India Signals Shift on E-Commerce Tariff Moratorium, Resists US Push for Permanent Ban
India has indicated it may support a limited extension of the global e-commerce tariff moratorium at the World Trade Organization (WTO) meeting in Cameroon, signaling a shift in its earlier opposition. Commerce Minister Piyush Goyal stressed that the proposal for a permanent extension requires careful reconsideration, even as India showed openness to a two-year extension of the agreement.
The United States is pushing for a permanent ban on tariffs on electronic transmissions such as digital downloads and streaming, arguing it would provide stability for global tech companies and cross-border digital trade. However, diplomatic sources say India and the U.S. remain far apart in their positions, with some WTO members proposing a middle-ground extension of five to ten years.
Business leaders warn that uncertainty over the moratorium could lead to duties on digital services, affecting investments and global trade, while some developing nations believe ending the moratorium could help them generate tax revenue and strengthen their digital economies. The outcome of the WTO meeting is seen as a key test of global trade cooperation amid ongoing economic and geopolitical tensions.
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