WTO Deputy Director General Says E-Commerce Plurilateral Likely to Succeed

World Trade Organization Deputy Director General Alan Wolff said that while there are tricky issues in the e-commerce talks in Geneva -- privacy and the free flow of data among them -- "the process is moving forward rapidly and in a very good spirit."

Wolff, who was speaking at the Center for Strategic and International Studies Oct. 21, said he doesn't know if the moratorium on customs duties on digital goods will be extended in December, as countries continue to negotiate a broader agreement. He said the replacement of DVDs by streaming costs $60 million in customs revenue, and reminded the audience that some countries still rely on customs duties as a primary way of funding operations. However, Wolff said, "it strangles development to have the idea that everything that goes through the ether is dutiable."

Although the WTO seems to be heading into a crisis, because the appellate body will no longer have a quorum in December, Wolff evinced optimism about its survival and continued relevancy. He said things may get worse before they get better, but he said, "no country can afford to be outside of the [rules-based] system, period."

Wolff suggested that the current appellate body members will continue to work on cases currently before them, and so they may continue to function for about a year past the deadline. Working on cases past the end of an appointment period is one of the U.S.'s complaints about the body. The U.S. has been blocking appointments to the appellate body. While there is an impasse, he said, he also said he thinks it can be solved. "A fair amount of the underbrush has been cleared away" on the Dispute Settlement Body problem.