Clinton wants a global agreement within a year

Clinton enthuses about the commercial possibilities of the 'Net

www.freetrade.zone - Clinton's Internet Vision

At a White House ceremony following the President's signing of the Information Technology Agreement - which will eliminate tariffs on information technology by the year 2000 - Mr Clinton declared: "Our task is to make sure that it's safe and stable terrain for those who wish to trade on it. And we must do so by working with other nations now, while electronic commerce is still in its infancy."

The vast commercial potential of the Internet is being rapidly recognised. Economists forecast that if taxes and government regulations are kept to a minimum, commercial transactions on the Internet will jump from just under one billion dollars this year to 70 billion dollars by the year 2000.

President Clinton urged his Trade Representative Charlene Barshefky to secure an international agreement within a year that would "reduce tariffs on Internet-related equipment to zero and...ensure that products and services delivered across the Internet are not subject to tariff."

Ms Barshefsky later told a news conference that she hoped to start a core group of countries to secure an agreement. "Let's find the critical mass of countries who will be pace setters - the rest will follow," she said.

She added that part of the foundation for commerce policy on the Internet had been laid by last year's World Trade Organisation agreement eliminating import tariffs on many Internet-access technologies.

Later this month, a high-level US delegation will go to Europe to discuss President Clinton's plans. It will be led by Commerce Secretary William Daley and Ira Magaziner, who has headed development of the administration's Internet policy.