American countries (joined by Dominican Republic
later that year). 

Ratified by all states, contains provisions on
government procurement, financial services,
labour, telecommunications, electronic commerce,
and intellectual property rights.

Also contains dispute resolution.
Main issues regarding
domain names
DR-CAFTA in Article 15.4 under the heading
“Domain Names on the Internet” requires that the
parties provide, for their respective ccTLDs “an
appropriate procedure for the settlement of
disputes based on the principles established in the
Uniform Domain-Name Dispute Resolution Policy.”

The DR-CAFTA agreement requires the use of a
WHOIS database, but allows for provisions dealing
with privacy.
Key provisions on e-
commerce
Art. 14.3.1 states that there should not be any ‘customs duties, fees,
or other charges’ for importing or exporting digital products by
electronic transmission. 

When digital products are physically shipped across borders, Article
14.3.2 provides that the applicable customs duties must be based on
the ‘carrier medium’ of the product rather than the value of the digital
product contained on the medium (such as the plastic CD rather than
the music contained on it).

Art. 14.3.3 accords national treatment standards (under the ‘no less
favourable treatment’ formula) to digital products transmitted
electronically for ‘like’ products and when the digital products are
created by a non-party.
Main issues about
intermediary liability
DR-CAFTA imposes similar regime to the one
contained in US law through the DMCA. 

The agreement provides limits on copyright liability for
ISPs who meet certain procedural requirements in four
areas. These areas are known as the ‘safe harbours’
both in the DR-CAFTA agreement and in the DMCA.

The agreement requires ISPs to give identifying
information about their subscribers once they have
received a subpoena alleging copyright infringement.
Some copyright issues
Enforcement: countries must have civil judicial
procedures concerning the enforcement of ‘any
intellectual property right’, which includes
copyright.

Statutory damages for infringement are included. 

Inclusion of DMCA-like protection of anti-
circumvention measures (DRM).
WHAT HAS HAPPENED?
Other agreements
THANKS
A.GUADAMUZ@SUSSEX.AC.UK
!
@TECHNOLLAMA

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Impact of FTAs on IT Business

  • 1. THE IMPACT OF FREE TRADE AGREEMENTS ON INFORMATION TECHNOLOGY BASED BUSINESS DR ANDRES GUADAMUZ UNIVERSITY OF SUSSEX
  • 5. FTAs A stage in economic integration between nations by which member states have agreed to eliminate or reduce tariffs, quotas, and preferences in some goods and services subject to international trade restrictions.Trade in goods, services, investments Telecom, e-commerce IPR, government procurement Dispute settlement Transparency Customs procedures and facilitation Labour, environment
  • 6. DR-CAFTA Agreement signed in 2004 by US and Central American countries (joined by Dominican Republic later that year). Ratified by all states, contains provisions on government procurement, financial services, labour, telecommunications, electronic commerce, and intellectual property rights. Also contains dispute resolution.
  • 7. Main issues regarding domain names DR-CAFTA in Article 15.4 under the heading “Domain Names on the Internet” requires that the parties provide, for their respective ccTLDs “an appropriate procedure for the settlement of disputes based on the principles established in the Uniform Domain-Name Dispute Resolution Policy.” The DR-CAFTA agreement requires the use of a WHOIS database, but allows for provisions dealing with privacy.
  • 8. Key provisions on e- commerce Art. 14.3.1 states that there should not be any ‘customs duties, fees, or other charges’ for importing or exporting digital products by electronic transmission. When digital products are physically shipped across borders, Article 14.3.2 provides that the applicable customs duties must be based on the ‘carrier medium’ of the product rather than the value of the digital product contained on the medium (such as the plastic CD rather than the music contained on it). Art. 14.3.3 accords national treatment standards (under the ‘no less favourable treatment’ formula) to digital products transmitted electronically for ‘like’ products and when the digital products are created by a non-party.
  • 9. Main issues about intermediary liability DR-CAFTA imposes similar regime to the one contained in US law through the DMCA. The agreement provides limits on copyright liability for ISPs who meet certain procedural requirements in four areas. These areas are known as the ‘safe harbours’ both in the DR-CAFTA agreement and in the DMCA. The agreement requires ISPs to give identifying information about their subscribers once they have received a subpoena alleging copyright infringement.
  • 10. Some copyright issues Enforcement: countries must have civil judicial procedures concerning the enforcement of ‘any intellectual property right’, which includes copyright. Statutory damages for infringement are included. Inclusion of DMCA-like protection of anti- circumvention measures (DRM).