APEC Project Proposal |
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| Project No. | M CTI 01 2011T |
| Project Title | APEC Cross Border Privacy Rules System Implementation and Administration Assistance |
| Project Status | Completed Project |
| Publication (if any) | http://publications.apec.org/publication-detail.php?pub_id=1800 |
| Fund Account | TILF Special Account |
| Sub-fund | None |
| Project Year | 2011 |
| Project Session | Session 3 |
| Sponsoring Forum | Electronic Commerce Steering Group (ECSG) |
| Topics | Electronic Commerce |
| Committee | Committee on Trade and Investment (CTI) |
| Other Fora Involved | Committee on Trade and Investment (CTI) |
| Other Non-APEC Stakeholders Involved | Nil. |
| Proposing Economy(ies) | United States |
| Co-Sponsoring Economies | Australia;Canada;Chile;China;Hong Kong, China;Japan;Malaysia;Mexico;New Zealand;Philippines;Chinese Taipei;Viet Nam |
| Expected Start Date | 01/01/2012 |
| Expected Completion Date | 31/12/2016 |
| APEC Funding | 480,231 |
| Co-funding Amount | 6,049 |
| Co-funding Percentage | 1.24 % |
| Total Project Value | 486,280 |
| Project Proponent Name 1 | Mr Ted Dean (new PO wef 29 October 2015) |
| Job Title 1 | Deputy Assistant Secretary for Services |
| Organization 1 | United States Department of Commerce |
| Postal Address 1 | 1401 Constitution Ave, NW Room 2003, Washington DC, 20230 |
| Telephone 1 | 1-202 482 0142 |
| Fax 1 | Not Applicable |
| Email 1 | ted.dean@trade.gov |
| Project Proponent Name 2 | Mr Michael Rose (assisting Mr Ted Dean) |
| Job Title 2 | Policy Advisor, Office of Digital Services Industries |
| Organization 2 | US Department of Commerce |
| Postal Address 2 | Michael.Rose@trade.gov |
| Telephone 2 | Not Applicable |
| Fax 2 | Not Applicable |
| Email 2 | Not Applicable |
| Declaration | Mr Ted Dean |
| Project Summary | This project has two primary goals aiming to support the effective and efficient implementation of the Cross Border Privacy Rules System in APEC economies. This will be through providing economy-level implementation assistance for the Cross Border Privacy Rules System in the form of capacity building workshops, seminars, meetings, and the provision of consultant services as necessary, and; to provide assistance in the administration of the Cross Border Privacy Rules System, including any associated programtic functions. |
| Relevance | The digital economy’s potential as a key driver of economic growth in the 21st century requires governments to take steps to inspire consumer confidence while avoiding unnecessary barriers to the flow of information. Recognizing this pressing challenge, at the November 2004 16th Ministerial Meeting and 12th APEC Economic Leaders’ Meeting in Santiago, Chile, APEC Ministers and Leaders endorsed the APEC Privacy Framework and the Future Work Agenda on International Implementation of the APEC Privacy Framework. The goal of the Framework was to facilitate the development of flexible but robust privacy protections to ensure the continued growth of the digital economy. In Sydney in September 2007 APEC Ministers endorsed the APEC Data Privacy Pathfinder, which provides a process for the international implementation of this Framework through the development of a Cross Border Privacy Rules (CBPR) system that can be voluntarily implemented by member economies. The Pathfinder identified a range of projects necessary for the establishment of a CBPR system, which includes the following core documents: · a detailed self-assessment questionnaire based on the nine APEC Privacy Principles for use by an applicant organization; · a set of baseline program requirements based on the nine APEC Privacy Principles against which an APEC-recognized Accountability Agent will assess an organization’s completed questionnaire; · recognition criteria to be used by APEC Economies when considering the recognition of an Accountability Agent; · the Cross Border Privacy Enforcement Arrangement (CPEA); and · the Charter of the Cross Border Privacy Rules Joint Oversight Panel (JOP). Together, these documents form a voluntary system that will allow a participating company operating within economies that have laws and regulations that may be used to enforce the CBPR program requirements to demonstrate the existence of privacy policies and practices that align with the APEC Privacy Framework. To further enhance consumer confidence all such demonstrations must be validated by a third-party “Accountability Agent”. In addition to enhancing consumer protection, this system facilitates the interoperability of regulations across member economies, thereby reducing barriers to the flow of data. The Data Privacy Pathfinder concluded this year with the formal endorsement of the CBPR System by Ministers. This multi-year project proposal is necessary to the successful implementation and operation of this decade-long effort. All documents are now completed and have been endorsed by ministers. In the November AELM (“Honolulu Declaration”) Leaders agreed to “take the following steps to further open markets and facilitate regional trade” including “implement(ing) the APEC cross border privacy rules system to reduce barriers to information flows, enhance consumer privacy, and promote interoperability across regional data privacy regimes.” This proposal seeks to assist economies in participating in this system and to assist in the administration of this system as directed by Leaders. |
| Objectives | This project has two key objectives. The first objective is to facilitate participation in the APEC Cross Border Privacy Rules (CBPR) system by member economies through the provision of technical assistance on key aspects of this system as developed in the APEC Data Privacy Pathfinder. The second objective is to facilitate the necessary administrative assistance to ensure the successful operation of the CBPR system. These objectives are interdependent. Objective 1 - Technical Assistance: The value of the CBPR System to consumers, regulators and economies, increases as more economies participate. In order to be truly effective across the APEC-region, this system must assist those member economies that have identified this initiative as beneficial to both consumers and industry within their economy but do not yet have the capacity to participate. A multi-year technical assistance program will allow the kind of ongoing capacity-building work that