India is opposed to the move led by countries like China to push a proposal on investment facilitation at the World Trade Organization, a senior government official said on Tuesday.
A China-led group of 128 countries is pushing for the Investment Facilitation for Development (IFD) proposal. The proposal will be binding for only the signatory members.
"We are opposing this. It is a pluri-lateral agreement and it is also not a trade agreement," said the official.
India will also submit papers in the WTO against this, said the official, adding that such agreements would dilute the multilateral nature of the Geneva-based organisation.
The IFD was first mooted in 2017 by China and other countries that are dependent on Chinese investments, and countries with sovereign wealth funds are party to that pact. Among the major countries, the US is also sitting out of the agreement.
The World Trade Organization deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
When asked about new issues being pushed by developed countries like sustainability, the official said: "we want to first settle the mandated issues and new matters will be discussed later".
India has strongly sought a permanent solution to public stock holding of grains for food security, an issue pending for over two decades.
"India is not going to compromise on food security and livelihood issues of its farmers," the official said, adding that India's support measures to the farmers are for their sustenance.
On the other hand, production-based support measures to farmers distort trade. India provides a meagre subsidy of USD 465 per farmer against USD 81,000 per farmer by America in 2022-23.
Going forward, if at all any decision will have to come on agriculture, then the first thing that will be done is our permanent solution to public stock-holding, otherwise we will not allow any other decision in the agri, the official said adding, it is a "big red line" for the country and it is non-negotiable.
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