India and several developing nations have opposed the extension of the e-commerce moratorium on customs duties at the ongoing ministerial conference of the World Trade Organization (WTO), highlighting a growing divide among member countries. The disagreement underscores broader tensions over how global trade rules should evolve in response to the rapid expansion of digital commerce and the differing priorities of developed and developing economies.

The moratorium, which bars countries from imposing customs duties on electronic transmissions, has become a contentious issue at the conference. While the United States is pushing for a permanent extension, India and other developing countries argue that continuing the policy would lead to significant revenue losses and restrict their ability to regulate digital trade. These nations maintain that the current framework disproportionately benefits countries with advanced digital industries.

According to the Global Trade Research Initiative (GTRI), the sharpest disagreement at the conference centres on this issue, with a temporary compromise of two to four years emerging as the most likely outcome. The 14th Ministerial Conference, currently underway in Yaounde, is addressing key areas including fisheries subsidies, investment facilitation, e-commerce, and agriculture, making it a critical forum for shaping the future of global trade governance.

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India has also expressed concerns over the China-led Investment Facilitation for Development (IFD) agreement, particularly in smaller negotiation settings known as “green room” meetings. GTRI founder Ajay Srivastava noted that India’s apprehension lies not only in the agreement itself but in the precedent it could set, potentially opening the door for plurilateral deals that may alter the WTO’s multilateral framework over time.

On the issue of fisheries subsidies, little progress is expected due to persistent divisions among member countries. Negotiations have been stalled over balancing environmental objectives with the economic concerns of nations dependent on fishing industries. These unresolved disagreements continue to complicate efforts to reach a comprehensive consensus at the conference.

As discussions progress, trade experts suggest that the outcomes of the ministerial meeting could either lead to a limited compromise or expose deeper structural challenges within the WTO. With tensions spanning digital trade policies, investment rules, and institutional reforms, the developments in Yaounde are expected to have lasting implications for the global trading system.

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