Bipartisan House Reps. Call for Renewal of Tariff Moratorium on Digital Goods
U.S. Trade Representative Katherine Tai will represent the U.S. at the World Trade Organization's Ministerial Conference. Drew Angerer/Getty Images
As leaders convene for the World Trade Organization’s Ministerial Conference, Congress asked U.S. Trade Representative Katherine Tai to renew the moratorium on tariffs on electronic transmission.
A group of Representatives released a letter Friday advocating for the extension of global agreements that ban new taxes and tariffs from being added to the trade of digital goods and services across borders, ahead of the pending expiration of the rule within the World Trade Organization.
Led by Reps. Susan DelBene, D-Wash., and Darin Hood, R-Ill., both chairs of the House Digital Trade Caucus, the letter asks United States Trade Representative Katherine Tai to lobby for the renewal of the Moratorium on Customs Duties on Electronic Transmissions within the WTO.
The moratorium ensures digital goods, such as e-books, music, software, movies, data, games, apps and other virtual commodities are not subject to hefy, arbitrary taxes that strain economic growth.
“The international flow of digital goods and digital services has become increasingly vital to American workers and businesses of all sizes,” the letter reads. “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.”
Signatories totaled 34 bipartisan House representatives.
The moratorium has been in place for twenty years, spanning the rise of virtual shopping and expedited global shipping. Given COVID-19’s recent choking of international supply chains, the letter adds that renewing the moratorium would encourage fluid global trade.
Tai will represent U.S. interests at the WTO Ministerial Conference, happening now in Geneva.