India's Electronics & SME Sectors Advocate For WTO Customs Duties Moratorium Extension

ENA MSME 2024-02-13 15:31:49 New Delhi, Feb 13 (KNN) The India Electronics & Semiconductor Association (IESA) and the India SME Forum, representing key sectors, have thrown their support behind the ongoing prohibition of customs duties on electronic transmissions at the World Trade Organisation (WTO). They argue that this prohibition is crucial for bolstering supply chain resilience in the aftermath of the Covid-19 pandemic, reported ET. In a joint submission to the WTO, these industry bodies, alongside approximately 170 global associations, emphasised the significance of maintaining the moratorium. This stance contrasts with the efforts of India and South Africa, who are advocating for the prohibition's termination, citing revenue losses. The moratorium, which has been in effect since 1998, enjoys support from around 105 countries, including major economies like the US, the UK, Australia, China, and Japan. According to the associations, extending the moratorium is essential for ensuring the resilience of both manufacturing and services industries. They highlight its particular benefits for Micro, Small, and Medium Enterprises (MSMEs), which heavily rely on digital tools to navigate business challenges, especially during times of physical constraints like lockdowns. Failure to renew the moratorium will jeopardise these benefits, as customs restrictions that interrupt cross-border access to knowledge and digital tools will harm MSMEs and the global supply chain, increasing digital fragmentation, the associations said. The United Nations Conference on Trade and Development estimates a staggering global loss of USD 10 billion per year in potential customs duties due to the moratorium, with developing countries bearing the brunt of this loss. Vinod Kumar, President, India SME Forum, underscores the significant stakes involved, noting that Indian MSMEs export approximately USD 90 billion worth of services annually, a substantial portion of which could be affected by the imposition of customs duties on electronic transmissions. The debate over the moratorium is expected to intensify ahead of the WTO's 13th ministerial conference (MC13) scheduled for later this month in Abu Dhabi. (KNN Bureau) 36682 https://knnindia.co.in/news/newsdetails/msme/indias-electronics-sme-sectors-advocate-for-wto-customs-duties-moratorium-extension 2024-02-13 15:31:49 knnindia.co.in India's Electronics & SME Sectors Advocate For WTO Customs Duties Moratorium Extension