India Asserts Opposition To Investment Facilitation Discussions at WTO

India has taken a firm stance against the initiation of discussions about investment facilitation within the structure of the World Trade Organisation (WTO). The central point of India's position is that the topic of investment facilitation does not conform to the WTO's scope which traditionally revolves around global trading norms, advocacy, and regulations.

WTO General Council Meeting

The matter came to the forefront during the General Council meeting of the WTO, which took place from December 13 to 15. The Indian delegation unequivocally stated that issues revolving around investment should not be negotiated under the WTO's jurisdiction as these are typically addressed through bilateral agreements or other forums catered to investment-specific dialogues.

India's Statement Against Investment Facilitation

Asserting its perspective, the Indian delegation presented a statement emphasizing that 'Investment Facilitation for Development' (IFD) falls beyond the realm of multilateral trade relationships since investment inherently is not the same as trade. It was argued that different asset classes and enterprises fall under a distinct set of obligations which should not be conflated with trade agreements.

India raised substantive concerns that certain WTO member countries, notably Chile and Korea, have been advocating for the inclusion of investment facilitation topics in official WTO meetings. India considers these efforts as operating outside the legal framework of the WTO, often through informal processes which lack any standing in consensus-based decision-making that is characteristic of the WTO’s structure.

The upcoming WTO Ministerial Conference (MC 13), which is considered the highest decision-making body and meets biennially, is scheduled to be held from February 26 to 29, 2024, in Abu Dhabi. The issue may surface as a point of contention there as well.

Existing Agreements on Investment Aspects of Trade

India points to the existing WTO agreements that already cover investment dimensions related to trade, such as the Agreement on Trade-Related Investment Measures (TRIMS) and the General Agreement on Trade in Services (GATS). TRIMS specifically addresses investment measures that might impair trade, while GATS covers the provision of services through business establishments in foreign territories, linking it to trade in services rather than pure investment.

It was India's firm viewpoint that if certain countries are seeking to negotiate on topics of investment, it should be pursued outside the formal WTO provisions. The delegation indicated that they would not support any attempts to bring these non-mandatory, non-multilateral issues into the formal negotiating process of the WTO, stressing that there has been no Ministerial mandate for such negotiations on investment-related matters.

India, WTO, Investment