India opposes China-led deal's inclusion in World Trade Organization framework

India has opposed the incorporation of the China-led Investment Facilitation for Development (IFD) Agreement into the WTO framework, citing concerns over its impact on the body's principles and decision-making process.

The position was conveyed during the 14th ministerial conference of the World Trade Organization (WTO) held in Yaoundé, Cameroon, yesterday (28 March).

India's Commerce and Industry Minister Piyush Goyal said the inclusion of the agreement could undermine the organisation's foundational structure.

"Incorporation of the IFD agreement risks eroding the functional limits of the WTO and undermining its foundational principles," he said in a social media post.

He added that India did not agree to the proposal to include the IFD agreement as an Annex 4 Agreement within the WTO framework.

"India showed the courage to stand alone on the contentious issue of the Investment Facilitation for Development (IFD) Agreement and did not agree to its incorporation into the WTO framework as an Annex 4 Agreement," he said.

Goyal said WTO members are currently discussing guardrails and legal safeguards for plurilateral agreements as part of broader reform efforts.

On the second day of the conference, trade ministers of member countries held discussions on various WTO reform issues, including decision-making processes.

Speaking on decision-making and past mandates, Goyal said consensus-based decision-making remains central to the WTO's legitimacy and stressed that members should retain the sovereign right not to adopt rules they do not agree with.

He also highlighted the need to rebuild trust among member states and called for a careful assessment of the current challenges facing consensus-based decisions, with discussions remaining transparent, inclusive and driven by members.

India further said that a unified multilateral trading system cannot function effectively if there is fragmentation within its institutional framework.

On level-playing field concerns, Goyal said discussions should take into account structural imbalances stemming from the Uruguay Round.

He also stressed the need to address long-pending issues such as food security, public stockholding and the special safeguard mechanism for cotton alongside any new initiatives.

India pointed to the continued dysfunction of the WTO's dispute settlement system, saying that without effective adjudication, rules lose enforceability and smaller economies are placed at a disadvantage.

The country also cautioned against using transparency measures to justify trade retaliation or challenge domestic policies and said such measures should be supported by sustained capacity-building efforts for member states.