World Trade Organization Director General Ngozi Okonjo-Iweala has called on India to lend support to the China-led Investment Facilitation for Development (IFD) proposal, which is backed by a majority of developing nations. Speaking during a meeting with Indian Commerce Minister Piyush Goyal, Okonjo-Iweala emphasized India’s critical leadership role in shaping the future of the WTO amid ongoing trade disruptions and the need for reforms. While India remains cautious about the IFD initiative, citing concerns over the dilution of the WTO’s multilateral framework, the upcoming ministerial meetings present an opportunity to address divergent interests and pave the way for a more inclusive global trade system.
WTO Director General Engages India on Key Trade Issues
In a high-profile dialogue held in Geneva, WTO Director General Ngozi Okonjo-Iweala engaged with India’s Commerce and Industry Minister Piyush Goyal on pivotal topics, including WTO reforms, agricultural concerns, and the contentious Investment Facilitation for Development proposal. The discussions underscore the growing complexities within the global trade architecture and India’s influential position within the multilateral system.
Okonjo-Iweala explicitly urged India to support the China-driven IFD proposal, highlighting its broad backing among developing nations. “India is a leading country and must open the way for other developing economies,” she noted, referencing the 90 out of 126 WTO members aligned behind the initiative. The IFD aims to streamline investment procedures to foster development and economic growth, but remains binding only for signatory countries.
India’s Reservations on Investment Facilitation for Development
Despite the widespread support for the IFD, India has historically opposed the initiative, expressing concerns at the 13th WTO Ministerial Conference in Abu Dhabi that such agreements could undermine the organization’s core multilateral principles. The 166-member WTO prides itself on ensuring that trade policies remain non-discriminatory and inclusive, fears that binding agreements outside its framework might fragment global trade governance.
The IFD, first proposed in 2017 by China and allied countries heavily reliant on Chinese investments, has notably not garnered participation from major economies like the United States. India’s position reflects a broader wariness about ceding regulatory sovereignty and preserving a level playing field for all member states.
Navigating Agricultural Challenges and WTO Reforms
Alongside investment facilitation, agriculture remains a contentious issue on India’s WTO agenda. Okonjo-Iweala acknowledged the importance of addressing India’s agricultural concerns with sensitivity and support. This dual approach signals the WTO’s recognition that sustainable trade reforms must account for the diverse developmental needs of its members.
The Director General also emphasized the need for collective introspection to identify and preserve WTO mechanisms that function effectively while reforming those that do not. “We need to listen to what developing countries, including India, as well as the US and African nations, do not like,” she remarked, encouraging open dialogue and comprehensive reform ahead of the 14th Ministerial Conference scheduled for March 2026 in Cameroon.
The Broader Context: WTO Amid Disruption and Opportunity
Okonjo-Iweala’s visit coincides with a mini-ministerial meeting convened by Australia on the sidelines of the OECD Ministerial Council Meeting, gathering trade ministers from around 25 countries, including India, Australia, and Singapore. The discussions aim to chart a collaborative path forward amidst a period of unprecedented disruptions to the global trade system.
Despite challenges, the WTO still governs approximately three-quarters of global merchandise trade under the Most Favored Nation principle, underscoring its foundational role in international commerce. The current environment presents a critical juncture for the WTO to recalibrate and renew its relevance in a rapidly evolving economic landscape.
Conclusion: Charting the Future of Multilateral Trade
The appeal from the WTO Director General for India to support the China-led Investment Facilitation proposal highlights the strategic role India plays in shaping multilateral trade governance. Balancing developmental priorities, sovereignty concerns, and the need for modernization will be key as the WTO embarks on reform dialogues ahead of the Cameroon ministerial.
The evolving discourse reflects a broader imperative: forging a more resilient, inclusive, and equitable global trade system that accommodates diverse interests while promoting sustainable economic growth worldwide.
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