Urging India to pave the way for other developing countries on the Investment Facilitation for Development (IFD) agreement, World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala has said that India needs to support the China-led initiative, which is already backed by 90 out of 126 developing nations.
Iweala added that WTO members should also listen to India’s concerns on issues like agriculture and support them as much as possible.
The IFD aims to establish a pre-investment review or appeal mechanism through an independent body to screen all investments. India is one of the few countries opposing the initiative, arguing that it is not a trade issue and cannot be adopted without full consensus. Over 128 out of 166 WTO members currently support the IFD.
According to the WTO website, the IFD Agreement sets global benchmarks to help member countries improve their investment and business environments, making it easier for investors across sectors to establish and grow operations.
However, India believes that instead of benefiting poorer nations, the IFD may erode policy autonomy in countries lacking the institutional capacity to protect themselves from undue foreign influence.
Government sources earlier told CNBC-TV18 that China has mounted significant pressure in support of IFD, securing endorsements from several countries, including Pakistan, during discussions at the General Council.
(Edited by : Sheersh Kapoor)
