India, along with South Africa, successfully blocked a key proposal led by China at the World Trade Organisation on the third day of the conference. The proposal, known as the Investment Facilitation Development Agreement (IFD), is unlikely to be included in the final outcome document of the ongoing ministerial conference.
India raised several concerns regarding the Investment Facilitation Development Agreement. Firstly, India argued that the IFD falls outside the scope of the WTO, as it is not strictly a trade issue beyond the scope of the Marrakesh agreement.
Secondly, India pointed out that the IFD does not fulfill the criteria for a formal agreement as it hasn’t received unanimous support from all WTO members, thus lacking the exclusive consensus required.
This is not the first time India has voiced its opposition to the IFD. The country previously blocked the proposal in December 2023 and at the WTO’s General Council Meeting. India’s consistent stance highlights its concerns surrounding the agreement’s potential impact.
The IFD, first proposed in 2017, aims to streamline investment procedures and facilitate cross-border investments. However, it has attracted criticism for potentially favoring countries heavily reliant on Chinese investments and those with sovereign wealth funds.
With India and South Africa’s objection, the IFD is unlikely to be adopted by the WTO in its current form. This development could lead to further discussions and potential revisions to the agreement or its complete abandonment.
By Vinod Kumar, Dubai