“The United States has taken a clear position on this issue and has signalled that permanent duty-free treatment for digital transmissions remains a priority”
The central task for the G7 is there- fore straightforward. It must preserve continuity, reinforce the existing coali tion of willing WTO members, and maintain the credibility of the multi- lateral process. This can be achieved through focused actions that rely on established language and simple procedures. The first action should be a joint dec- laration at the Évian Summit in June that commits all G7 members not only to re-establish a prohibition on customs duties on electronic transmis- sions but also to make it permanent. The declaration should include specific operative text that other WTO mem- bers can sign on to. That text should draw directly from the draft proposed by the group of WTO members after the 14th Ministerial Conference, which states that participating members will continue their current practice of not imposing customs duties on electronic transmissions until a permanent solu- tion is secured in the WTO. By adopting familiar language, the G7 will not com- plicate the process of alignment for other governments.
The second action should be an explicit invitation to non-G7 econ- omies to join this open plurilateral commitment. The declaration should state that participation is open to any WTO member that is prepared to main- tain the moratorium indefinitely and support continued work towards a multilateral outcome. This step will reinforce the message that the initia- tive is inclusive and that it builds on the efforts already undertaken by dozens of WTO members. FROM COMMITMENT TO ACCESSION The third action should be the crea- tion of a simple mechanism through which additional countries can dock on to the accord. Participation should be based on self-declaration and a willing- ness to have actions taken specifically assessed in that country’s future WTO Trade Policy Review. A government that wishes to join should issue a commu- nication to the WTO membership that it will permanently eschew customs duties on electronic transmissions and that its domestic measures are con- sistent with that commitment. This approach will allow participation with- out lengthy negotiations and will create a transparent record of acceptance of terms. These actions are sufficient to sustain momentum after the lapse of the multilateral moratorium. They rely on policy positions that the G7 has already endorsed, they reinforce coop- eration among willing WTO members and they maintain the prospect of a binding multilateral agreement. The Évian Summit therefore offers the G7 a clear opportunity to convert longstand- ing alignment into practical leadership and to keep digital trade duty-free while the multilateral system works towards a durable solution.
// SIMON J EVENETT Simon J Evenett is a professor of geopolitics and strat- egy at IMD Business School in Switzerland, co-chair of the World Economic Forum’s Trade and Investment Council, and founder of the St Gallen Endowment for Prosperity Through Trade, the home of several independent policy tracking initiatives.
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