NEW DELHI: The member countries of WTO (World Trade Organisation) ought to embody points pertaining to crypto currency whereas negotiating any settlement on the e-commerce sector, suppose tank GTRI stated on Monday. As the crypto market garners growing international consideration, its classification under the WTO e-commerce framework stays ambiguous, Global Trade Research Initiative (GTRI) stated.
It added that the controversy ought to pivot on whether or not exchanges of crypto-currency fall under ‘digital transmissions’ within the e-commerce scope.
“With the multifaceted dynamics of the e-commerce landscape, the outcomes of the ongoing WTO negotiations hold significant implications for global digital trade.
“The inclusion or exclusion of crypto-currencies and the various positions of influential nations will form the way forward for worldwide e-commerce insurance policies,” GTRI Co-Founder Ajay Srivastava said.
At present, the WTO members are holding two-pronged e-commerce negotiations (joint initiative and e-commerce moratorium) but the crypto currency so far is not part of any of the talks.
Under joint initiative on e-commerce, 89 members of the WTO are deliberating on subjects such as tariffs, customs clearance, paperless trading, online privacy, and cybersecurity.
However, the negotiations faced a significant hurdle when the US, a key player in the global digital space, announced on October 25, its withdrawal from multiple discussed points. This move may provoke a global revaluation of e-commerce policies.
Interestingly, India, foreseeing challenges linked to unregulated digital trade, has remained absent from these talks, a decision seemingly validated by the US pullback, he said.
Introduced in 1998, this moratorium restricts countries from applying customs duties on electronic transmissions. It was last extended for two years in June 2022.
India opposes the continuation of the e-commerce moratorium, arguing that the moratorium is adversely impacting developing countries and they need to preserve policy space for their digital advancement, regulate imports, and generate revenue through customs duties.
India, along with South Africa, has been making submissions on the adverse impact of the moratorium on developing countries. Other developing countries, such as Sri Lanka and Indonesia, have supported this stand.
The United Nations Conference on Trade and Development has estimated the potential tariff revenue loss for developing countries every year due to the moratorium on e-transmissions at USD 10 billion, as compared to only USD 289 million for high-income countries, the GTRI said.
It added that the rise of crypto-currency, a digital currency operating outside central banks, has added complexity to these discussions.
“Globally, crypto-currency adoption is witnessing an uptrend. India, as an illustration, has levied a heightened capital positive factors tax on crypto earnings,” it said, adding “the WTO members should prioritise discussions on crypto currency and its potential linkages with ongoing e-commerce negotiations earlier than members begin taking liberties with interpretation main to disputes”.
The WTO’s thirteenth Ministerial Conference (MC13) will happen from February 26 to 29, 2024 in Abu Dhabi. The Ministerial Conference is the best determination making physique of the Geneva-based organisation which has 164 members.
It added that the controversy ought to pivot on whether or not exchanges of crypto-currency fall under ‘digital transmissions’ within the e-commerce scope.
“With the multifaceted dynamics of the e-commerce landscape, the outcomes of the ongoing WTO negotiations hold significant implications for global digital trade.
“The inclusion or exclusion of crypto-currencies and the various positions of influential nations will form the way forward for worldwide e-commerce insurance policies,” GTRI Co-Founder Ajay Srivastava said.
At present, the WTO members are holding two-pronged e-commerce negotiations (joint initiative and e-commerce moratorium) but the crypto currency so far is not part of any of the talks.
Under joint initiative on e-commerce, 89 members of the WTO are deliberating on subjects such as tariffs, customs clearance, paperless trading, online privacy, and cybersecurity.
However, the negotiations faced a significant hurdle when the US, a key player in the global digital space, announced on October 25, its withdrawal from multiple discussed points. This move may provoke a global revaluation of e-commerce policies.
Interestingly, India, foreseeing challenges linked to unregulated digital trade, has remained absent from these talks, a decision seemingly validated by the US pullback, he said.
Introduced in 1998, this moratorium restricts countries from applying customs duties on electronic transmissions. It was last extended for two years in June 2022.
India opposes the continuation of the e-commerce moratorium, arguing that the moratorium is adversely impacting developing countries and they need to preserve policy space for their digital advancement, regulate imports, and generate revenue through customs duties.
India, along with South Africa, has been making submissions on the adverse impact of the moratorium on developing countries. Other developing countries, such as Sri Lanka and Indonesia, have supported this stand.
The United Nations Conference on Trade and Development has estimated the potential tariff revenue loss for developing countries every year due to the moratorium on e-transmissions at USD 10 billion, as compared to only USD 289 million for high-income countries, the GTRI said.
It added that the rise of crypto-currency, a digital currency operating outside central banks, has added complexity to these discussions.
“Globally, crypto-currency adoption is witnessing an uptrend. India, as an illustration, has levied a heightened capital positive factors tax on crypto earnings,” it said, adding “the WTO members should prioritise discussions on crypto currency and its potential linkages with ongoing e-commerce negotiations earlier than members begin taking liberties with interpretation main to disputes”.
The WTO’s thirteenth Ministerial Conference (MC13) will happen from February 26 to 29, 2024 in Abu Dhabi. The Ministerial Conference is the best determination making physique of the Geneva-based organisation which has 164 members.
