Blitz Bureau
NEW DELHI: US lawmakers pushed for a permanent ban on tariffs on digital products ahead of the WTO ministerial, with India’s opposition emerging as a key hurdle.
At a Congressional hearing on March 18, officials said extending the moratorium on customs duties on electronic transmissions is a top priority. The rule has been in place since 1998.
The moratorium bars countries from taxing digital trade such as software, data, and online services.
House Ways and Means Committee Chairman Adrian Smith said the United States seeks outcomes that “benefit American businesses of all sizes.” He said the rule should not be used as leverage in negotiations.
Experts warned that failure to extend the moratorium could hurt global trade.
Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation, said “It’s vital that America’s foremost priority at MC 14 be securing continuation of the WTO moratorium on customs duties on electronic transmissions”.
He added exports could fall “as much as 1 per cent almost immediately”. India was repeatedly named as a key player in this decision-making process.
Kelly Ann Shaw, from Akin’s lobbying & public policy practice, alleged “India in particular has held the e-commerce moratorium hostage for nearly 30 years”. She said the WTO system allows countries to block decisions.
Witnesses said India has linked the issue to other demands including public stockholding and farm subsidies. US experts also warned of risks for India. Ezell said India’s digital economy accounts for “11 per cent of Indian GDP”.
