Geneva, Switzerland — The Philippines during the 12th World Trade Organization (WTO) Ministerial Conference expressed its support for the extension of the moratorium on the imposition of customs duties on electronic transmissions until the next Ministerial Conference in consideration of the micro, small and medium enterprises (MSMEs).
Speaking at the conference, Trade and Industry Assistant Secretary Allan B. Gepty stated that there is a need “to maintain a stable and predictable digital trading environment not only for big businesses but especially for MSMEs and women entrepreneurs to boost economic growth.”
It should be noted that one of the priorities of the Philippines is to facilitate the integration of MSMEs into the global value chain and E-Commerce is one key platform for this.
In line with this, Gepty said “the Philippines looks forward to delivering a Ministerial Decision on this important issue that will have significant impact to members, including developing and least developed countries.”
The Philippines also stressed the need to advance the work under the Electronic Commerce Work Programme and highlighted the vital role of electronic commerce in the global post pandemic recovery.
The Philippines co-sponsored the draft ministerial decision seeking to reinvigorate the work program through intensified discussions based on proposals submitted by members, including regarding development-related issues.
According to DTI Undersecretary Ceferino Rodolfo, “another important advantage of a stable and predictable online environment is that it would further strengthen the positioning of the country as an innovation hub, and an ideal location for hyperscale data center. Thus, we support initiative that contributes to this objective.”
Recognizing the importance of E-Commerce in facilitating cross-border trade in goods and services, the Philippines has a robust E-Commerce industry and to boost the same, the government has released the E-Commerce Roadmap 2022 to create an integrated ecosystem that would become the foundation of all industries' developments, long-term employment, and inclusive growth throughout the country.
Gepty further explained that as far as the E-commerce is concerned, the Philippines has been implementing it faithfully since its adoption.
However, he stressed also that one of the priorities of the Philippines is to facilitate the integration of MSMEs into the global value chain and E-commerce is one key platform for this.
"There is really a need to advance the work on this at the WTO, and members should avoid passing measures that can disrupt the E-commerce activities. Thus, the need to extend the moratorium. This is especially true when as a result of the pandemic, online activities has been intensified," he explained.
"We have to note that a stable and predictable online environment would further strengthen the positioning of the country as an innovation hub, and an ideal location for hyperscale data center in the region. The Philippines is very strong in services especially the IT BPM sector , and we have to ensure that we provide a conducive environment," he reiterated.
On December 10, 2019, the WTO members in a General Council agreed to extend the existing moratorium on customs duties on electronic transmissions.
Members agreed to maintain the current practice of not imposing customs duties on electronic transmissions until the 12th Ministerial Conference (MC12). They also agreed to continue work under the existing 1998 work program on E-Commerce in the beginning part of 2020. The work in the run-up to MC12 will include structured discussions on issues that would help ministers take an informed decision by MC12.
Since 1998, WTO members have periodically renewed the moratorium at each Ministerial Conference and have continued addressing e-commerce related issues in the Goods Council, the Services Council, the TRIPS Council and the Committee on Trade and Development as part of the e-commerce work program.