Geneva — The WTO suffered a setback at its general council meeting in Geneva on Wednesday when a small group of countries again blocked an initiative designed to boost foreign investment, two sources said.
The Investment Facilitation for Development (IFD), which aims to reduce bureaucratic hurdles to encourage foreign direct investment, particularly in developing and least-developed countries, was blocked by SA, India and Turkey, the sources said, asking to remain anonymous due to the sensitivity of the matter.
The WTO requires full consensus from all 166 members for a measure to be included in its formal rule book. The measure has been formally backed by 127 members.
Trade sources described the latest block as a “disturbing” signal as WTO members weigh sweeping reforms to revitalise the global trade body, which has been challenged by a wave of tariffs imposed by the Trump administration.
Proponents of reforms are pushing for changes to the consensus-based decision-making process, in particular to stop countries from blocking measures and bogging down initiatives.
Officials from SA, India and Turkey weren’t immediately available for comment.
“The integration of the IFD into the WTO framework is a litmus test for members’ willingness to turn reform discussions into practical action,” a trade delegate said, describing it as disappointing.
The EU delegation told members the IFD did not hurt anyone’s interests and that blocking it would “endanger” the multilateral trade system, according to a statement seen by Reuters.
SA and India previously opposed the inclusion of the measure at high-level meetings, including the 2025 ministerial meeting in Abu Dhabi, where it failed to gain consensus.
Keith Rockwell, a trade analyst at the Hinrich Foundation and former WTO communications director, said India’s continued obstruction of the IFD agreement is partly a tactic to gain leverage on food security negotiations.
“It signals very difficult times ahead for reform in other areas,” he said.
Reuters
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