WTO suffers fresh blow as e-commerce reform push hits a wall at Cameroon meeting
Earlier in March, Singapore and 11 other countries jointly backed a push for a permanent moratorium to be signed at the 14th WTO Ministerial Conference.
Delegates attending the World Trade Organization's 14th ministerial meeting in Yaounde, Cameroon, on Mar 28, 2026. (Photo: Reuters/WTO)
YAOUNDE: World Trade Organization (WTO) talks broke up on Monday (Mar 30) with no agreement on a plan for reform or even on extending a moratorium on e-commerce, piling more pressure on the trade body that finds itself increasingly sidelined by economic nationalism.
The four-day ministerial talks in Cameroon's capital Yaounde ended in the early hours with Brazil blocking a bid by the United States and others to prolong a moratorium on duties for electronic transmissions such as digital downloads and streaming.
Expectations for progress had been low before the talks, but there had been hopes that the moratorium would be renewed at least.
In the end, even that proved impossible amid resistance from Brazil, and trade ministers could not agree to extend it for more than two years, which was not enough for the US, diplomats said.
US officials and business groups expressed frustration at the impasse, and the failure to reach a joint decision was described as a "major setback for global trade" by Britain's Business and Trade Secretary Peter Kyle.
Singapore, which led the successful adoption of interim arrangements for the WTO e-commerce agreement, said it deeply regretted that a consensus could not be reached.
A statement by its Ministry of Trade and Industry on Mar 30 said it is disappointing that a decision on the moratorium, in particular, could not be reached with "a handful of WTO members", and that Singapore urges WTO members to maintain the current practice of not imposing customs duties on electronic transmissions, as digital trade will continue to grow in importance.
Earlier this month, Singapore and 11 other countries jointly backed a push for a permanent moratorium to be signed.
The talks were deemed a test of the WTO's relevance after a year of huge trade turmoil and more recent major disruptions due to the US-Israeli war on Iran.
Agreeing on an e-commerce moratorium was seen as key to securing support for the WTO from the US, which under President Donald Trump has retreated from global multilateral bodies as he pursues his "America First" agenda.
WTO Director-General Ngozi Okonjo-Iweala said the trade body hoped to be able to restore the moratorium and that Brazil and the US were trying to reach an agreement on it.
The WTO said progress was made on a reform roadmap before time ran out, and discussions on issues such as reworking its rules to render subsidy use more transparent and make decision-making easier are expected to continue in Geneva in May.
Singapore affirmed the "good progress" made on reform, "including on decision-making, development and level playing field, as well as modalities of reform", its Ministry of Trade and Industry added.
However, the US and the European Union (EU) argue that China, in particular, has taken advantage of the current rules to their detriment.
DEADLOCK DRAWS TERSE US RESPONSE
Diplomats worked throughout Sunday to close the gap between Brazil's initial two-year proposal and the US, which wanted a permanent extension, by drafting a plan for a four-year extension with a one-year sunset buffer, concluding in 2031.
Brazil later proposed a four-year extension, with a review clause halfway through, but that failed to win support.
Developing countries have opposed a lengthy extension, arguing that the moratorium denies them potential tax revenue.
A US official said Brazil had opposed a "near-consensus document" saying that "it's not US vs Brazil. It's Brazil and Turkey v 164 members".
A Brazilian diplomat said "the US wanted the sky," and that it was not prudent to pursue a longer extension given the rapid changes underway in digital trade.
Another diplomat present at the talks said US Trade Representative Jamieson Greer made delegates "uncomfortable" as he suggested that there "would be consequences" if the US did not secure a long-term moratorium extension.
Keith Rockwell, a trade analyst at the Hinrich Foundation and a former WTO director, said Brazil's efforts to leverage e-commerce to pursue concessions on agriculture had failed because the US was no longer so invested in the WTO.
"In the old days, because they felt responsibility for the system, the Americans would have swallowed hard and taken a hit," he said. "But now, they won't do that anymore."
He said the impasse would boost alternative structures such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade deal encompassing 12 countries including Australia, Britain, Canada, Japan, Malaysia and Mexico, but not the US
"Now, what you're going to see is a lot more energy and momentum into things like the CPTPP. They could immediately just agree on the framework (on e-commerce)," Rockwell said.
Grace Fu, Singapore's Minister-in-charge of Trade Relations who attended a meeting between the CPTPP and the EU, said that Singapore remains a strong supporter of WTO reform and the moratorium, which has played a vital role in facilitating digital trade, providing certainty and predictability to businesses and consumers across the globe.
"We are heartened that more than 60 members have adopted the interim arrangements for the WTO E-Commerce Agreement, which includes a permanent moratorium. We are ready to work with like-minded partners to implement the E-Commerce Agreement expeditiously, and encourage more members to join,” she added.
