Regarding the WTO reform proposal, Goyal pushed for the maintenance of existing special and differential treatment provisions for developing members under the WTO and challenged proposals that could lead to fundamental changes in the world. institutional architecture of the WTO “risks distorting the system against the interests of developing countries.”

Less than 24 hours from the conclusion of the 12th Ministerial Conference, negotiations continued until midnight on the key issues on the table.

Goyal urged member countries to reinvigorate the e-commerce work program talks in line with its mandate to comprehensively consider all trade-related issues relating to global e-commerce, taking into account economic, financial and social needs. development of developing countries.

“I think that this moratorium which has lasted for 24 years must be reviewed, rethought. The work program must be invigorated and must provide regulatory space for developing countries to provide a level playing field for national SMEs in the digital sector while continuing to contribute to their economies,” Goyal said during his intervention.

The problem dates back to 1998, when WTO members agreed not to impose any customs duties on electronic transmissions. But, the moratorium has been periodically extended at ministerial conferences and several countries are seeking to make the moratorium permanent. India opposes an extension on the grounds that developing countries have lost revenue. Since digital trade is currently dominated by big tech and developed countries, the moratorium squarely favors developed countries, India said.

Goyal, during his intervention on the thematic discussion on the subject, said that between 2017 and 2020, developing countries lost potential tariff revenue of up to $50 billion just on the import of 49 digital products. In fact, 95% of this revenue tariff loss is borne by developing countries, he said.

“Is it fair that the cost of the moratorium should be borne almost entirely by developing countries for the extension of duty-free quotas, quota-free market access, largely for a very small number of players? Can we justify that this wealth accumulated by big tech to the detriment of the capacity of emerging markets to generate resources, to meet the basic needs of their large population? Incidentally, by 2025, this revenue loss is estimated at $30 billion per year. And imagine what public good can be done using these resources,” Goyal said.

He pointed out that while small exporters of physical products such as textiles, handlooms, garments and footwear, mainly based in developing countries, faced both internal taxes and duties customs, large digital exporters were exempt from customs duties due to the moratorium. .

“In fact, in the future, an estimate indicates that 40% of global physical cross-border trade will be replaced by 3D printing by 2040. This will in fact put at risk domestic manufacturing capacities, which will be subject to tariffs schedules that would actually become totally non-competitive,” Goyel said.

(The writer is in Geneva at the invitation of the Ministry of Trade and Industry.)