Translation:

Digital Transmissions / Moratorium = Digital trade (freezing customs duties on electronic shipments).

Simplified Definition:

It is an international agreement in effect for decades that prohibits governments from imposing customs duties on products that are not shipped in boxes, but are transferred over the Internet (such as software, games, music, and cloud services).

What Does It Mean for You?

  • Digital services you purchase (such as video games, applications, or platform subscriptions) are not subject to customs import duties.
  • If this "moratorium" ends, the cost of purchasing software and subscriptions from foreign companies will increase for you.

Common Question:

Why is there global conflict and calls to end this moratorium?

Answer:

Because some countries (such as Brazil and India) believe they are losing billions of dollars in revenue to (often American) technology companies, and want to impose customs duties on these services to increase government income and protect their domestic tech companies.