Project Title

Facilitating the Use of ODR under the APEC Collaborative Framework and in Economies Generally (including in Courts) 

Project Year

2024   

Project Number

EC_102_2024A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EC_102_2024A 

Project Title

Facilitating the Use of ODR under the APEC Collaborative Framework and in Economies Generally (including in Courts) 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Strengthening Economic Legal Infrastructure (SELI) 

Project Year

2024 

Project Session

Session 1 

APEC Funding

149,988 

Co-funding Amount

30,000 

Total Project Value

179,988 

Sponsoring Forum

Economic Committee (EC) 

Topics

Legal Infrastructure; Structural Reform; Electronic Commerce; Small and Medium Enterprises 

Committee

Economic Committee (EC) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Japan 

Co-Sponsoring Economies

Hong Kong, China; Indonesia; Papua New Guinea; Thailand; United States; Viet Nam 

Expected Start Date

01/09/2024 

Expected Completion Date

31/05/2025 

Project Proponent Name 1

Yusuke Ino 

Job Title 1

Director for Global Cooperation on Government Strategy 

Organization 1

Ministry of Economy, Trade & Industry (METI) 

Postal Address 1

Not Applicable 

Telephone 1

+81 33501 0397 

Fax 1

Not Applicable 

Email 1

iino-yusuke@meti.go.jp 

Project Proponent Name 2

Yoshihisa Hayakawa 

Job Title 2

Professor 

Organization 2

Ministry of Economy, Trade & Industry (METI) 

Postal Address 2

Not Applicable 

Telephone 2

+81 907803 0058 

Fax 2

Not Applicable 

Email 2

haya@rikkyo.ac.jp 

Declaration

Yusuke Ino 

Project Summary

The Project will seek to explore ways to improve the implementation of Online Dispute Resolution (ODR) under the APEC Collaborative Framework (1) reviewing the overall progress on the implementation of the APEC ODR Collaborative Framework for B2B disputes including by APEC partnering ODR providers and businesses; (2) consider the potential application of the Collaborative Framework to B2C transactions; (3) discuss the benefits of APEC dispute resolution providers and businesses when economies opt into the Collaborative Framework; (4) develop strategies to encourage member economy businesses (including MSMEs) to use ODR through the APEC-listed ODR providers. The project will also consider (with international organizations including the World Bank and UNCITRAL) more broadly on how to implement ODR in private and public fora (including the courts).

Relevance

Region

The project seeks to address the lack of access to commercial justice in APEC member economies, particularly as it relates to MSMEs. As recognized in the revised SELI FoTC Work Plan under EAASR (EC 1 2024): “Lack of access to commercial justice is one of the reasons that MSMEs constitute some 97% of APEC businesses domestically but account for only a fraction of APEC exports. The fact that they lack cost effective and timely commercial justice for cross-border transactions means that many avoid that risk by not trading across borders…” 

The November 2023 APEC Economic Policy Report: Structural Reform and an Enabling Environment for Business stresses that (at 57): “Improved access to justice is also an essential component of creating an enabling business environment for SMEs. Online dispute resolution (ODR) leverages information and communication technologies to provide a speedy and cost-effective electronic resolution and enforcement of disputes across borders, bridging language and jurisdictional barriers. It provides SMEs a quick and inexpensive option to resolve cross-border disputes, thereby promoting cross-border confidence. The APEC Collaborative Framework for Online Dispute Resolution of Cross- Border Business-to-Business Disputes presents APEC’s initiative to capitalize on the benefits of ODR to facilitate greater access to justice for micro, small and medium enterprises (MSMEs). There are currently five economies that have opted into the framework, namely, China; Hong Kong, China; Japan; Singapore; and the United States. Listed ODR providers from these participating economies offer their own platform for online negotiation, mediation and arbitration and will regularly report their progress to APEC.” 

As highlighted at the January 2024 APEC ODR Workshop and the 2024 EC 1 ODR Policy Dialogue, having more economies opt into the Collaborative Framework, and more providers partner with APEC is essential to developing a strong regional cross-border ODR Collaborative Framework. One of the crucial issues in implementing the Collaborative framework is getting APEC businesses, including MSMEs, to agree to use ODR and the APEC ODR providers. That will require a concerted effort among all APEC member economies at the governmental level as well as through Providers to promote the APEC ODR mechanism to businesses. The January 2024 APEC ODR Workshop recommended that SELI “Conduct regular APEC-wide follow-up workshops, webinars, and other events to assess progress.” 

