YAOUNDE, March 29 — Trade ministers are close to agreeing on a reform plan for the World Trade Organisation (WTO), as wrangling continues over extending a moratorium on customs duties for electronic transmissions such as digital downloads, two diplomats said.
Two diplomats said that the talks at a WTO meeting in Cameroon include efforts to bridge differences between the United States and India over extending the e-commerce moratorium, which is due to expire this month.
Extending the moratorium — first adopted in 1998 as part of a declaration to encourage early digital trade growth — is seen as a test for the WTO's relevance, following a year of tariff-fuelled trade turmoil and major disruptions due to the Iran war.
Draft reform plan takes shape
After initial resistance from some WTO members, a new draft of the reform roadmap provides a timeline for progress and sets out the key issues to address, according to a copy of the draft seen by Reuters.
Those issues include improving decision-making in a consensus-based system that has long been stymied by a few countries, as well as the trade benefits extended to developing countries.
The reform debate comes amid efforts to rework WTO rules to render subsidy use more transparent and make decision-making easier. The US and the European Union argue that China, in particular, has taken advantage of current rules to their detriment.
Bringing into WTO rules an agreement reached by a subset of members aimed at boosting investment in developing countries also remains blocked by India, which said plurilateral accords risk eroding the body's founding principles.
E-commerce agreement key for US support
Alongside the reform discussions, a senior diplomatic source — speaking on condition of anonymity — said there was a possibility of a four-year extension to the e-commerce moratorium.
On Friday, diplomats said that New Delhi indicated it would accept a two-year extension, while another diplomat said that there were suggestions the US could accept a 10-year extension. This week, US Trade Representative Jamieson Greer said that Washington wanted a permanent extension.
A new draft document on e-commerce, seen by Reuters, proposed support for developing-country members concerned about losing tax revenue, as well as a review clause.
Business leaders say an extension is vital to guarantee predictability, fearing duties could otherwise be introduced. It is also seen as key to securing US support for the global trade body.
"If the moratorium does not get extended, the US will use it as an excuse to beat the WTO on the head," a senior diplomat said.
