Digital trade
Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
Digital trade is trade in goods and services that is enabled or delivered digitally. It includes e-commerce, cross-border data flows and downloads such as software, films and games. It is growing fast and raises new questions. Should downloads face customs duty? Should data be free to cross borders? Who writes the rules? India wants to keep its policy space, meaning the freedom to tax and regulate this trade in its own way.
Example
Since 1998, WTO members had agreed not to charge customs duty on electronic transmissions (the e-commerce moratorium). India, South Africa and Indonesia objected because they lost tariff revenue on films, games and 3-D printing files. The moratorium lapsed at MC14 on 30 March 2026 for want of consensus. India also stays outside the plurilateral E-commerce Joint Statement Initiative, a deal among only some WTO members, to protect its data policy space.
Don't confuse with
- E-commerce: e-commerce is buying and selling goods and services online. Digital trade is wider and also includes data flows and digitally delivered services.
Related concepts
- GATS
- Modes of supply of services
- TRIMS
- Local content requirement
- Bilateral investment treaty
- Investor-state dispute settlement
- E-commerce moratorium
- Data localisation