India has softened its stance on World Trade Organization reforms by proposing eight safeguards to integrate plurilateral agreements into the multilateral framework. This shift follows the 2026 BRICS Summit in New Delhi and intense pressure from trading partners like Canada and the EU. India previously blocked the China-backed Investment Facilitation for Development pact, which is supported by 129 members. The new proposal seeks to protect developing nations' interests, preserve consensus-based decision-making, and prevent the diversion of scarce WTO resources.
Developing country interests protection
- ▪India expressed concern that plurilateral agreements could marginalize development priorities and divert negotiating resources away from issues of particular interest to developing and least-developed members.
- ▪India's World Trade Organization reform discussions highlighted weakened trust and a lack of progress on substantive issues of interest to developing members, such as making special and differential treatment operational.
IFD agreement blockage
- ▪The Investment Facilitation for Development initiative, supported by 129 of the 166 World Trade Organization members, aims to enhance foreign direct investment flows by streamlining administrative procedures.
- ▪India blocked the incorporation of the China-backed Investment Facilitation for Development agreement into the World Trade Organization rulebook at the 14th Ministerial Conference in Cameroon in March 2026.
- ▪India argued that the Investment Facilitation for Development agreement risks eroding the foundational principles of the World Trade Organization, asserting that investment is not a core trade issue.
Debatable claims
- ▪The WTO should eliminate the consensus requirement for adopting plurilateral agreements
- ▪The WTO should formally integrate plurilateral agreements into its legal framework
- ▪Investment facilitation agreements belong within the WTO's mandate
India softens plurilateral stance
- ▪India softened its traditional opposition to plurilateral agreements by suggesting that a common understanding of safeguards can provide predictability to proponents and protect non-participants.
- ▪During its trade policy review in August 2026, several countries, including Canada and the European Union, targeted India and urged the nation to rethink its opposition to plurilateral agreements.
Eight WTO plurilateral safeguards
- ▪India's proposal warns that a proliferation of plurilateral initiatives without procedural safeguards could strain World Trade Organization resources and divert the budget from mandated uses like technical assistance.
- ▪India's proposed safeguards for plurilateral agreements include preserving consensus-based decision-making, protecting the rights and agency of non-participants, and maintaining special and differential treatment for developing nations.
- ▪India submitted a proposal to the World Trade Organization General Council on September 16, 2026, outlining eight safeguards for integrating plurilateral agreements into the multilateral framework.
BRICS summit WTO declaration
- ▪The shift in India's stance on plurilateral agreements followed the 2026 BRICS Summit in New Delhi, where members recognized the importance of identifying pathways for these initiatives within the World Trade Organization.
- ▪The 2026 BRICS New Delhi Declaration simultaneously reaffirmed support for a rules-based multilateral trading system and the exploration of forward-looking rules for plurilateral initiatives.
Multilateral versus plurilateral frameworks
- ▪Under Article X:9 of the Marrakesh Agreement, incorporating a new plurilateral agreement into Annex 4 of the World Trade Organization framework requires a decision by explicit consensus of all members.
- ▪At the 14th Ministerial Conference, 67 World Trade Organization members adopted a pathway to implement the Agreement on Electronic Commerce through interim arrangements, which India has legally questioned.
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