The United States and 18 other countries, including Japan, South Korea, Singapore and Australia, launched this Thursday (7) their own pact not to impose tariffs on electronic commerce, after there was no agreement to end an impasse on the issue with Brazil, according to a document.
Brazil opposed an extension of a global agreement in World Trade Organization (WTO) negotiations.
The failure of a high-level WTO meeting in Yaoundé, Cameroon, in March to renew the long-standing moratorium on fees for cross-border streaming and downloads marked another setback for the WTO’s role in setting global trade rules.
The moratorium, agreed in 1998 and renewed regularly since then, prohibits fees on international electronic transmissions, such as streaming music or films and downloading software.
WTO members with large digital economies – including the US, the European Union, Canada and Japan – argue that it provides predictability for global digital trade and want it to become permanent.
19 countries, including the USA, Japan, South Korea, Singapore, Australia, Norway and Argentina, announced this Thursday (7) the pact, agreed between them, not to impose taxes on electronic transmissions for an unspecified period.
The final text confirms that the agreement will enter into force on May 8, while expressing disappointment at the expiration of the multilateral moratorium.
“However, this group of members remains committed to doing everything possible to offer businesses and consumers a measure of predictability and certainty in the absence of the multilateral moratorium on electronic commerce”, points out the document, dated May 7.
The document invited other members to join the agreement.
