Lapse of Key Digital Trade Measure Undermines Economic Growth, Innovation

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Semiconductor Industry Association (SIA) President and CEO John Neuffer expressed disappointment trade negotiators from around the world failed to reach an agreement to permanently prohibit duties on digital trade during last week’s World Trade Organization (WTO) Ministerial Conference in Yaoundé, Cameroon. The duty-free flow of data and digital goods advances trade in semiconductor technologies, artificial intelligence, telecommunications, and many other essential sectors.

For more than a quarter-century, the “Moratorium on Customs Duties on Electronic Transmissions” has prevented WTO members from imposing tariffs on electronic transmissions, such as digital goods and software services, that affect the semiconductor industry and the broader tech sector. The WTO has renewed the Moratorium every two years, but by failing to take action last week, WTO members have allowed the Moratorium to lapse.

“This commonsense measure has promoted growth and innovation across the global digital economy for decades, and it is deeply disappointing that WTO members allowed it to lapse. During upcoming discussions in Geneva, we urge all WTO members to make the Moratorium permanent and usher in much-needed certainty for the semiconductor industry, our customers, and the global digital economy. We commend the Trump Administration and partner governments for their efforts in support of this goal and remain ready to work with government leaders to ensure an agreement is reached in short order.”