Economic Archives | Page 2 of 708 | Digital Watch Observatory

EU introduces €3 duty on low-value e-commerce imports

From 1 July 2026, the European Commission is introducing a temporary €3 customs duty on low-value goods imported into the EU from outside the bloc, primarily through e-commerce platforms. The duty applies to a wide range of commonly purchased goods including clothing, toys, and electronics, covering items worth up to €150.

The duty is charged per customs tariff classification rather than by quantity. For example, purchasing five T-shirts attracts a single €3 charge because they share the same tariff code, whereas buying three T-shirts and a watch incurs two €3 charges because they fall under different classifications. Sellers or importers will declare and pay the duty through the customs process.

The measure is intended to create fairer competition for the EU businesses, improve consumer protection by strengthening oversight of imported goods, reduce customs fraud linked to undervaluation and false declarations, and address the environmental impact of growing volumes of low-value shipments.

The European Commission said the measure forms part of a broader customs reform package aimed at modernising border procedures, strengthening the single market and ensuring that businesses selling into the EU comply with the bloc’s safety and regulatory standards. The duty is described as a temporary measure.

Why does it matter?

The new customs duty reflects the EU’s broader effort to adapt its customs system to the rapid growth of cross-border e-commerce. By introducing a flat charge on low-value imports, the Commission aims to reduce incentives for undervaluation, improve enforcement of product safety rules and create more equal competitive conditions for businesses operating within the single market.

The measure could also influence the business models of major online retailers and marketplaces that rely on high volumes of low-cost imports. Whether the duty succeeds in improving compliance without significantly increasing costs for consumers or slowing legitimate trade will help shape future reforms of the EU’s customs framework.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UAE and US deepen AI partnership under Pax Silica framework

The United Arab Emirates is expanding its AI cooperation with the United States, describing the partnership as a long-term strategic framework centred on investment, trusted technology and joint innovation across multiple sectors.

The UAE is investing across the US AI ecosystem, including semiconductors, AI applications, energy and digital infrastructure. Officials said the partnership reflects years of institutional cooperation, reinforced through continued policy alignment, economic collaboration and high-level engagement.

At the second Pax Silica Summit in Washington, UAE representatives joined international partners in advancing the Joint Statement on AI Opportunity, with 35 countries reaffirming their commitment to innovation-driven policies, private-sector research and resilient technology supply chains. The UAE joined the Pax Silica initiative in January 2026 as part of a broader US$1.4 trillion economic and technology framework.

The partnership also includes major infrastructure and investment projects, including advanced US semiconductor exports to the UAE, a joint AI campus in Abu Dhabi and expanding data centre capacity. Officials said cooperation will continue to deepen through long-term investment, research and technology integration.

Why does it matter?

The partnership illustrates how AI is increasingly shaping strategic relationships between countries, extending beyond research cooperation into semiconductors, computing infrastructure, investment and supply chains. Governments are treating AI capabilities as a foundation of long-term economic competitiveness and technological influence.

It also reflects the growing importance of trusted international technology partnerships. As countries seek secure access to advanced chips, data centres and AI infrastructure, collaborations such as the UAE-US partnership are becoming an important part of broader industrial, economic and geopolitical strategies.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

WTO highlights AI opportunities for small businesses

The WTO’s Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) has highlighted AI as a key tool for helping small businesses compete in international trade.

During meetings on 29 and 30 June, WTO members explored how AI could strengthen supply chains, reduce trade barriers and help smaller firms navigate an increasingly uncertain global trading environment. The group also welcomed Ghana as its 106th member.

One of the highlights was the announcement of the 2026 Small Business Champions, recognising organisations using AI to support international trade.

Zambia’s Rinato Space was selected to apply satellite technology and AI to provide climate monitoring, early warning systems and capacity-building services for smallholder farmers, helping improve agricultural productivity and export opportunities.

France-based Koaloo.FI was also recognised for using generative AI to automate environmental, social and governance compliance, assess supply chain risks and improve access to financing for small suppliers.

The competition also recognised Colombia’s Cámara Colombiana de Informática y Telecomunicaciones and the Center for International Private Enterprise for developing an AI governance roadmap for Latin America that includes affordable AI tools for MSMEs.

Türkiye’s Globby was honoured for creating an AI-powered trade intelligence platform that helps small businesses identify international market opportunities and participate more effectively in global commerce.

