Modelling Impact of Moratorium on Electronic Transmissions using CGE: A Critique

Authors

  • RASHMI BANGA UNCTAD

DOI:

https://doi.org/10.14738/assrj.68.6966

Keywords:

Moratorium, Electronic Transmissions, ET Moratorium, CGE, GTAP, Economic Impact of ET Moratorium

Abstract

The paper presents a detailed critique of estimating economic impact of moratorium on custom duties on electronic transmissions using CGE modelling, which has been undertaken by the European Centre for International Political Economy (ECIPE). Electronic transmissions are ‘on-line’ deliveries of digitizable products like music CDs, films, e-books, software and printed material. Since 1998, moratorium on custom duties on electronic transmissions has been renewed every two years in the WTO. ECIPE paper estimates the economic impact of removal of the moratorium. Using GTAP model, the analysis applies arbitrary tariffs on four broad services sectors and presents the results as economic impact of removal of moratorium. This is misleading for the policymakers. The model does not have product-level data or dis-aggregated services data in order to identify electronic transmissions. Applying tariffs on broad services sectors also challenges the commitments taken by the developing countries in the GATS.

References

Arvind Panagariya and Duttagupta (2001), The ‘Gains’ from Preferential Trade Liberalization in the CGEs: Where Do They Come From? In S. Lahiri, ed., Regionalism and Globalization: Theory and Practice, Routledge, London, 39-60.
ECIPE (2019), The Economic Losses From Ending the WTO Moratorium on Electronic Transmissions, No 3/Policy Brief, ECIPE.
Taylor, L., and R. von Arnim. 2006. Computable General Equilibrium Models of Trade Liberalization: The Doha Debate, New School for Social Research. Oxford: Oxfam GB
UNCTAD (2000) Tariffs, Taxes and Electronic Commerce: Revenue Implications for Developing Countries (Geneva: United Nations Conference on Trade and Development).
UNCTAD (2017), Rising Product Digitalisation and Losing Trade Competitiveness, United Nations (https://unctad.org/en/PublicationsLibrary/gdsecidc2017d3_en.pdf
UNCTAD (2019), Growing Trade in Electronic Transmissions: Implications for the South, Research Paper 29, UNCTAD (https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2356)
WTO (2016), Fiscal implications of The Customs Moratorium on Electronic Transmissions: The Case of Digitisable
Goods, Job/GC/114.

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Published

2019-09-05

How to Cite

BANGA, R. (2019). Modelling Impact of Moratorium on Electronic Transmissions using CGE: A Critique. Advances in Social Sciences Research Journal, 6(8), 391–400. https://doi.org/10.14738/assrj.68.6966

Issue

Vol. 6 No. 8 (2019): Advances in Social Sciences Research Journal

Section

Articles

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