South Korea, US, and 17 Other WTO Members Agree on Duty-Free Digital Transmissions... ICC Welcomes the Move

Agreement Failed in March Due to Brazil's Opposition
"Businesses Seek Certainty, Not Patchwork Solutions"

Nineteen World Trade Organization (WTO) member countries, including Korea and the United States, have agreed not to impose tariffs on "digital transmissions" between themselves. This agreement comes just over two months after the failure to reach a consensus at the ministerial conference last March.

The scene from the 14th World Trade Organization (WTO) Ministerial Conference (MC-14) held last March in Yaoundé, Cameroon. Photo by Reuters Yonhap News

According to foreign media reports on the 7th (local time), the 19 countries agreed not to impose tariffs on electronic transmissions between them for an "unspecified period." This decision will take effect from the 8th.

At the 14th WTO Ministerial Conference (MC-14) held last March in Yaoundé, Cameroon, the extension of the e-commerce tariff moratorium failed. The previous moratorium was set to expire in March, but a deadlock with countries opposing it, such as Brazil, could not be resolved.

The e-commerce moratorium, which blocks the imposition of tariffs on cross-border electronic transmissions such as music or video streaming and software downloads, was first introduced in 1998 and has been regularly renewed since. WTO members with large digital economies have reportedly hoped to institutionalize this measure permanently, arguing that it enhances predictability in global digital trade.

The International Chamber of Commerce (ICC) welcomed the news of the duty-free digital commerce agreement. John Denton, Secretary General of the ICC, stated, "This is a welcome stopgap," but pointed out, "What businesses need is not a patchwork solution, but real certainty."

He added, "No one should think this can replace a clear WTO-level agreement," and continued, "The end of the e-commerce moratorium at MC-14 was a sign that cracks have appeared in the WTO rulebook. This was a worrying signal at a time when the real economy is already facing an unprecedented level of policy uncertainty."

He further emphasized, "The global economy does not need any more self-inflicted shocks," and said, "Keeping digital trade open, predictable, and duty-free is one of the simplest steps governments can take right now to support growth, private investment, and the development of small and medium-sized enterprises."

This content was produced with the assistance of AI translation services.