At a time some developing countries have questioned the value of maintaining duty-free treatment on e-commerce, a just-released study from a European think tank shows how the WTO e-commerce moratorium benefits developing countries.
The study, undertaken by the Brussels-based European Centre for International Political Economy (ECIPE) and sponsored by the Global Services Coalition, analyzed what might happen if WTO members were to change course from their current zero-tariff approach and begin to impose duties on imported e-commerce.
It concludes that the economic benefits of maintaining duty-free status on digital products would far outweigh any potential revenues generated by new e-commerce tariffs.
For example, the research shows that if India imposed e-commerce tariffs, it would stand to lose 49 times more in economic growth than it would generate in duty revenues.
Indonesia would surrender 160 times as much GDP as it would collect in tariffs. South Africa would lose over 25 times more and China, seven times more.
ASR is a member of the report’s sponsor organisation, the Global Services Coalition.
Please click the links below to read:
- A press release on the study.
- A two-page summary of main takeaways from the study.
- The full ECIPE study (The Economic Losses from Ending the WTO Moratorium on E-Transmissions)