US lawmakers are pushing for a permanent ban on tariffs on digital products ahead of the upcoming WTO ministerial, with India emerging as a key point of opposition.
During a Congressional hearing, officials emphasized that extending the moratorium on customs duties for electronic transmissions remains a top priority. This moratorium, in place since 1998, prevents countries from taxing digital trade, including software, data, and online services.
House Ways and Means Committee Chairman Adrian Smith stated that the United States seeks outcomes that “benefit American businesses of all sizes” and stressed that the rule should not be used as leverage in broader negotiations.
Experts have warned that failing to extend the moratorium could negatively impact 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. A lapse would significantly raise the cost of global digital trade and harm US digital exporters,” adding that exports could drop by “as much as 1 per cent almost immediately.”
India has been repeatedly highlighted as a major player influencing the decision. Kelly Ann Shaw from Akin’s lobbying and public policy practice remarked that “India in particular has held the e-commerce moratorium hostage for nearly 30 years.”
