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India must join WTO members in e-commerce talks
economy
News
A group of 75 countries has launched negotiations on the trade-related aspects of e-commerce at the WTO
Important Facts
- The announcement of the plan to start the e-commerce negotiations was made at the on-going World Economic Forum (WEF) meet in Davos.
- Developing countries such as India, South Africa and Argentina, have decided not to be part of the talks. India has also decided to not to be an observer either.
Negotiation agendas
- Free flow of data located on computer servers without data localization requirements
- Permanent moratorium on customs duties over existing temporary moratorium
- Non-disclosure of source code
- Prohibition of forced technology transfer
Reasons for India opted to stay out of E-commerce negotiation
- India refused to allow a negotiating mandate on e-commerce, understanding that it would mean abandoning the previously agreed position of preventing any new negotiations while the Doha Development Agenda is not concluded.
- This would create a new obstacle for e- commerce policy making which are still at nascent stage
- India wants a 1998 agenda to be the basis of any conversation about e-commerce
| What it 1998 agenda ● The 1998 declaration on the ‘moratorium’ stated that “member countries will continue their current practice of not imposing customs duties on electronic transmission”. ● This ‘moratorium’ – which is ‘temporary’ in nature — gets extended at every MC, which is held once in two years. |
- 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
Criticism
- India’s move is being criticised for undermining WTO process which is itself under unprecedented pressure.
- If India would be part of the negotiation it would be in better position to obstruct unwanted provisions of the deal.
Way forward
- 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
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