US Trade Chief Lambasts WTO After Failed Talks

Discontent Over E-Commerce Moratorium Extension

The United States criticized the World Trade Organization for not achieving agreement on extending a crucial e-commerce moratorium. USTR Jamieson Greer expressed skepticism about the organization’s ability to drive future trade policies. During Monday’s meeting, Greer highlighted the WTO’s limited role in shaping global trade frameworks.

“I have always been skeptical of the WTO’s value, and this week’s conference confirmed that the organization will play only a limited role in future trade policy efforts,” Greer stated in a formal declaration.

The four-day Ministerial Conference (MC14) in Yaounde, Cameroon, ended without major breakthroughs, revealing deep rifts among member nations. Since 1998, the WTO has maintained a moratorium on customs duties for cross-border digital transmissions. This exemption has shielded digital downloads and streaming from taxation for over 25 years.

At the conference, a stalemate emerged between the US and Brazil. The US aimed for a permanent extension, while Brazil proposed a two-year term. Negotiators worked late into Sunday to bridge the gap, drafting a four-year plan with a one-year sunset clause. Brazil then offered a four-year extension with a mid-term review, but support for the proposal remained insufficient.

Ultimately, Brazil and Turkey obstructed the moratorium’s extension. Greer announced that he had secured commitments from numerous countries, including key trading partners, to avoid tariffs on US digital transmissions. “If the WTO cannot achieve this commonsense goal, the United States will pursue alternatives with interested partners,” he emphasized.

Meanwhile, Deputy US Trade Representative Joseph Barloon noted the US’s leadership in WTO reforms. He stated that negotiations will continue in Geneva until at least May. “We will build on recent progress while acknowledging the organization’s constraints,” Barloon added.