WTO members acknowledged persistent barriers to AI adoption, including limited digital infrastructure, fragmented international standards, shortages of technical expertise, constrained access to finance and the need for supportive legal and regulatory frameworks.

WTO officials also presented ongoing initiatives, including preparations for the upcoming World Trade and Tech Day, alongside new AI-related learning tools and digital trade resources.

The meeting also focused on broader trade uncertainty affecting small businesses worldwide.

The meeting also addressed broader trade uncertainty affecting MSMEs. Representatives from organisations including World Intellectual Property Organization, the International Finance Corporation, the International Telecommunication Union, the Food and Agriculture Organization and the Pan African Alliance of Small and Medium Industries presented initiatives to improve market access, trade finance, intellectual property protection and digital trade participation.

Why does it matter?

The discussions reflect a growing recognition that AI is becoming an important enabler of international trade, particularly for smaller businesses that often lack the resources to compete with larger firms. By helping automate compliance, improve supply chain management and identify export opportunities, AI could reduce longstanding barriers to global market participation.

At the same time, the meeting highlighted that technology alone is not enough. Expanding the benefits of AI for MSMEs will depend on investment in digital infrastructure, skills, financing and interoperable regulatory frameworks, making international cooperation an increasingly important component of digital trade policy.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Russian draft law includes 48-hour crypto cooling-off rule

Russian lawmakers are considering a 48-hour cooling-off period for certain cryptocurrency transfers as part of a draft law on digital currencies and digital rights.

The measure would apply to non-qualified investors and is intended to protect users from fraud, according to comments from Vladimir Chistyukhin, First Deputy Governor of the Bank of Russia.

Chistyukhin said the cooling-off period would not apply to cryptocurrency trading itself. He clarified that the mechanism is intended for transfers to other accounts and similar operations, rather than brokerage activity.

The proposal forms part of a broader legislative effort to establish a legal framework for the circulation of cryptocurrencies in Russia. The State Duma adopted the government-backed draft law in its first reading in April.

Russian officials have framed the cooling-off mechanism as a targeted investor-protection tool rather than a broader restriction on market activity.

The proposal reflects a regulatory approach focused on reducing fraud risks while allowing parts of the crypto market to operate under a more formal legal framework.

Why does it matter?

The proposal shows how crypto regulation is moving beyond general warnings and enforcement actions towards safeguards built into transaction flows. A cooling-off period can slow down transfers linked to fraud, giving users and intermediaries more time to detect suspicious activity. The narrow scope is also important: by excluding trading and brokerage activities, Russian regulators aim to reduce consumer harm without directly limiting market liquidity or day-to-day trading.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

Vietnam’s new e-commerce law takes effect

Vietnam’s Law on E-commerce came into effect on 1 July 2026, modernising the country’s digital economy framework after more than a decade of rapid growth in online commerce. The law addresses gaps that previous regulations failed to close, particularly around intermediary platforms, cross-border e-commerce, counterfeit goods, commercial fraud, and consumer rights infringements.

Under the new law, e-commerce platforms must verify sellers’ identities, disclose information about sellers, products and transaction terms, proactively identify violations, and establish effective complaint-handling mechanisms. They are also required to retain transaction data, provide it to authorities on request, and strengthen product information requirements, particularly for sensitive goods.

The legislation also promotes greener e-commerce through more efficient logistics and environmentally friendly packaging, while creating new opportunities for SMEs, household businesses and startups. Consumer protections have been strengthened through clearer rules on complaints, refunds, compensation and personal data, with experts expecting consistent enforcement to improve market confidence over time.

Major e-commerce platforms operating in Vietnam have already begun adapting, including by expanding the use of near-field communication (NFC) technology for seller verification and AI to detect counterfeit and intellectual property-infringing products. Although compliance costs may initially increase, the reforms are expected to reward businesses that invest in higher standards and strengthen the long-term development of Vietnam’s digital marketplace.

Why does it matter?

Vietnam’s new law reflects a broader shift towards platform accountability in digital commerce. By requiring marketplaces to verify sellers, retain transaction data and proactively tackle fraud and counterfeit goods, the government is placing greater responsibility on intermediaries to ensure the integrity of online marketplaces.

