WTO Digital Trade Moratorium Ends: Customs Duties on Netflix on the Horizon

The World Trade Organization's (WTO) 28-year moratorium exempting digital trade from customs duties has officially ended. This development theoretically opens the door for customs duties to be applied to digital service subscriptions such as Netflix. The expiration of the moratorium marks a new era for global digital trade. With the moratorium lifted, 67 countries have established a safeguard mechanism to protect digital trade among themselves. These countries aim to ensure uninterrupted trade by taking a unified stance against the taxation of digital services. However, this safeguard does not cover all WTO members. Turkey, on the other hand, has made a different choice. The country has yet to determine a clear position on the taxation of digital trade following the moratorium's end. Experts note that Turkey's decision in this area could have significant impacts on the local digital economy and consumer costs. The taxation of digital trade could particularly affect the revenues of major technology companies. The end of the moratorium means countries gain more flexibility to impose their own digital service taxes. This situation is seen as the beginning of a new phase in global trade dynamics. This is not investment advice.