On Thursday, WTO members tentatively agreed to extend the moratorium on imposing duties on electronic transmissions until the next ministerial meeting, expected in 2023, according to two trade sources engaged in the discussions as reported by Reuters. The potential expiration of the moratorium, which has shielded data flows from cross-border tariffs since 1998, raised significant concerns among businesses. Supported by influential entities such as the United States, the United Kingdom, and the European Union, these stakeholders argued that allowing the moratorium to lapse would jeopardize the global recovery, already threatened by escalating prices.
The agreement stipulated, “We agree to maintain the current practice of not imposing customs duties on electronic transmissions until MC13, which should ordinarily be held by 31 December 2023.” The document clarified that the moratorium would cease in March 2024 if the next conference were postponed.
This provisional deal was forged during negotiations at the WTO’s Geneva headquarters among a coalition of major members. It awaits approval from the WTO’s 164 members. During the five-day ministerial conference, where negotiations are also underway on issues like fishing, vaccines, and food security, countries such as India, Indonesia, Sri Lanka, Pakistan, and South Africa initially threatened to block the extension. The reasons behind their change of stance were not immediately clear.