Incorporation of the IFD agreement risks eroding the functional limits of the WTO and undermining its foundational principles, Commerce and Industry Minister Piyush Goyal said in a social media post.
This was stated by India in the ongoing 14th ministerial conference of the World Trade Organisation (WTO) in Yaounde, Cameroon.
“At #WTOMC14, drawing inspiration from Mahatma Gandhi ji’s philosophy of Truth prevailing over conformity, India showed the courage to stand alone on the contentious issue of the IFD Agreement and did not agree to its incorporation into the WTO framework as an Annex 4 Agreement,” he said.
Annex 4 of the WTO Agreement contains Plurilateral Trade Agreements that are binding only on the WTO members that have accepted them, unlike the mandatory multilateral agreements.
As part of WTO reform discussions, members are discussing guardrails and legal safeguards for plurilaterals before the integration of any specific plurilateral outcome, Goyal said.
“In view of the systemic issue at hand, India showed openness to have good faith, comprehensive discussions and constructive engagement under the WTO Reform Agenda,” he added. At the MC13 in Abu Dhabi also, India had strongly opposed the pact.
A China-led group is pushing for the Investment Facilitation for Development (IFD) proposal. The proposal will be binding for only the signatory members.
The IFD was first mooted in 2017 by China and other countries that depend heavily on Chinese investments, and countries with sovereign wealth funds are party to that pact.