India thwarted an attempt led by a coalition of WTO nations, spearheaded by China, to introduce an investment facilitation agreement into the agenda of the ongoing ministerial conference. This move is anticipated to prevent the proposal from being included in the final outcome document of the conference, as per an official familiar with the matter.
The 13th Ministerial Conference (MC-13) of the World Trade Organization (WTO) is currently in session, with Commerce and Industry Minister Piyush Goyal and his delegation participating in the discussions that commenced on February 26.
India's stance was backed by South Africa, as both countries objected to the proposal during the working group meeting on development. The proposal, termed 'Investment Facilitation for Development (IFD)', faced opposition from India in December last year and during the WTO General Council Meeting as well. Indian officials argue that the IFD lacks the characteristics of a formal trade agreement and is debatable whether it fits the definition.
During the working group discussions on development, India and South Africa emphasized the need for action to address the concerns of developing countries, highlighting the inadequacy of existing promises. They underscored the urgency for flexibilities in current rules and emphasized the necessity for supportive policies, incentives, subsidies, and a fair playing field for infant and young industries in developing nations.
The proposal seeks to be brought under Annexure-4 of the WTO, making it binding only on signatory members while excluding those who oppose it. Annexure 4 deals with plurilateral agreements, allowing member countries to form groups and establish agreements among themselves.
The concept of IFD was initially introduced in 2017 by China and other countries heavily reliant on Chinese investments, with participation from nations possessing sovereign wealth funds. However, India and South Africa's objections reflect concerns about the inclusivity and consensus required for such agreements within the WTO framework.
Read also | Sunil Bharti Mittal Honored with Knighthood by King Charles III
Read also | Government Set to Initiate Second Auction of Essential Mineral Blocks on February 29th
