The World Trade Organization (WTO) ministerial meeting in Yaoundé ended in total failure. At the end of the meeting on Monday, Brazil stood up to the United States and a significant moratorium on electronic transmissions expires immediately.
(Keystone-ATS) “We worked hard” for four days “in the middle of the war in the Middle East” which is affecting the world economy, explained the director general of the WTO Ngozi Okonjo-Iweala on the night of Sunday to Monday, disappointed. Like Switzerland, the United States came to this Cameroonian meeting with the desire to achieve a permanent solution to the moratorium.
This, far from being trivial, avoids taxing broadcasts which could range from streaming to downloads including plans for 3D objects or even emails.
Switzerland did not immediately react. “It would really be a step backwards,” the Swiss ambassador to the WTO in Geneva, Erwin Bollinger, said before the ministerial. But members will try in the coming months to reinstate the moratorium. And it would take quite a bit of time for countries that would like to launch taxes to be able to do so. According to a study from a few years ago, without it, rich countries could lose 0.5% of their Gross Domestic Product (GDP).
The United States had put its diplomatic weight behind it because it no longer wanted a two-year extension like up until now. A five-year compromise was on the table and seemed likely to be approved. Until Brazil, wanting something on agriculture, decided to block it.
No validated plan towards reform
The offensive American attitude for several weeks before and during the ministerial was widely targeted by civil society and by several states. Other countries came asking themselves “what can we give to Donald Trump?”, according to a member of a Western delegation.
The United States “sees the moratorium as a test for the organization,” a Western diplomat previously told Keystone-ATS. Some pointed out that Washington was reconnecting with the institution after Donald Trump insulted it in recent years.
This clash caused the ministerial results to collapse. Brazilian revenge on American customs tariffs, according to a specialist. “We were sorely lacking time,” said the ministerial chairman, Cameroonian Trade Minister Luc Magloire Mbarga Atangana.
An opinion shared, for his part, by Dr Nogzi who told the press “to be proud” of the significant participation “in the middle of the war in the Middle East” which is affecting the world economy. According to her, “there was a real attempt” between Brazil and the United States to get closer, while the meeting was extended by several hours, but “more time” was needed.
Symbol of the electrical discussions on Sunday, lightning fell on Yaoundé just as the failure had begun. This duel would almost make us forget the main question on the menu, that of a road map for the reform of the WTO.
Advances in e-commerce
In a draft minimum ministerial declaration, the 166 members committed to continuing negotiations with progress reports in July then December and twice in 2027. With the objective of arriving at concrete recommendations for 2028.
The text on the table was far from the ambitious plan that the EU, China or Switzerland wanted. In contrast, Donald Trump’s administration could have almost gotten the blanket statement it was looking for. Discussions will continue in Geneva. “We exceeded my expectations,” said Dr. Ngozi.
Despite its demands, Africa will not have had any results on development and agriculture despite this Cameroonian ministerial.
Symbol of the difficulties linked to consensus, India maintained its refusal to align the agreement on the facilitation of investments for development with WTO rules. This, validated by 129 States, could increase investments by 9% and GDP by 1%, especially for poor States, over ten years.
On the other hand, Switzerland and 65 other members, including the EU, have opened a door to what the future of the WTO could be in voluntary coalitions. On Saturday, they decided to move forward to provisionally apply their agreement on electronic commerce, which reduces digital barriers in particular for SMEs, while continuing to seek to attach it to the rules of the organization.
