The e-commerce moratorium is a global agreement among World Trade Organization (WTO) members that prohibits customs duties on electronic transmissions like digital downloads and streaming. This policy was established in 1998 during the WTO’s Second Ministerial Conference in Geneva to promote digital trade. It includes cross-border transmissions such as software downloads, e-books, music and movie streaming, and video games. Initially temporary, the moratorium has been renewed roughly every two years, most recently extended for two years at the 13th conference in 2024, and it is set to expire this month at the 14th WTO ministerial conference in Yaounde, Cameroon.
Supporters of the extension, including major digital economies like the U. S., EU, Canada, and Japan, argue that it provides stability for global digital trade and protects businesses from new duties that could raise costs. Over 200 global business organizations have called for the moratorium’s extension, warning that its end would increase costs and hinder cross-border trade.
In contrast, some developing nations, including India, oppose the extension, arguing it would prevent them from generating tariff revenue needed for infrastructure and addressing the digital divide. Research suggests significant potential revenue losses for these countries, although some studies indicate that these losses could be countered by other forms of taxation. At the upcoming conference, four proposals have been made regarding the moratorium: the African, Caribbean and Pacific Group seeks a temporary extension, while the U. S. requests a permanent extension, and other groups propose both permanent extensions and the establishment of committees on digital trade.
With information from Reuters
