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Issue:
- India decided to stay out of the WTO e-commerce negotiations announced by about 75 members at the World Economic Forum in Davos
Negotiation agendas:
- Free flow of data located on computer servers without data localization requirements
- Permanent moratorium on customs duties
- Non-disclosure of source code
- Prohibition of forced technology transfer
Reasons for India opted to stay out of E-commerce negotiation:
- Not to be part of any plurilateral talks because such initiatives strike at the very root of multilateralism
- India’s huge data reserve and its impact on real economy and management of data without compromising privacy and security considerations are still in progress
- RBI’s recent policy mandating data localization through local servers would be challenged in such negotiation
- Unsettled E-commerce regulations especially those related to foreign direct investment: marketplace and inventory model
Problems with E-commerce:
- Highly asymmetrical space with a few dominant players having the potential to distort a level playing field
- Definition and Meaning of e-commerce varies from one country to the other
- E-commerce rules are yet at nascent stage
Way forwards:
- India should manage its huge precious data resource on its own terms
- Status-quo on e-commerce should be maintained till developing countries understand what is at stake in the area of global e-commerce rule-making
- Provide weight to India similar stand on e-commerce issues at ongoing talk of RCEP
- China is a proponent of e-commerce negotiations both at the WTO and RCEP is another reason for India to step carefully
