The moratorium will end in March 2024, should the next conference be postponed. photo credit: FABRICE COFFRINI
WTO members on Thursday reached a tentative deal to hold off on imposing duties on electronic broadcasting until the next ministerial meeting, likely in 2023, two trade sources involved in the discussions told Reuters.
The prospect of ending the moratorium, which has exempted data flow from cross-border tariffs since 1998, had raised major concerns among businesses. Backed by major players such as the United States, the United Kingdom and the European Union, he argued that letting it expire would undermine the global recovery that is already threatened by rising prices.
“We agree to maintain the current practice of not levying customs duties on electronic transmission until MC13, which should normally be held until 31 December 2023,” the agreement showed, referring to the next ministerial conference. It specified that the adjournment would end in March 2024 should the next conference be postponed.
The tentative deal was struck in a negotiating room at the World Trade Organization’s Geneva headquarters between a group of key members and still needs to be supported by the body’s 164 members.
India, Indonesia, Sri Lanka, Pakistan and South Africa had earlier threatened to halt an expansion at a five-day ministerial summit where deals on fishing, vaccines and food security are also being sought. It was not immediately clear what made him change his mind.