World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala has asked India to support a China-backed plan aimed at easing investment rules for developing countries. Speaking during a meeting in Paris, she highlighted that over 90 developing nations favour the proposal, but India remains opposed, fearing it could weaken global trade cooperation.
Why India Is Hesitant
India argues the China-led Investment Facilitation for Development (IFD) Agreement, supported by 128 countries, undermines the WTO’s role as a multilateral body where all 166 members decide rules together. New Delhi rejected the proposal earlier this year at a major WTO meeting in Abu Dhabi, stressing such deals risk splitting the organization into smaller groups. The IFD, first proposed in 2017, is backed largely by nations reliant on Chinese investments or sovereign wealth funds. The US has also stayed away.
WTO Head: “India Must Lead”
Okonjo-Iweala met India’s Commerce Minister Piyush Goyal to discuss WTO reforms and agriculture issues. “India is a leader. It’s doing well and should pave the way for others,” she said, urging support for the IFD to help poorer nations attract foreign funds. On agriculture, she acknowledged India’s concerns about fair access to markets and food security, pledging to “listen and find solutions.”
Paris Talks: Fixing a Broken System?
The WTO chief is in Paris for a mini-meeting of 25 trade ministers, including those from Australia and Singapore, to discuss overhauling the crisis-hit organization. The WTO’s rules have struggled with rising trade wars, subsidies, and digital trade disputes. Okonjo-Iweala called the current turmoil an “opportunity” to address long-standing gaps. “Three-fourths of global trade still runs on WTO rules. We must protect that while fixing what doesn’t work,” she said.
Some of the key reform areas include fairer rules for developing nations (such as India) in agriculture and fishing; modernizing digital trade norms to cover e-commerce and data flows; and resolving deadlocks in appointing judges for trade disputes.
What’s next for WTO & India
The talks set the stage for the WTO’s next major summit in Cameroon in March 2026. With trust low between the U.S., China, and developing blocs, finding common ground is crucial. India’s stance reflects its broader push to protect farmers and small businesses while demanding richer nations cut unfair farm subsidies.
