China's investment facilitation proposal beyond scope of WTO: India

Abu Dhabi: India has opposed the plurilateral Investment Facilitation Development Agreement (IFD), proposed by China, terming it a non-trade issue that lay beyond the scope of the World Trade Organization (WTO) and was being thrust on countries at the last moment when many long-standing mandated issues were pending an outcome.

Officials said IFD is an agreement among the Belt and Road Initiative (BRI) countries and led by vested interests.

"Consultations among the members need to be done," said an official, who did not wish to be identified. A China-led group of more than 120 countries is pushing for the inclusion of IFD in the WTO framework.


"They have brought unpredictability in the system through this pact," said an official.

India's concern stems from the fact that any attempts by the proponents of IFD to bring a "non-mandated, non-multilateral issue" to the formal process in the WTO would be in violation of the trade body's framework and fundamental rule of consensus-based decision-making.

The group wants to bring the proposal through annexure-4 of the WTO under which the proposal would be binding on only the signatory members and not on those who are opposed to it.

India is also opposed to extending the moratorium on taxing e-commerce transmissions beyond March 31.

The ongoing moratorium on customs duties on electronic transmissions, in place since 1998, is a contentious issue facing the WTO and a key focus point for India at the upcoming MC13.

India, alongside several other developing nations, has historically called for the termination of the moratorium and has specific demands at MC13 to achieve this goal.