The Global Trade Research Initiative (GTRI) has suggested that member countries of the World Trade Organization (WTO) should incorporate discussions about cryptocurrency into their negotiations on e-commerce agreements. The classification of cryptocurrency within the framework of the WTO's e-commerce regulations is currently unclear, and GTRI believes this issue needs to be addressed.
The primary focus of the debate should revolve around whether the exchange of cryptocurrencies falls under the category of 'electronic transmissions' within the scope of e-commerce. Given the growing global interest in the cryptocurrency market, clarifying its status under WTO regulations is of great importance.
GTRI emphasized that the outcomes of the ongoing WTO negotiations have significant implications for global digital trade. The inclusion or exclusion of cryptocurrencies in these discussions and the differing stances of influential nations will shape the future of international e-commerce policies, according to GTRI Co-Founder Ajay Srivastava.
Currently, the WTO members are engaged in two sets of e-commerce negotiations: a joint initiative and an e-commerce moratorium. The joint initiative on e-commerce involves 89 WTO members discussing subjects like tariffs, customs clearance, paperless trading, online privacy, and cybersecurity. However, these negotiations encountered a significant setback when the United States, a key player in the global digital arena, announced its withdrawal from multiple discussed points on October 25. This move could trigger a reevaluation of global e-commerce policies.
Notably, India, anticipating challenges related to unregulated digital trade, has abstained from these negotiations, a decision that appears justified in light of the US's withdrawal. Introduced in 1998, the e-commerce moratorium restricts countries from imposing customs duties on electronic transmissions and was last extended for two years in June 2022.
India has opposed the continuation of the e-commerce moratorium, arguing that it adversely affects developing countries by limiting their policy space for digital advancement, import regulation, and customs duty revenue generation. India has made submissions on this issue, with support from other developing countries such as South Africa, Sri Lanka, and Indonesia.
The Global Trade Research Initiative cited estimates from the United Nations Conference on Trade and Development, indicating that developing countries potentially lose $10 billion in tariff revenue each year due to the e-transmissions moratorium, compared to only $289 million for high-income countries. The emergence of cryptocurrency, a digital currency operating outside central banks, has further complicated these discussions.
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