- Sunday, November 24, 2024
India and South Africa in their submission said as there is no exclusive consensus on the agreement, it cannot be included in the 13th Ministerial Conference.
By: Shubham Ghosh
INDIA on Wednesday (28) blocked an attempt by a group of World Trade Organization (WTO) countries led by China to push an investment facilitation pact in the agenda of the ministerial conference in Abu Dhabi, UAE — a move which may ensure that the proposal is unlikely to be part of the final outcome document, an official said.
South Africa backed India’s move to block the proposal.
The four-day 13th Ministerial Conference (MC-13) of the WTO is currently underway in the UAE capital and will conclude on Thursday (29).
Indian commerce and industry minister Piyush Goyal is in Abu Dhabi for the meeting along with his team.
Read: India seeks agriculture reforms at WTO meeting
The 123-member group led by China tried to push the proposal in the working group meeting on development and India objected to that.
“India blocked it in December last year also and in the General Council Meeting of the WTO. This is not an agreement as per definition. It is debatable whether it is a trade agreement,” the official said.
India in its attempt to block inclusion of ‘Investment Facilitation for Development (IFD)’ in the WTO during the working session on development was joined by South Africa.
Both the developing countries in their submission said as there is no exclusive consensus on the agreement, it cannot be included in the MC13.
In the working group discussions on development, India pointed out that there have been many promises but very little action, on account of which the vulnerabilities of the developing countries, including the Least Developed Countries, have only amplified further.
India said the developing countries urgently needed flexibilities in existing rules. Infant and young industries in developing countries needed support through conducive policies, incentives, subsidies and a level-playing field.
The group wants to bring the proposal through annexure-4 of the WTO under which it would be binding on only the signatory members and not on those who are opposed to it. While all decisions at the WTO happen through consensus, it also allows member countries to form a group and have agreements among themselves.
Such pacts come under Annexure 4 of the WTO that deals with plurilateral agreements. 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 the pact.
(With PTI inputs)
