India has signalled a change in position by agreeing to a two-year extension of the global moratorium that bars tariffs on electronic transmissions such as digital downloads and streaming, two senior diplomatic sources said. The indication came late on Friday to other World Trade Organization members and represents the first sign of flexibility after India had earlier questioned the wisdom of a permanent extension.
Earlier in the week, India’s Commerce Minister Piyush Goyal had expressed reservations about U.S. efforts to secure a lasting extension of the moratorium - which is due to lapse this month - saying the proposal required "careful reconsideration." His comments were made at a WTO meeting in Cameroon attended by trade officials from around the world.
Despite Goyal’s earlier scepticism, the late-Friday signal from India that it would accept a two-year renewal creates a new negotiating dynamic ahead of a scheduled WTO discussion on the moratorium on Saturday. Two senior diplomats said the development suggested an opening in India’s position, though they cautioned that substantial gaps between Washington and New Delhi persist.
The United States has been clear it wants a permanent solution. U.S. Trade Representative Jamieson Greer said on Thursday that Washington would not accept a temporary extension and is seeking a commitment to make the ban on duties permanent. Business representatives have warned that firms need predictability; they fear that if the moratorium lapses, countries could introduce new duties that would increase costs and uncertainty for cross-border digital services.
Diplomats described two competing dynamics in the run-up to the ministerial debate. Two senior diplomatic sources said the U.S. and Indian positions remained far apart. A third senior diplomat said members were attempting to find a middle path by proposing an extension longer than two years - potentially in the order of five to 10 years - that would stretch beyond the next ministerial meeting. It was not clear whether either the U.S. or India would accept such a compromise.
Observers are treating the outcome of the e-commerce moratorium talks as a barometer of the WTO’s relevance. Delegates and foreign ministers have linked the decision to the broader question of whether the organisation can still deliver concrete results at multilateral gatherings after a year that saw tariff-driven trade strain and major disruptions to shipping, energy prices and supply chains tied to the Middle East conflict.
Norwegian Foreign Minister Espen Barth Eide commented on the stakes, saying: "I think for some countries it’s actually quite existential to prolong the moratorium for a significant time," and adding that a meaningful extension would demonstrate ministers could secure tangible outcomes in Yaounde.
For nearly three decades the e-commerce moratorium has been continually renewed at successive ministerial conferences. The U.S. has framed its push for permanence in terms of protecting major American technology companies such as Amazon, Microsoft and Apple from a shifting patchwork of duties that could affect cross-border digital trade.
Key context and next steps
Delegates are due to debate the moratorium at the WTO session on Saturday. The two-year offer from India introduces a new option for negotiators, but the United States’ rejection of temporary measures leaves the path to agreement uncertain. Diplomats continue to discuss a potential intermediate extension spanning several years, though acceptance by the principal parties remains unresolved.