United States Trade Representative Jamieson Greer criticized the World Trade Organization (WTO) on Monday after it failed to agree on extending a moratorium on customs duties for e‑commerce at its top-level ministerial conference.
Greer said Washington would seek alternative deals with like-minded nations and saw only a “limited role” for the global body that regulates international trade. “I have always been skeptical of the value of the WTO, and this week’s conference confirmed that this organization will play only a limited role in future global trade policy efforts,” he said.
How did the WTO talks fail?
The four-day Ministerial Conference (MC14) in Yaounde, Cameroon, ended in an impasse on Monday with no major deals and a public display of deep divisions. Since 1998, a WTO moratorium has exempted cross-border digital transmissions, including downloads and streaming, from taxes. The moratorium has been repeatedly extended at past ministerials, but this week it lapsed for the first time following a deadlock between the US and Brazil.
Negotiators worked through Sunday trying to bridge the gap between Brazil’s initial two-year proposal and the US push for a permanent extension. They drafted a plan for a four-year extension with a one-year sunset buffer. Brazil then offered a four-year extension with a mid-term review clause, but the proposal did not attract enough support. In the end, Brazil and Turkey blocked the extension.
What has the US said about the WTO?
Greer said he had secured commitments from dozens of countries — including nearly all key US trading partners — not to impose tariffs on US digital transmissions. “If the WTO cannot achieve this commonsense aim, the United States will work outside of the WTO with all interested partners to get it done. To that end, the United States invites all trading partners to commit to a plurilateral, e‑commerce moratorium agreement,” he said.
Deputy US Trade Representative and Ambassador to the WTO Joseph Barloon said the US was leading change on reform and other issues at the trade body and would continue to do so. WTO representatives said talks will continue at the organization’s Geneva headquarters until at least May. “When we return to Geneva, we will build on what we have achieved in recent months, while recognizing the very real limitations of what can be accomplished at the WTO,” Barloon said.
Edited by: Srinivas Mazumdaru