Washington aimed for a longer e-commerce moratorium, seeking a 10-year term. Brazil opposed the extension, complicating negotiations. The U.S. tied any moratorium extension to agreement on the WTO reform workplan, increasing pressure. A two-year deal might lead the U.S. to withdraw support for the plan, disrupting talks and increasing frustration with the WTO’s process.
Tensions escalated as the Investment Facilitation Agreement collapsed, with India blocking its inclusion into WTO law. “India showed the courage to stand alone,” Indian Commerce Minister Piyush Goyal stated, critiquing members for prioritizing guardrails and safeguards for plurilaterals.
Options include a temporary digital tariff ban extension until the next ministerial or allowing the moratorium to lapse, forcing U.S. engagement in reform efforts’ reconsideration, potentially causing negotiations to break down.
The ideal outcome — a renewed moratorium with U.S. support for a reform roadmap — remained possible, with hope for a compromise.
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