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-- A deal to renew the World Trade Organization’s moratorium on electronic commerce duties likely will include language on an e-commerce work program requiring that members define the parameters of the temporary ban -- a move industry stakeholders fear could make future renewals even more difficult.

Negotiations on e-commerce will begin in earnest here at the 13th ministerial conference on Thursday -- the last scheduled day of a ministerial many expect will be extended one more day. New Zealand Trade Minister and MC13 Vice Minister Todd McClay told Inside U.S. Trade he believes the most likely outcome on e-commerce is that the moratorium is renewed in parallel with a work program that calls on members to clarify the moratorium’s definition by the next ministerial.

But many stakeholders here believe the moratorium’s renewal is only a 50-50 prospect, with some believing it might not be even that high.

Amidst a tense negotiating climate, the fate of the World Trade Organization’s 13th ministerial conference (MC13), which commences on 26 February in Abu Dhabi, will be decided by three main issues among others, said people familiar with the development.

The three issues that could tilt the outcome at MC13 one way or the other are the permanent solution for public stockholding (PSH) programs for food security, the termination/extension of the moratorium on customs duties on electronic transmissions, and the controversial proposal to integrate the proposed plurilateral agreement on Investment Facilitation for Development (IFD) into the WTO rule book.

• Analysis of e-commerce JSI chairs’ text of 20 February 2024, INF/ECOM/85 Rev. 1  by Jane Kelsey
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• Agriculture and food security in MC13: Going forward or backward?  by Ranja Sengupta
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• Dispute settlement reform: The informal process and the way forward after MC13  by Kinda Mohamadieh
• Commentary on the draft text of the informal discussions on dispute settlement reform

• Risks in trade as a solution for environmental problems by Abhijit Das

Here’s a roundup of the issues at stake at the upcoming ministerial:

Fishing subsidies: The WTO reached a partial agreement at its last ministerial conference in June 2022 to curb subsidies that threaten the future of ocean fish supplies.

This time they are trying for a more comprehensive agreement that would hopefully have a much bigger impact on maintaining one of the world’s most important food stocks.

Of all the issues at stake in Abu Dhabi, officials are most hopeful about getting this negotiation over the line. “If there’s no agreement on fish at MC13, that’d be a tragedy,” one Geneva-based diplomat said.

For Okonjo-Iweala, the negotiation is proof the WTO is still relevant. “260 million people depend on fisheries for their livelihood, and the oceans are being overfished. [The question for ministers in Abu Dhabi is] can we save the oceans, be part of the regenerative blue economy and save jobs?” she told POLITICO in an interview.

rom February 26–29, 2024, the United Arab Emirates (UAE) will host the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO). Governments from 164 countries will be joined by Timor-Leste and Comoros, the first two nations to join the group since 2017.

At stake is a fight between two visions of what role the WTO, as the world’s most powerful rule-making body in the global economy, should play.

Should the institution expand as an even more corporate-influenced body, with rich countries allowed to set agendas, impose negotiation mechanisms in their favor, and leave poorer countries — and multilateralism itself — in the dustbin of history?

Or should members of the institution recognize the constraints that the current rules place on developing economies, including the harm caused to workers, farmers, and the global environment, and increase flexibilities so that these countries can use trade for their development?

Ministerial Declaration

WTO electronic commerce negotiations (draft chair’s text, 21 February 2024)

The World Trade Organization (WTO) along with the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the United Nations Conference on Trade and Development (UNCTAD), and the World Bank (WB) published a report titled “Digital Trade for Development” in December 2023 that attempts to demonstrate the numerous benefits of electronic commerce. One of the issues the report deals with concerns the WTO’s moratorium on customs duties on electronic transmissions, which is up for renewal at the WTO’s Thirteenth Ministerial Conference in Abu Dhabi in February 2024 (MC13). Unfortunately, the report provides a number of flawed findings in this respect. This note provides a quick overview of some of these flaws.

The World Trade Organization (WTO) along with the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the United Nations Conference on Trade and Development (UNCTAD), and the World Bank (WB) published a report titled “Digital Trade for Development” in December 2023 that attempts to demonstrate the numerous benefits of electronic commerce. One of the issues the report deals with concerns the WTO’s moratorium on customs duties on electronic transmissions, which is up for renewal at the WTO’s Thirteenth Ministerial Conference in Abu Dhabi in February 2024 (MC13). Unfortunately, the report provides a number of flawed findings in this respect. This note provides a quick overview of some of these flaws.

More here and PDF here

The World Trade Organization’s Moratorium on Customs Duties on Electronic Transmissions (the “Moratorium”) prohibits members from imposing customs duties on “electronic transmissions.” While the term “electronic transmissions” is undefined, the Moratorium in essence implies that countries are forbidden from imposing import taxes on business-to-consumer and business-to-business transactions that take place across borders over the Internet. The Moratorium therefore encompasses cross-border trade in a range of digital goods and services, including software; digital movies, music, and video games; and online legal, banking or business consultancy services.[1]

The 15 January 2024 chair’s text (INF/ECOM/85) for the Joint Statement Initiative (JSI) on electronic commerce is to be discussed in a round from 30 January to 2 February 2024. This is not an agreed text. It is the work of the co-convenors from Australia, Japan and Singapore.

The previous consolidated text of 15 November 2023 (INF/ECOM/62/Rev.5) was produced after the US notified the withdrawal of its support for several core provisions relating in particular to data. The current chairs’ text centres on the more transactional provisions of that text, plus making the moratorium on customs duties on electronic transmissions permanent. The cover note says the remaining provisions have not been dropped and remain “a comprehensive record of proposals, attributions and drafting notes”.

Some provisions still have placeholders for further discussion in the January round.
Significantly, the outstanding provisions include development, exceptions and the scope of the agreement – all fundamentally important, especially for developing countries.