FROM THE OFFICE OF PUBLIC AFFAIRS

The Clinton-Gore Administration welcomes the House resolution (H. Con. Res. 190) supporting the Administrations ongoing efforts to obtain a permanent moratorium on the imposition of tariffs on electronic transmissions. This resolution, adopted on October 26, by a vote of 423-1, endorses a long-standing Administration position with respect to electronic transmissions. The Administration successfully achieved in May 1998 an agreement among the 132 WTO countries to establish a temporary moratorium on the imposition of customs duties on electronic transmissions. We are actively seeking an extension of the moratorium at this Decembers WTO Ministerial Conference, with a view to making the moratorium permanent and binding at the earliest possible date.

The Administration also applauds the goal of the House resolution regarding taxation, which is to keep the Internet and electronic commerce free from special, multiple or discriminatory taxes. The resolution supports the Administrations position that the Internet and electronic commerce should not be subject to any non-neutral or discriminatory taxation. In addition, the Administration has long been on record as strongly opposing any special Internet taxes, and has successfully opposed imposition of one such tax, an international bit tax based on information volume.

The Administration commends and appreciates the leadership of Senator Ron Wyden and Representative Christopher Cox in bringing this matter to the attention of Congress and the American people. The Administration looks forward to working with Congress to ensure that the technologies that facilitate the global marketplace are kept free of special, multiple or discriminatory taxes, and other discriminatory measures, which would impede the use of these important commercial, educational and social tools.