Rethinking ASEAN’s Approach to a Moratorium on Customs Duties for Electronic Transmissions

The World Trade Organization’s moratorium on customs duties for electronic transmissions, in effect since 1998 and recently extended until March 2026, remains a topic of contention. Supporters highlight its significance in promoting global digital trade, while critics raise concerns about potential revenue losses and ambiguity in its scope. For ASEAN, the moratorium carries critical implications due to varying levels of economic development and digital readiness across its Member States (AMS). While some AMS favour a permanent ban in line with existing preferential trade agreements, others voice concerns about its potential developmental and industrial repercussions. This policy brief analyses the economic impact of the moratorium, examines the differing perspectives within ASEAN, and reviews global trade practices related to electronic transmissions. It concludes with actionable policy recommendations for the Digital Economy Framework Agreement (DEFA), emphasising the need for clear guidelines, inclusivity, and alignment with international norms to support a resilient and equitable digital economy in the region. Latest Articles