Turkey Changes Stance on WTO Investment Facilitation Agreement

Turkey has lifted its objections to the WTO's Investment Facilitation for Development Agreement aimed at promoting foreign direct investment in developing countries. Previously opposed, Turkey's change in position could boost the agreement's chances of incorporation into WTO frameworks, although India maintains its opposition due to concerns about its negotiating power.

Turkey announced on Thursday that it has lifted its objections to an agreement within the World Trade Organization (WTO) aimed at encouraging investment in developing countries. Previously resistant, Turkey agreed not to block the Investment Facilitation for Development Agreement (IFDA) during the WTO's 14th ministerial conference in Yaounde, Cameroon.

Trade Minister Omer Bolat expressed Turkey's continued concerns but emphasized its decision will not obstruct the agreement. The IFDA seeks to lower bureaucratic barriers to foreign direct investment, especially in developing regions. Despite Turkey's shift, India remains opposed, citing similar concerns about their negotiating clout being weakened by the agreement's plurilateral nature rather than a multilateral consensus.

The WTO's Director-General, Ngozi Okonjo-Iweala, hailed Turkey's shift as a positive sign of future cooperation among members. Some countries, like the EU and UK, advocate for a more flexible approach to agreements within the WTO, but this approach faces resistance from some developing countries worried about an equitable rule-making process.