WASHINGTON, D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement calling on the World Trade Organization (WTO) to make its moratorium on customs duties on electronic transmissions permanent at the 14th meeting of the Ministerial Conference (MC14) next week in Cameroon:
“As WTO Ministers gather next week in Cameroon for the 14th Ministerial Conference (MC14), there is nothing of greater importance on their agenda than extending – permanently – the WTO’s longstanding ban on customs duties on electronic transmissions.
“It is beyond time to break the every-two-years cycle of countries refusing to endorse an extension of the moratorium, only to relent at the 11th hour and agree to a 2-year extension so that the entire process repeats again at the next Ministerial.
“While it is encouraging that the debate in Geneva has evolved from whether to renew the moratorium at all to how long an extension should last, WTO Ministers need to act once and for all to ban the duties permanently. This would provide a clear signal that the WTO is prepared to tackle 21st century challenges and show that WTO members are committed to creating an environment that encourages long-term investment, innovation, and cutting-edge cross-border delivery of digital services.
“A 2023 report shows that digitally delivered services now account for 54 percent of global services exports and are growing much faster than conventional services. Leaving the door open for countries to add tariffs to these transactions would be a step in the wrong direction at a time when countries should be embracing the opportunities that digital trade and AI can provide.
“While the MC14 agenda will call on Trade Ministers to tackle a number of challenging issues to build momentum for a broader reform agenda, adopting a permanent ban, in conjunction with an elevated and more formal e-commerce work program, would be a powerful shot in the arm for the WTO, its member countries, and businesses of all sizes around the world.”
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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.