The March 2024 EC 1 ODR Policy Dialogue also highlighted the importance of continuing to review the ongoing application of the Collaborative Framework to cross border B2C transactions. Retail e-commerce is rapidly expanding in the APEC region.  As the January 2024 Workshop concluded “An ODR framework to resolve B2C disputes across borders would offer more adequate protection to consumers by facilitating their access to justice.” The EC at the Policy Dialogue “welcomed provision of statistics from economies and ODR Providers on B2C disputes as well to facilitate further discussion and consideration in the EC on this issue.” The project also seeks to address the lack of access to commercial justice in APEC member economies more generally (including in the courts). The post-pandemic technological shift opens the possibility of greater use of ODR both in the private sector and by courts. ODR may not appropriate for all cases, but it is invaluable for low value disputes where the parties cannot afford lawyers or travel to a physical court or to wait many weeks for a decision. The January 2024 workshop recommended that SELI “Stimulate economy-level capacity building for governments, lawyers, MSMEs, potential ODR platform providers, and courts to implement ODR through workshops, webinars, etc.”

Eligibility and Fund Priorities
The proposal is directly linked to the SELI Sub-fund funding criteria since it facilitates and assists in the implementation of the SELI ODR Work Plan on Implementation of the APEC ODR Collaborative Framework and the use of modern technology for dispute resolution as well as the SELI Work Plan under EAASR. It also directly contributes to improving the EC EoDB initiative (enforcing contracts) and integrating MSMEs into the global economy.

Capacity Building
The project will provide capacity-building advice for economies considering opting-in to the Framework as well as for economies’ use of ODR for domestic dispute resolution including in the courts. As pointed out in the 2019 APEC Economic Policy Report (at 91): “Many MSMEs are reluctant to engage in international trade out of fear of the high costs of litigation in case of a dispute. Current arbitration systems are too costly and time- consuming, hence inappropriate for small value disputes. The ODR Collaborative Framework is an example of harnessing digital tools to help MSMEs access global opportunities, thereby promoting inclusion.” The January 2024 ODR Workshop.

Objectives

The Project will seek to (1) review the overall progress on the implementation of the APEC ODR Collaborative Framework for B2B disputes including by APEC partnering ODR providers and businesses; (2) continue to review the potential application of the Collaborative Framework to B2C transactions; (3)review the benefits for an economy when it opts into the Collaborative Framework; (4) develop strategies to encourage member economy businesses (including MSMEs) to use ODR through the APEC-listed ODR providers; and (5) promote the overall use of ODR in the private and public sectors (including in the Courts).

Alignment

APEC
The APEC SME Ministers’ Statement (September 2019, para. 14) supports the development of the APEC ODR Collaborative Framework, which “will provide a cost- effective and efficient platform to resolve low-value cross-border disputes.” The Structural Reform Ministerial Statement (June 16, 2021, para. 13) recognizes the importance of the ODR Collaborative Framework “which encourages the use of digital technology to resolve cross border business to business disputes.” This project would contribute to the implementation of the Aotearoa Plan of Action, in particular, collective action to “[p]romote cost-effective mechanisms that support cross-border business-to- business engagement, including through electronic transactions and dispute resolution including under the APEC Collaborative Framework for Online Dispute Resolution of Cross Border Business-to-Business Disputes.

Forum
As the SELI FoTC Work Plan under EAASR highlights, the Collaborative Framework contributes to all four pillars of the Enhanced APEC Agenda for Structural Reform (EAASR). The Workshop is a crucial next step in implementing the APEC ODR Collaborative Framework as called for under the SELI work plan. The January 2024 APEC ODR Workshop as well as the 2024 EC 1 ODR Policy Dialogue recommended that SELI continue to: (1) access progress on the implementation of ODR under the Collaborative Framework; (2) review the potential application of the Framework to B2C transactions; (3) encourage economies to opt-into the Collaborative Framework; and (4) promote the overall use of ODR in the private and public sectors (including in the Courts). A Study will be presented at the Workshop providing information/statistics concerning the implementation of ODR under the Framework; recommendations concerning application of the Framework to B2C transactions; and a review of the general implementation of ODR in APEC Economies including through the courts. (Earlier studies focused on best practices in using ODR and the legal frameworks in economies for implementing ODR) The results of the Workshop will be reviewed at EC1 in 2025.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs
1) Study on Issues Relating to the Implementation of the Collaborative Framework and the Use of ODR in APEC (the Study)

Study on Implementation of the Collaborative Framework and the Use of ODR in APEC (the Study) (minimum of 20 pages excluding annexes). – APEC publication

a. Contract consultant to create a draft Study (August-September 2024) – includes ToR, APEC Secretariat approvals and issuing of $20,000 contract.

b. The contractor will develop the Study primarily based on existing experience with ODR and Collaborative Framework, desktop research, and a survey/questionnaire concerning the economies' use of ODR.

c. PO will review the draft to be presented at the 3-day Workshop.

d. Updated Study which will include key takeaways (conclusions and recommendations) from the Workshop (see below) and will be presented to SELI and the EC at EC1 or EC 2 2025. 

