What is the World Trade Organization e-commerce suspension order?

According to a statement from the Ministry of Commerce website, on March 28, the convening parties of the WTO e-commerce agenda—Australia, Japan, and Singapore—issued a joint news release in Yaoundé, the capital of Cameroon, announcing the interim implementation arrangements for the “E-commerce Agreement.” Ministers from the participating agreement parties, including China, the European Union, Gambia, and the United Arab Emirates, delivered written remarks expressing their support. In his written remarks, Minister Wang Wentao noted that the WTO “E-commerce Agreement” has established a global digital trade rules framework, which will effectively promote digital trade development that is more inclusive and more sustainable. China supports the timely implementation of the agreement and looks forward to the WTO playing a greater role in the rule-making process for digital trade. The “E-commerce Agreement” is an important negotiation outcome achieved by the WTO in recent years. During the WTO’s 14th Ministerial Conference, including China, 66 members announced that, while continuing to push for the agreement to be incorporated into the WTO’s legal framework, they would bring the agreement into effect through interim arrangements. The above-mentioned members will each initiate their domestic procedures, and the agreement will formally enter into force after 45 members deposit and accept it.

**　What is the WTO e-commerce moratorium?**

The e-commerce moratorium is a global agreement reached among WTO members to prohibit charging tariffs on electronic transmissions such as digital downloads and streaming.

The policy was first adopted in 1998 at the WTO’s second Ministerial Conference held in Geneva, and it forms part of the declaration encouraging digital trade to grow as soon as possible.

It covers cross-border transmissions such as software downloads, e-books, music and movie streaming, and video games.

The tariff moratorium was originally temporary, but at each WTO Ministerial Conference it is generally extended about once every two years; the most recent extension was at the 13th meeting in 2024, extending it by two years.

At the 14th WTO Ministerial Conference held in Yaoundé, Cameroon this month, the tariff moratorium period will expire.

Reasons for the extension

WTO members with large digital economies, such as the United States, the European Union, Canada, and Japan, want to permanently extend the moratorium period because they believe it can ensure predictability for global digital trade.

The United States wants major U.S. technology companies such as Amazon, Microsoft, and Apple to have a stable regulatory environment, without having to worry about tariffs that countries might introduce and that could affect cross-border digital trade, and without having to pay the cost for this.

More than 200 global business organizations signed a joint declaration calling for an extension of the moratorium period.

The International Chamber of Commerce said that if the moratorium period expires, costs will rise, the internet will be fragmented, and it will hinder companies’ ability to participate in cross-border digital trade.

Reasons against the extension

Some developing countries, including India, have long opposed this moratorium. They believe that extending the moratorium would cause them to lose tariff revenue that they use to fund infrastructure development and narrow the digital divide.

Sofia Scasserra, a think tank researcher at the Transnational Institute, said that the moratorium has failed to promote the digital economy of developing countries; instead, it has strengthened the dominance of the United States and other large advanced tech giants.

A 2019 research report by the United Nations Conference on Trade and Development (UNCTAD) estimated that developing countries might face a loss of $10 billion in tariff revenue in 2017 due to tariff charges under the moratorium.

However, an OECD study found that value-added tax or goods and services tax on imported digital services could largely offset potential revenue losses.

**　　Each country’s position at the Cameroon meeting**

At the Cameroon Ministerial Conference, four countries submitted formal proposals regarding the e-commerce moratorium.

The Africa, Caribbean and Pacific Group proposed extending the moratorium period to the next Ministerial Conference. The United States wants a permanent extension.

A group proposal, including Switzerland, calls for a permanent extension and the establishment of a digital trade commission, while a Brazilian plan proposes extending to the next meeting and establishing a digital trade commission.

Massive information and precise interpretation—available in the Sina Finance APP

责任编辑：李桐