Electronic Commerce and the World Trade Organization

The report examines the state of play for e-commerce at the WTO, focusing on the multilateral Work Programme on Electronic Commerce (WPEC) and the plurilateral Joint Statement Initiative (JSI). It details the ongoing conflict over the moratorium on customs duties for electronic transmissions, the substance of the proposed Agreement on Electronic Commerce (ECA), and the challenges regarding its legal incorporation into the WTO framework, particularly concerning the needs of developing countries and LDCs.

• The WTO moratorium on customs duties for electronic transmissions was extended at MC13 until March 31, 2026, or the next Ministerial Conference. For the first time, the decision stated that both the moratorium and the Work Programme will expire on that date.
• There is a sharp divide over the moratorium: supporters argue it prevents costs for consumers and MSMEs, while opponents, including India, South Africa, and Bangladesh, argue it erodes fiscal sovereignty and limits the ability of developing countries to invest in infrastructure.
• A February 2025 request to legally incorporate the ECA into the WTO treaty framework was blocked by seven members: Bangladesh, Brazil, India, Indonesia, South Africa, Pakistan, and Türkiye.
• The ECA establishes a permanent plurilateral moratorium on customs duties for electronic transmissions, which differs from the temporary multilateral moratorium. It defines 'electronic transmission' to include both the carrier medium and the content.
• The ECA includes specific provisions for developing countries and LDCs in Article 20, allowing for self-designated implementation periods of up to 5 years, with a possible 2-year extension.
• LDC Parties are granted a stronger protection from dispute settlement under the ECA, receiving a total shield from any dispute settlement case for 7 years after the agreement enters into force for them.
• Developing countries have expressed concerns that the ECA's development provisions are insufficient, particularly regarding the voluntary nature of technical assistance and capacity building (TA/CB) and the complexity of required regulatory frameworks.
• The ECA covers a wide range of digital trade rules, including electronic signatures, electronic contracts, online consumer protection, cybersecurity, and a specific exception for Indigenous Peoples.
• The United States has shown a trend of disengagement from the JSI, including not endorsing the stabilized text and withdrawing proposals on data governance in October 2023, which led to the removal of data-related provisions from the negotiations.

APA

Jose, R., & Kaukab, R. S. (2025). Electronic Commerce and the World Trade Organization. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-12/e-commerce-wto-state-of-play.pdf

Chicago

Jose, Rashmi, and Rashid S. Kaukab. Electronic Commerce and the World Trade Organization. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-12/e-commerce-wto-state-of-play.pdf.

Wikipedia

{{cite report |last1=Jose |first1=Rashmi |last2=Kaukab |first2=Rashid S. |title=Electronic Commerce and the World Trade Organization |publisher=International Institute for Sustainable Development |date=December 2025 |url=https://www.iisd.org/system/files/2025-12/e-commerce-wto-state-of-play.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jose2025electronic, author = {Jose, Rashmi and Kaukab, Rashid S.}, title = {{Electronic Commerce and the World Trade Organization}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/system/files/2025-12/e-commerce-wto-state-of-play.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }