WTO backs India's pitch to cut remittance cost
cross-border remittances has found support from many World Trade Organization members including the European Union, officials said. Except for the US, most countries have favoured a work programme at the WTO for cheaper, faster and more accessible cross-border payments including remittances.
Separately, Indonesia has backed New Delhi's proposal to reinvigorate the work under the Work Programme on Electronic Commerce, which requires structured discussion on trade-related issues over global e-commerce, taking into account the economic, financial and development needs of developing countries.
Last week, New Delhi pushed for promoting interoperability and interlinkages of digital payment infrastructure including fast payment systems to lower transaction costs.
«There is widespread support for our proposal. Except for the US, most members have lent support,» said an official.
Identifying challenges
The Philippines and South Africa have also favoured such disciplines.
Lower transaction costs are key to reducing inequality within and among countries, especially in developing countries such as India, since the global average cost for sending remittances is 6.18%, more than twice the target to lower them below 3% under Sustainable Development Goals.
As per the proposal, the work programme should review the cost of cross-border remittances, trends and developments, and consider how technology, emergence of new market players, different types of providers and new channels, and consumer behaviour are impacting the
