India has expressed concerns at the WTO regarding an interim e-commerce agreement accepted by only 66 member countries, questioning its legal basis and the lack of multilateral consensus.
New Delhi, India Jul 9, 2026 ALN: New Delhi: India has raised questions in the WTO over an interim arrangement as a pathway for the implementation of an agreement on e-commerce, which has been agreed upon by only 66 member countries of the World Trade Organization. This development highlights ongoing tensions within the global trade framework regarding digital commerce, a sector that has seen exponential growth and is increasingly becoming a focal point for international trade negotiations.
The World Trade Organization (WTO), established in 1995, serves as a global forum for negotiating trade agreements and resolving trade disputes among its member countries. The organization has been under pressure to adapt to the rapid changes brought about by digital technologies and the internet, which have transformed traditional trade practices. The e-commerce agreement, formally known as the Agreement on Electronic Commerce (ECA), aims to create a framework that facilitates cross-border data flows, addresses issues such as electronic contracts and signatures, and promotes the digital .
According to a communication circulated by the WTO on Thursday at the request of India, on February 18 and December 16, 2025, the General Council (GC) was requested to adopt a decision to add the pact to Annex 4 of the WTO agreements, but there was no consensus on that. Annex 4 of the agreement contains plurilateral trade pacts that are binding only on the WTO members who have accepted them, unlike the mandatory multilateral agreements, which require universal acceptance. However, such pacts need the consensus of the member countries, which has proven to be a significant hurdle in the case of the ECA.
India's opposition to the e-commerce agreement is rooted in concerns that such agreements may bypass multilateral consensus and disproportionately benefit developed nations, which often have more advanced digital infrastructures and capabilities. Developing countries, including India, have expressed fears that the ECA could undermine their ability to regulate their own digital economies and protect local industries. The issue of digital sovereignty has become increasingly prominent, with many nations seeking to retain control over data and technology within their borders.
On March 28 this year, 66 countries issued a declaration on interim arrangements as a pathway to enter into force the Agreement on Electronic Commerce (ECA). This declaration signifies a significant step towards establishing a framework for digital trade, but it also raises questions regarding the legitimacy and inclusiveness of the process, given that a majority of WTO members have not agreed to the terms outlined in the ECA.
This communication poses several questions of systemic, legal, and institutional importance arising from the current arrangements. These questions are intended for the participating countries to ensure greater clarity for the WTO membership. The procedural aspects of how the interim arrangements are being implemented without a full consensus have been a point of contention, and India’s inquiries reflect broader concerns about the governance of international trade in the digital age.
India has stated that the WTO agreement requires consensus for inclusion in Annex 4, and the consensus was not reached on two occasions. "In the absence of consensus, we would like to understand the institutional basis on which the Interim Arrangements (IA) are operating," it said, adding, "We request clarification regarding the legal basis within the WTO Agreement by which the WTO DG (director general) is assigned the role to act as the depositary of the ECA." This request for clarification underscores India's demand for transparency in the decision-making processes of the WTO, especially concerning agreements that could have far-reaching implications for global trade.
India has also sought information on the process followed to obtain the WTO DG's consent to act as the depositary for the instruments of acceptance of the ECA and details of any communications made to the rest of the WTO membership regarding this. Such inquiries are crucial as they aim to shed light on the procedural integrity of the negotiations surrounding the e-commerce agreement. The role of the WTO Director-General as a depositary is significant, as it involves the responsibility of maintaining and disseminating official documents related to the agreement, which can influence how the agreement is perceived and implemented by member nations.
Considering the importance of these issues and their implications for the basic institutional mandate and the WTO framework, India has requested that written responses to the questions be submitted and circulated as an official WTO document. The demand for official documentation reflects a desire for accountability and a formal record of the discussions that could shape future negotiations and agreements within the WTO.
Furthermore, India added that these questions and the responses should be placed on the agenda of the GC for substantive discussion at its next meeting. This call for a discussion highlights the necessity of engaging all member countries in dialogue regarding the e-commerce agreement, emphasizing the need for a more inclusive approach to trade negotiations that takes into account the diverse interests and capacities of all WTO members.
The implications of India's stance on the e-commerce agreement extend beyond the immediate context of the WTO. As digital trade continues to grow, the outcomes of these negotiations will likely influence global trade patterns, development, and international relations. The ongoing debates about digital trade agreements also intersect with broader issues such as data privacy, cybersecurity, and the digital divide between developed and developing nations.
In conclusion, India's questions regarding the interim e-commerce pact at the WTO reflect deep-seated concerns about the governance of digital trade and the potential impacts of such agreements on global trade dynamics. As the world continues to grapple with the challenges and opportunities presented by the digital , the responses to these inquiries could play a pivotal role in shaping the future of international trade and cooperation in the digital age.
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