Electronic Transmissions Tariff Exemption Extension Fails, US and 19 Other Nations Sign Plurilateral Agreement
The World Trade Organization's 'temporary tariff exemption for electronic transmissions' multilateral agreement failed due to Brazil's firm opposition. A document released today shows that the US and over a dozen other countries, including Japan, South Korea, and Singapore, have signed a self-arranged plurilateral agreement, committing not to impose tariffs on e-commerce.
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- 📰 Published: May 8, 2026 at 05:12
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GENEVA (CNA) -- The World Trade Organization's (WTO) 'temporary tariff exemption for electronic transmissions' multilateral agreement collapsed due to Brazil's firm opposition. A document released today shows that the United States and more than 10 other countries, including Japan, South Korea, and Singapore, have signed a self-arranged plurilateral agreement, committing not to impose tariffs on e-commerce.
Reuters reported that in WTO negotiations that concluded today in Geneva, Brazil insisted on opposing the extension of the aforementioned agreement for another four years. However, a WTO spokesperson stated that Turkey, which had previously opposed, has withdrawn its stance.
In March this year, the WTO Ministerial Conference held in Yaounde, the capital of Cameroon, failed to approve the extension of the 'temporary tariff exemption for electronic transmissions' agreement. Business groups stated that this result severely questioned the WTO's ability to set global trade rules.
The 'temporary tariff exemption for electronic transmissions' agreement was first adopted in 1998 and has been regularly extended since. It prohibits tariffs on cross-border e-commerce, covering areas such as streaming video and software downloads.
WTO members with large digital economies, including the United States, the European Union, Canada, and Japan, argue that 'temporary tariff exemption for electronic transmissions' provides predictability for global digital trade and hope for its permanent exemption.
The United States, Japan, South Korea, Singapore, Australia, Norway, and Argentina, among 19 countries, announced today this member-driven agreement to agree not to impose tariffs on electronic transmissions, with no specified duration.
The final text confirms that the self-signed agreement by each country will take effect on May 8, while also expressing regret over the expiration of the original 'temporary tariff exemption for electronic transmissions' multilateral agreement.
The document states: "Nonetheless, before the multilateral agreement on temporary tariff exemption comes into effect, members will do their utmost to provide a certain degree of predictability and certainty for businesses and consumers."
The document, dated May 7, also invites other members to join.
Sabina Ciofu, Head of International Policy and Strategy at techUK, said that while this agreement reached by 19 members points to a future direction, the failure to secure the original multilateral agreement is also worrying.
John Denton, Secretary General of the International Chamber of Commerce (ICC), said that while this agreement is an expedient measure, the failure of the globally agreed 'temporary tariff exemption' agreement, when businesses urgently need certainty rather than expedience, is undoubtedly a worrying signal.
Denton stated: "No one should assume that this agreement is sufficient to replace clear agreements within the WTO." Governments should view it as a bridge to restoring multilateral agreements.
Joseph Barloon, US Ambassador to the WTO, told representatives at the General Council that the US launched this plurilateral agreement to provide more certainty and predictability.
Barloon told representatives: "The US's efforts to reform and e-commerce do not mean closing the door to multilateral participation. However, the US will not accept waiting for 166 member states to reach a consensus on 'common sense solutions' designed to meet stakeholders' needs." (Compiled by: Qu Xiangping) 1150508
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Reuters reported that in WTO negotiations that concluded today in Geneva, Brazil insisted on opposing the extension of the aforementioned agreement for another four years. However, a WTO spokesperson stated that Turkey, which had previously opposed, has withdrawn its stance.
In March this year, the WTO Ministerial Conference held in Yaounde, the capital of Cameroon, failed to approve the extension of the 'temporary tariff exemption for electronic transmissions' agreement. Business groups stated that this result severely questioned the WTO's ability to set global trade rules.
The 'temporary tariff exemption for electronic transmissions' agreement was first adopted in 1998 and has been regularly extended since. It prohibits tariffs on cross-border e-commerce, covering areas such as streaming video and software downloads.
WTO members with large digital economies, including the United States, the European Union, Canada, and Japan, argue that 'temporary tariff exemption for electronic transmissions' provides predictability for global digital trade and hope for its permanent exemption.
The United States, Japan, South Korea, Singapore, Australia, Norway, and Argentina, among 19 countries, announced today this member-driven agreement to agree not to impose tariffs on electronic transmissions, with no specified duration.
The final text confirms that the self-signed agreement by each country will take effect on May 8, while also expressing regret over the expiration of the original 'temporary tariff exemption for electronic transmissions' multilateral agreement.
The document states: "Nonetheless, before the multilateral agreement on temporary tariff exemption comes into effect, members will do their utmost to provide a certain degree of predictability and certainty for businesses and consumers."
The document, dated May 7, also invites other members to join.
Sabina Ciofu, Head of International Policy and Strategy at techUK, said that while this agreement reached by 19 members points to a future direction, the failure to secure the original multilateral agreement is also worrying.
John Denton, Secretary General of the International Chamber of Commerce (ICC), said that while this agreement is an expedient measure, the failure of the globally agreed 'temporary tariff exemption' agreement, when businesses urgently need certainty rather than expedience, is undoubtedly a worrying signal.
Denton stated: "No one should assume that this agreement is sufficient to replace clear agreements within the WTO." Governments should view it as a bridge to restoring multilateral agreements.
Joseph Barloon, US Ambassador to the WTO, told representatives at the General Council that the US launched this plurilateral agreement to provide more certainty and predictability.
Barloon told representatives: "The US's efforts to reform and e-commerce do not mean closing the door to multilateral participation. However, the US will not accept waiting for 166 member states to reach a consensus on 'common sense solutions' designed to meet stakeholders' needs." (Compiled by: Qu Xiangping) 1150508
Choose to stand with facts, every sponsorship from you is the power to protect press freedom.
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The text, images, and audio/video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.