The World Trade Organization (WTO) has extended the moratorium on imposing tariffs on electronic transmissions for an additional two years, according to a draft document released by the WTO. This decision was made to continue the current practice of not taxing e-commerce transactions, which has been in place since 1998.
The moratorium was initially set to expire at the end of 2019, but the new extension will now keep it in place until at least 2021. This move is seen as a way to support the growth of digital trade and e-commerce, which have become increasingly important in the global economy.
E-commerce has seen significant growth in recent years, with more and more businesses and consumers turning to online platforms for buying and selling goods and services. The extension of the moratorium is expected to provide certainty and stability for businesses operating in the digital economy.
Many WTO members have expressed support for the extension, citing the need to promote innovation and economic development in the digital sphere. However, some countries have raised concerns about the potential impact on their domestic industries and revenue streams.
The decision to extend the moratorium on e-commerce tariffs comes at a time when trade tensions between major economies, such as the United States and China, are high. By maintaining the current policy of not imposing tariffs on electronic transmissions, the WTO aims to foster a more open and inclusive global trading system.
Overall, the extension of the moratorium on e-commerce tariffs reflects the growing importance of digital trade in the modern economy and the need to adapt trade rules to accommodate this evolving sector.
