The International Institute for Sustainable Development (IISD) has examined the new landscape emerging in digital trade following the expiration in March 2026 of the World Trade Organization’s (WTO) moratorium on customs duties on electronic transmissions. The study, titled “A Turning Point for Digital Trade Policy,” focuses particularly on the future of e-commerce, tax revenues, and digital industrialization from the perspective of developing economies.
IISD Report Examines Post-Moratorium Risks and Options
With WTO members failing to reach an agreement at MC14 on extending the measure, the multilateral e-commerce moratorium, which had been in place for nearly 28 years, came to an end. The report notes that there is no longer a common WTO-wide obligation preventing the imposition of customs duties on electronic transmissions. However, it also states that countries are not expected to introduce such taxes on a widespread basis in the short term due to challenges related to technical implementation, valuation, and monitoring.
The report identifies potential losses in customs revenue, digital industrialization, the digital divide, and the taxation of the digital economy among the main concerns of developing countries. Supporters of the moratorium, meanwhile, argue that the potential tax revenues may remain limited and that an open digital trade environment could provide greater benefits for development.
A Fragmented Structure May Emerge in Digital Trade
IISD states that, going forward, commitments not to impose customs duties may continue through plurilateral, regional, and bilateral trade agreements rather than through a single WTO-wide system. The report points out that disagreements over the scope of the moratorium and the definition of “electronic transmissions” may return to the agenda in future negotiations.
This process directly affects global e-commerce activities linked to software, streaming, and other digital services. The impact of emerging technologies such as artificial intelligence and 3D printing on digital trade rules is also on the agenda in WTO discussions. The regulations are also important for retail companies using digital products and services, as well as businesses engaged in cross-border e-commerce.
European Union Supports a Multilateral Solution for the Moratorium
The European Union also reiterated at the WTO General Council its regret that no agreement was reached on the moratorium at MC14. The EU stated that it supports the restoration of the multilateral arrangement as a long-term solution to ensure legal certainty, predictability, and a level playing field in global digital trade. The Union also expressed support for the resumption of discussions among WTO members.