Global Dialogue Intensifies on E-Commerce Duty Moratorium Ahead of WTO MC14

A key workshop convened on 15 May 2025 brought together World Trade Organization (WTO) members, private sector stakeholders, and experts from the United Nations to deliberate the future of the longstanding moratorium on customs duties for electronic transmissions. The event, part of the ongoing WTO Work Programme on Electronic Commerce, marks a crucial step in the lead-up to the 14th WTO Ministerial Conference (MC14), scheduled for March 2026.

Reflections Ahead of a Critical Decision

Ambassador Richard Brown of Jamaica, the facilitator of the Work Programme, opened the workshop with a call for deeper reflection and constructive dialogue on the moratorium. The current moratorium, upheld during the 13th Ministerial Conference (MC13) in Abu Dhabi in early 2024, will remain in place until MC14 or until 31 March 2026, whichever comes first. The workshop, initiated at the request of several delegations, was designed to foster a transparent exchange of views and help WTO members determine a path forward.

Ambassador Brown emphasized that discussions should explore not only whether to extend the moratorium but also its overall scope and relevance to the broader digital trade agenda.

Strong Private Sector Advocacy for the Moratorium

A highlight of the workshop was the participation of private sector representatives from various regions, who unanimously called for the preservation of the moratorium. Speakers included:

• Andy Berahazar and Kristoff Pragg, co-founders of Coded Arts, a creative animation firm in Trinidad and Tobago, highlighted the burdens new duties would place on small digital content creators.

• Pinaman Owusu-Banahene, founder of ADJOAA, an e-commerce platform for African fashion, spoke on how the moratorium supports access to international markets for marginalized entrepreneurs.

• Pascal Kerneis, Managing Director of the European Services Forum, stressed the importance of regulatory certainty for global service providers.

• Sofía Pérez Gasque Muslera, President of the Mexican Association of the Information Technology Industry, warned of the negative economic consequences for tech ecosystems in developing countries should the moratorium lapse.

The speakers warned that ending the moratorium could create a fragmented digital trade environment, increase operational costs for micro and small enterprises, and limit innovation in the Global South.

UNCTAD Insights on Indirect E-Commerce Taxation

Martine Julsaint of the United Nations Conference on Trade and Development (UNCTAD) presented findings from the agency’s recent report, Indirect Taxation of E-Commerce and Digital Trade: Implications for Developing Countries. The report identifies key policy gaps in digital taxation and underscores the challenges faced by governments in taxing cross-border digital transactions effectively.

Julsaint underscored the importance of designing tax strategies that promote digital inclusion while ensuring fair revenue mobilization. She pointed out that while digital trade is expanding, many developing countries lack the infrastructure or legal frameworks to impose and collect indirect taxes efficiently.

Diverse Member Perspectives and Candid Dialogue

A dedicated session followed, where WTO members presented national and regional positions. Ambassador Matthew Wilson of Barbados, representing the African, Caribbean and Pacific (ACP) Group, shared concerns about the potential economic fallout of discontinuing the moratorium, particularly for least-developed countries.

Saut Mulia, Finance Attaché at the Indonesian Embassy in Brussels, presented Indonesia’s fiscal considerations, calling for a balanced approach that supports national revenue objectives while maintaining open digital trade.

Maha Gabbani of the Saudi Arabian WTO Mission reflected on the need for clearer definitions and parameters around what constitutes “electronic transmissions,” suggesting that ambiguities in the moratorium’s scope must be resolved before MC14.

The session concluded with an open discussion among all members, offering a platform to articulate support, concerns, and possible areas for compromise.

Next Steps Toward MC14

Ambassador Brown concluded the workshop by announcing plans to hold bilateral consultations and a mid-year stocktaking meeting to assess progress. He urged all delegations to consider both the insights from the private sector and the technical findings from UNCTAD as they refine their positions ahead of MC14.

“I encourage delegations to further reflect on what they have heard today and on possible next steps, both on the moratorium, including its scope and coverage, and on the Work Programme more broadly,” he stated.

The outcomes of these discussions will be pivotal for global digital commerce. Whether the moratorium will be extended, revised, or allowed to lapse will not only shape the digital economy but also test the WTO’s ability to adapt to the realities of the 21st-century global marketplace.