A coalition of 42 U.S. startups, investors, and startup support organizations across 18 states sent a letter urging U.S. trade policymakers to support the growth and competitiveness of the startup ecosystem through smart digital trade policy. The letter calls on policymakers to support policies enabling cross-border data flows, making permanent the moratorium on the imposition of customs duties on electronic transmissions, and providing resources to help startups compete abroad.
Last fall, the Biden administration withdrew its support for key digital trade provisions on data flows, data localization, antidiscrimination and source code. The coalition letter underscores the importance of those provisions to U.S. startups’ global competitiveness and success.
Later this month, Ministers will gather in Abu Dhabi for the 13th World Trade Organization Ministerial Conference, where it is uncertain whether the e-Commerce moratorium will be extended. Some countries have expressed interest in ending the moratorium, either as negotiating leverage for their own priorities, or to clear the way for tariffs on digital trade. The coalition letter makes clear the importance of the moratorium and calls for it to be made permanent.
As the coalition writes in the letter, “trade policy impacts U.S. startups’ ability to break into new markets, create domestic jobs, earn investment, and scale their ventures.” That’s why strong digital trade policies are needed to “open opportunities and defend the ability of U.S. startups to provide their goods and services to customers around the globe.”
You can find the letter here.
