World Trade Organization (WTO)’s E - Commerce Moratorium | Prelim Bits | Current Affairs

Prelims: Current events of national and international importance | International Relations

Why in News?

The WTO e‑commerce moratorium is set to expire at the 14th Ministerial Conference in Yaoundé, Cameroon.

E-commerce Moratorium is a WTO agreement not to impose customs duties on electronic transmissions (software, e‑books, music, films, games, streaming).
Purpose - To promote growth in digital trade, ensure predictability, and keep the internet open by preventing tariffs on digital products.
First adopted in –1998 at the WTO Second Ministerial Conference (Geneva).
Renewal - Typically renewed every 2 years, lastly extended at MC13 (2024) for two years.
It has been regularly extended at WTO Ministerial Conferences (MC12, MC13, and discussions towards MC14).

World Trade Organization (WTO)

It is the only global international organization managing the rules of trade between nations.
Established in - 1995 to replace GATT.
Headquarters - Geneva, Switzerland.
Aim - To ensure trade flows smoothly, predictably, and freely, providing a platform for negotiations and settling disputes to facilitate economic growth.
Functions
- Settling Disputes - The WTO acts as a mediator when member nations disagree on trade policies.
- Lowering Barriers - It facilitates negotiations to reduce tariffs, quotas, and other trade barriers.
- Establishing Rules - It provides legal ground rules for international commerce to encourage fair competition.
- Monitoring Policies - It regularly reviews the trade policies of member countries for transparency.
Members - 166 nations (including the European Union)- representing 98% of world trade. The most recent accessions (2024) were Comoros and Timor-Leste.
Decision Making - Decisions are made by consensus among all member governments.

Reference

The Hindu | Moratorium

World Trade Organization (WTO)’s E - Commerce Moratorium