Following extensive discussions at WTO MC13, member countries agreed to extend the suspension of customs duties on electronic transmissions until March 2026. This decision highlights the importance of services in the global economy, accounting for more than two-thirds of global economic output and more than 50% of all employment opportunities.
The agreement to continue the moratorium until the 14th Ministerial Conference in March 2026, as set out in the draft ministerial decision of 1 March 2024, will require a review of the impact of the moratorium, particularly on developing countries. This was achieved despite India's efforts. and least developed countries (LDCs). At the ministerial meeting, attended by approximately 4,000 representatives from 164 WTO member countries, the Abu Dhabi Ministerial Declaration was adopted, reaffirming the commitment to maintaining and strengthening the multilateral trading system.
Key highlights of WTO MC13 on e-commerce
- Intense discussions: Member countries held passionate discussions and exchanged experiences and suggestions on a variety of e-commerce related topics. Efforts are being made to deepen these discussions, focusing on the topics identified and drawing on insights from previous efforts.
- Impact of cUstoms dTariffs: Member States are committed to examining additional empirical evidence to understand the scope, definition, and potential impact of tariffs on electronic transmissions. The initiative aims to foster a level playing field for developing and least developed countries, enabling them to take advantage of the opportunities presented by the digital economy.
- Cooperation: Cooperation remains critical to addressing the digital trade challenges facing developing countries. A recent workshop held under the Program of Work with Intergovernmental Agencies highlighted the importance of continued cooperation, particularly in capacity building and providing technical assistance to micro, small and medium enterprises (MSMEs).
- Periodic Reviews: The General Council is tasked with conducting periodic reviews of the work program based on reports submitted by relevant WTO bodies. The aim is to present recommendations for action at the next Ministerial meeting to ensure continued progress and adaptation.
- Suspension of customs duties: Member States agreed to maintain the current practice of not imposing customs duties on electronic transmissions until the 14th Ministerial Conference or 31 March 2026, whichever is earlier. This decision reflects our commitment to foster a conducive environment for digital trade, facilitate cross-border trade, and promote inclusive economic growth.
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How e-commerce retailers can adapt to changes at the WTO
As retailers adapt to these changes, the outcome of the WTO deliberations will provide valuable insight and support to effectively manage the complexities of digital tax operations in today's interconnected world . By staying informed and leveraging these insights, retailers are better positioned to succeed in an increasingly digital marketplace while ensuring compliance with evolving regulatory requirements. .
