The World Trade Organization suffered a major setback after member countries failed to agree on renewing a long-standing e-commerce tariff moratorium during high-level talks in Yaoundé, prompting the United States to pursue alternative trade arrangements, CNBC Africa reported.
The 28-year-old moratorium which prevents countries from imposing tariffs on digital goods such as downloads and streaming, expired for the first time after negotiations broke down, with Brazil and Turkey blocking an extension despite broad support from advanced economies.
U.S. Trade Representative Jamieson Greer expressed frustration at the impasse, stating that Washington would work outside the WTO with like-minded partners to maintain tariff-free digital trade, adding that the organisation may now play only a limited role in future global trade policy.
Despite the breakdown, the U.S. has already secured commitments from dozens of countries not to impose tariffs on its digital transmissions, signalling a shift toward bilateral and plurilateral agreements as the WTO struggles to reach consensus, according to Business Standard.
Analysts warn that the move could accelerate fragmentation in global trade governance, with smaller agreements creating a complex “spaghetti bowl” of overlapping rules, further weakening the multilateral system at a time of rising economic nationalism and geopolitical tension.
