Ahead of the World Trade Organization (WTO) 13th Ministerial Council (MC13) next week, USCIB has been advocating extensively to extend the WTO moratorium on customs duties on electronic transmissions.  

Among these efforts, as reported by Inside US Trade, was a multi-association letter signed by USCIB President and CEO Whitney Baird, along with the presidents and CEOs of other associations such as the U.S. Chamber of Commerce. The letter was sent to U.S. Trade Representative Katherine Tai, National Security Council’s Jacob J. Sullivan and National Economic Council Director Lael Brainard. 

USCIB also signed a Global Industry Statement urging the WTO to support the continuation of the Moratorium at MC13. The Statement, comprised of nearly 200 groups from more than 20 sectors in 130 countries, was covered by Politico. 

A few WTO members, such as India, Indonesia and South Africa, are threatening to block renewal of the moratorium for policy and political purposes. As such, USCIB joined several industry coalition letters to key government officials in these countries expressing concern about the potential collapse of this longstanding multilateral agreement and how it would negatively impact trade and investment in these economies.   

The letters argue that the moratorium is essential to the interests of millions of local enterprises and workers. The economic studies that analyze the potential impacts of customs duties show that countries hurt themselves by raising barriers and increasing costs for a wide variety of enterprises to access knowledge, information, data, and digital tools needed to compete in the global marketplace. 

For India, customs restrictions on the Internet are at odds with Prime Minister Modi’s vision of a $1 trillion “Digital India” economy. In fact, such restrictions could well cause India’s digital economy to shrink rather than grow given its large share of software development and global data processing activity. If India imposes customs duties on inbound data transfers – coupled with restrictions on outbound data transfers proposed under various other measures – India will isolate itself from the world. 

USCIB President and CEO Whitney Baird and USCIB Senior VP Alice Slayton Clark will be at MC13 in Abu Dhabi next week, where this topic will be a top priority. 

“Allowing the moratorium to expire would be a historic setback for the WTO, representing an unprecedented termination of a multilateral agreement in place nearly since the WTO’s inception – an agreement that has allowed the digital economy to take root and grow,” said Clark. “It risks destabilizing the very fabric of a multilateral trading system already under intense strain.”