In a bid to assist and give a lifeline to small businesses and female entrepreneurs, the World Trade Organisation (WTO) members have renewed their agreement to wave customs duties on electronic transmissions. This was the seventh agreement of a series of dedicated discussions held this year under the Work Programme on electronic commerce.
While the term ‘electronic transmissions’ is not exactly defined but it encompasses anything from information technology, software, emails, text messages, digital music, movies, videogames and so on.
The proposal provides evidence of the benefits of the moratorium and the implications of the non-renewal of the moratorium on consumers and businesses.
Since 1998, WTO members have periodically agreed to extend the moratorium on the imposition of customs duties on electronic transmissions at the biennial WTO Ministerial Conference. The last extension was agreed on in June 2022 at the WTO’s 12th Ministerial Conference (MC12).
In addition to extending the moratorium, WTO members at MC12 agreed to intensify discussions on the scope, definition and impact of the moratorium. The dedicated session was the second time the issue of the moratorium was discussed by members under the Work Programme since MC12.
Canada, on behalf of the co-sponsors of the new proposal, outlined the understanding of the scope and definition of the moratorium. In addition, Indonesia presented its provisions for importing digital goods through electronic transmission, with a focus on imports intended for domestic use.
The body said the next dedicated discussion will take place in September and will focus on technology transfer related to e-commerce.
