Trade war goes digital: India & others eye tariffs on internet economy

A20-year global moratorium on imposing tariffs on digital trade could end next week if India or South Africa makes good on threats, according to trade officials and documents, potentially forcing people to pay duties on software and movie downloads.
Since 1998, World Trade Organization (WTO) members have renewed a ban on import duties on so-called “electronic transmissions”, worth up to $255 billion a year by one estimate.
Some think this favours rich countries, given it received strong backing from Washington at the outset and most of the lost customs revenues are thought to be born by developing countries.
Pressure is now growing to lift the ban as more books and movies become digital, potentially reducing revenues further.
India and South Africa circulated an internal WTO document, reviewed by Reuters this week, saying that rising digitalisation compelled “a rethink of the role of the temporary moratorium” last year, citing the potential of 3D printing to manufacture products. It will be decided on next week and renewal requires full consensus.