The legislation also illustrates how digital economy regulation is evolving beyond consumer protection alone. Combining AI-enabled enforcement, stronger data governance and sustainability measures, the framework aims to support long-term growth in e-commerce while increasing trust in Vietnam’s rapidly expanding digital economy.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

CJEU court upholds €4.7 billion fine against Google in Android case

The Court of Justice of the European Union (CJEU) has upheld a €4.1 billion ($4.67 billion) antitrust fine against Google, rejecting the company’s appeal in a long-running case over its Android mobile operating system.

The European Commission imposed the record fine in 2018 after finding that Google had abused its dominant position by requiring smartphone manufacturers to pre-install Google apps and imposing contractual restrictions that limited competition. The ECJ dismissed Google’s appeal, confirming the Commission’s findings.

A lower EU court reduced the penalty from €4.34 billion to €4.1 billion in 2022 while largely upholding the Commission’s decision. Google has argued that Android increases consumer choice and supports developers, and said it modified its contractual arrangements following the original ruling to comply with EU competition rules.

The judgement comes as the EU continues to intensify scrutiny of major technology companies through both competition law and the Digital Markets Act, alongside investigations into digital advertising and other platform practices.

Why does it matter?

The ruling reinforces the European Union’s long-standing approach to digital competition, confirming that dominant technology companies can face substantial penalties when their market position is used to restrict consumer choice or limit competition. It also strengthens the Commission’s record in pursuing landmark antitrust cases against major digital platforms.

The judgment comes as the EU increasingly combines traditional competition enforcement with newer regulatory tools such as the Digital Markets Act. Together, these frameworks signal that European regulators intend to maintain close oversight of large digital platforms and shape how competition operates in digital markets.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

Mauritius unveils fintech strategy to boost digital finance growth

Mauritius has launched its National Fintech Strategy 2026–2030, a roadmap aimed at strengthening digital finance, innovation and financial inclusion.

The strategy was developed by the Ministry of Financial Services and Economic Planning with technical support from the UN Economic Commission for Africa and input from public and private-sector stakeholders.

The government says the strategy is intended to position Mauritius as Africa’s trusted fintech hub while supporting sustainable growth and the wider digital transformation of financial services.

The roadmap focuses on six areas: regulation and innovation, digital infrastructure and cybersecurity, skills development, market growth, international cooperation and consumer protection.

Implementation will run until 2030 and will be overseen through a dedicated governance framework. Planned targets include shorter licensing approval times, expanded digital onboarding, stronger digital infrastructure and training more than 5,000 people each year in specialised fintech skills.

Officials said the strategy responds to the growing role of digital technologies in finance, including digital payments, digital assets, regulatory technology and cross-border financial services.

UNECA said the initiative could support fintech development in Mauritius and offer lessons for other African countries seeking to build more inclusive and competitive digital finance ecosystems.

Why does it matter?

Mauritius’ strategy reflects a wider African policy trend: governments are trying to move fintech from fragmented innovation into structured national development plans. Stronger digital finance ecosystems can expand access to financial services, support small businesses, improve cross-border commerce and attract investment. The focus on cybersecurity, consumer protection and skills also shows that fintech growth depends not only on new products, but on trust, regulation and institutional capacity.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

EU customs reform targets low-value online imports

The EU has abolished the customs duty exemption for e-commerce parcels worth less than €150, introducing a temporary €3 duty on low-value items imported directly from non-EU countries.

The measure entered into force on 1 July 2026 and forms part of the wider EU Customs Reform. It is intended to create fairer competition between the EU retailers and non-EU online sellers while strengthening controls on unsafe or non-compliant products.

The previous exemption was designed for an earlier period of limited cross-border online shopping. The Commission said 5.9 billion low-value parcels entered the EU in 2025, representing 97% of all imported items but only 2% of their total value.

The EU authorities argue that the exemption distorted competition and created incentives to undervalue or split shipments to remain below the €150 threshold.

Under the new system, consumers should not have to pay the duty at the time of delivery. Businesses involved in selling and transporting imported goods will be responsible for customs payment and compliance.

The €3 duty is a transitional measure and will remain in place until 1 July 2028. After that, low-value imports will be treated under the standard customs framework, with duties based on product classification, origin and value.

The reform also introduces Product Identifiers, which become mandatory from 1 November 2026 to improve traceability and safety checks. A separate handling fee for imported e-commerce goods is also expected by November 2026.

Why does it matter?

