Tariffs on online commercial transactions divide WTO member countries

Should customs duties be introduced on e-commerce?

This is one of the themes, in addition to fishing and agriculture, which is on the menu of the WTO conference in Abu Dhabi.

The World Trade Organization is called upon to reform in order to meet many challenges.

However, the negotiations promise to be tight.

The WTO is hoping for new agreements this week in Abu Dhabi, on the occasion of its 13th Ministerial Conference, notably on fisheries and electronic commerce.

© AFP / DENIS CHARLET

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The divide is widening within the WTO over tariffs on online commercial transactions.

Since 1998, countries have agreed on a moratorium.

But it expires at the end of February 2024. And a new extension is not at all certain. 

The overwhelming majority of countries refuse the introduction of customs duties.

While emerging countries, such as India, Indonesia, Pakistan and South Africa, would like to benefit from it.

But

a study

signed in particular by the United Nations Conference on Trade and Development (UNCTAD), estimates that it is VAT which would be a more effective means of generating public revenue, and not customs duties.  

The question is burning because, everywhere on the planet, online shopping is exploding.

By 2022, they had exceeded $5 trillion, according to market research firm eMarketer.

By 2050, 90% of purchases should be made online. 

International tensions and concerns about the global economy

The WTO is hoping for new agreements this week in Abu Dhabi, during its 13th Ministerial Conference, notably on fisheries, agriculture and electronic commerce.

Small progress is also expected on aid to the poorest countries.

It is now up to you to reach consensus on decisions aimed at building a better future for global trade

,” launched the Director General of the World Trade Organization, Nigeria's Ngozi Okonjo-Iweala, at the opening of the conference, which was attended by the Crown Prince of the United Arab Emirates.

In a context of economic uncertainties and growing geopolitical tensions, we must collectively ensure that the WTO is able to meet today's challenges

,” added the Chair of the WTO General Council, Athaliah Lesiba Molokomme.

Also read: WTO annual report: the first signs of trade fragmentation

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