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WTO Talks Stalled on Final Day Amid US-India E-Commerce Moratorium Deadlock

Trade ministers at the WTO's 14th ministerial meeting in Yaoundé, Cameroon have failed to reach a breakthrough on extending the e-commerce tariff moratorium, with the US seeking a longer extension while India indicated willingness to accept a two-year prolongation.

Key Points

  • India has indicated willingness to accept a two-year extension of the e-commerce moratorium
  • The US is pushing for a longer extension, with suggestions of up to 10 years
  • A possible four-year compromise extension is being discussed by diplomats
  • The moratorium bans customs duties on electronic transmissions like digital downloads and streaming
  • Failure to extend would damage WTO credibility amid ongoing global trade tensions

Full Details

The World Trade Organization's 14th ministerial meeting in Yaoundé, Cameroon entered its final day on March 29 with talks on reforming the WTO and extending the e-commerce moratorium still deadlocked. The moratorium, which prevents customs duties on electronic transmissions such as digital downloads and streaming, is due to expire this month. Three diplomats told Reuters that India has signaled it would accept a two-year extension, while the United States is pressing for a longer extension of up to 10 years, with a possible four-year compromise being discussed. A senior diplomat warned that if the moratorium is not extended, the US would use it as an excuse to further criticize the WTO. The extension is seen as a key test for the global watchdog's relevance following a year of tariff-fueled trade turmoil and disruptions to shipping, energy prices, and supply chains.

Why It Matters

This deadlock represents a critical test for WTO relevance in an era of increasing digital trade and protectionist pressures. If the moratorium expires, it could trigger new tariffs on digital services and streaming platforms, potentially increasing costs for consumers worldwide and escalating US-WTO tensions.

Sourcereuters.com

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