WT/GC/W/812  
 
4 December 2020  
(20-8722) Page: 1/3 
General Council  
16-17 December 2020  
 Original: English  
 
WORK PROGRAMME ON ELECTRONIC COMMERCE  
REINVIGORATING THE WORK UNDER THE 1998 WORK  
PROGRAMME ON ELECTRONIC COMMERCE  
Communication from South Africa and India  
The following communication, dated  3 December 2020 , is being circulated at the request of the 
delegations of South Africa and I ndia.  
 
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1  INTRODUCTION  
1.1.  On 10 December 2019, Members agree d to reinvigorate the work under the Work Programme 
on Electronic Commerce, based on the existing mandate as set out in WT/L/274. The y agreed that 
the work will include structured discussions in early 2020 based on all trade -related topics of interest 
broug ht forward by Members, including LDCs, including on scope, definition and impact of the 
moratorium on customs duties on electronic transmissions. Members also agree d to maintain the 
current practice of not imposing customs duties on electronic transmission s until the 12th Ministerial 
Conference. Furthermore, Members agreed that t he General Council shall report to the 12th session 
of the Ministerial Conference.  
1.2.  In going through the discussions on e -commerce that have taken place since the establishment 
of the Work Programme in 1998 , both at a horizontal level in the General Council and in the relevant 
WTO bodies (CTD, CTS, CTG, TRIPS Council), Members will observe that discussions, even from a 
trade policy perspective  have not been adequately explored, and where it has, it has barely touched 
the surface.  
1.3.  There are also different approaches by the WTO bodies on this issue of critical importance to 
the membership, with some bodies having the Work Programme on electronic commerce  as a 
standing item in the agenda, while in some it is an ad -hoc item that is only put in the agenda at the 
request of Members  even though there is a clear Ministerial mandate on issues to be addressed by 
each of the WTO bodies.  
1.4.  The digital econo my has not been static, and many Members are still coming to grips with what 
appears will be very profound changes brought on by the digital transformation of which e -commerce 
is integral. Hence, the evolution of the sector makes it necessary to continue t he exploratory 
discussions under the Work Programme.  
1.5.  India and South Africa have jointly introduced the proposal 'Moratorium on customs duties on 
electronic transmissions : Need for a re -think1. The discussions were centred around the following 
thematic a reas:  
 
 
1 WT/GC/W/747, 13 July 2018.  WT/GC/W/812  
 
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  • Revenue implications of the moratorium on electronic transmissions;  
• Scope and definition of electronic transmissions;  
• Technical feasibility of imposing customs duties on electronic transmissions;  
• Broader impact of the moratorium on trade and industrialization and any other issue with 
respect to the moratorium.  
 
1.6.  In a communication (WT/GC/W799) by Switzerland and other co -sponsors have called for the 
need to broaden and deepen the discussion on the moratorium on imposing customs duties on 
electronic transmissions. The issue on the scope, definition and impact of the moratorium on customs 
duties on electronic transmissions  continues to be an issue of interest to Members and is critical in 
determining the decision of Ministers at MC12 on the future of the moratorium on e -commerce.  
1.7.  The number of papers and inputs across the membership, including from LDCs is a clear 
indicatio n of the need for a multilateral discussion that will result in deliverables that will promote 
an inclusive and development -oriented digital transformation agenda for consideration by Ministers 
at MC12. The discussion in the JSI on e -commerce narrowly focu ses on the development of legally 
binding rules and risks further marginalization of developing countries in global trade.  
2  IMPACT OF COVID -19 
2.1.  A paper by UNCTAD titled "The COVID -19 Cris is: accentuating the need to bridge the digital 
divide " states that the COVID -19 pandemic highlights a deepening digital divide both within and 
between countries.  Despite the rapid uptake of digital technologies, significant divides remain, both 
between and within countries. Developing countries are dispropor tionately affected by the pandemic, 
both from a health and economic point of view.  
2.2.  Almost half of the world population has no access to the internet. Only 35 per cent of population 
in developing countries have internet access as compared to 87 per cent in  the developed world. 
The least developed countries (LDCs) are the most vulnerable to the human and economic 
consequences of the pandemic and lag behind in relation to digital readiness with only one in five 
people in LDCs using the internet . In most devel oping countries well below 5% of the population 
currently buy goods  or services online. As a result, countries which are hyperconnected have been 
able to continue many of their economic operations online during the ongoing pandemic, but 
countries which are  less connected were not even able to provide basic information on combating 
Covid -19 where it was most needed.   
2.3.  According to the UNCTAD eTrade Readiness Assessments, there are significant gaps and 
barriers in several policy areas ranging from ICT infrastr ucture, payment solutions, skills, legal 
frameworks, insufficient quality  of broadband services that hamper the ability of many developing 
countries to leapfrog and leverage digital trade.  
3  STRUCTURED DISCUSSIONS  UNDER THE 1998 WORK PROGRAMME  
3.1.  The WTO has a unique opportunity to make a contribution towards laying the foundation for a 
more just and inclusive economy by promoting an inclusive and development -oriented approach to 
electronic commerce. Multilateralism is vital in a world facing development challenges. In this regard 
the G eneral Council  should:  
• Direct that the E -commerce Work Programme be a standing item in the relevant 
WTO bodies given a mandate as set out in WT/L/274 . 
• Play a central rol e in the discussions and keep the Work Programme under continuous 
review through a st anding item on its agenda  and take up consideration of any 
trade -related issue of a cross -cutting nature  as entailed in the 1998 Work Programme.  
• Continue structured thematic discussions in the General Council through various platforms.  
These may include : WT/GC/W/812  
 
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  o Developmental aspects of electronic commerce ; 
o Scope, definition and impact of the moratorium on customs duties on electronic 
transmissions ; and,  
o Examination of the challenges experienced by developing countries and LDCs in 
relation to electronic commerce and explore ways of enhancing the participation of 
developing countries in electronic commerce.  
 
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