Yaoundé, Cameroon – 1st April 2026Talks at the World Trade Organisation (WTO) in Cameroon’s capital ended in deadlock on Monday after Brazil refused to support a US-backed proposal to extend the long-standing global ban on customs duties for digital trade.
The four-day meeting in Yaoundé was supposed to deliver progress on reforming the WTO, advancing agriculture negotiations, and renewing the e-commerce moratorium — a decades-old agreement that prevents countries from slapping customs duties on cross-border digital products like streaming services, e-books, music downloads,
and software.But deep divisions, especially over agriculture, led to the collapse of the broader talks. In a last-minute move, Brazil blocked the extension of the e-commerce moratorium, arguing that not enough progress had been made on farming issues, which are critically important to many developing nations.WTO Director-General Ngozi Okonjo-Iweala acknowledged the tough negotiations, simply saying: “We worked hard.”Negotiators had appeared close to a modest deal on WTO reform after an all-night session on Sunday, but that hope quickly faded when Brazil stepped in.
The country’s top diplomat had earlier indicated on X that they were only willing to support a two-year extension, while the United States had pushed for a much longer — or even permanent — agreement.
The moratorium, which has been renewed every two years since 1998, officially expired on Monday. While its end doesn’t automatically mean new taxes on digital trade (countries can still choose not to impose them), many fear it opens the door for future duties, especially as governments look for new sources of revenue.
Developing countries, including India, have long opposed making the ban permanent or too long-term, worried it would cost them significant tax income from the fast-growing digital economy.US officials and business groups expressed frustration at the outcome. Britain’s Business and Trade Secretary, Peter Kyle, described it as “a major setback for global trade.”A senior diplomat warned that the failure is putting the WTO’s future relevance at risk, especially at a time when the global trading system is already under strain from geopolitical tensions, protectionism, and conflicts in the Middle East.On a slightly positive note, a group of 66 WTO members managed to push through the world’s first basic set of rules for digital trade, bypassing some of the usual roadblocks.
However, Deputy Secretary General of the International Chamber of Commerce, Andrew Wilson, called the overall deadlock