World Trade Organization members have again agreed to extend a moratorium on imposing customs duties on data transfers, the WTO said in a Dec. 10 press release. The moratorium, which has been renewed at every opportunity since 1998, will now remain in effect at least until the WTO’s 12th Ministerial Conference (MC12) in June 2020. WTO members, who were meeting as the WTO general council, also agreed Dec. 10 “to continue work under the existing 1998 work programme on e-commerce in the beginning part of 2020,” the release said. “The work in the run-up to MC12 will include structured discussions on issues that would help ministers take an informed decision by MC12.”
The European Union has brought a World Trade Organization dispute against Indonesian export restrictions on raw materials used in stainless steel production, the European Commission said Nov. 21. The restrictions “unfairly limit” EU producer access to these materials, namely nickel, scraps, coal, coke, iron ore and chromium, the commission said. The EU is also “challenging” subsidies that “encourage use of local content by Indonesian producers and give preference to domestic over imported goods,” the commission said, calling the subsidies a violation of WTO rules.
The European Union raised a dispute in the World Trade Organization against what it said are illegal antidumping measures used by Colombia on frozen fries from Belgium, Germany and the Netherlands, the European Commission said Nov. 14. The commission said the antidumping duties violate WTO rules “both on substance and in terms of the procedure.” Colombia imposes duties ranging from 3 percent to 8 percent on EU imports, affecting nearly 85 percent of EU exports of frozen fries to Colombia, the commission said. The commission has “not received a satisfactory response” from Colombia “despite numerous interventions … to lift the unjustified measures,” Trade Commissioner Cecilia Malmstrom said in a statement. The EU hopes to resolve the dispute “as soon as possible,” she said.
The Organization for Economic Cooperation and Development recently released a report on the World Trade Organization moratorium on customs duties on electronic transmissions. The moratorium, in effect since 1998, is scheduled to expire this year. The report provides details of the “different issues at stake” in the debate over whether to extend the moratorium or eliminate it, the OECD said.
A variety of export subsidies, which allowed certain industries to avoid paying sales taxes, customs duties, or reduce income tax liability have been ruled illegal by a World Trade Organization panel. The ruling was released Oct. 31. India, unless it appeals the ruling, has 90, 120 or 180 days to stop the programs at issue.
The World Trade Organization will convene a dispute settlement panel to judge whether India had the right to impose tariffs on apples, almonds, motorcycles and other products (see 1906170053). The panel was approved for formation in Geneva Oct. 29. Under the additional tariffs, American apples are taxed at 70 percent, compared with 50 percent for other countries' apple exports; the tariff on almonds and walnuts increased by 20 percentage points; and chickpeas and lentils have an additional 10 percentage points of duties. Most of these products are imported at low volumes, but India projected that it would collect more than $100 million in tariffs on almonds in the shell, and more than $20 million on apples. India says it is justified because the Section 232 tariffs on steel and aluminum are really safeguards to protect American mills and foundries, not national security measures. India is one of many countries involved in litigation at the WTO over the steel and aluminum tariffs -- others include Norway, Russia, the 28 countries of the European Union and China.
South Korea will continue to be classified as a developing country at the World Trade Organization in some respects, but not in negotiations, Reuters reported. "The government decided not to seek special treatment as a developing country from future negotiations at WTO,” Finance Minister Hong Nam-ki said Oct. 25. Developing countries are allowed looser standards on agriculture subsidies in the WTO, and the finance minister emphasized that Korea will continue to protect its agriculture.
Ten trade groups, all typically Republican allies, sent a letter to the White House and U.S. Trade Representative Robert Lighthizer asking that America submit a proposal for reforming the World Trade Organization's Appellate Body, with the offer that if it were adopted, the U.S. would stop blocking appointments to that body. While the administration has been clear about its concerns on how the appeals process is conducted, it has not offered a specific solution. The Oct. 23 letter also defended the dispute settlement system at the WTO, saying, "Since the United States is the world’s largest trading nation and the second-largest exporter, it has been one of the major beneficiaries of the WTO process."
World Trade Organization Deputy Director General Alan Wolff said that while there are tricky issues in the e-commerce talks in Geneva -- privacy and the free flow of data among them -- "the process is moving forward rapidly and in a very good spirit."
China is going to ask the World Trade Organization to authorize retaliatory tariffs on $2.4 billion worth of goods at the WTO's dispute settlement body meeting Oct. 28. If the U.S. disagrees with either the argument that it's not complying with the ruling on countervailing duties, or the amount of retaliation permitted, an arbitrator will decide how much China may retaliate.