India Resists China-Led Investment Agreement in WTO Talks

India Opposes China-Led Investment Facilitation for Development (IFD) Agreement at WTO

Key Points:

• India has strongly opposed the incorporation of the China-led Investment Facilitation for Development (IFD) Agreement into the World Trade Organisation (WTO) framework.
• The IFD agreement risks eroding the functional limits of the WTO and undermining its foundational principles, according to Commerce and Industry Minister Piyush Goyal.
• India stated its opposition at the ongoing 14th ministerial conference of the WTO in Yaounde, Cameroon, citing concerns over the agreement's potential impact on the organization's principles.

Background:

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• The IFD agreement was first proposed by China in 2017, and is supported by countries that depend heavily on Chinese investments, as well as those with sovereign wealth funds.
• The agreement is expected to be binding only for signatory members, unlike mandatory multilateral agreements.

WTO Reform Discussions:

• As part of WTO reform discussions, members are discussing guardrails and legal safeguards for plurilaterals before the integration of any specific plurilateral outcome.
• India has shown openness to having good faith, comprehensive discussions and constructive engagement under the WTO Reform Agenda, according to Commerce and Industry Minister Piyush Goyal.

Previous Opposition:

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• India had previously opposed the pact at the MC13 in Abu Dhabi, highlighting the country's continued concerns over the IFD agreement.