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WTO and India

WTO E Commerce Moratorium

Why in News?

The WTO e commerce moratorium is set to expire at the 14th WTO Ministerial Conference in Yaounde, Cameroon, leading to debate between developed and developing countries including India.

What Is WTO E Commerce Moratorium?

• Global agreement among WTO members
Prohibits customs duties on electronic transmissions
• Promotes digital trade growth

Coverage

Includes: Software downloads, E books, Music and video streaming, Video games, and Digital services

Background

• First adopted 1998 Geneva
• Initially temporary
• Renewed every two years
• Last extended 2024 WTO Ministerial Conference

Debate Over Extension

Developed Countries Support

• United States, European Union, Japan, and Canada

Reasons

• Predictable digital trade environment
• Support global digital economy
• Protect Big Tech companies

India and Developing Countries Oppose

Concerns

• Loss of tariff revenue
• Weak domestic digital industries
• Big Tech dominance

Studies

UNCTAD estimated $10 billion revenue loss
OECD says loss can be offset via GST or VAT

[2015] The terms ‘Agreement on Agriculture’, ‘Agreement on the application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the (a) Food and Agricultural Organization (b) United Nations Framework Conference on Climate Change (c) World Trade Organization (d) United Nations Environment Programme

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