The Punxsutawney Spirit

Tax-free status of movie, music and games traded online is on table as WTO nations meet in Abu Dhabi

- By Jamey Keaten

GENEVA (AP) — Since late last century and the early days of the web, providers of digital media like Netflix and Spotify have had a free pass when it comes to internatio­nal taxes on films, video games and music that are shipped across borders through the internet.

But now, a global consensus on the issue may be starting to crack.

As the World Trade Organizati­on opens its latest biannual meeting of government ministers Monday, its longtime moratorium on duties on e-commerce products — which has been renewed almost automatica­lly since 1998 — is coming under pressure as never before.

This week in Abu Dhabi, the WTO’s 164 member countries will take up a number of key issues: Subsidies that encourage overfishin­g. Reforms to make agricultur­al markets fairer and more eco-friendly. And efforts to revive the Geneva-based trade body’s system of resolving disputes among countries.

All of those are tall orders, but the moratorium on e-commerce duties is perhaps the matter most in play.

It centers on “electronic transmissi­ons” — music, movies, video games and the like — more than on physical goods. But the rulebook isn't clear on the entire array of products affected.

“This is so important to millions of businesses, especially small- and mediumsize­d businesses,” WTO Director-General Ngozi Okonjo-Iweala said.

“Some members believe that this should be extended and made permanent.

Others believe ... there are reasons why it should not."

“That’s why there’s been a debate and hopefully — because it touches on lives of many people — we hope that ministers would be able to make the appropriat­e decision,” she told reporters recently.

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