The impasse delivered another blow to the WTO, which has been struggling to maintain relevance amid rising protectionism and geopolitical tension.

WTO Director‑General Ngozi Okonjo‑Iweala confirmed that the moratorium on e‑commerce duties has now expired, opening the door for countries to impose customs charges on digital products such as downloads, streaming services and online platforms. While marathon negotiations did make progress on a roadmap for broader WTO reforms, no final agreement was reached.

Speaking to Channel Africa on Monday, Donald MacKay, Chief Executive Officer of XA Global Trade Advisors, explained what was at stake. “Everything you download from the internet, everything you stream such as Netflix, could now potentially be taxed,” he said. Although the expiry does not force governments to introduce duties, it gives them the legal option to do so.

MacKay described the collapse of the moratorium as a poor outcome for global trade. “I think this is a terrible idea. Practically, how would you even collect such a tariff? How do you levy a duty on Netflix or YouTube?” he asked.

While some developing countries argue that digital duties could increase revenue, MacKay said the biggest loser would likely be the US, which is the world’s largest exporter of digital services. “You risk collecting very little revenue while provoking a major trade partner at the same time,” he said.

The deadlock adds to concerns about the future of the WTO as countries increasingly pursue unilateral, bilateral or regional trade measures. MacKay warned that the drift away from multilateral rules would hurt smaller and poorer economies the most. “The WTO created a predictable trading environment. Without it, you move towards power‑based trade relations where bigger countries impose their will.”

He said current geopolitical tensions and protectionist policies are undermining global cooperation. “This path ends with everyone poorer, but especially small, globally exposed economies.”

–ChannelAfrica–