After five years of negotiations, 91 countries have reached an agreement on new rules for e-commerce. One of the key points was the extension of a moratorium on taxation of cross-border digital data transfers for at least the next two years. The moratorium is aimed at supporting e-commerce and small businesses.
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Joint declaration on Electronic Commerce states: “No party shall impose customs duties on data transmitted electronically between a person of one party and a person of the other party.” This agreement is of great importance, notes The Register, because it details almost everything that can be transmitted over the Internet, including video, audio, checks, electronic signatures, etc.
At the same time, the agreement leaves open the possibility of imposing internal taxes, fees, or other charges on digital data transfers in the future, should any state wish to do so. This option could prove important given ongoing efforts to get big tech companies like Google, Amazon, Microsoft, Alibaba, and others to pay for the data they generate.
Other points in the document include a requirement for signatory countries to provide access to the Internet “subject to reasonable network management that does not block or slow down Internet traffic for the purpose of unfair commercial advantage,” which in the context of what is said sounds like a call for compliance with network neutrality – the principle by which access to any resource is carried out without restrictions and without preferences on the part of telecom providers.
The moratorium on taxation of Electronic Transactions was extended for only two years, after which it will be reviewed. In addition, the agreement had to bypass some issues in the interests of finalizing the document. So there will be many more international meetings and debates. The initiative is led by Australia, Japan and Singapore.
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