The new pact, announced on Thursday, includes the U.S., Japan, South Korea, Singapore, Australia, Norway and Argentina. The agreement comes after WTO members were unable to break a deadlock during a high level meeting held in Yaounde, Cameroon, in March, News.az reports, citing Reuters.
***
The long standing WTO moratorium, first introduced in 1998 and renewed regularly since then, prohibited countries from imposing tariffs on cross border electronic transmissions such as streaming services, software downloads and digital media.
Countries with major digital economies, including the United States, the European Union, Canada and Japan, had pushed to make the moratorium permanent, arguing that it ensures stability and predictability for global digital trade.
Brazil opposed extending the WTO arrangement, contributing to the collapse of negotiations and raising concerns about the future of international rules governing e commerce.
According to the final text of the new agreement, the participating countries expressed disappointment over the expiration of the multilateral WTO moratorium while committing among themselves not to apply duties on electronic transmissions for an unspecified period.
The pact is set to take effect on May 8.
