India seeks clarity on digital trade

“Electronic broadcasts, including transmitted material, must be exempt from customs duties, in accordance with the WTO moratorium on customs duties on electronic transmissions. Trade ministers of the G7, including Canada, France, Germany, Italy, Japan, Britain and the United States, said in a joint statement on Friday. I said, we support the permanent prohibition of such duties.

Adopting the G7 Digital Business Principles, which will guide the G7’s approach to digital trade, the Trade Minister stated that he opposes digital protectionism and authoritarianism. “We are concerned about situations where data localization requirements are being used for protectionist and discriminatory purposes, as well as to undermine open society and democratic values, including freedom of expression,” he said. India and South Africa have further increased the pressure on the WTO. The 12th Ministerial Meeting (MC-12) beginning November 30 called for a review of the moratorium on levying customs duty on electronic transmission so that developing countries can generate more revenue.

“As part of this multilateral action program and with the intention of understanding the implications of the moratorium on customs on electronic transmission, India is making presentations with South Africa at various WTO forums, clarifying our understanding of the scope and impact of the moratorium. Is. . We want clarity on the scope of the moratorium without which it is difficult for us to advise our political leadership on this issue,” India said earlier this month.

India said the moratorium has a substantial impact on both revenues and its ability to support policy and industrialization, where the brunt of it lies with developing countries, while its benefits go to some members, largely some of the developed countries. “Suggestions have been made to replace tariffs by non-discriminatory internal taxes. However, these suggestions do not address the respective concerns, as the two are not perfect substitutes for each other. The latter option also does not address the issue of erosion of the policy space and its ability to support domestic industrialization.”

India said it is up to proponents of the moratorium extension to establish a clear and direct link that the customs duty ban on electronic transmissions has had a positive impact on the growth of e-commerce across the world. “We advocate an evidence-based, data-backed decision on this topic. This will also help us understand how the growth of this sector depends on the extension of the moratorium and how it will be affected if the moratorium is not renewed. Will happen.”