US and 18 WTO Members Agree to E-Commerce Duty Moratorium Amidst Brazil's Opposition
US and 18 WTO members reach consensus on not imposing ecom duties
Business Standard
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The United States and 18 other World Trade Organization (WTO) members, including Japan, South Korea, Singapore, and Australia, have formed a pact to avoid imposing duties on e-commerce. This decision follows Brazil's opposition to extending a global agreement during recent WTO talks in Yaounde, Cameroon.
- 01The US and 18 countries formed a pact against e-commerce duties.
- 02Brazil opposed the extension of the global deal during WTO talks.
- 03The WTO has faced setbacks in renewing the moratorium on e-commerce duties.
- 04The moratorium has been in place since 1998, preventing duties on electronic transmissions.
- 05The failure to reach an agreement highlights challenges in global trade negotiations.
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On Thursday, the United States, along with 18 other countries including Japan, South Korea, Singapore, and Australia, initiated a pact to refrain from imposing duties on e-commerce transactions. This move comes after Brazil's opposition thwarted efforts to extend a global agreement during the World Trade Organization (WTO) talks held in Yaounde, Cameroon. The WTO has struggled to renew the long-standing moratorium on duties for cross-border electronic transmissions, which has been in effect since 1998. This moratorium prohibits duties on services such as streaming music and films, as well as downloading software. The recent failure to reach a consensus at the high-level meeting signifies ongoing challenges in the WTO's ability to establish effective global trade rules.
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The agreement helps maintain a free digital trade environment, which could benefit businesses and consumers by preventing additional costs on e-commerce transactions.
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