WTO meet: India, South Africa to block proposal led by China

NEW DELHI: India and

South Africa

will block a

proposal

led by China, which is being backed by over 120 countries, to have an investment facilitation agreement at the WTO. Separately, it is against any further extension of the customs duty moratorium on e-commerce trade as developing countries are seen to be losing close to $10 billion annually, with the cost for India alone estimated at $500 million.
The two issues are on the agenda for ministerial level talks in Abu Dhabi, which kick off on Monday.

On investment, India has multiple concerns, including loss of autonomy in policy-making related to foreign investment. But it has steadfastly maintained since 1996 that investment is not a trade issue and should not be linked to trade.
The stance by India and the others had forced countries led by China to discuss it outside the WTO framework, as a plurilateral agreement, as Beijing pushed its Belt Road Initiative. With the framework now in place, the 120-odd countries are seeking WTO's blessings and are even willing to offer it on a non-discriminatory basis to the entire membership, even if countries are unwilling to take the same commitments.
While the US, Sri Lanka and Pakistan are among those, which are yet to endorse the agreement, to be signed on Sunday, they are willing to allow its inclusion at WTO. India and South Africa are arguing that such decisions taken outside the framework should not be included and are set to block its inclusion. India has taken this stance on joint statement initiatives, including gender, MSMEs and domestic regulations for services. But, with the 70 countries now willing to offer a liberal process for the services sector, ranging from licensing of professions to regulation of foreign banks and telecom companies, India and South Africa have agreed to its inclusion at WTO, with the rider that they will not take on any commitments.

In the case of investment, the concerns are bigger. For instance, it will limit India's ability to restrict investment from certain countries and any rejection of an investment proposal can be subject to review. On the issues of e-commerce, govt wants to push a comprehensive work programme on e-commerce trade. "We are not in favour of extension. We are in favour of continuation of the work programme. There is a need to look at the subject from a development dimension and not from the eyes of big tech companies," an official said.