Failure to Reach Agreement on WTO Ministerial Reform... E-commerce Tariffs Deferred for 2 Years

Schedule was extended but no agreement reached
EU also criticizes India

On the 2nd (local time), the 13th Ministerial Conference of the World Trade Organization (WTO) held in Abu Dhabi, United Arab Emirates (UAE), failed to reach an agreement on major reforms.

[Image source=Reuters Yonhap News]

According to local foreign media reports, the WTO Ministerial Conference was originally scheduled to take place from the 26th to the 29th, but discussions extended past midnight on March 1st. However, WTO member countries failed to find a breakthrough on key topics such as agriculture and fisheries.

Valdis Dombrovskis, European Union (EU) Executive Vice President for Trade, expressed disappointment that the WTO could not agree on fisheries, agriculture, and broad reforms, and criticized India. He said, "An agreement was possible given the overwhelming support of many member countries, but ultimately it was blocked by a minority of countries, sometimes even a single country."

The WTO Ministerial Conference is the highest decision-making body attended by trade ministers from 164 member countries. Since decisions require unanimity, negotiations collapse if even one country refuses to agree.

India clashed with some developed countries by calling for a permanent solution rather than the temporary measures adopted by the WTO on the issue of public stockholding of grains. India is also reported to have caused conflicts by demanding a longer transition period than other countries in subsidy negotiations aimed at regulating overfishing.

However, the WTO agreed at the Ministerial Conference to extend the moratorium on customs duties on electronic commerce for two more years. The WTO stated, "We have agreed to maintain the current practice of not imposing customs duties on electronic commerce until the 14th Ministerial Conference."

The next WTO Ministerial Conference is scheduled to be held in 2026, two years later. According to Bloomberg, about 25% of global trade is conducted digitally. Corporate lobbying groups have warned that ending the moratorium on customs duties for e-commerce would cause widespread uncertainty and increase costs.

John Denton, Secretary-General of the International Chamber of Commerce (ICC), said, "If you want to see e-commerce and the prosperity of the digital economy, not imposing customs duties is a fundamental component."

Reuters reported that South Africa and India initially opposed the moratorium on customs duties for e-commerce but later agreed at the request of the UAE.

This content was produced with the assistance of AI translation services.