Markets
L40: WTO Digital Commerce Moratorium Expires in 2026 — Cross-Border SaaS M&A Enters Uncharted Trade Territory
Investment bank L40 warns that the WTO moratorium prohibiting customs duties on electronic transmissions is set to expire in 2026, with many member countries pushing to let it lapse. While software has been inherently borderless — building a SaaS company from Bucharest serving US customers at scale — the moratorium's end means cross-border SaaS deals could face tariff classification issues. AI-adjacent software is already flagged for national security review in US M&A, adding regulatory friction to an asset class previously valued for its frictionless global reach.
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