India calls for clear definition of e-commerce in WTO

India has called on members of the World trading Organisation (WTO) to work together to define e-commerce in a way that is clear and includes trading in both commodities and services. While deliberations on e-commerce within the WTO have persisted since 1998, a clear definition remains elusive. Notably, the United States has recently withdrawn from these negotiations aimed at framing global regulations on e-commerce within the WTO.

Photo Source: Shutterstock

New Delhi, October 30: India has urged the World Trade Organization (WTO) members to collaboratively establish a precise delineation of e-commerce encompassing trade in both goods and services. The aim is to afford developing nations the necessary flexibility to regulate within the rapidly expanding digital sphere, according to an official statement.

Presently, a difference of opinion in perspectives exists between developed and developing member countries of WTO. This contentious matter surfaced during a recent assembly of high-ranking WTO officials in Geneva.

“India emphasized the need for a distinct categorization distinguishing digital goods from services due to the presence of customs duties on goods but not on services. While the developed world advocates for zero customs duties, developing nations seek autonomy to potentially levy these duties,” an official has said.

Customs duties serve as a protective measure for domestic industries and grant room for policy implementation to foster the growth of Micro, Small, and Medium Enterprises (MSMEs).

Since 1998, WTO members have collectively agreed not to levy customs duties on electronic transmissions, a commitment extended at successive ministerial conferences. The ambiguity surrounding e-commerce trade in services has led to concerns. India intends to oppose the extension of the moratorium on customs duties on e-commerce trade at the WTO’s 13th ministerial conference in Abu Dhabi scheduled for February next year.