Trade ministers are close to agreeing on a reform plan for the World Trade Organization as wrangling continues over extending a moratorium on customs duties on electronic transmissions such as digital downloads, diplomats say.
The talks at a WTO meeting in Cameroon include efforts to bridge differences between the US and India over extending the e-commerce moratorium, due to expire in March.
Extending the moratorium – first adopted in 1998 as part of a declaration to encourage early digital trade growth – is seen as a test for the WTO’s relevance following a year of tariff-fuelled trade turmoil and major disruptions due to the Iran war.
After initial resistance from some WTO members, a new draft of the reform roadmap provides a timeline for progress and sets out the key issues to address, according to a copy of the draft seen by Reuters.
Those issues include improving decision-making in a consensus-based system that has long been stymied by a few countries and the trade benefits extended to developing countries.
The reform debate comes amid efforts to rework WTO rules to make subsidy use more transparent and decision-making easier.
The US and the EU argue China, in particular, has taken advantage of current rules to their detriment.
Bringing an agreement reached by a subset of members aimed at boosting investment in developing countries into WTO rules also remained blocked by India, which said plurilateral accords risked eroding the body’s founding principles.
Alongside the reform discussions, a senior diplomatic source – speaking on condition of anonymity – said there was a possibility of a four-year extension of the e-commerce moratorium.
India indicated on Friday it would accept a two-year extension, diplomats said, while there were suggestions the US could accept a 10-year extension, another diplomat said.
US Trade Representative Jamieson Greer said this week Washington wanted a permanent extension.
A new draft document on e-commerce seen by Reuters proposed support for developing country members concerned about losing tax revenues, as well as a review clause.
Business leaders say an extension is vital to guarantee predictability, fearing duties could otherwise be introduced.
It is also seen as key to securing US support for the global trade body.
“If the moratorium does not get extended, the US will use it as an excuse to beat the WTO on the head,” a senior diplomat said.
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