Commission receives mandate to negotiate UN Convention on e-contracting

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The European Commission has received authorisation from the Council to open negotiations, on behalf of the EU, on a draft UN Convention aiming to make it easier to conclude international business-to-business contracts electronically. The negotiations will take place within the United Nations Commission on International Trade Law (UNCITRAL).

Internal Market and Services Commissioner Charlie McCreevy said: "Two things are certain. More and more companies of all sizes are active internationally and more and more business is being done electronically. We want EU businesses to be as well placed as possible to benefit. Giving Europe a strong voice in drawing up this Convention will contribute to making sure e-contracts can be drawn up with a minimum of fuss. We welcome the Council's mandate."

The increased use of electronic communications has created a need for international contracts to be concluded by electronic means. UNCITRAL has therefore begun work on a draft Convention which aims to create uniform rules to facilitate international electronic contracting. The Convention would improve the legal framework for commercial activities and enhance trade opportunities, thus helping to promote global trade and economic growth.

For the EU, taking part in these negotiations will enable European companies to obtain maximum benefit from the updated framework for international contracting. The aim is also to ensure compatibility between the draft Convention and Directive 2000/31/EC on electronic commerce - for example the latter's provisions on contracts concluded by electronic means. Such compatibility between EU and international rules would create better legal clarity and security for European companies active outside the EU.

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