India Resists China-led Investment Push at WTO

India opposes the China-led Investment Facilitation for Development proposal at the WTO, arguing it's a pluri-lateral agreement and undermines the organization's multilateral nature. India's priorities include food security and negotiating its position on EU's carbon tax amid ongoing trade agreement discussions.

India has voiced strong opposition against a proposal spearheaded by China and backed by 128 countries to introduce the Investment Facilitation for Development (IFD) at the World Trade Organization (WTO). A senior government official confirmed India's resistance, describing the proposal as a pluri-lateral agreement that could dilute the multilateral essence of the WTO.

The IFD, initially proposed in 2017 by China and countries with vested interest in Chinese investments, will only be mandatory for members who sign the pact. Notably, the United States is also not participating. India plans to submit its own papers to the WTO to counter this initiative, emphasizing that food security and farmer's livelihoods remain non-negotiable priorities.

Besides, India is cautiously crystallizing its stance on the European Union's forthcoming Carbon Border Adjustment Mechanism (CBAM) and its implications on sectors such as steel and cement as it negotiates a free trade agreement with the EU. The CBAM, expected to take effect in 2026, represents a significant concern for India amidst these negotiations.

(With inputs from agencies.)