WTO split deepens as nations back separate e-commerce deal

WTO split deepens as nations back separate e-commerce deal

Anabelle Colaco
09 May 2026, 01:12 GMT+

GENEVA, Switzerland: The United States and 18 other World Trade Organization members have agreed among themselves not to impose duties on electronic commerce, after WTO talks failed to break a deadlock over extending a long-standing global moratorium on digital trade tariffs.

Countries including Japan, South Korea, Singapore, Australia, Norway, and Argentina joined the agreement announced on May 7, according to a document.

The move follows the collapse of efforts at a WTO meeting in Yaounde, Cameroon, in March to renew the global moratorium, which had barred duties on cross-border electronic transmissions since 1998.

The moratorium covered products and services such as streamed music and films, downloaded software, and other digital transmissions. WTO members had routinely renewed it for more than two decades.

Brazil opposed extending the global arrangement during the latest round of negotiations, preventing consensus among WTO members.

The breakdown marked another setback for the WTO's role in setting global trade rules at a time when digital commerce continues to expand rapidly.

Countries with major digital economies, including the United States, the European Union, Canada, and Japan, have argued that keeping digital trade duty-free provides certainty for businesses and consumers and supports global commerce.

Unable to secure a broader multilateral agreement, the 19 countries opted to establish their own arrangement pledging not to impose duties on electronic transmissions for an unspecified period.

The final text said the agreement would take effect on May 8.

"Nonetheless, this group of Members remains committed to do what we can to provide to businesses and consumers a measure of predictability and certainty in the absence of the multilateral E-Commerce Moratorium," the document dated May 7 said.

The agreement also invited other WTO members to join the initiative.

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