US, Japan, South Korea Among 19 WTO Members Agree to Keep Digital Transmissions Tariff-Free

Korea Economic Daily

Summary

Reuters reported that 19 WTO members agreed to keep digital transmissions tariff-free between them.
The US, Japan, South Korea, Singapore, Australia, Norway and Argentina said they would not impose tariffs on electronic transmissions for an unspecified period.
Members with large digital economies said the measure would improve predictability in global digital trade and called for it to be made permanent.

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Nineteen members of the World Trade Organization have agreed not to impose tariffs on digital transmissions between them, Reuters reported on May 7.

Under the agreement, 19 countries including the US, Japan, South Korea, Singapore, Australia, Norway and Argentina will not levy customs duties on electronic transmissions among them for an unspecified period. The agreement takes effect on May 8.

At the WTO's 14th Ministerial Conference in Cameroon in March, members failed to extend the moratorium on e-commerce duties. The deadlock with countries including Brazil, which opposed an extension, was not resolved before the measure expired.

The moratorium prevents tariffs on cross-border electronic transmissions such as music and video streaming and software downloads. It has been renewed regularly since being introduced in 1998.

Members with large digital economies have called for the measure to be made permanent, saying it would improve predictability in global digital trade.

In the agreement document, the 19 countries expressed regret over the delay in extending the moratorium. "Our group of members will remain committed to doing what we can to provide a degree of predictability and certainty for businesses and consumers even in the absence of the multilateral e-commerce moratorium," they said.

The countries also urged other WTO members to join the agreement.

Lee Su, Hankyung.com reporter, 2su@hankyung.com