The Study will include a table of contents, an introduction, a substantive discussion, and a conclusion. It will provide information/statistics concerning the implementation of ODR under the Framework, recommendations concerning the application of the Framework to B2C transactions, and a review of the general implementation of ODR in APEC Economies, including through the courts. (Earlier studies focused on best practices in using ODR and the legal frameworks in economies for implementing ODR).

2) 3-Day Workshop, November 20-23, 2024, Tokyo, Japan

a. 60 participants (including 16 travel-eligible, 15 speakers and the contractor):

i. PO will invite relevant policymakers and government officials responsible for the design and implementation of responsible for the design and implementation of ODR reforms in member economies. Relevant agencies will include Ministries of Justice, Economy, and Economic Planning.

ii. POs will conduct a survey/questionnaire of APEC economies concerning their use of ODR.

iii.  POs will invite experts from other APEC fora (e.g., ABAC, SMEWG). iv.POs will invite experts from the private sector and academia as well as private online dispute resolution providers and regional arbitration and mediation centers interested in partnering with APEC under the Framework.

v. POs will also invite key experts from relevant international institutions such as UNCITRAL and the World Bank.

vi. The three-day Workshop will be held in person. The plan is to start at 9 each day and end at 5.

vii. POs will consider including different capacity-building activities, such as small group work, to drill down on specific topics, best practices, recommendations or questions, brainstorming sessions led by experts, etc. 

b. 3-day Workshop Plan/Agenda (subject to recommendations from the contractor): 

i. The contractor will present the draft Study and participants will be invited to offer comments. Contractor will revise the Study based on comments received. Key takeaways from the Workshop will also be included in the Study.

ii. Panel session lead by POs, Contractor, and experts (including from relevant international institutions such as UNCITRAL and the World Bank) will discuss how economies can further harmonize relevant laws to improve the ODR legal framework using existing international instruments (as provided in the Framework and SELI work plan).

iii. POs and Contractor will lead discussion addressing administrative details and issues arising from the implementation of the Framework through the Administrative Implementation Work Plan for subsequent review by SELI and the EC. The panel discussion will be led by the PO and Contractor.

Recommendations will be included in the Workshop Report.

iv. Panel session will 1/ give APEC-partnering ODR providers an opportunity to share their experience under the Collaborative Framework and 2/ give other ODR providers an opportunity to partner with the APEC EC by agreeing to follow the Framework and Procedural Rules (and get listed on the APEC EC webpage).

v. Panel session will allow economies to explain their reasons for opting into the Collaborative Framework and provide expert capacity-building advice concerning the creation of a framework for economies considering opting-in to the Framework as well as for economies’ use of ODR for domestic dispute resolution including in the courts.

vi. Panel session will address how the APEC ODR Collaborative Framework contributes to all four pillars of EAASR and benefits MSMEs and women- owned businesses.

vii. Panel session led by Contractor and experts will present an overview of ODR platforms that have been implemented at a regional level (including through private sector ODR providers) and by economies (including through the courts).

viii. Panel session led by lead academics and ABAC will advise participating economies on how to promote the Framework and encourage businesses (including MSMEs) to consider settling their disputes by ODR using the listed ODR providers. POs will solicit ABAC’s and academic institutions’ assistance.

iv. Panel session will also address challenges that are experienced by female owned businesses in resolving disputes and the benefits of using ODR.

x. Distribute and collect ex-post evaluation during the last session of the Workshop.

xi. Include several active learning sessions (e.g. small group work) to drill down on specific topics, best practices, or questions each day of the workshop.

Outcomes

1. The Workshop will provide economies with knowledge of the benefits of ODR and the Framework and encourage more of them to “opt in” to the Framework. Currently, 4 economies have opted into the Collaborative Framework.

2. Additional ODR providers including regional arbitration and mediation centers will partner with the APEC EC by agreeing to follow the Framework and Procedural Rules and provide their own platforms. Currently, 5 ODR Providers have partnered with the APEC EC.

3. Member economies will use the knowledge gained at the Workshop to encourage their businesses (including MSMEs) to agree to settle their disputes by ODR and/by using the listed ODR providers as provided in the Framework.

4. Member economies will use the knowledge gained at the Workshop for the improvement of legal regimes on ODR including through the implementation of UNCITRAL texts.

