General Council Meeting

December 16-18, 2020

***

Statement by India – Delivered by Ambassador & PR to the WTO

Agenda Item 6: ‘Work Programme on Electronic Commerce:

1. Reports by the Chairs of the Council for Trade in Goods& the Council for Trade in Services (WT/GC/67; S/C/61)
2. Work Programme on Electronic Commerce and Moratorium on imposing customs duties on electronic transmissions – request from India
3. Reinvigorating the work under the 1998 work PROGRAMME on electronic commerce – communication from South Africa and India (WT/GC/W/812)

            Thank you, Chair.  I also thank Chairs of CTG, TRIPS Council and CTS, for their respective reports.

2. As the digital revolution is still unfolding, India has on a number of occasions reiterated that it is important to first understand the complex and multi-faceted dimensions of issues related to e-commerce. We are all yet to fully comprehend the implications of effects of e-commerce on competition and market structures; issues related to transfer of technology; data storage and automation and its impact on traditional jobs; and the gaps in policy and regulating frameworks in developing countries. Keeping that in view, India has been a proponent of strengthening our multilateral work under the non-negotiating and exploratory 1998 Work Programme on e-commerce.

3. Under this multilateral Work Programme and with the intention of understanding the implications of the moratorium on customs duties on electronic transmissions, India along with South Africa has introduced three submissions, which explain our understanding on the scope and impact of the moratorium.

4. Chair, in December 2019 India had joined the consensus on the six months extension of the moratorium with the understanding that the Work Programme on Electronic Commerce will be reinvigorated, with the specific objective of achieving clarity on issues related to the scope of the moratorium; the definition of electronic transmissions; identification of products which are covered under the moratorium; as well as its impact.

5. Chair, to further the discussions on the Work Programme on e-Commerce, in this Council and other concerned WTO bodies, India and South Africa have submitted a paper WT/GC/W/812, which seeks that this Council should play a central role in the discussions on the Work Programme and keep it under continuous review through a standing item on its agenda, and take up any trade‑related issue of a cross-cutting nature. We also seek this Council should direct that the Work Programme on E-Commerce be a standing item in the relevant WTO bodies as mandated as set out in WT/L/274. In line with that,we urge Members to engage sincerely on these issues under the multilateral Work Programme, here in this Council and in the relevant WTO Bodies.

I thank you Chair.

Statement at the End of Discussion on these agenda items:

Thank you, Chair for giving me the floor again.

2. India would also like to thank Members for the engagement today on this agenda item. The interest shown by Members highlights the benefit of having a standing item on this issue in the agenda for meetings of this Council. Chair, at the cost of repetition, we would also like to take this opportunity to urge the Membership to actively and constructively engage in discussions on Work Programme on e-Commerce, here in this Council and other relevant WTO Bodies.

• Moratorium – whether this was critical for growth of e-commerce or it was the eco-system, which includes, digital infrastructure, logistics, supply chain, skilling payment system;

• Without knowing scope, impact and definition, how are we going to guide/advise our Ministers for decision in MC12

• Are we willing to promote competition or destroy competition, any rule making process protecting the existing players and obstructing level playing field for new successful innovations will be disastrous for digital market in the long run.

• More stringent compliance rules proposed by group of Members recently clearly shows that even developed countries feel a need for differential regulations for giant tech companies to protect their domestic industries.

• At the end, it is surprising that proponents of continuation of moratorium on one hand questions in the fisheries subsidy negotiation, the rational of special and differential treatment for developing Members and on the other argue passionately for continuance of special and differential treatment for digital trade viz-a-viz physical (conventional) trade of goods. It would be very helpful in knowing that how long a fast growing efficient sector like digital trade will need crutches like moratorium on customs duty.

3. In view of the above, the General Council may:

• Direct that the E-commerce Work Programme be a standing item in the relevant WTO bodies given a mandate as set out in WT/L/274.
• Play a central role in the discussions and keep the Work Programme under continuous review through a standing item on its agenda and take up consideration of any trade-related issue of a cross-cutting nature as entailed in the 1998 Work Programme.
• Continue structured thematic discussions in the General Council through various platforms.

These may include:

• Developmental aspects of electronic commerce;
• Scope, definition and impact of the moratorium on customs duties on electronic transmissions; and,
• Examination of the challenges experienced by developing countries and LDCs in relation to electronic commerce and explore ways of enhancing the participation of developing countries in electronic commerce.

*****