India's Position at the World Trade Organization (WTO)
Opposition to China-led Proposal
India has expressed its opposition to the proposal led by China at the WTO for an ‘investment facilitation for development agreement’. This proposal seeks to establish a pre-investment review or appeal system managed by an independent body to scrutinize all investments.
Concerns Raised by India
- India highlighted the systemic and legal implications of the proposal.
- It was noted that the proposal's supporters were exerting pressure rather than engaging meaningfully on the issue.
Proposal Dynamics
A group of over 120 WTO members wants to implement the proposal through Annex-4, making it binding only for signatory members, not for those who oppose it.
India’s Caution
- India cautioned against introducing non-mandated and non-multilateral issues into the formal WTO process.
- The WTO Secretariat was urged to maintain neutrality on issues under discussion among members.
Recent Challenges in the Multilateral Trading System
India pointed out that the multilateral trading system has been stressed by various tariff and non-tariff unilateral measures and export controls, creating distortions that put pressure on developing countries.
Emphasis on Agriculture and Reform
- India emphasized the need for a detailed review of previous ministerial conference mandates, especially on agriculture issues like permanent stockholding, special safeguard mechanism, and cotton.
- Insisted that any reform-related discussions must revisit past discussions starting from the Doha Development Agenda.
WTO Reform
India stressed the importance of a fully functional two-tier dispute settlement mechanism and preserving the fundamentals of consensus-based decision making, member-driven character, and the principle of special and differential treatment.
Need for Clarity
India remarked that the current understanding of WTO reform lacks clarity and cautioned against rushing the process without a clear consensus.
