Talks between trade representatives and high-level officials from some 166 countries ended with no major deals signed early Monday.
The World Trade Organization (WTO) had been meeting in the Cameroonian capital of Yaounde for four tense days of negotiations, hoping to finalize an agreement on e-commerce that was blocked by Brazil at the last minute.
“We worked hard,” WTO Director-General Ngozi Okonjo-Iweala said, adding that the US and Brazil in particular “need more time” to work out their differences over the agreement to impose levies on cross-border online orders.
Given the current state of geopolitics and global trade, attendees had set the bar relatively low. Yet hopes for at least a joint declaration of future purpose were dashed when Brazil objected to the e-commerce resolution in protest over issues stemming from a separate debate about agriculture.
The US had sought a permanent extension for a moratorium on taxes in such transactions, while Brazil wanted a deal for it to last only four more years.
“It’s not US vs Brazil. It’s Brazil and Turkey vs 164 members,” said a US official of the discussions, while Brasilia accused Washington of “wanting the sky.”
WTO fighting for relevance
The WTO has been in a prolonged crisis due to repeated failures to reach a consensus, prompting questions about its continued relevance.
WTO representatives said that talks will continue at headquarters in Geneva until at least May.
Economists and business leaders expressed their displeasure with the stalemate, with International Chamber of Commerce Secretary General John Denton saying it was “particularly concerning at a time of real strain on the global economy.”
Edited by: Natalie Muller
