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Head of Policy Giles Derrington comments on India and South Africa's wish that the WTO re-examines the moratorium on digital tariffs.

Commenting on the communication from India and South Africa that they wish the WTO to re-examine the long-standing moratorium on digital tariffs, Giles Derrington, Head of Brexit, International and Economics, techUK said:

“The moratorium on digital tariffs, in effect since 1998, has been hugely important in the development of ecommerce as a significant part of global trade. It is also vital to the ongoing development of new technologies which can reduce trade friction, such as 3D printing. Whilst there are undoubtedly important questions to ask about how these new technologies will affect traditional customs duties on goods, the reality is that duties on digital transfers would mean increased costs for consumers.

“At a time when we are already seeing challenges to the long-standing principle that lower tariffs are good for trade, competition and consumers, it would be deeply concerning if the international consensus on tariff-less digital trade were to come to an end. We hope that post-Brexit, as the UK takes its own seat at the WTO, it will continue to support the moratorium on such duties.

“techUK aims to be at the forefront of tackling some of the challenges this issue raises. This is why we are pleased to have secured an event at the WTO’s Public Forum in October on tech and the changing nature of value added.”