Abu Dhabi: India on Tuesday made it clear that it would oppose any bid by pro-Belt Road Initiative countries to push an investment facilitation agreement at WTO, arguing that it was not a trade issue and was being rushed through when critical subjects, on which the membership had given a mandate more than a decade ago was not being addressed.
Govt has argued that core issues such as reform of the dispute settlement body were blocked by the US, while there were several other areas, including inclusion of remittances where the Biden administration was opposing a deal, despite it being of use to poor and developing nations.
While 130 countries, led by China, have signed an agreement on investment facilitation for development, they are now seeking to make it part of the WTO system, something that India and South Africa are opposing. They are of the view that any such agreement should first be discussed among members, instead of presenting it as a fait accompli as sovereign decisions on investment are involved. Officials said the plurilateral agreement was agreed upon among the 130 members only on Sunday. “First there needs to be consensus at WTO on having an agreement then we can discuss the details, which was not the case with this agreement,” an official said. Since 1996, govt has opposed an investment facilitation agreement.
India is worried that provisions of the investment agreement will impact its autonomous policy space and an inclusion into the WTO framework will be used to widen the scope of the agreement. The statement came as 72 countries signed an agreement on domestic regulation of services, which seeks to make rules transparent for grant of visas to doctors and nurses as well as licenses for telecom companies and banks. India, however, does not have to take any commitments to align its regulations with the agreement.
Officials said the agreement is lower than the ambition set by India for services reform, which was being ignored by developed countries, given that India was very competitive in the sector, be it professionals or sector such as IT.
Govt has argued that core issues such as reform of the dispute settlement body were blocked by the US, while there were several other areas, including inclusion of remittances where the Biden administration was opposing a deal, despite it being of use to poor and developing nations.
While 130 countries, led by China, have signed an agreement on investment facilitation for development, they are now seeking to make it part of the WTO system, something that India and South Africa are opposing. They are of the view that any such agreement should first be discussed among members, instead of presenting it as a fait accompli as sovereign decisions on investment are involved. Officials said the plurilateral agreement was agreed upon among the 130 members only on Sunday. “First there needs to be consensus at WTO on having an agreement then we can discuss the details, which was not the case with this agreement,” an official said. Since 1996, govt has opposed an investment facilitation agreement.
India is worried that provisions of the investment agreement will impact its autonomous policy space and an inclusion into the WTO framework will be used to widen the scope of the agreement. The statement came as 72 countries signed an agreement on domestic regulation of services, which seeks to make rules transparent for grant of visas to doctors and nurses as well as licenses for telecom companies and banks. India, however, does not have to take any commitments to align its regulations with the agreement.
Officials said the agreement is lower than the ambition set by India for services reform, which was being ignored by developed countries, given that India was very competitive in the sector, be it professionals or sector such as IT.