US plans to push 'digital tariff-free' amid WTO deadlock... supported by Korea, Japan, etc.

"US plans to push 'digital tariff-free' amid WTO deadlock... supported by Korea, Japan, etc."

Reuters reported... US prepares its own plan after e-commerce tariff moratorium fails

As negotiations at the World Trade Organization (WTO) over the moratorium on e-commerce tariffs continue to be deadlocked, the United States plans to join hands with South Korea, Japan, and others to push for 'digital tariff-free' measures, Reuters reported on the 5th (local time).

Citing WTO diplomats, Reuters reported that "with the WTO General Council meeting scheduled for the 6th in Geneva, Switzerland, the prospect of resolving the deadlock between the United States, Brazil, and Turkey seems slim," adding that the US has prepared its own alternative.

This alternative involves the United States and some WTO member countries agreeing not to impose tariffs on electronic transmissions.

A senior diplomat told Reuters, "If there is no change in position at the WTO General Council, the United States plans to push for a multilateral agreement based on the support of countries including South Korea, Japan, Australia, and New Zealand."

Reuters reported that it was not immediately clear how many WTO members would participate in the US's digital tariff-free proposal.

The e-commerce moratorium (tariff deferral measure), also known as digital tariff-free, was first adopted at a WTO ministerial conference in 1998 and has been regularly renewed since. This measure prohibits the imposition of tariffs on cross-border electronic transmissions such as music or movie streaming and software downloads.

However, the extension of the moratorium failed at the WTO Ministerial Conference held in Cameroon at the end of March. The existing moratorium was valid until March 31, and as negotiations to extend it failed, the multilateral international trade mechanism known as digital tariff-free lost its effect.

Digital tariff-free is an international trade issue that deserves attention, especially for South Korea, which focuses on exporting digital content such as webtoons and games.

Previously, the Office of the United States Trade Representative (USTR) criticized that 164 WTO member countries had agreed to extend the e-commerce tariff moratorium until the end of 2030, but Brazil and Turkey obstructed it, and the US agenda for WTO reform also made no progress.