A prohibition on taxing digital downloads expired, after members of the World Trade Organization concluded their annual meeting without an agreement.
A global ban on taxing digital streaming and downloads across national borders expired on Monday, after members of the World Trade Organization concluded an annual meeting without agreeing to extend it.
U.S. representatives had pushed to extend the ban, which prevents the more than 160 members of the W.T.O. from issuing duties related to e-commerce. But Brazil and Turkey blocked a motion for a longer extension.
U.S. representatives excoriated the outcome as further proof of the organization’s irrelevance. The W.T.O. provides a forum for trade negotiations and setting rules for global trade. But U.S. officials have long criticized the group for its failure to police unfair trade practices by countries like China. Over the past year, the Trump administration has further abandoned W.T.O. by issuing its own global framework of tariffs instead.
Jamieson Greer, the U.S. trade representative, who attended the conference, said on Monday that he was “disappointed at the lack of seriousness” from other W.T.O. members. Nearly 2,000 trade officials attended the conference, which was held in Yaoundé, Cameroon.
“I have always been skeptical of the value of the W.T.O., and this week’s conference confirmed that this organization will play only a limited role in future global trade policy efforts,” Mr. Greer said.
Brazil had pushed for a two-year extension of the moratorium on e-commerce duties, while the United States wanted a permanent one. The countries couldn’t come to a compromise, but negotiations are set to continue in Geneva this spring. W.T.O. members also failed to reach an agreement on future reforms for the organization.