A coalition of World Trade Organization members agreed on Saturday to move ahead with the worlds first baseline for digital trade by activating the agreement among those who consent to it, the WTO said. The decision follows earlier efforts to embed the E-Commerce Agreement into the WTO rulebook that were twice blocked by dissenting members.
Delegates gathering at the 14th WTO Ministerial Conference in Cameroon finalized an interim arrangement under which 66 members will bring the pact into force domestically for participating countries while continuing to seek broader adoption within the WTO framework. Officials leading the push said the group of consenting participants represents roughly 70% of global trade, and that frustration over repeated objections spurred the accelerated path to entry into force.
Under existing WTO processes, plurilateral deals among subsets of members traditionally require consensus, a constraint that has complicated efforts to broaden acceptance of the e-commerce rules. The interim agreement is designed to permit implementation among the consenting subset without formally removing the option of eventual incorporation across the entire membership.
Japans State Minister of Economy, Trade and Industry, Yamada Kenji, hailed the move as a "historic step" toward establishing global rules for digital trade. UK Business and Trade Secretary Peter Kyle also welcomed the arrangement, saying: "As the first global digital trade deal, this will make trade cheaper, faster and more secure for businesses around the world."
India has been cited as a principal opponent of folding the e-commerce pact into the WTO rulebook, maintaining that trade agreements should be adopted multilaterally and by consensus. The United States is not among the 66 signatories; Washington's participation remains under review by the U.S. administration.
The agreement being advanced by the 66 members is distinct from the longstanding e-commerce moratorium, which prevents customs duties on digital downloads and streaming. That moratorium is the subject of an ongoing political impasse between the United States and India at the Cameroon meeting.