WTO talks end with no deal to extend e-commerce tariff ban

[LONDON] The World Trade Organization (WTO) failed to extend a ban on e-commerce tariffs at its 14th ministerial conference. This is because at least one member opposed US’ efforts to make the moratorium permanent.

After four days of talks in Cameroon’s capital of Yaounde, the country’s Minister of Trade Luc-Magloire Mbarga Atangana, who served as the chair of MC14, said “we ran out of time” on issues.

This included the existing moratorium on customs duties for electronic transmissions.

The moratorium has been renewed every two years without lapsing since its inception in 1998, when digital commerce was just emerging. Now, it has become more than half of all services exports.

Without a deal, the prohibition expires at the end of March. WTO director-general Ngozi Okonjo-Iweala said that some of the unfinished business could continue to be considered at the WTO headquarters in Geneva.

She said: “I am hearing from several of you that it would be regrettable to lose so much effort and work, with the finish line in our sights and that you still think we can get the job done.”

SEE ALSO

US consumers, importers take biggest hit from tariffs, ECB study finds

WTO chief calls for trade overhaul to meet new world order

Trump’s tariff war has failed on every front

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

John Denton, secretary-general of the International Chamber of Commerce, said the meeting’s lack of a deal on e-commerce tariffs “risks generating yet more policy uncertainty at exactly the wrong moment from a real-economy perspective”.

He added: “There must now be a determined effort to resume talks in Geneva without delay.

“Restoring the WTO’s e-commerce moratorium must be an immediate priority. Exposing one of the few motors of global growth – digital services – to the threat of tariff barriers makes no sense in an already fragile economic environment.” BLOOMBERG