WTO Extends Moratorium on E-Commerce Tariffs for Two More Years

Countries of the World Trade Organization (WTO) have unanimously agreed to extend the moratorium on tariffs on electronic commerce for another two years, in line with the position established since February 2024. This moratorium, first introduced in 1998, ensures duty-free data transmission online, including goods such as video games and music.

However, some countries have expressed doubts about extending the moratorium due to discrepancies in interpreting the term “transmission” and fears of potential negative effects of tariffs on small and medium-sized businesses. It is worth noting that a joint report by the Organization for Economic Cooperation and Development (OECD), the United Nations Conference on Trade and Development (UNCTAD), and the World Bank calls for maintaining the moratorium, citing that even small tariffs could adversely affect business development in the digital sphere.

South Africa supports the establishment of a special fund to provide targeted support to developing countries, including the least developed ones, to overcome the “digital divide.” While India proposes to continue discussing this issue. On the other hand, representatives of Samoa, speaking on behalf of 79 countries in Africa, the Caribbean, and the Pacific region, have also agreed to extend the moratorium for two years but called for a more in-depth and specific dialogue in the future.

The original document you can find here.

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