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WTO Digital Tax Ban Expires Amid U.S. Tensions

New York Times Business •
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A global prohibition on taxing digital downloads expired Monday after World Trade Organization members failed to extend the moratorium during their annual meeting in Yaoundé, Cameroon. The United States had pushed for a permanent extension, while Brazil and Turkey blocked a longer renewal, citing concerns about fairness to local retailers and public funding.

The moratorium, first adopted in 1998, prevented over 160 WTO members from imposing duties on electronic transmissions. Its expiration marks the second time the ban has lapsed, following a similar expiration in 1999 during WTO meetings in Seattle that drew widespread anti-globalization protests. The WTO operates on consensus, making agreement difficult among its diverse membership.

U.S. Trade Representative Jamieson Greer criticized the outcome as evidence of the organization's declining relevance, while WTO Director-General Ngozi Okonjo-Iweala insisted progress was made on other fronts including fishing industry subsidies. The Trump administration has increasingly bypassed the WTO in favor of unilateral tariffs, even as it exempted many electronic products from duties and fought against foreign taxes on American tech firms.