The 13th Ministerial Conference (MC13) of the World Trade Organisation (WTO) ended without a resolution on the dispute resolution mechanism and extended the current practice of not imposing customs duties on electronic transmissions for an additional two years, a decision that didn’t align with India’s preferences.
India had advocated for a resolution on the WTO’s dispute resolution mechanism at MC13 and sought an end to the moratorium on levying customs duties on digital goods.
The decision to maintain the moratorium on customs duties on electronic transmissions until the 14th Ministerial Conference was outlined in a statement on the Draft Ministerial decision of March 1, 2024. India expressed concerns over the revenue losses faced by developing nations due to this moratorium, estimated at around $10 billion since 1998.
Discussions at MC13 also focused on examining the implications of the moratorium on customs duties on electronic transmissions, particularly for developing and least-developed countries (LDCs), to ensure a fair digital industrialization process.
India emphasized the need to protect its emerging digital industry by levying customs duties, citing the blurred distinction between digital goods and services. Therefore, New Delhi opposed extending the moratorium further.
Regarding the dispute settlement system, the draft statement indicated efforts to accelerate discussions for a fully functional system by 2024, following the objectives set at the previous MC12.
India reiterated its call for restoring the WTO’s Appellate Body, which has been inactive since December 2019, and urged for the formalization of the informal dispute settlement reform process to rectify existing flaws.
The blockage of new appointments to the Appellate Body by the United States has impeded its functioning, raising concerns about the credibility of the WTO and the rules-based trade order it upholds.
The MC13, which took place in Abu Dhabi from February 26 to March 1, addressed these critical issues but concluded without reaching a conclusive resolution.
