The e-commerce moratorium is a global pact among World Trade Organization members that prohibits customs duties on electronic transmissions, including digital downloads and streaming services. This policy was initially adopted in 1998 during the WTO’s Second Ministerial Conference in Geneva to foster early growth in digital trade.
It applies to cross-border digital transmissions such as software downloads, e-books, music and movie streaming, and video games. Although originally intended as a temporary measure, the moratorium has been renewed approximately every two years at successive WTO ministerial conferences. The most recent extension was granted for two years at the 13th conference in 2024. However, this agreement is scheduled to expire at the 14th WTO ministerial conference taking place this month in Yaounde, Cameroon.
Supporters of the moratorium’s extension include WTO members with significant digital economies like the United States, the European Union, Canada, and Japan. They argue that a permanent extension would provide predictability for global digital trade. The U.S. emphasizes the importance of a stable regulatory environment for major American tech companies such as Amazon, Microsoft, and Apple, protecting them from potential tariffs that could disrupt cross-border digital commerce. Over 200 international business organizations have jointly advocated for the moratorium’s continuation, warning that its lapse could increase costs, fragment the internet, and limit businesses’ ability to engage in global digital trade, as highlighted by the International Chamber of Commerce.
Conversely, some developing countries, including India, oppose extending the moratorium. They argue that maintaining the ban on tariffs deprives them of crucial revenue needed to invest in infrastructure and bridge the digital divide. Sofia Scasserra from the Transnational Institute has criticized the moratorium for failing to support digital economies in developing nations, instead reinforcing the dominance of U.S. and other advanced Big Tech firms. A 2019 United Nations Conference on Trade and Development (UNCTAD) study estimated that developing countries lost around $10 billion in tariff revenue in 2017 due to the moratorium. Nevertheless, an OECD analysis suggests that this potential revenue loss could be largely compensated through value-added tax or goods and services tax on imported digital services.
At the Cameroon ministerial conference, four formal proposals regarding the e-commerce moratorium have been presented. The African, Caribbean, and Pacific Group recommends extending the moratorium until the next ministerial meeting. The United States advocates for a permanent extension. Meanwhile, a coalition including Switzerland proposes both a permanent extension and the creation of a committee focused on digital trade. Brazil’s proposal calls for an extension until the next conference alongside the establishment of a digital trade committee.
