For the second time this year, Guatemala joins a group of countries to apply a moratorium on tariffs on cross-border electronic or digital transmissions. This occurs after the last extension approved by the members of the World Trade Organization (WTO) expired on March 31.
The moratorium approved at the WTO, which established not to impose tariffs on electronic transmissions, was in force since 1998 and was extended for several periods. However, at the Fourteenth Ministerial Conference (CM14), held in March 2026 in Yaoundé (Cameroon), no consensus was reached to approve and the measure expired on the 31st of that same month.
This was due to differences in positions between the countries. Türkiye and Brazil opposed an indefinite extension and accepted a maximum of two additional years, while the United States proposed a validity of more than four years, according to international agencies.
In March there was also a group of more than 60 members that adopted a path to bring the agreement into force through provisional provisions, while they continued working towards its incorporation into the WTO legal framework. Meanwhile, Guatemala joined a group of 23 countries that decided to continue applying the moratorium until the General Council on May 6 and 7.
At meetings in the first week of May, the United States presented a joint statement signed by 18 other countries, in which they announced a plurilateral initiative to continue from May 8 without imposing tariffs on electronic transmissions between each other. Guatemala is among the signatories and, as of last week, the number of countries in this group amounts to 25, according to the bulletins of the WTO General Council.
These countries They explain in the statement that “electronic transmission” means a transmission made by any electromagnetic means and includes its content. In that statement they also expressed their disappointment at the end of the WTO moratorium on electronic commerce, in force since 1998.
What is the situation in Guatemala?
The Ministry of Economy (Mineco) explained that no consensus was reached to formally extend the moratorium at the multilateral level, but indicated that discussions about the future of these disciplines and digital trade continue within the framework of the organization.
Besides, confirmed that Guatemala currently does not apply customs duties to electronic transmissions, in line with the practice sustained since 1998.
CONTENT FOR SUBSCRIBERS
He added that, within the framework of the WTO, the general practice among members has been not to apply these rights. To date, the application is reciprocal; However, some markets do apply internal taxes, regulatory measures or tax provisions linked to certain digital services and platforms, in accordance with their national legislation, the ministry indicated.
The country’s position in the meetings of the first week of May was to reiterate “the importance of continuing to promote trade facilitation and digitalization, as well as maintaining multilateral dialogue on electronic commerce and the digital economy within the framework of the WTO,” he responded.
What is considered electronic transmissions
Regarding what are considered electronic transmissionsthe ministry explained that the WTO moratorium established the non-imposition of tariff duties on these, understood as goods and services supplied digitally over the internet.
Although he clarified that the WTO has not adopted an exhaustive definition, he indicated that these Transmissions mainly include software, applications, digital audiovisual content, electronic publications, cloud services, digital financial services, digital advertising, intermediation platforms and professional services provided digitally.
When asked about amounts or volumes in Guatemala, Mineco indicated that electronic transmissions are part of the dynamics of digital trade and, unlike traditional physical trade, they are not recorded through conventional customs instruments. Therefore, there is currently no specific and consolidated statistical classification for this type of operations.
Tools
Johanna Hill, deputy director general of the WTO, recommended that interested parties know if the country has provisions on these services with other countries through free trade agreements or similar agreements.
The official pointed out that, in addition to the decisions adopted in the Conference of Ministers and in the General Council of the WTO (in March and May), there are international agreements that address the digital issue, such as bilateral digital economy agreements or between groups of countries, as well as free trade agreements that contain chapters on electronic commerce, such as CAFTA-DR.
Mineco indicated that Guatemala has these instruments, such as the Free Trade Agreement between Central America and the United States (CAFTA-DR); the FTA between Central America and Mexico; the Association Agreement between Central America and the European Union; and the agreement with the United Kingdom, in addition to the Northern Triangle FTA with Colombia.
In these cases, the provisions generally apply to electronic transmissions made over the Internet, including software, applications, digital audiovisual content, e-books, cloud services and other digital products or services, it added.
The agreement with the US
The owner of the Office of the United States Trade Representative (USTR)Jamieson Greer said in early April that his country has obtained “commitments from dozens of countries […] of not imposing tariffs on American digital transmissions,” as quoted by the EFE agency on that occasion.
Guatemala and the United States negotiated a Reciprocal Trade Agreement in 2025, signed on January 30, 2026. This includes zero tariffs for around 72% of Guatemalan products, as well as a series of commitments assumed by Guatemala, including on digital issues.
- In article 3.1 it was established that Guatemala will not impose taxes on digital services that discriminate against US companies.
- Article 3.2 indicates that it will facilitate digital trade, including the free transfer of data and non-discrimination of digital products.
- Article 3.3 states that if Guatemala enters into a new digital trade agreement with certain countries, the United States may terminate the agreement and reinstate tariffs.
As announced by Mineco last week, the agreement has not yet entered into force, since the US Government waits for the validity of the temporary tariffs to end.