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India raised fresh objections at the World Trade Organization (WTO) over an interim arrangement being used to implement a proposed global e-commerce agreement, arguing that a deal backed by only a group of countries cannot move forward without the approval of the entire membership.
In a communication circulated by the WTO, India asked several legal and procedural questions about the Agreement on Electronic Commerce (ECA), which has been negotiated by 66 WTO members. India said the agreement failed to win the consensus needed to become part of the WTO’s formal rulebook, yet participating countries are now trying to bring it into effect through an interim mechanism.
The move reflects India’s long-standing view that major trade rules should be negotiated through consensus among all WTO members and not by a smaller group of countries.
Why India is objecting
The agreement was proposed to be added to Annex 4 of the WTO Agreements during meetings of the General Council on February 18 and December 16, 2025. However, member countries could not reach consensus, which is a mandatory requirement for adding any new plurilateral agreement to the WTO framework.
Annex 4 contains agreements that apply only to the countries that sign them. Even so, such agreements can become part of the WTO system only if all members agree.
After the proposal failed to secure consensus, the 66 participating countries issued a declaration on March 28 this year announcing an interim arrangement to help bring the agreement into force.
India has now questioned how such an arrangement can operate when the WTO’s members have not approved the agreement.
Questions for the WTO
In its communication, India said it wanted clarity on the legal and institutional basis of the interim arrangement.
It asked under which provision of the WTO Agreement the interim mechanism is being allowed to function despite the absence of consensus.
New Delhi has also sought an explanation for the role of the WTO Director-General, asking under what legal authority the Director-General has been made the depositary for the agreement. A depositary is responsible for receiving and maintaining official documents related to an international agreement.
India has further asked how the Director-General’s consent for this role was obtained and whether the rest of the WTO membership was formally informed about the process.
India seeks wider discussion
India has requested that participating countries submit written replies to its questions and that these responses be circulated as an official WTO document.
It has also asked that the issue be included on the agenda of the next meeting of the WTO’s General Council so that all members can discuss it.
What the dispute means
The latest disagreement highlights the growing divide within the WTO over how new trade rules should be negotiated.
Many developed economies support smaller, issue-based agreements among willing members to speed up negotiations. India, however, has consistently argued that such agreements should not weaken the WTO’s consensus-based system, where every member has an equal say.
The e-commerce agreement has been one of the most debated initiatives at the WTO, with India maintaining that global rules on digital trade should be negotiated through an inclusive process involving all members rather than a select group of countries.