Beneficiaries
Member economies are encouraged to nominate relevant government officials responsible for the design and implementation of dispute resolution systems involving ODR including for the courts. POs will also seek recommendations on the participation of key private sector dispute resolution experts. Immediate beneficiaries of this project will be the member economies that opt into the Collaborative Framework, their dispute resolution providers (who will be able to partner with the APEC EC) and businesses (including MSMEs) (that will be able to expand their economic participation and reduce business risks using ODR). An ABAC survey of small businesses found that MSMEs engaging in cross-border e-commerce increase productivity by 6-15%, and participation of women-led businesses doubles. Longer term beneficiaries include domestic dispute resolution providers and the courts who would greatly benefit by implementing ODR and key industry stakeholders/partners.

Dissemination

POs will seek to publish the Study as an APEC publication. The content of the Study will include a table of contents, an introduction, substantive discussion, and conclusion. The substantive discussion will include information/statistics concerning the implementation of ODR under the Framework, recommendations concerning the application of the Framework to B2C transactions, and a review of the general implementation of ODR in APEC Economies, including through the courts. It will also include key takeaways and recommendations from the Workshop. 

The target audience of the Study would be economies, ODR providers, and APEC businesses. There is no intention to sell outputs arising from this project. 

POs will also produce a Workshop Summary Report but do not intend to publish it as an APEC document.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

The EC ODR initiative/SELI ODR Work Plan calls for cross-APEC collaboration with e.g. ABAC, SMEWG. POs will invite representatives from these fora and share information with them about the workshop and its outcome. The APEC SME Ministers’ Statement (September 2019, para. 14) supported the development of the APEC ODR Collaborative Framework, which “will provide a cost-effective and efficient platform to resolve low- value cross-border disputes.” Experts from relevant international organizations, such as the World Bank and UNCITRAL will also be invited to discuss best practices and experiences with regard to ODR. The Workshop builds on the earlier APEC webinars and workshops on ODR and the Collaborative Framework, the Stocktake of APEC ODR Technologies (April 2022), https://www.apec.org/publications/2022/04/stocktake-of- apec-online-dispute-resolution-technologies; the Study on Best Practice on Using ODR (January, 2023), https://www.apec.org/publications/2023/01/study-on-best-practices- in-using-odr; and the Study on APEC Economy Legal Frameworks for the Implementation of the APEC ODR Collaborative Framework (June 2024) (https://www.apec.org/publications/2024/06/study-on-economy-legal-frameworks-for- the-implementation-of-odr-under-the-apec-collaborative-framework), as well as the Policy Dialogues on ODR held at EC 2 in 2018, EC 1 in 2019, EC 1 in 2020, EC 1 in 2021, EC 1 and 2 in 2022, EC 1 in 2023, and EC1 in 2024. The Workshop also builds on the outcome of the Structural Reform Ministerial Statement (June 16, 2021) recognizing the importance of the Collaborative Framework (para. 13) “which encourages the use of digital technology to resolve cross border business to business disputes.”

Sustainability

This project will contribute to the implementation of the strong ongoing framework that already exists for ODR and the Collaborative Framework in the APEC EC. The Economic Committee has endorsed: the Collaborative Framework and Model Procedural Rules (at EC 2 in 2019); the SELI Administrative Implementation Work Plan for the Collaborative Framework and the Satellite Website proposal (https://www.apec.org/SELI) (at EC 1 in 2021); the implementation of the Collaborative Framework and partnering with ODR providers (at EC 1 in 2022); and the Study on Best Practices in Using ODR (January 2023).

The SELI Work Plan under the Enhanced APEC Agenda for Structural Reform (EAASR) (endorsed by the EC in November 2021) also recognizes the important contribution ODR and the Collaborative Framework make to all four pillars of APEC EC work on EAASR including creating an enabling environment for open, transparent, and competitive markets; boosting business recovery and resilience against future shocks; and harnessing innovation, new technology, and skills development to boost productivity and digitalization.

Progress on the Framework can be measured by the number of additional economies that opt into the Framework, the number of additional APEC ODR Providers that partner with the APEC EC, and the number of MSMEs that agree to use ODR and the APEC- partnering ODR providers. Another useful gauge of the success of the implementation of the project is the average time it takes for an ODR provider to resolve a dispute under the Collaborative Framework and the degree of satisfaction expressed by users of the ODR platforms. (Under the Framework (paragraph 4.5) ODR Providers are required to ask the parties to complete a feedback questionnaire about asking about their satisfaction with the service provided by the ODR provider).

Project Overseers

Not Applicable.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Waivers

Not Applicable.

Are there any supporting document attached?

Yes 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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