India continues to take the position that the Investment Facilitation Agreement for Development Agreement cannot be part of the World Trade Organization’s rulebook.
India reiterated its position at the General Council meeting last week, even as the United States, without joining the IFDA, supported its integration into Annex 4 of the Marrakesh Agreement, said people familiar with the development.
At the meeting, Washington said despite not participating in the IFDA, it does not want to object to its incorporation as Annex 4 of the Marrakesh Agreement that includes plurilateral agreements.
The United States is understood to have said that economic development is fostered by attracting the private sector, adding that the proposed agreement brings transparency that it is critical element for attracting investment.
During the discussion on IFDA, proponents led by Chile marshalled all their energies to drive home the message that an agreement must be concluded before the final GC meeting in July, said people who asked not to be quoted. Chile said that 125 members – Burkina Faso being the newest member – support incorporating IFD is an amendment procedure of Art 10.9 of the Marrakesh Agreement.
Chile said the IFDA proponents sought bilateral consultations with three members – India, Türkiye and South Africa – who expressed several concerns about IFDA’s integration, said people familiar with the discussions. Chile said open and constructive dialogue is indispensable, adding that discussions were held in small groups to clarify several issues.
Antigua and Barbuda on behalf of Caribbean countries supported IFDA on grounds that it would promote investment and facilitation reforms, while the Philippines said the proponents will be seeking to incorporate IFD in the WTO framework.
Cameroon, which is hosting the WTO’s 14th ministerial conference in 2026, said its government is committed to structural transformation and attracting foreign investment. Cameroon said IFDA provides an avenue for diversifying trade and technology transfer.
China, the main force, and navigator of IFD since 2016, sought consensus “on the important development issue of the IFDA incorporation.” Echoing the statements made by the IFD co-coordinator Ambassador Boza, China said it welcomes “the continued discussion at GC, with the aim to building convergence and ultimately reaching consensus for the IFDA incorporation at GC at an early date, and that is the July GC.”
Without mentioning how Chinese investments are being blocked by several trans-Atlantic governments, China said “the value and benefits of an agreement hinge entirely on its implementation.”
“As an instrument to attract investment flows and foster sustainable economic development, the IFDA has gained broad support for early incorporation and implementation at the March GC,” China emphasized.
It suggested a dedicated process “under the auspices of the GC, and if needed, the leadership of the GC Chair.”
“Finally,” said China, “as the development issues are extensively deliberated and explored at this GC, it is noteworthy that the IFDA, characterized by its unique development-oriented approach, could greatly contributes to our sustainable development goals by attracting foreign investments.
China touted the IFDA “as one of the latest and foremost development achievements under the WTO development agenda.”
Notwithstanding the fragmentation of the multilateral trading system amidst rising geo-political and geo-economic tensions, including the enforcement function of the WTO being impaired, China said “the WTO should demonstrate itself as a relevant, deliverable, and solidified organization again, by adopting an agreement that promotes development and serves interests of all members.”
New Zealand said it supports the call for a July GC decision on IFDA, suggesting that such a development would signal that the WTO is responding to calls by stakeholders and least developed and developing countries who support the initiative.
Other countries that intervened in support of IFDA include El Salvador, Russia, Argentina, Costa Rica, Cambodia, Malaysia, Gabon, the European Union, Taiwan, Nigeria, Ecuador, Singapore, the United Kingdom, South Korea and Kazakhstan among others.
Türkiye said it met with the proponents and is ready to continue discussions over its concerns. South Africa, which also expressed concerns in the GC meeting in March, said its interest in “this matter is to ensure an integrated, viable MTS as envisaged in the Marrakesh agreement.”
While acknowledging constructive discussions with the IFDA proponents, South Africa said it looks forward to inclusive, transparent and member-driven consultations.
India said categorically that its position against IFDA remains unchanged both on process and substantive issues. India said its concerns are spelt out unambiguously in WT/GC/262 that was issued at the GC meeting in December 2023.
According to that document, India said “negotiation on Investment does not belong to WTO” and that “India's concern emanates from the fact that proponents of IFD, a Joint Statement Initiative (JSI) process, should not be attempting to bring a non-mandated, non-multilateral issue to the formal process in the WTO in violation of the WTO framework and fundamental rule of consensus-based decision-making for starting a negotiation.”
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