this participation requires. The proposed budget anticipates conducting two technical assistance programs per year. The specific workplans associated with each capacity-building initiative and the pace at which these initiatives take place must necessarily be tailored to the specific needs of the recipient-economy. Nonetheless, each capacity-building activity has the full participation of the recipient-economy in the CBPR System as its goal. These capacity-building initiatives will include:a) In-economy technical assistance meetings with a project consultant with relevant government and industry participants; and b) The drafting and distribution of project reports that will recommend next steps to participating member economies. Objective 2 - Administrative Support: In addition to being responsive to the needs of prospective participants, this project also seeks to provide the necessary administrative support to ensure it effectively functions for current participants. Moreover, the more successful the technical assistance measures are at broadening economy-level participation in the CBPR system, the more important the provision of administrative support becomes. As such, one of the job duties of a contractor should be the management of these capacity-building efforts. A multi-year approach to the development and maintenance of these administrative provisions will allow the kind of continuity of management and operation that is essential to the initial establishment of the CBPR System. |
| Multi-Year Approach | This project is designed to provide medium-term capacity building assistance to interested participating economies and to undertake those administrative functions necessary to the successful operation of the CBPR system. Both of these objectives require an extended timetable for both development and execution and would that could not otherwise be accomplished in the normal project proposal life cycle. It is expected that the capacity building assistance provided to initial participants will form the basis of future capacity building initiatives and provide guidance to all member economies as to how to best implement the CBPR system in their economy. |
| TILF/ASF Justification | This project will contribute to the APEC trade and investment liberalization and facilitation goals set out in the Bogor goals and the Osaka Action Agenda by eliminating and/or preventing the establishment of unnecessary barriers related to information privacy on trade and investment in the region. This project aims to contribute to the implementation and management of a system of cross-border privacy rules (CBPRs) that facilitate the responsible and accountable transfers of information across the APEC region in a way that does not create unnecessary barriers to cross-border information flows. The continued economic growth of a number of APEC economies is significantly and beneficially impacted by their participation in the information economy. The report and companion workshop are a direct input into the work of the Data Privacy Sub-Group that is working on implementing this privacy system. This project contributes to the following Osaka Action Agenda principles:
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| Beneficiaries and Outputs | The direct beneficiaries of this project will be developing member economies of APEC that receive technical assistance through this project (through Objective 1) as well as all member economies participating in the implementation of this system (through Objective 2). [Note: technical assistance will be provided to interested economies that volunteer to participate in such exercises on a first come first serve basis]. These beneficiaries will include: · APEC government officials and policy makers responsible for development and implementation of cross-border privacy rules (CBPRs), · Regulatory agencies and/or appropriate private sector accountability agents (e.g., privacy trust marks) responsible for · Enforcement of CBPRs, and business organizations responsible for protecting customer data and information. The indirect beneficiaries of this project will be APEC consumers. While APEC consumers will not be directly engaged in the implementation of the project, they will benefit from the formulation, implementation, and enforcement of measures that protect their personal information, for example, when cross border purchases and transactions are made through the Internet. |
| Dissemination | The targeted audience of the project will include APEC ECSG delegates, individual APEC member economy representatives responsible for privacy issues, privacy regulators, civil society, academia, and business representatives, including representatives of trust mark organizations in the Asia Pacific region. The content will be delivered through lecture presentations, and may be supplemented with country specific reports. All presentations and associated documents will be made available in hard copy to participants at the workshop venue and will be made available online on the APEC website. Copies of the output will be provided to all participants, but no paper publication of these documents is contemplated following the ECSG and related meetings at which they will be disseminated. Information about the workshop will be available on the APEC website. The project planning committee will develop a publicity plan that may include uploading workshops promotion materials on other interested stakeholders’ websites. No final product will be for sale following these sessions and there is no intention to sell outputs arising from this project. |
| Gender | The underlying project objective - to implement and adminsiter the APEC Cross Border Privacy Rules System across member economies – is grounded in the understanding that women and men, as consumers, will benefit equally from greater accountability in cross-border flows of personal information. The issue of data privacy, including protection from harm and misuse of information, does not contain gender-biased provisions as the purpose of a fully operational CBPR system is far reaching in its effort to protect the personal information of the individual, regardless of gender or where in the APEC region that personal information is transferred or accessed. Success of this activity rests on the premise that engagement and consultation occurs with a wide and diverse array of stakeholders, from government, the private sector and civil society, including women from all groups. The project overseers will encourage women from APEC member economies to participate in the activity and APEC travel eligible economies will be strongly encouraged to consider nominating female participants. The search for consultant(s) will be non-gender specific and strictly based on the knowledge and experience in this area of research and expertise. Consideration will be made for speakers and participants who can provide gender-sensitive perspectives on cross-border privacy transfers. |
