Session Description

The digital economy is a key driver of economic growth in the region, particularly for developing countries, where the potential to leapfrog is significant. Digital SMEs and start-ups in the Asia-Pacific are leveraging digital tools to promote greener trade, resource efficiency, and environmental sustainability – for example, the use of blockchain technologies to facilitate traceability and accountability for sustainable agriculture trade. Losing the Moratorium would disproportionately affect digital SMEs and start-ups, imposing higher costs through tariffs on electronic transmissions and diminishing their competitiveness in export markets. Even in the absence of immediate tariff implementation, the uncertainty alone would dampen innovation and impede the potential of the digital economy for developing countries in the region.

Session Readout

The Coalition for Digital Prosperity for Asia (DPA) has hosted a panel on the E-commerce Moratorium, at the World Trade Organization’s (WTO) Public Forum 2023 in Geneva.

The Panel Discussion featured four expert speakers including Mr Krishna Moorthy, CEO and President of the India Electronics and Semiconductor Association (IESA), Professor Katrin Kuhlmann, a Visiting Professor of Law at Georgetown University Law Center, Ms Devi Ariyani, Executive Director of Indonesia Services Dialogue (ISD) Council, and Mr Firnando Buenayre Sirait, CEO of Indonesian start-up Hara.

Professor Kuhlmann and Ibu Devi presented on research that had been conducted to assess the impact of the removal of the moratorium on small and medium businesses both internationally and in key jurisdictions in Southeast Asia, including Indonesia. Meanwhile, Mr Krishna and Mr Firnando presented on the potential impact of the moratorium on their specific sectors and shared the perspectives of regional SMEs on the uncertainty regarding the lapsing of the moratorium.

Findings suggested that there was a critical lack of education on both the existence, importance, and potential impact of the moratorium on the business functions of many digital companies. Additionally, panelists were in agreement that the potential negative outcomes that could result from the removal of the moratorium were dire, and that significant further research and assessment needed to be conducted before a decision was made on proposals for its removal.

Following the panel, a lively Question and Answer session saw questions raised about impending deadline for the moratorium, which is due to lapse in March 2024. Other questions included clarifications on panelists’ research methodologies and alternatives to customs tariffs.

Speaking on behalf of the DPA coalition and its members across the Asia-Pacific, Mr Gareth Tan of the DPA Secretariat encouraged participants and attendees to exercise caution in making a decision on the moratorium due to the potential negative impact its removal could have on digital small and medium businesses across the region.

About the DPA

The DPA is an alliance of tech small and medium enterprises from across the Asia-Pacific region seeking to provide opportunities for SMEs to expand their networks, meet government regulators, and affect government policies for the better.