WTO members discuss duty-free electronic transmissions, hear views from private sector

Four private sector representatives from Africa, the Caribbean, Europe and Latin America underlined the importance of maintaining the moratorium during the workshop, which was convened by the facilitator following requests from several delegations.

The private sector speakers were Andy Berahazar and Kristoff Pragg of Coded Arts, an animation firm in Trinidad and Tobago; Pinaman Owusu-Banahene of ADJOAA, an online marketplace for African fashion designers; Pascal Kerneis of the European Services Forum; and Sofía Pérez Gasque Muslera of the Mexican Association of the Information Technology Industry, which represents a network of technology companies.

During the 13th WTO Ministerial Conference (MC13), held in Abu Dhabi in early 2024, members had agreed to maintain the current practice of not imposing customs duties on electronic transmissions until MC14 or 31 March 2026, whichever is earlier. The private sector speakers suggested that allowing the moratorium to lapse would destabilize the digital trade environment and disproportionately impact small enterprises by raising costs. 

Martine Julsaint of UNCTAD gave an overview of its recent report, "Indirect taxation of e‑commerce and digital trade: Implications for developing countries." The report focuses on the taxation challenges in digital trade, policy gaps, and revenue mobilization strategies.

Members then had the opportunity in a dedicated session of the workshop to discuss the reasons underlying their positions on the moratorium. Ambassador Matthew Wilson of Barbados, coordinator of the African, Caribbean and Pacific (ACP) Group; Saut Mulia, Finance Attaché of the Indonesian Embassy in Brussels; and Maha Gabbani from the Mission of Saudi Arabia to the WTO provided presentations to kickstart members' discussions. This was followed by a discussion among all members.

Further details can be found on the event webpage.

Concluding the meeting, the facilitator said the discussion will help members consider how to move forward on the issue in preparation for MC14. The facilitator said he will hold bilateral consultations and convene a mid-year stocktaking meeting.

"I encourage delegations to further reflect on what they have heard today and on possible next steps, both on the moratorium, including its scope and coverage, and on the Work Programme more broadly," Ambassador Brown said.