Member nations of the WTO are urged to bring up cryptocurrency in discussions on e-commerce
The World Trade Organization (WTO) member nations should consider cryptocurrencies in their e-commerce agreement talks, according to the Global Trade Research Initiative (GTRI). Since it is presently unclear how cryptocurrencies are classified under the WTO’s e-commerce standards, GTRI thinks this is a problem that needs to be solved.
The main point of contention should be whether or not cryptocurrency exchanges are considered “electronic transmissions” for the purposes of e-commerce. Clarifying the cryptocurrency market’s position under WTO norms is crucial, especially in light of the market’s increasing interest on a worldwide scale.
GTRI noted that the results of the current WTO discussions will have a big impact on international commerce in digital goods. The future of international e-commerce rules will be shaped by the inclusion or exclusion of cryptocurrencies in these debates as well as the varying positions of powerful governments, according to GTRI Co-Founder Ajay Srivastava.
A cooperative initiative and an e-commerce moratorium are the two sets of e-commerce discussions that the WTO members are currently involved in. 89 WTO countries are participating in a cooperative e-commerce project where they are debating issues related to tariffs, cybersecurity, paperless trade, customs clearance, and online privacy. But on October 25, the United States—a major force in the global digital arena—announced that it was pulling out of certain topics that had been negotiated, which dealt a serious blow to these discussions. This action could lead to a review of international e-commerce regulations.
Notably, given the US’s exit, India has decided not to participate in these discussions, presumably due to concerns over unrestricted digital commerce. The 1998 e-commerce moratorium, which prohibits nations from charging customs fees for electronic communications, was most recently extended for a further two years in June 2022.
India has expressed opposition to the extension of the e-commerce embargo, claiming that it restricts the policy space available to developing nations for digital growth, import control, and the collection of customs duty money. With assistance from other developing nations like South Africa, Sri Lanka, and Indonesia, India has submitted comments on this matter.
According to estimates provided by the United Nations Conference on Trade and Development, the e-transmissions moratorium may cost developing countries $10 billion in lost tariff revenue annually, while high-income countries may only lose $289 million. This information was cited by the Global Trade Research Initiative. These conversations have been made more difficult by the rise of cryptocurrencies, which are virtual currencies that function independently of central banks.
