WTO Extends Ban on Tariffs for Data Transfers; Demonstrates Continued WTO Relevance, ICC Says
World Trade Organization members have again agreed to extend a moratorium on imposing customs duties on data transfers, the WTO said in a Dec. 10 press release. The moratorium, which has been renewed at every opportunity since 1998, will now remain in effect at least until the WTO’s 12th Ministerial Conference (MC12) in June 2020. WTO members, who were meeting as the WTO general council, also agreed Dec. 10 “to continue work under the existing 1998 work programme on e-commerce in the beginning part of 2020,” the release said. “The work in the run-up to MC12 will include structured discussions on issues that would help ministers take an informed decision by MC12.”
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The International Chamber of Commerce praised the extension, as well as the announcement of the additional work to make the moratorium permanent. The moves underscore the continued importance of the WTO, despite the lack of a functioning dispute settlement mechanism as a result of too many appellate vacancies, the ICC said in a release. “The shutdown of the Appellate Body is, without doubt, a blow -- but we shouldn’t slip into exaggerated claims about the imminent death of the WTO. The impasse over the appointment of appellate judges must be viewed in a broader context: WTO committees will continue the essential daily work of resolving trade frictions, while new rule making -- in areas such as services, investment and e-commerce -- is advancing at a rate not seen for over a decade,” ICC Secretary General John Denton said. “The glass is half full if you look beyond the headlines.”