Global Moratorium on Tariff Imposition to End This Week

According to the trade officials and documents, a twenty-year-old global prohibition on the imposition of tariffs on digital trade could end by next week if the two countries India and South Africa work on these threats. These tariffs will potentially force people to pay heavy duties on software and movie downloads.

Members of the World Trade Organization (WTO) has put a renewed ban on import duties called electronic transmissions. These duties which have been imposed since 1998, have worth up to $255 billion a year.

Some people are taking it as a favor to the rich countries as they receive backing from Washington at the outset and most of the lost customs revenues are considered to be from developing countries. Today, the digitalization of books and movies is reducing revenues, which is further pressurizing the growing lift to ban.

John Denton, International Chamber of Commerce’s (ICC) Secretary General, said that there are numerous countries that feel that they can stand aside from the global consensus and that could break the Internet.

Several countries including China and Canada has given a proposal seeking that the ban should be extended for at least six months after it expires by the year end. As it is difficult to apply these duties WTO has signaled its support for the Moratorium said deal-broker Switzerland. As it is hard to determine where the digital product originated from and whether it is an import.

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