老澳门六合彩

Tax-free status of movie, music and games traded online is on table as WTO nations meet in Abu Dhabi

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GENEVA (AP) 鈥 Since late last century and the early days of the web, providers of digital media like Netflix and Spotify have had a free pass when it comes to international taxes on films, video games and music that are shipped across borders through the internet.

But now, a global consensus on the issue may be starting to crack.

As the 老澳门六合彩 Trade Organization opens its latest biannual meeting of government ministers Monday, its longtime moratorium on duties on e-commerce products 鈥 which has been renewed almost automatically since 1998 鈥 is coming under pressure as never before.

This week in Abu Dhabi, the WTO鈥檚 164 member countries will take up a number of key issues: Subsidies that encourage overfishing. Reforms to make agricultural markets fairer and more eco-friendly. And efforts to revive the Geneva-based trade body鈥檚 system of resolving disputes among countries.

All of those are tall orders, but the moratorium on e-commerce duties is perhaps the matter most in play. It centers on 鈥渆lectronic transmissions鈥 鈥 music, movies, video games and the like 鈥 more than on physical goods. But the rulebook isn鈥檛 clear on the entire array of products affected.

鈥淭his is so important to millions of businesses, especially small- and medium-sized businesses,鈥 WTO Director-General Ngozi Okonjo-Iweala said. 鈥淪ome members believe that this should be extended and made permanent. Others believe ... there are reasons why it should not.鈥

鈥淭hat鈥檚 why there鈥檚 been a debate and hopefully 鈥 because it touches on lives of many people 鈥 we hope that ministers would be able to make the appropriate decision,鈥 she told reporters recently.

Under WTO鈥檚 rules, major decisions require consensus. The e-commerce moratorium can鈥檛 just sail through automatically. Countries must actively vote in favor for the extension to take effect.

Four proposals are on the table: Two would extend the suspension of duties. Two 鈥 separately presented by South Africa and India, two countries that have been pushing their interests hard at the WTO 鈥 would not.

Proponents say the moratorium benefits consumers by helping keep costs down and promotes the wider rollout of digital services in countries both rich and poor.

Critics say it deprives debt-burdened governments in developing countries of tax revenue, though there鈥檚 debate over just how much state coffers would stand to gain.

The WTO itself says that on average, the potential loss would be less than one-third of 1% of total government revenue.

The stakes are high. A WTO report published in December said the value of 鈥渄igitally delivered services鈥 exports grew by more than 8% from 2005 to 2022 鈥 higher than goods exports (5.6%) and other-services exports (4.2%).

Growth has been uneven, though. Most developing countries don鈥檛 have digital networks as extensive as those in the rich world. Those countries see less need to extend the moratorium 鈥 and might reap needed tax revenue if it ends.

South Africa鈥檚 proposal, which seeks to end the moratorium, calls for the creation of a fund to receive voluntary contributions to bridge the 鈥渄igital divide.鈥 It also wants to require 鈥渓eading platforms鈥 to boost the promotion of 鈥渉istorically disadvantaged鈥 small- and medium-sized enterprises.

Industry, at least in the United States, is pushing hard to extend the moratorium. In a Feb. 13 letter to Biden administration officials, nearly two dozen industry groups, including the Motion Picture Association, the U.S. Chamber of Commerce and the Entertainment Software Association 鈥 a video-game industry group 鈥 urged the United States to give its 鈥渇ull support鈥 to a renewal.

鈥淎ccepting anything short of a multilateral extension of the moratorium that applies to all WTO members would open the door to the introduction of new customs duties and related cross-border restrictions that would hurt U.S. workers in industries across the entire economy,鈥 the letter said.

A collapse would deal a 鈥渕ajor blow to the credibility and durability鈥 of the WTO and would mark the first time that its members 鈥渃hanged the rules to make it substantially harder to conduct trade,鈥 wrote the groups, which said their members include companies that combined employ over 100 million workers.