Yaounde: India has indicated that it is open to extending a global agreement that bans tariffs on digital trade, marking a shift from its earlier firm opposition to ongoing negotiations at the World Trade Organization.
The agreement, in place since 1998, prevents countries from imposing customs duties on electronic transmissions such as software, music, films and other digital products. It is set to expire soon, making the current discussions crucial for the future of global e-commerce.
According to diplomats, India is now willing to support a temporary extension of about two years. This is seen as a compromise move as negotiations continue among member countries meeting in Yaoundé.
Until recently, India had opposed extending the moratorium, arguing that it leads to a loss of revenue and limits the ability of developing countries to build their own digital industries. The new position suggests a more flexible approach, although India has not agreed to a long term or permanent extension.
The United States, however, continues to push for making the tariff free arrangement permanent. It argues that stable and predictable rules are necessary for the growth of global digital trade and to support technology companies operating across borders.
Talks are now focused on finding a middle ground, with some countries proposing an extension of five to ten years. It remains unclear whether both India and the United States will agree to such a compromise.
The outcome of these negotiations is seen as a key test for the World Trade Organization at a time when global trade is facing increasing uncertainty and divisions.
Experts say that if the agreement is not extended, countries may begin to impose tariffs on digital goods, which could raise costs for businesses and consumers and slow the growth of the digital economy.
India has also been pushing for broader reforms at the WTO, including greater protection for developing nations and maintaining a consensus based decision making system.
The final decision on the moratorium is expected to have a significant impact on the future of international digital trade.