The World Trade Organization’s 14th Ministerial conference held on March 30th in Yaounde, Cameroon failed to extend a ban on e-commerce tariffs, Taarifa has established.
The talks were seeking to bridge differences over extending the e-commerce moratorium, and agree to a plan for broader reform of the organization.
During the conference at least one member (Brazil) opposed US efforts to make the moratorium permanent.
The moratorium, was due to expire this month, by four years plus an additional buffer year to 2031, diplomats said.
WTO conference chair Luc Magloire Mbarga Atangana, said that the talks would now continue in Geneva after the impasse on prolonging the moratorium.
Brazil, had originally sought a two-year extension, and the US, wanted a permanent extension, by drafting a proposed document of a four-year extension with a one-year sunset buffer, concluding in 2031.
Brazil later proposed a four-year extension, with a review clause half way through, however, that was not supported,
“The US wanted the sky,” a Brazilian diplomat said in an interview, adding that Brazil wanted to remain prudent in renewing the moratorium by two years, like in previous ministerial conferences.
“In four or five years’ time, no one will be able to predict what e-commerce will be about, and this has an influence on a number of countries’ policies,” they added Another diplomat said that US Trade Representative Jamieson Greer made delegates “uncomfortable” as he suggested there “would be consequences,” if the US did not get a long-term extension to the moratorium.
Business leaders say an extension is vital to guarantee predictability, fearing duties could otherwise be introduced. It is also seen as key to securing US support for the WTO.
Reforming WTO
Despite initial resistance from some members, a new draft of the reform roadmap, provides a timeline for progress and sets out the key issues to address was close to being agreed, diplomats said.
Those include improving decision-making in a consensus-based system that has long been stymied by a few countries, and the trade benefits extended to developing countries.
A declaration on reform will also be sent to Geneva for further discussion, the WTO conference chair said.
