Washington – At the World Trade Organization’s 13th Ministerial Conference (MC13) February 27-March 1, trade ministers reviewed the functioning of the multilateral trading system and considered action on the future work of the WTO.
At the conclusion of these meetings, WTO Members renewed the longstanding moratorium on applying customs duties on electronic transmissions, often referred to as the “WTO e-commerce moratorium,” according to a draft declaration. Since its inception in 1998, Members are faced with the decision for renewal at the Ministerial conferences, contributing to two decades of policy stability. The extension of the moratorium lasts until the WTO’s next ministerial conference, expected for 2026, at which point the agreement would end absent action from the WTO.
The Computer & Communications Industry Association joined other trade associations representing a wide range of sectors to send a letter detailing the negative impacts likely to materialize if countries were to start imposing new tariffs on electronic transmissions.
The following can be attributed to CCIA Vice President of Digital Trade Jonathan McHale:
“We congratulate WTO members on successfully renewing the longstanding e-commerce moratorium until the next ministerial. In the face of a rising tide of digital protectionism, this agreement represents an important commitment that data-intensive trade should not be subject to discrimination in the form of onerous duties. The absence of tariffs on electronic transmission has been critical for the rising and mutually beneficial flow of digital products and services for over two decades. Given the efforts of a few WTO members to refuse the moratorium’s renewal outright as a bargaining chip, this is a notable achievement.
“Inclusion of an end-date for this commitment reflects past practice, and will require a subsequent decision to further extend it. However, not addressing that path in this decision is an unfortunate omission. We urge the United States and the broad group of WTO members who supported this renewal to commit to pursuing extension beyond MC14 as well. Failure to do so will result in only a temporary respite, with added uncertainty about a core pillar of open and fair digital trade.”