DelBene, LaHood, Trade Subcommittee Leaders Ask USTR to Defend WTO Customs Moratorium

After members of Congress were blindsided by the Office of the U.S. Trade Representative backing away from digital trade advocacy, they are taking no chances in spelling out their desire that the agency push for a continued moratorium on tariffs on digital goods. The World Trade Organization has renewed that moratorium since 1998, but some member countries want to start collecting duties on the sale of streaming movies, software as a service, and more.

Reps. Suzan DelBene, D-Wash., and Darin LaHood, R-Ill., the two leaders of the House Ways and Means trade subcommittee and 28 other members publicized their letter Jan. 18.

"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," they wrote. "Failing to renew the Moratorium for the first time in a quarter century would undermine the strength of the American economy, jobs, and innovation."

The letter noted that Indonesia has already adopted a tariff schedule that would apply to certain digital goods and services that could go into effect if the moratorium lapses.

"If the Moratorium is not extended, new digital trade barriers will likely proliferate. Such barriers could harm American exports, disrupt supply chains, increase prices for American consumers and businesses, and risk potential retaliation," they wrote.