India Holds Its Ground as WTO Chief Pushes for Global Investment Pact – Will It Bend?

Image Source: CNBC TV 18

Global Trade Upset: WTO Head Calls for India's Support
World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has called on India to support the China-sponsored Investment Facilitation for Development (IFD) proposal, stressing its promise of advantage to developing nations. Delivering a speech at a mini-ministerial conference in Paris, she pointed out that 90 of 126 developing countries have already endorsed the proposal.

India's Position: Walking the Tightrope between Independence and International Cooperation
India has been actively rejecting the IFD proposal on grounds of policy autonomy and weakening the multilateral framework of the WTO. India's government believes that investment facilitation is not a trade matter and ought to be brought under WTO deals only with complete agreement. The proposal, tabled in 2017, seeks to simplify investment rules across the world, but India is concerned about its implications.

Major Developments from the Paris Meeting
WTO Reform Negotiations: The conference, organized by Australia, saw trade ministers from 25 nations, including India, Australia, and Singapore, attend to address WTO reforms.

Agricultural Issues: Okonjo-Iweala recognized India's agricultural policy concerns and promised that WTO members would take them into consideration in the next round of negotiations.

US and India's Opposition: Although 128 of 166 members of the WTO favor the IFD, there are strong oppositions from powerful economies such as the United States and India regarding its effects on domestic policies.

Looking Ahead: The Road to Cameroon
Paris talks paved the way for the 14th WTO Ministerial Conference, which will take place on March 26-29, 2026, in Cameroon. India's position on the IFD proposal will be a central issue in future negotiations, determining the fate of global investment policies.

Sources: Business Standard, CNBC-TV18, Financial Express, Times of India, Rediff Money, Devdiscourse.