| Work Plan | The success of the objectives identified in question 3 will be evaluated through presentations to the Data Privacy Subgroup by participating stakeholders and through completion and presentation of annual monitoring reports by the Project Proponent. It is anticipated that these presentations and reports will facilitate direct stakeholder feedback. These activities, identified by year, are as follows: |
| Risks | CBPR Implementation Workshop (2012): There is always potential for low participation from non-travel eligible economies as well as travel-eligible economies not taking full advantage of sending the maximum number of participants under the travel funding. Project overseers will work closely with DPS representatives to develop a compelling workshop program that will interest a large audience, and while it will focus on developing member economies, there will be a session where all APEC member economies will be encourage to discuss options for follow up to help developing economies participate more actively in the CBPR System. Provision of Technical Assistance (2012-2016): The primary risk associated with this objective is the inability to secure interested developing economies to participate in the technical assistance provisions offered through this project. A key to managing this risk is to encourage education and outreach to all APEC member economies as to the benefits of participation in this system. Recognition of the importance of this education and outreach is reflected in the Data Privacy Subgroup’s 2012 work plan. |
| Monitoring and Evaluation | Monitoring: The success of the identified activities will be evaluated through presentations to the Data Privacy Subgroup by participating stakeholders and through completion and presentation of annual monitoring reports by the Project Proponent. It is anticipated that these presentations and reports will facilitate direct stakeholder feedback, including the annual distribution of a Monitoring Report by the project proponent to member economies. In addition to this report, both the consultant hired to provide technical assistance (see Objective 1) and the contractor(s) hired to provide administrative assistance (see Objective 2) will provide written and oral reports of their activities to member economies at each data privacy subgroup meeting. These reports will be noted in the Chair’s report to the ECSG and will be referenced in the ECSG Convenor’s report to CTI. Evaluation: each of the above identified reports will be evaluated against an identified set of objectives which will include, but will not be limited to: (1) the progress made by those economies that receive technical assistance toward meeting the objectives of the technical assistance as identified at the outset. Note: the scope of technical assistance provided will vary from economy to economy as different economies will necessarily have different needs. Some economies may require enforcement assistance while others may require assistance in developing the required third party validators to participate in the cbpr system. While these goals will vary, nonetheless, the identified goals of each capacity building exercise will form the basis of the criteria against which the success of the exercise will be measured by member economies. At the outset of each technical assistance exercise, the identified goal of the assistance will be entered into a tracking matrix document to be maintained by the PO. This tracking matrix will be used to assess the medium term progress of the identified goal and will be circulated to member economies for their feedback. Additional objectives will be identified through: (1) an annual work plan, to be endorsed by member economies, that identifies the functions for each consultant and/or contractor hired that year, including scope of duties; (2) specific terms of reference for each consultant hired, including specific duties associated with any capacity-building initiatives undertaken by the consultant and the length of these activities;, and (3) an employment contract for each contractor hired which will include specific administrative functions, as agreed to by member economies, the length of time for which the contractor will provide these services as well as causes for termination. |
| Linkages | The DPS will work in consultation with the ECSG and CTI to identify those capacity-building opportunities in developing member economies that present the clearest opportunity for advancing that economy’s involvement in the CBPR system. CTI, ECSG and DPS will work in consultation with the APEC Secretariat to identify those administrative functions necessary to assist in the successful operation of the CBPR system and the appropriate procedures for procuring contractor(s) to assist in the execution of these functions. CTI and ECSG/DPS will benefit by facilitating significant policy achievements, identified in each forum as assisting in regional economic integration. Implementation of this system will facilitate a reduction in the regulatory burden associated with the cross border transfer of data between participating APEC economies, thereby decreasing associated regulatory barriers to trade and commerce. Implementation of this system also facilitates privacy policy interoperability. Efforts to ensure internationally compatible approaches to data protection will benefit companies, including SMEs, doing business across the APEC region. Implementation of this system will enhance consumer confidence by establishing robust online privacy protections. This confidence is a key driver of the continued growth of the digital economy. In addition to implementing Annex B of the APEC Privacy Framework, this multi-year project proposal follows on four Technical Assistance and Training projects on the Data Privacy Pathfinder to APEC Developing Member Economies that will have been conducted between September 2009 and September 2011. This project aims to continue the outreach efforts begun in these initial technical assistance activities and address needs for further capacity building activities identified and discussed in each workshop. In addition, the project is expected to contribute to future work by facilitating participation in the Cross Border Privacy Rules system, expected to be endorsed during the 2011 year. Non-APEC stakeholders will also benefit from this Project as the lessons learned through the process of implementing and administering a voluntary system of Cross Border Privacy Rules have applicability to other fora considering issues of global privacy policy interoperability, including but not limited to the OECD, as well as individual economies engaged in such work in fora outside of APEC. |
