Washington, D.C. – U.S. Representatives Darin LaHood (R-IL) and Suzan DelBene (D-WA), Co-Chairs of the Digital Trade Caucus, and Ways and Means Trade Subcommittee Chairman Adrian Smith (R-NE) and Ranking Member Earl Blumenauer (D-OR) led a bipartisan effort calling on World Trade Organization (WTO) members to renew a longstanding agreement that prevents new tariffs and other trade barriers on digital goods and services, which would harm American workers and businesses.
In a letter to U.S. Trade Representative Katherine Tai, 30 House lawmakers urged the Biden Administration to prioritize renewal of the Moratorium on Customs Duties on Electronic Transmissions at the thirteenth WTO Ministerial Conference (MC13).
In the letter, the members write:
"The international flow of digital goods and digital services has become increasingly vital to American workers and businesses of all sizes, including the countless small businesses that use digital tools to export products and services across the globe. Failing to renew the Moratorium for the first time in a quarter century would
undermine the strength of the American economy, jobs, and innovation.
"If the Moratorium is not renewed, governments around the world would be free to impose tariffs and other trade barriers on numerous American industries that transmit products and services electronically and rely heavily on the free flow of data around the globe, including manufacturing, agriculture, entertainment, software, financial services, semiconductors, aerospace, autos, robotics, and medical devices. The Moratorium is particularly beneficial to small and medium sized businesses and entrepreneurs who use digital tools to reach new customers overseas and cannot set up physical operations in every country in which they sell in order to avoid duties
imposed on electronic transmissions."
Since 1998, the U.S. and all other WTO members have agreed to not impose tariffs on electronic transmissions. The moratorium has consistently been extended at WTO ministerial conferences ever since. The U.S. has been a consistent advocate for the moratorium.
The moratorium covers electronic transmissions of both digital goods (e.g., e-books, music, movies, and video games) and digital services (e.g., software, emails, and text messages), enabling a stable environment for growing digital trade and American jobs.
The full letter can be read here .
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