India opposes ban on e-commerce duty
India on Thursday urged the World Trade Organization (WTO) to reconsider its ban on charging customs duties for e-commerce goods and services, arguing the moratorium particularly disadvantages developing and least developed countries.
On the final day of the WTO’s 13th ministerial conference in Abu Dhabi, India along with South Africa also opposed the inclusion of an Investment Facilitation for Development (IFD) proposal in the outcome document of the conference.
The IFD proposal, which was moved by a group of 123 members led by China, seeks to improve transparency in investment regulations.
India stressed the need for digital industrialization as an emerging segment of the global economy due to its potential to play a key role in the economic development and prosperity of developing countries and LDCs, the commerce ministry said in a statement.
India reiterated its position on e-commerce, stating a few firms based in developed countries currently dominate the global landscape of e-commerce, thus creating challenges to increase the participation of developing countries in global e-commerce amid a huge digital chasm between developed and developing countries, it added.
E-commerce was a major issue discussed at the ministerial. The WTO moratorium prevents countries from charging import duties on digital products and services.
WTO members have periodically agreed to extend the moratorium on customs duties on electronic transmissions, with the last extension agreed in June 2022.
At the current meeting, India and South Africa opposed extending the moratorium on customs duty on electronically transmitted products, a move that has been pushed by developed economies.
“India wants all policy options should be available for the WTO members to pursue for promoting digital industrialization,” the commerce ministry said.
“At the WTO, India advocated for digital public infrastructure (DPI) for development, disciplining unfair competition and consumer protection,” it added.
India’s opposition to the inclusion of the IFD proposal in the meeting’s outcome document highlights its concerns surrounding the agreement’s potential impact, a senior government official said, requesting anonymity.
The IFD initiative was launched in 2017 by a group of developing and least-developed WTO members with a mandate to streamline investment procedures and facilitate cross-border investments.
However, it has attracted criticism for potentially favouring countries heavily reliant on Chinese investments and those with sovereign wealth funds, which India does not have. India has raised several concerns regarding the IFD agreement at the MC13, the official said.
India reiterated its position on ecommerce, said few firms now dominate global landscape of e-commerce