The change addresses one of the biggest pressure points in the EU e-commerce: billions of low-value parcels entering the single market with limited customs duties and weak product-level data. Removing the exemption could reduce unfair advantages for non-EU sellers, strengthen enforcement against unsafe products and give customs authorities better tools to manage mass e-commerce imports. It also shows how the EU is treating online retail as a trade, consumer protection and digital platform accountability issue, not only a customs matter.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Australian watchdog sues Amazon over Prime Video contract terms

Australia’s consumer watchdog has launched legal action against Amazon, alleging the company used unfair contract terms when introducing advertisements to Prime Video.

The Australian Competition and Consumer Commission claims that Amazon’s standard-form contracts allowed the company to make materially adverse changes to Prime services and contract terms without giving annual subscribers a contractual right to refunds or other meaningful redress.

The case concerns contracts with more than one million annual Amazon Prime subscribers between 1 November 2023 and 18 August 2025.

Prime Video had been delivered largely advertisement-free before 2 July 2024. Amazon then introduced advertisements and required subscribers to pay an additional $2.99 per month to keep watching Prime Video content without ads.

According to the ACCC, more than 850,000 annual Prime subscribers had already paid for their subscription when the change took effect. The regulator alleges that those subscribers received degraded service for the remainder of their prepaid term unless they paid extra for the ad-free option.

The ACCC says the relevant contract terms created a significant imbalance between Amazon and consumers, were not reasonably necessary to protect Amazon’s legitimate interests and could cause consumer detriment.

Amazon has since amended some terms to introduce a right to a pro rata refund where annual Prime subscribers cancel their service in response to materially adverse changes.

The case will test how Australian consumer law applies when digital subscription platforms change paid services after customers have already committed to annual plans.

Why does it matter?

The lawsuit raises a broader consumer protection question in the digital economy: how much flexibility should subscription platforms have to change paid services after customers have already paid? As streaming, cloud, gaming and software services increasingly rely on subscription models, regulators are paying closer attention to whether users receive fair notice, real choice and meaningful remedies when platforms alter service quality, pricing or advertising conditions.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

Canada and Germany strengthen semiconductor supply chains

Canada and Germany have signed a joint declaration of intent to strengthen semiconductor supply chains and deepen industrial cooperation, reinforcing collaboration in a technology that underpins AI, advanced computing and the digital economy.

The declaration was signed on the sidelines of the International Energy Agency’s (IEA) Annual Global Conference on Energy Efficiency by Carlos Leitão, Parliamentary Secretary to Canada’s Minister of Industry, and Stefan Rouenhoff, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Affairs and Energy.

Canada said resilient and diversified semiconductor supply chains are becoming increasingly important as global demand grows for AI, advanced computing and connected technologies.

The declaration establishes a framework for policy dialogue and cooperation on investment, industrial development, technology and research. It also aims to support start-ups, scale-ups and small and medium-sized enterprises while building on both countries’ semiconductor expertise to strengthen competitiveness.

Canada described semiconductors as foundational technologies for the digital economy, highlighting their role in enabling AI and other emerging technologies.

The declaration also supports Canada’s National Artificial Intelligence Strategy: AI for All, particularly its focus on infrastructure, international partnerships and long-term competitiveness. It builds on a series of bilateral initiatives launched since late 2025, including the Canada-Germany Digital Alliance, a joint AI declaration, the Sovereign Technology Alliance, and cooperation on automotive manufacturing, batteries and critical minerals.

A separate February 2026 declaration also expanded bilateral industrial cooperation in auto and battery manufacturing and critical minerals. Officials from both countries said stronger semiconductor supply chains can support innovation, economic resilience and long-term prosperity.

The partnership adds semiconductor supply chains to a wider Canada-Germany agenda focused on trusted advanced technologies, economic security and the next generation of AI-enabled digital infrastructure.

Why does it matter?

Semiconductors have become strategic assets that underpin AI, advanced computing, telecommunications and many other digital technologies. By strengthening cooperation on chip supply chains, Canada and Germany aim to reduce supply chain vulnerabilities, encourage investment and support long-term technological competitiveness.

The agreement also reflects a broader trend of trusted technology partnerships among like-minded countries. Rather than focusing solely on trade, governments are increasingly coordinating industrial policy, research and supply chains to strengthen economic security and reduce dependence on concentrated sources of critical technologies.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!