India will oppose efforts by developed countries to press for a permanent moratorium on import duties on electronic transmissions at the forthcoming WTO Ministerial Conference (MC 12) in Geneva and will instead make a call for ending it as the loss in tariff revenue due to the move has to be disproportionately borne by developing nations, an official tracking the matter has said.

“India and South Africa have been making submissions on the adverse impact of the moratorium on developing countries. A number of other developing countries, such as Sri Lanka and Indonesia, are supporting our stand. India believes that a reconsideration of the moratorium is important for developing countries to preserve policy space for their digital advancement,” the official said.

The potential tariff revenue loss for developing countries every year due to the moratorium on e-transmissions, which includes digitisable products like photographic films, cinematographic films, printed matter, music, media, software, and video games, is estimated at $10 billion, according to a study by UNCTAD. The potential loss for high-income countries, on the other hand, is estimated at only $289 million.

No clarity

“There is no reason why a decision taken way back in 1998 to temporarily not impose customs duties on electronic transmission should be continuously extended at every Ministerial Conference when it is obvious that the actual beneficiaries are the rich nations. There is also a need to clarify what all e-transmission includes as it has not been defined so far,” the official said.

India is also against negotiation on rules and disciplines in e-commerce being advocated as part of the JSI initiative on e-commerce by 86 members, which includes the US, the EU, Japan, Australia, South Korea, Switzerland, Norway, Canada, China, Singapore, New Zealand, Malaysia, and Brazil. 

“India believes negotiation on rules and disciplines in e-commerce would be premature given the highly asymmetrical nature of the existing global e-commerce space and a lack of understanding of the implications of the multi-faceted dimensions of issues related to e-commerce,” the official said.

Developing countries also need to preserve flexibility to implement policies to catch-up with developed countries in the digital arena. “We first need to focus on improving domestic, physical, and digital infrastructure, creating a supportive policy and regulatory framework, and developing our digital capabilities,” he said.

Accordingly, India has not joined the JSI on e-commerce as we believe that multilateral avenues are best-suited to achieve inclusive and development-oriented outcomes.

India and South Africa will call for re-invigorating work under the 1998 Work Programme on e-commerce, including in the subsidiary bodies, especially on the developmental aspects, including the challenges experienced by developing countries and LDCs in relation to e-commerce, and explore ways of enhancing the participation of developing countries in electronic commerce.