| Project Management | As described above, the project overseer, with approval from member economies, will develop specific terms of reference for each consultant hired, including specific duties associated with any capacity-building initiatives undertaken by the consultant and the length of these activities. In addition, the project overseer, with approval from member economies and the APEC Secretariat, will develop an employment contract for each contractor hired which will include specific administrative functions, as agreed to by member economies, the length of time for which the contractor will provide these services as well as causes for termination. Should the project overseer change during the life of the project, the previous project overseer will ensure that each of the processes associated with the core functions of this project are understood by the replacement project coordinator. The project coordinator will be expected to provide an overview of activity to date as well as next steps at the next DPS meeting. |
| Sustainability | All stakeholders and beneficiaries of the CBPR implementation and administration process should consider next steps after completion of this project (in 2016) for securing funding to continue the specific actions identified as fulfilling Objectives 1 and 2. It is anticipated that during the five years of operation, the critical needs of the CBPR system will have been clearly identified by APEC member economies as well as the costs associated with these core requirements. These needs will form the basis of a workplan to be agreed upon by member economies at the end of the project on how to address further needs both at the bilateral and multilateral level. While these needs and exploration of alternative funding arrangements to meet them should be considered throughout the life of this project, it is critical that they form a basis of the DPS work plan beginning in 2014 to ensure member economies have adequate time to implement these arrangements in advance of the completion of this project. Possible next steps for this project include: (1) the identification of alternative and/or supplemental funding sources to support the system’s administration (such alternative funds may include, but are not necessarily limited to: in-kind contributions from member economies in the form of staffing assistance (Objective 1) and capacity building measures (Objective 2); financial contributions from member economies, and; financial and/or in-kind contributions from other third-party stakeholders); and (2) the development of mechanisms to ensure the interoperability of this APEC-wide initiative with non-APEC economies on both bilateral and multilateral levels. While the mechanisms necessary to facilitate interoperability will vary depending upon the regional or national system of privacy laws and regulations with which the CBPR system seeks to interoperate, all such efforts will have multilateral dialogue as their basis. Thus, expected projects aimed to facilitate this objective will include workshops, joint reports, as well as capacity-building initiatives. Possible funding for these mechanisms may be provided by individual member economies (through the in-kind donation of capacity-building assistance) as well as those TILF-funded project proposals from member Economies that seek to promote interoperability. |
| Project Overseers | Biography: Josh Harris is an Associate Director in the Office of Technology and Electronic Commerce at the International Trade Administration in the United States Department of Commerce. Prior to this position, Josh worked in private practice as an international trade attorney. In 2004, he was selected to the White House’s Presidential Management Fellowship program. In 2008, Josh was recognized with a professional award for his contributions to a Presidential trade initiative. Josh is the Vice-Chair of the Asia Pacific Economic Cooperation’s (APEC) Data Privacy Subgroup. In addition, Josh is the Vice-Chair of the American Bar Association’s Privacy and Information Security Committee. Josh received his Juris Doctor from the George Washington University Law School in 2004 and his undergraduate degree from the State University of New York at Geneseo in 2000. |
| Cost Efficiency | The project will seek to make use of regional technical assistance experts where possible and to augment the attached budget with in-kind contributions of labor, where appropriate. |
| Drawdown Timetable | Nil. |
| Direct Labour | Direct Labor will be through two positions: The proposed budget anticipates conducting two technical assistance programs per year. The specific workplans associated with each capacity-building initiative and the pace at which these initiatives take place must necessarily be tailored to the specific needs of the recipient-economy. Nonetheless, each capacity-building activity has the full participation of the recipient-economy in the CBPR System as its goal. These capacity-building initiatives will include in-economy technical assistance meetings with a project consultant with relevant government and industry participants and the drafting and distribution of project reports that will recommend next steps to participating member economies. It is anticipated that this consultant will spend 80 hours per year on these projects. It is not yet known he will be contracted to provide these services.
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| Waivers | Nil. |
| Are there any supporting document attached? | No |