India reportedly indicates willingness to extend the zero-tariff e-commerce agreement

Two senior diplomats said that India has signaled it may no longer oppose extending a global accord—one that exempts digital downloads, streaming, and other electronic transmissions from tariffs.

On Thursday, India’s Minister of Commerce Piyush Goyal, at a World Trade Organization meeting in Cameroon, questioned efforts by the United States to make the ban permanent, saying the matter needs “a careful reconsideration.” The ban is set to expire this month.

However, two senior diplomatic sources said that late Friday night India signaled to WTO members that it would agree to extend the ban by two years. This was the first sign of a softening in India’s position before the WTO convenes a meeting on the issue on Saturday.

But it is still unclear whether a short-term extension would satisfy the United States. On Thursday, U.S. Trade Representative Jamison Greer said the U.S. is not interested in a temporary extension of the ban and supports only a permanent one.

Business leaders said that extending the agreement is crucial to ensuring policy predictability, and they worry that if the agreement lapses, countries may impose tariffs.

The two senior diplomats said that the positions of the U.S. and India remain far apart.

A third senior diplomat said that each member is trying to find a compromise, continuing to extend the ban for 5 to 10 years after the next ministerial meeting. The source added that it is currently unclear whether the U.S. or India will accept this compromise.

After a year of trade disruptions triggered by tariffs, and severe interruptions to shipping, energy prices, and supply chains due to conflicts in the Middle East, whether the e-commerce ban can be extended at the WTO meeting in Yaoundé is seen as a key test of whether this global regulatory body still has practical relevance.

Espen Barth Eide, Norway’s foreign minister, said: “I think for some countries, extending this ban for a long time is actually a matter of real importance.” He added that this would help show that ministers can deliver tangible results at the Yaoundé meeting.

Over the past three decades, the e-commerce tariff ban has continued to be repeatedly postponed until the next ministerial meeting. The United States wants major technology companies such as Amazon, Microsoft, and Apple to have a stable regulatory environment, without having to worry about the cost shocks that tariffs imposed by different countries could bring, and the impact on cross-border digital trade.

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Responsible editor: Liu Mingliang