India is likely to oppose extension of the moratorium on customs duties on e-commerce trade at the upcoming WTO Ministerial MC-13 in Abu Dhabi. The meet of 164 trade ministers is scheduled to take place from February 26 to 29.
Government sources told CNBC-TV18 that India is slated to seek discussions to continue on the scope and objective of the e-commerce moratorium. While the United States has backed extension of the moratorium, several developed and developing countries stand pitted against each other on the issue.
"We are not in favour of extension. We are in favour of continuation of the work programme. There is a need to look at the subject from a development dimension and not from the eyes of big tech companies," the official said.
There is a need to discuss the scope of the moratorium as there are revenue implications because of it.
As per estimates, the potential tariff revenue losses to the developing countries are about USD 10 billion every year. For India, it could be over USD 500 million every year.
"There is a need for a clear definition of e-commerce trade. We need policy space for the sector," the official added.
The moratorium on e-commerce stops countries from levying customs duties on electronic transmissions. The World Trade Organisation (WTO) members have agreed not to impose customs duties on electronic transmissions since 1998 and the moratorium has been periodically extended at successive ministerial conferences (MC), which is the highest decision-making body of the 164-member body.
Government sources also indicated that India wants detailed discussions & consensus on the moratorium before any decision is taken on the extension of its tenure.
Noting that problems have arisen due to many goods getting digitised, India feels that the scope of the moratorium needs to factor in those physical goods which have been digitised over the course of time.
Having already placed papers inviting further discussions on subjects like consumer protection, digital public infrastructure and competition; government sources have stressed on the need to promote competition in the field of e-commerce.
