LaHood-led effort urges support of WTO moratorium against tariffs on e-transmissions

U.S. Rep. Darin LaHood (R-IL) recently helped lead a bipartisan contingent of 33 lawmakers in urging the Biden administration to prioritize a World Trade Organization (WTO) moratorium on imposing tariffs on electronic transmissions.

Specifically, the members support the WTO Moratorium on Customs Duties on Electronic Transmissions, which covers e-transmissions of both digital goods, like e-books, music, movies, and video games, as well as digital services, including software, emails and text messages, and enabling a stable environment for growing digital trade and American jobs.

“The international flow of digital goods and digital services has become increasingly vital to American workers and businesses of all sizes, including the countless small businesses that use digital tools to export products and services across the globe,” the congressmen wrote in a June 10 letter sent to United States Trade Representative Katherine Tai. “Failing to renew the moratorium, as we have done for more than 20 years, would undermine the strength of the American economy, jobs and innovation.” 

Among the members who also signed the letter are Rep. LaHood’s fellow co-chair of the Digital Trade Caucus, U.S. Rep. Suzan DelBene (D-WA), as well as U.S. Reps. Brad Wenstrup (R-OH), Ron Estes (R-KS), Carol Miller (R-WV), Lloyd Smucker (R-PA), and Jackie Walorski (R-IN).

Rep. LaHood and his colleagues pointed out that if the moratorium is not renewed, then governments around the world would be free to impose tariffs and other trade barriers on numerous American industries that transmit products and services electronically and rely heavily on the free flow of data around the globe, including manufacturing, agriculture, entertainment, software, financial services, semiconductors, aerospace, autos, robotics, and medical devices, according to their letter. 

“Additionally, the proliferation of these trade barriers could further disrupt supply chains and increase prices for American consumers, given that digital goods and services have enabled our economy to persist through COVID-19 restrictions and lockdowns,” wrote the members.

Since 1998, the U.S. and all other WTO members have agreed to not impose tariffs on electronic transmissions. The WTO moratorium has consistently been extended at WTO ministerial conferences since its inception and the U.S. has continually advocated for it, they wrote.