Why is it in the news?
India opposed the China-backed IFD Agreement at WTO. Concerns raised over plurilateral approach and policy sovereignty.
Important Points:
● IFD launched in 2017 to ease global investment processes
● Plurilateral agreement – binding only on consenting members
● Excludes market access and ISDS provisions
● India calls it a “non-trade issue” beyond WTO mandate
● Threatens multilateral consensus-based WTO system
● May create two-tier WTO dominated by major economies
● Concerns over loss of policy sovereignty in FDI regulation
● Linked with China’s Belt and Road Initiative influence
● India leveraging opposition for Public Stockholding (PSH) solution
● PSH crucial for MSP and food security schemes
● WTO’s Doha Development Agenda still unresolved